|**[x]** | **Quarterly Report pursuant to Section 13 or 15 (d)****Of The Securities Exchange Act of 1934**
|------- | -----------------------------------------------------------------------------------------------

|**[   ]** | **Transition Reports under Section 13 or 15(d)****Of The Securities Exchange Act of 1934**
|--------- | ------------------------------------------------------------------------------------------

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|**Delaware**(State of incorporation) | **36-4101473**(I.R.S. Employer Identification Number)
|------------------------------------ | -----------------------------------------------------

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Yes    X No  
No  (First Filing Pursuant to Rule 15d-13(a))

|Class:

Common Stock,  $.01 par value | SHARES OUTSTANDING at November 14, 2001

1,255,067
|------------------------------------- | --------------------------------------------------

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|         | Page                                                                                  
|-------- | --------------------------------------------------------------------------------------
|ITEM 1 - | FINANCIAL STATEMENTS                                                                  
|         | Condensed Consolidated Statements of Financial Condition at                           
|         |                                                                                       
|         | Condensed Consolidated Statements of Income for the three months                      
|         |                                                                                       
|         | Condensed Consolidated Statements of Stockholders' Equity for the                     
|         |                                                                                       
|         | Condensed Consolidated Statements of Cash Flows for the nine                          
|         |                                                                                       
|         | Notes to the Condensed Consolidated Financial Statements as of                        
|         |                                                                                       
|         |                                                                                       
|ITEM 2 - | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS
|         |                                                                                       
|         |                                                                                       
|         |                                                                                       
|         | Item 1.  Legal Proceedings                                                            
|         | Item 2.  Changes in Securities and use of Proceeds                                    
|         | Item 3.  Defaults Upon Senior Securities                                              
|         | Item 4.  Submission of Matters to a Vote of Security Holders                          
|         | Item 5.  Other Information                                                            
|         | Item 6.  Exhibits and Reports on Form 8-K                                             

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|                                                                  |                                                                                                       |                            | September 30,

2001                        | December 31,

2000
|----------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | -------------------------- | ------------------------------------------ | ------------------
|ASSETS                                                            |                                                                                                       |                           
|Cash on hand and in banks                                         | $390                                                                                                  | $333                      
|Interest-bearing deposit accounts in other financial institutions | 264                                                                                                   | 1,008                     
|                                                                  | Total cash and cash equivalents                                                                       | 654                        | 1,341                                     
|Interest-bearing term deposits in other financial  institutions   | 154                                                                                                   | 153                       
|Equity securities available-for-sale                              | 1,201                                                                                                 | 1,012                     
|Securities available-for-sale                                     | 25,997                                                                                                | 35,076                    
|Mortgage-backed securities available-for-sale                     | 4,015                                                                                                 | 4,607                     
|Loans receivable, net                                             | 62,446                                                                                                | 67,862                    
|Federal Home Loan Bank stock                                      | 2,145                                                                                                 | 2,034                     
|Premises and equipment, net                                       | 441                                                                                                   | 494                       
|Accrued interest receivable                                       | 761                                                                                                   | 1,058                     
|Other assets                                                      | 790                                                                                                   | 451                       
|                                                                  |                                                                                                       | Total assets               | $98,604                                    | $114,088          
|                                                                  |                                                                                                       |                            |                                            |                   
|LIABILITIES AND STOCKHOLDERS' EQUITY                              |                                                                                                       |                           
|Liabilities                                                       |                                                                                                       |                           
|                                                                  | Deposits                                                                                              | $50,718                    | $60,594                                   
|                                                                  | Advances from borrowers for taxes and insurance                                                       | 1,003                      | 648                                       
|                                                                  | Advances from the Federal Home Loan Bank and other borrowings                                         | 29,727                     | 36,147                                    
|                                                                  | Accrued interest payable and other liabilities                                                        | 847                        | 673                                       
|                                                                  |                                                                                                       | Total liabilities          | 82,295                                     | 98,062            
|                                                                  |                                                                                                       |                            |                                            |                   
|Stockholders' Equity                                              |                                                                                                       |                           
|                                                                  | Common stock $0.01 par value per share, 2,500,000 shares authorized;
2,182,125 issued and outstanding |                            |                                           
|                                                                  |                                                                                                       |                            | 22                                         | 22                
|                                                                  | Additional paid-in capital                                                                            | 21,674                     | 21,655                                    
|                                                                  | Retained earnings, substantially restricted                                                           | 7,355                      | 7,315                                     
|                                                                  | Unearned ESOP shares                                                                                  | (811)                      | (884)                                     
|                                                                  | Unearned stock awards                                                                                 | (453)                      | (583)                                     
|                                                                  | Treasury stock, at cost, 903,779 and 855,914 shares respectively                                      | (11,522)                   | (10,948)                                  
|                                                                  | Accumulated other comprehensive income (loss)                                                         | 44                         | (551)                                     
|                                                                  |                                                                                                       | Total stockholders' equity | 16,309                                     | 16,026            
|                                                                  |                                                                                                       |                            | Total liabilities and stockholders' equity | $98,604           

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|                                                    |                                                      |                                    | Nine Months EndedSeptember 30, | Three Months EndedSeptember 30,
|--------------------------------------------------- | ---------------------------------------------------- | ---------------------------------- | ------------------------------ | -------------------------------
|                                                    |                                                      |                                    |                                | 2001                           
|Interest income                                     |                                                      |                                    |                                |                                
|                                                    | Loans                                                | $3,940                             | $4,291                         | $1,271                         
|                                                    | Securities                                           | 1,044                              | 1,673                          | 270                            
|                                                    | Mortgage-backed securities                           | 205                                | 260                            | 59                             
|                                                    | Dividend income on equity investments                | 51                                 | 75                             | 13                             
|                                                    | Other interest earning assets                        | 224                                | 246                            | 71                             
|                                                    |                                                      | Total interest income              | 5,464                          | 6,545                          
|                                                    |                                                      |                                    |                                |                                
|Interest expense                                    |                                                      |                                    |                                |                                
|                                                    | Deposits                                             | 1,988                              | 2,247                          | 600                            
|                                                    | Federal Home Loan Bank advances and other borrowings | 1,646                              | 1,607                          | 464                            
|                                                    |                                                      |                                    |                                |                                
|                                                    |                                                      | Total interest expense             | 3,634                          | 3,854                          
|                                                    |                                                      |                                    |                                |                                
|Net interest income                                 | 1,830                                                | 2,691                              | 620                            | 826                            
|                                                    |                                                      |                                    |                                |                                
|Provision for loan losses                           | -                                                    | 15                                 | -                              | -                              
|                                                    |                                                      |                                    |                                |                                
|Net interest income after provision for loan losses | 1,830                                                | 2,676                              | 620                            | 826                            
|                                                    |                                                      |                                    |                                |                                
|Noninterest income                                  |                                                      |                                    |                                |                                
|                                                    | Net gain (loss) on sale of securities                | 176                                | (103)                          | 24                             
|                                                    | Gain on sale of other real estate owned              | -                                  | 53                             | -                              
|                                                    | Other operating income                               | 73                                 | 79                             | 28                             
|                                                    |                                                      | Total noninterest income           | 249                            | 29                             
|                                                    |                                                      |                                    |                                |                                
|Noninterest expense                                 |                                                      |                                    |                                |                                
|                                                    | Compensation and benefits                            | 777                                | 742                            | 256                            
|                                                    | Occupancy and equipment expense                      | 115                                | 111                            | 38                             
|                                                    | Data processing services                             | 83                                 | 67                             | 27                             
|                                                    | Professional fees                                    | 303                                | 191                            | 181                            
|                                                    | Other operating expenses                             | 235                                | 233                            | 76                             
|                                                    |                                                      | Total noninterest expense          | 1,513                          | 1,344                          
|                                                    |                                                      |                                    |                                |                                
|Income before income tax expense                    | 566                                                  | 1,361                              | 94                             | 467                            
|Income tax expense (benefit)                        | (2)                                                  | 378                                | (41)                           | 122                            
|                                                    |                                                      |                                    |                                |                                
|Net income                                          | $568                                                 | $983                               | $135                           | $345                           
|                                                    |                                                      |                                    |                                |                                
|                                                    | Change in unrealized Holding gains on securities     |                                    |                                |                                
|                                                    |                                                      | available-for-sale, net of taxes   | 703                            | 70                             
|                                                    |                                                      |                                    |                                |                                
|                                                    | Less Reclassification adjustment for gains (losses)  |                                    |                                |                                
|                                                    |                                                      | recognized in income, net of taxes | 108                            | (63)                           
|                                                    |                                                      |                                    |                                |                                
|Total Comprehensive Income                          | $1,163                                               | $1,116                             | $416                           | $927                           
|                                                    |                                                      |                                    |                                |                                
|                                                    | Basic earnings per share                             | $0.48                              | $0.76                          | $0.12                          
|                                                    | Diluted earnings per share                           | $0.48                              | $0.75                          | $0.11                          

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|                                                                            
|----------------------------------------------------------------------------
|Nine Months Ended September 30                                              
|                                                                            
|**Common Stock**                                                            
|Balance at beginning of year                                                
|                                                                            
|**Balance at September 30**                                                 
|                                                                            
|**Additional Paid-In Capital**                                              
|Balance at beginning of year                                                
|Change in additional paid in capital                                        
|                                                                            
|**Balance at September 30**                                                 
|                                                                            
|**Retained Earnings, Substantially Restricted**                             
|Balance at beginning of year                                                
|Net income for the period                                                   
|Dividends declared, $0.45 and $0.44 per share, respectively                 
|                                                                            
|**Balance at September 30**                                                 
|                                                                            
|**Unearned ESOP Shares**                                                    
|Balance at beginning of year                                                
|Change in unearned ESOP shares                                              
|                                                                            
|**Balance at September 30**                                                 
|                                                                            
|**Unearned Stock Awards**                                                   
|Balance at beginning of year                                                
|Stock awards earned                                                         
|                                                                            
|**Balance at September 30**                                                 
|                                                                            
|**Treasury Stock**                                                          
|Balance at beginning of year                                                
|Change in treasury stock                                                    
|                                                                            
|**Balance at September 30**                                                 
|                                                                            
|**Accumulated Other Comprehensive Income (Loss)**                           
|Balance at beginning of year                                                
|Change in unrealized gain (loss) on securities available-for-sale net of tax
|                                                                            
|                                                                            
|**Balance at September 30**                                                 
|                                                                            
|**Total Stockholders' Equity**                                              
|                                                                            

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|                                                 |                                                                              |                                                           |                                                |                                           | Nine months endedSeptember 30,
|------------------------------------------------ | ---------------------------------------------------------------------------- | --------------------------------------------------------- | ---------------------------------------------- | ----------------------------------------- | ------------------------------
|                                                 |                                                                              |                                                           |                                                |                                           | 2001                          
|Cash flows from operating activities             |                                                                              |                                                          
|                                                 | Net income                                                                   | $568                                                      | $983                                          
|                                                 | Adjustments to reconcile net income to net cash from                         |                                                           |                                               
|                                                 |                                                                              | operating activities                                      |                                                |                                          
|                                                 |                                                                              | Provision for loan losses                                 | -                                              | 15                                       
|                                                 |                                                                              | Dividends on Federal Home Loan Bank Stock                 | (111)                                          | (69)                                     
|                                                 |                                                                              | Depreciation                                              | 63                                             | 59                                       
|                                                 |                                                                              | Amortization of premiums and discounts on                 |                                                |                                          
|                                                 |                                                                              |                                                           | investment and mortgage-backed securities, net | (51)                                      | (61)                          
|                                                 |                                                                              | Net (gain) loss on sales of securities available-for-sale | (176)                                          | 103                                      
|                                                 |                                                                              | RRP expense                                               | 130                                            | 132                                      
|                                                 |                                                                              | ESOP expense                                              | 92                                             | 85                                       
|                                                 |                                                                              | Change in                                                 |                                                |                                          
|                                                 |                                                                              |                                                           | Deferred loan origination fees                 | (24)                                      | (37)                          
|                                                 |                                                                              |                                                           | Accrued interest receivable and other assets   | (308)                                     | 99                            
|                                                 |                                                                              |                                                           | Other liabilities and deferred income taxes    | 174                                       | 304                           
|                                                 |                                                                              |                                                           |                                                | Net cash provided by operating activities | 357                           
|                                                 |                                                                              |                                                           |                                                |                                           |                               
|Cash flows from investing activities             |                                                                              |                                                          
|                                                 | Proceeds from repayment of securities available-for-sale                     | 887                                                       | 842                                           
|                                                 | Calls on equity securities available-for-sale                                | 260                                                       | 910                                           
|                                                 | Proceeds from sale of equity securities available-for-sale                   | 36,075                                                    | -                                             
|                                                 | Purchase of equity securities available-for-sale                             | (36,411)                                                  | -                                             
|                                                 | Purchase of securities available-for-sale                                    | (10,873)                                                  | -                                             
|                                                 | Proceeds for sale of mortgage-backed securities available-for-sale           | 3,387                                                     | -                                             
|                                                 | Purchase of mortgage-backed securities available-for-sale                    | (3,610)                                                   | -                                             
|                                                 | Calls and maturities of securities available-for-sale                        | 20,855                                                    | -                                             
|                                                 | Net change in interest-bearing term deposits in other financial institutions | (1)                                                       | 6                                             
|                                                 | Net change in loans                                                          | 5,440                                                     | 2,933                                         
|                                                 | Capital expenditures, net                                                    | (10)                                                      | (81)                                          
|                                                 |                                                                              |                                                           |                                                | Net cash provided by investing activities | 15,999                        
|                                                 |                                                                              |                                                           |                                                |                                           |                               
|Cash flows from financing activities             |                                                                              |                                                          
|                                                 | Net decrease in deposits                                                     | (9,876)                                                   | (318)                                         
|                                                 | Dividends paid                                                               | (528)                                                     | (582)                                         
|                                                 | Proceeds from FHLB and other borrowings                                      | 2,643                                                     | 23,451                                        
|                                                 | Repayment of FHLB and other borrowings                                       | (9,063)                                                   | (24,343)                                      
|                                                 | Purchase of treasury stock                                                   | (574)                                                     | (4,523)                                       
|                                                 | Net increase in advance payments by borrowers for insurance and taxes        | 355                                                       | 303                                           
|                                                 |                                                                              |                                                           |                                                | Net cash used in financing activities     | (17,043)                      
|                                                 |                                                                              |                                                           |                                                |                                           |                               
|Change in cash and cash equivalents              | (687)                                                                        | 211                                                      
|                                                 |                                                                              |                                                           |                                                |                                           |                               
|Cash and cash equivalents at beginning of period | 1,341                                                                        | 3,305                                                    
|Cash and cash equivalents at end of period       | $654                                                                         | $3,516                                                   
|                                                 |                                                                              |                                                           |                                                |                                           |                               
|Supplemental disclosure of cash flow information |                                                                              |                                                          
|                                                 | Cash paid during the period for                                              |                                                           |                                               
|                                                 |                                                                              | Interest                                                  | $3,838                                         | $3,864                                   
|                                                 |                                                                              | Income taxes                                              | 165                                            | 490                                      

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|                                         |                                            |                                | Nine Months EndedSeptember 30, | Three Months EndedSeptember 30,
|---------------------------------------- | ------------------------------------------ | ------------------------------ | ------------------------------ | -------------------------------
|                                         |                                            |                                | 2001                           | 2000                           
|**Basic Earnings Per Share**             |                                            |                                |                                |                                
|                                         | Net income (Dollars in thousands)          | $568                           | $983                           | $135                           
|                                         | Weighted average common shares outstanding | 1,174,061                      | 1,302,170                      | 1,164,126                      
|                                         |                                            | **Basic Earnings Per Share**   | $0.48                          | $0.76                          
|                                         |                                            |                                |                                |                                
|**Earnings Per Share Assuming Dilution** |                                            |                                |                                |                                
|                                         | Net income (Dollars in thousands)          | $568                           | $983                           | $135                           
|                                         | Weighted average common shares outstanding | 1,174,061                      | 1,302,170                      | 1,164,126                      
|                                         | Add dilutive effect of assumed exercises   |                                |                                |                                
|                                         |                                            | Incentive stock options        | 18,426                         | 5,982                          
|                                         |                                            | Stock awards                   | -                              | -                              
|                                         | Weighted average common and dilutive       |                                |                                |                                
|                                         | potential common shares outstanding        | 1,192,487                      | 1,308,152                      | 1,195,676                      
|                                         |                                            |                                |                                |                                
|                                         |                                            | **Diluted Earnings Per Share** | $0.48                          | $0.75                          

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|Change in InterestRates(Basis Points) | EstimatedNPVAmount | Ratio of NPVtoTotal Assets | Estimated Increase(Decrease) in NPV
|------------------------------------- | ------------------ | -------------------------- | -----------------------------------
|Amount                                | Percent           
|                                      |                    |                            |                                    
|+300                                  | 8,911              | 9.12                       | (8,883)                            
|+200                                  | 11,987             | 11.83                      | (5,807)                            
|+100                                  | 15,021             | 14.30                      | (2,774)                            
|---                                   | 17,794             | 16.37                      | ---                                
|-100                                  | 19,438             | 17.45                      | 1,644                              
|-200                                  | 20,584             | 18.10                      | 2,790                              
|-300                                  | 21,789             | 18.74                      | 3,995                              

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|Item 1. | Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                     |         |         |            
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------- | ------- | -----------
|        | None                                                                                                                                                                                                                                                                                                                                                                                                                  |         |         |            
|        |                                                                                                                                                                                                                                                                                                                                                                                                                       |         |         |            
|Item 2. | Changes in Securities and use of Proceeds                                                                                                                                                                                                                                                                                                                                                                             |         |        
|        | None                                                                                                                                                                                                                                                                                                                                                                                                                  |         |         |            
|        |                                                                                                                                                                                                                                                                                                                                                                                                                       |         |         |            
|Item 3. | Defaults upon Senior Securities                                                                                                                                                                                                                                                                                                                                                                                       |         |        
|        | None                                                                                                                                                                                                                                                                                                                                                                                                                  |         |         |            
|        |                                                                                                                                                                                                                                                                                                                                                                                                                       |         |         |            
|Item 4. | Submission of Matters to a Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                                   |         |        
|        |                                                                                                                                                                                                                                                                                                                                                                                                                       |         |         |            
|        | A Special Meeting of Stockholders of the Company was held on September 26, 2001.  At the
meeting, a proposal to approve the adoption of the Agreement and Plan of Merger, dated as of June
13, 2001, by and between the Company and PNA Holding Company was approved.  The votes cast
for and against this proposal, and the number of abstentions and broker non-votes with respect to the
proposal, was as follows:
|        |                                                                                                                                                                                                                                                                                                                                                                                                                       |         |         |            
|        |                                                                                                                                                                                                                                                                                                                                                                                                                       | For     | Against | Abstentions
|        |                                                                                                                                                                                                                                                                                                                                                                                                                       | 915,666 | 31,636  | 13,722     
|        |                                                                                                                                                                                                                                                                                                                                                                                                                       |         |         |            
|Item 5. | Other information                                                                                                                                                                                                                                                                                                                                                                                                     |         |         |            
|        | None                                                                                                                                                                                                                                                                                                                                                                                                                  |         |         |            
|        |                                                                                                                                                                                                                                                                                                                                                                                                                       |         |         |            
|Item 6. | Exhibits and Reports on Form 8-K                                                                                                                                                                                                                                                                                                                                                                                      |         |        
|        | a.                                                                                                                                                                                                                                                                                                                                                                                                                    | None    |         |            
|        | b.                                                                                                                                                                                                                                                                                                                                                                                                                    | None    |         |            

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|      |                   |     | PS FINANCIAL, INC.(Registrant)                                                                         
|----- | ----------------- | --- | -------------------------------------------------------------------------------------------------------
|Date: | November 14, 2001 | By: | /s/ Kimberly Rooney

Kimberly RooneyChief Executive Officer(Principal Executive Officer)               
|Date: | November 14, 2001 | By: | /s/ Jeffrey Przybyl

Jeffrey PrzybylChief Financial Officer(Principal Financial and Accounting Officer)

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