<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   _____________

                                   FORM 10-QSB
(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934

    For the quarterly period ended June 30, 2001
                                   -------------

                                       OR

    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934

  For the transition period from __________ to __________.

                           Commission File No. 0-23763


                              Quitman Bancorp, Inc.
--------------------------------------------------------------------------------
        (Exact name of Small Business Issuer as Specified in Its Charter)


         Georgia                                               58-2365866
--------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation               (I.R.S. Employer
 or Organization)                                          Identification No.)


                 602 East Screven Street, Quitman, Georgia 31643
                 -----------------------------------------------
                    (Address of Principal Executive Offices)


                                 (229) 263-7538
--------------------------------------------------------------------------------
                 Issuer's Telephone Number, Including Area Code

         Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
                               -----------                -----------

    Number of shares of Common Stock outstanding as of June 30, 2001: 507,262

Transitional Small Business Disclosure Format (check one)

                           YES                        NO      X
                              -----------                -----------

                                      -1-
<PAGE>

                              QUITMAN BANCORP, INC.

                                    Contents
                                    --------

<TABLE>
<CAPTION>

                                                                           Page(s)
                                                                           -------
<S>                                                                        <C>
PART I - FINANCIAL INFORMATION

 Item 1.  Financial Statements..............................................  3

 Item 2.  Management's Discussion and Analysis or Plan of Operation......... 10

PART II - OTHER INFORMATION

 Item 1.  Legal Proceedings................................................. 15

 Item 2.  Changes in Securities and Use of Proceeds......................... 15

 Item 3.  Defaults upon Senior Securities................................... 15

 Item 4.  Submission of Matters to a Vote of Security Holders............... 15

 Item 5.  Other Information................................................. 15

 Item 6.  Exhibits and Reports on Form 8-K.................................. 15

 Signatures................................................................. 16
</TABLE>

                                      -2-
<PAGE>

                          PART I. FINANCIAL INFORMATION
                      QUITMAN BANCORP, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                 ----------------------------------------------

<TABLE>
<CAPTION>
                                     ASSETS
                                     ------
                                                                             JUNE 30,                  SEPTEMBER 30,
                                                                             2001                          2000
                                                                         -----------------           ----------------
                                                                           (Unaudited)
<S>                                                                        <C>                       <C>
Cash and Cash Equivalents:
   Cash and amounts due from depository
     institutions                                                          $      677,264                     598,471
   Interest-bearing deposits in other bank                                      1,581,194                   1,064,984
   Federal funds sold                                                             110,000                           0
                                                                            -------------                 -----------
   Total Cash and Cash Equivalents                                              2,368,458                   1,663,455
Investment securities:
   Available-for-sale                                                           6,488,692                   6,546,404
Loans receivable - net of allowance for loan
   losses and deferred origination fees                                        52,929,870                  49,052,004
Office properties and equipment, at cost, net of
   accumulated depreciation                                                     1,432,891                   1,483,607
Real estate and other property acquired
   in settlement of loans                                                          41,000                           0
Accrued interest receivable                                                       735,474                     583,330
Investment required by law-stock in Federal
   Home Loan Bank, at cost                                                        372,100                     320,300
Cash value of life insurance                                                      756,115                     626,638
Other assets                                                                      133,207                     193,195
                                                                            -------------                 ------------
         Total Assets                                                         $65,257,807                  60,468,933
                                                                              ===========                  ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------
Liabilities:
   Deposits                                                                   $54,098,814                  47,336,018
   Advances from Federal Home Loan Bank                                         4,000,000                   5,000,000
   Accrued interest payable                                                       495,214                     337,586
   Income taxes payable                                                            44,880                      14,770
   Other liabilities                                                              157,623                     156,446
                                                                             ------------                  ----------
         Total Liabilities                                                     58,796,531                  52,844,820
                                                                             ------------                  ----------

Stockholders' Equity:
   Common stock, $.10 par value, 4,000,000
      shares authorized, 661,250 shares
      issued and 507,262 shares outstanding                                        66,125                      66,125
   Preferred stock, no par value, 1,000,000
      shares authorized, no shares issued
      or outstanding                                                                    0                           0
   Additional paid in capital                                                   5,410,028                   6,135,412
   Retained Earnings                                                            3,060,539                   3,662,836
   Accumulated other comprehensive income (loss)                                   39,858                     (72,086)
                                                                             ------------                 -----------
                                                                                8,576,550                   9,792,287
   Receivable from employee stock ownership plan                                 (396,750)                   (449,650)
   Treasury stock, 153,988 shares at cost                                      (1,718,524)                 (1,718,524)
                                                                             ------------                 -----------
      Total Stockholders' Equity                                                6,461,276                   7,624,113
                                                                             ------------                 -----------
Total Liabilities and Stockholders' Equity                                    $65,257,807                  60,468,933
                                                                             ============                 ===========
</TABLE>

                                      -3-
<PAGE>

                      QUITMAN BANCORP, INC. AND SUBSIDIARY

                        CONSOLIDATED STATEMENTS OF INCOME
                        ---------------------------------

<TABLE>
<CAPTION>
                                                                (UNAUDITED)                      (UNAUDITED)
                                                            THREE MONTHS ENDED                NINE MONTHS ENDED
                                                                 JUNE 30,                          JUNE 30,
                                                       ---------------------------      --------------------------
                                                           2001            2000             2001            2000
                                                       ------------    -----------      ------------    ----------
<S>                                                        <C>               <C>            <C>           <C>
Interest Income:
   Loans receivable:
      First mortgage loans                                 $1,105,645        961,780        3,240,495     2,790,474
      Consumer and other loans                                110,872         82,078          307,962       228,166
   Interest on FHLMC Pool                                          13             24               45            83
   Investment securities                                       95,275         98,900          292,420       293,922
   Interest-bearing deposits                                   10,373          6,428           49,126        20,474
   Federal funds sold                                           4,424            714            9,854         2,118
                                                           ----------     ----------       ----------    ----------
         Total Interest Income                              1,326,602      1,149,924        3,899,902     3,335,237
                                                           ----------     ----------       ----------    ----------

Interest Expense:
   Deposits                                                   825,993        623,241        2,369,108     1,800,063
   Interest on Federal Home Loan
      Bank advances                                            50,875         76,661          206,292       183,078
                                                           ----------     ----------       ----------    ----------
         Total Interest Expense                               876,868        699,902        2,575,400     1,983,141
                                                           ----------     ----------       ----------    ----------

Net Interest Income                                           449,734        450,022        1,324,502     1,352,096
Provision for loan losses                                      15,000         15,154           45,000        45,154
                                                           ----------     ----------       ----------    ----------
Net Interest Income After Provision for Losses                434,734        434,868        1,279,502     1,306,942
                                                           ----------     ----------       ----------    ----------

Non-Interest Income:
   Gain (loss) on sale of securities                                0              0           (7,582)       (7,387)
   Late charges on loans                                       12,671          9,278           27,438        27,815
   Service charges                                             42,868         26,868          110,053        73,120
   Insurance commissions                                        1,159          2,372            6,811         7,953
   Other income                                                11,316          7,804           41,247        19,602
   Gain on sale of other real estate                                0              0                0         5,911
   Gain on sale of other repossession                             430              0            5,500             0
   Gain on sale of fixed assets                                 3,465              0            3,465             0
                                                           ----------     ----------       ----------    ----------
         Total Non-Interest Income                             71,909         46,322          186,932       127,014
                                                           ----------     ----------       ----------    ----------

Non-Interest Expense:
   Compensation                                               144,543        138,924          432,100       403,818
   Other personnel expenses                                    67,078         48,847          203,723       174,296
   Occupancy expenses of premises                              12,655         12,361           39,045        37,399
   Furniture and equipment expenses                            47,498         51,518          147,949       158,592
   Federal deposit insurance                                    2,344          2,205            6,980        10,489
   Advertising                                                  8,315          5,405           30,078        22,775
   Legal expense                                                3,690          3,355           28,873        21,628
   Accounting and auditing                                     23,252         12,475           68,472        40,475
   Office supplies and printing                                10,221          8,879           34,698        31,279
   Business occupation and other taxes                         16,156         12,441           52,433        39,690
   Charitable contributions                                     1,925          1,900           10,085        15,333
   Other operating expenses                                    62,853         53,028          177,189       168,226
                                                           ----------     ----------       ----------    ----------
         Total Non-Interest Expense                           400,530        351,338        1,231,625     1,124,000
                                                           ----------     ----------       ----------    ----------

Income Before Income Taxes                                    106,113        129,852          234,809       309,956
Provision for Income Taxes                                     34,993         44,526           81,286       107,883
                                                           ----------     ----------       ----------    ----------
Net Income                                                 $   71,120         85,326          153,523       202,073
                                                           ==========     ==========       ==========    ==========
Earnings Per Share
    Basic                                                  $      .15            .18              .33           .43
                                                           ==========     ==========       ==========    ==========
    Diluted                                                $      .15            .18              .32           .43
                                                           ==========     ==========       ==========    ==========
</TABLE>

                                      -4-
<PAGE>

                     QUITMAN BANCORP, INC. AND SUBSIDIARY

                CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                               ACCUMULATED
                                                                                  OTHER
                                                 ADDITIONAL                   COMPREHENSIVE   RECEIVABLE
                                       COMMON     PAID IN         RETAINED        INCOME         FROM        TREASURY
                                       STOCK      CAPITAL         EARNINGS        (LOSS)         ESOP          STOCK       TOTAL
                                    ----------   ----------      ----------     ----------     ----------   ---------- -----------
<S>                                 <C>          <C>             <C>            <C>            <C>          <C>         <C>
Balance, September 30, 1999             66,125    6,135,412       3,491,984       (77,699)      (502,550)   (1,438,272)  7,675,000

Net income                                   0            0         202,073             0              0             0     202,073

Dividends paid                               0            0        (101,452)            0              0             0    (101,452)

Treasury stock acquired,
 26,698 shares                               0            0               0             0              0      (280,252)   (280,252)

Other comprehensive income (loss)            0            0               0       (40,180)             0             0     (40,180)

Change in receivable from employee
 stock ownership plan                        0            0               0             0         52,900             0      52,900
                                     ---------   ----------     -----------    ----------      ---------   -----------   ---------
Balances, June 30, 2000
 (Unaudited)                            66,125    6,135,412       3,592,605      (117,879)      (449,650)   (1,718,524)  7,508,089
                                     =========   ==========     ===========    ==========      =========   ===========   =========

Balance, September 30, 2000             66,125    6,135,412       3,662,836       (72,086)      (449,650)   (1,718,524)  7,624,113

Net income                                   0            0         153,523             0              0             0     153,523

Dividends paid                               0     (725,384)       (755,821)            0              0             0  (1,481,205)

Other comprehensive income (loss)            0            0               0       111,945              0             0     111,945

Change in receivable from employee
 stock ownership plan                        0            0               0             0         52,900             0      52,900
                                     ---------   ----------     -----------    ----------      ---------   -----------   ---------
Balances, June 30, 2001
 (Unaudited)                         $  66,125    5,410,028       3,060,538        39,859       (396,750)   (1,718,524)  6,461,276
                                     =========   ==========     ===========    ==========      =========   ===========   =========
</TABLE>

                                      -5-
<PAGE>

                      QUITMAN BANCORP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------

<TABLE>
<CAPTION>
                                                                              NINE MONTHS ENDED JUNE 30
                                                                        -----------------------------------
                                                                        2001                              2000
                                                                      ----------                      ----------
                                                                      (Unaudited)                     (Unaudited)

<S>                                                                   <C>                                <C>
Cash Flows From Operating Activities:
-------------------------------------
   Net income                                                         $    153,523                       202,073
   Adjustments to reconcile net income to net cash
      provided by operating activities:
      Depreciation                                                          97,563                       106,623
      Provision for loan losses                                             45,000                        45,154
      Amortization (Accretion) of securities                                 9,117                         8,645
      Gain on sale of foreclosed assets                                     (5,500)                       (5,911)
      (Gain) loss on sale of securities                                      7,582                         7,387
      Gain on sale of fixed assets                                          (3,465)                            0
      Deferred income taxes                                                 (3,926)                           33
   Change in Assets and Liabilities:
      (Increase) Decrease in accrued interest receivable                  (152,144)                      (29,750)
      Increase (Decrease) in accrued interest payable                      157,628                        75,393
      Increase (Decrease) in other liabilities                               1,177                       (52,886)
      Increase (Decrease) in income taxes payable                           30,110                         6,068
      (Increase) Decrease in other assets                                    6,247                        (9,864)
                                                                       -----------                   -----------
         Net cash provided (used) by operating activities                  342,912                       352,965
                                                                       -----------                   -----------

Cash Flows From Investing Activities:
-------------------------------------
   Capital expenditures                                                    (59,382)                      (13,536)
   Purchase of available-for-sale securities                            (3,999,422)                     (873,319)
   Proceeds from sale of foreclosed property                                23,070                        68,360
   Proceeds from sale of available-for-sale securities                   3,915,156                       541,477
   Net (increase) decrease in loans                                     (3,981,436)                   (6,077,109)
   Principal collected on mortgage-backed securities                       294,891                        81,019
   Increase in cash value of life insurance                               (129,477)                     (117,403)
   Purchase of stock in Federal Home Loan Bank                             (51,800)                      (33,600)
   Proceeds from sale of fixed assets                                       16,000                             0
                                                                       -----------                   -----------
         Net cash provided (used) by investing activities               (3,972,400)                   (6,424,111)
                                                                       -----------                   -----------

Cash Flows From Financing Activities:
-------------------------------------
   Net increase (decrease) in deposits                                   6,762,796                     4,241,893
   Proceeds from Federal Home Loan Bank advances                                 0                     2,500,000
   Principal collected on receivable from ESOP                              52,900                        52,900
   Purchase of treasury stock                                                    0                      (280,252)
   Payments on Federal Home Loan Bank advances                          (1,000,000)                            0
   Dividends paid                                                       (1,481,205)                     (101,152)
                                                                       -----------                   -----------
         Net cash provided (used) by financing activities                4,334,491                     6,413,089
                                                                       -----------                   -----------

Net Increase (Decrease) in cash and cash equivalents                       705,003                       341,943
Cash and Cash Equivalents at Beginning of Period                         1,663,455                     1,968,695
                                                                       -----------                   -----------
Cash and Cash Equivalents at End of Period                              $2,368,458                     2,310,638
                                                                        ==========                   ===========
Supplemental Disclosures of Cash Flows Information:
---------------------------------------------------
   Cash Paid During The Period:
      Interest                                                          $2,417,772                     1,907,748
      Income taxes                                                          46,886                        97,725
   Non-Cash Investing Activities:
      Increase (Decrease) in unrealized gains on available-
         for-sale securities                                               169,614                       (60,879)
</TABLE>

                                      -6-
<PAGE>

                     QUITMAN BANCORP, INC. AND SUBSIDIARY

                CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                -----------------------------------------------

<TABLE>
<CAPTION>
                                                                    (UNAUDITED)                        (UNAUDITED)
                                                                 THREE MONTHS ENDED                NINE MONTHS ENDED
                                                                      JUNE 30,                           JUNE 30,
                                                             -------------------------        -------------------------
                                                              2001             2000              2001            2000
                                                             --------        ---------        ----------       --------
<S>                                                           <C>               <C>              <C>            <C>
Net Income                                                    $71,120           85,326           153,523        202,073
                                                              -------         --------        ----------       --------

Other Comprehensive Income, Net of Tax:
   Unrealized gains (losses) on securities:
      Unrealized holding gains (losses)
        arising during the period                              (7,550)           6,310           106,941        (45,055)
      Reclassification adjustment for (gains)
        losses included in net income                               0                0             5,004          4,875
                                                              -------         --------        ----------       --------

   Other Comprehensive Income (Loss)                           (7,550)           6,310           111,945        (40,180)
                                                              -------         --------        ----------       --------

Comprehensive Income                                          $63,570           91,636           265,468        161,893
                                                              =======         ========        ==========       ========
</TABLE>

                                      -7-
<PAGE>

                      QUITMAN BANCORP, INC. AND SUBSIDIARY

                          Notes to Financial Statements
                                   (Unaudited)

Note 1 - Basis of Preparation
-----------------------------

         The accompanying unaudited financial statements were prepared in
         accordance with instructions for Form 10-QSB and therefore do not
         include all disclosures necessary for a complete presentation of the
         statements of financial condition, statements of income, statements of
         comprehensive income and statements of cash flow in conformity with
         generally accepted accounting principles. However, all adjustments
         which are, in the opinion of management, necessary for the fair
         presentation of the interim financial statements have been included.
         All such adjustments are of a normal recurring nature. The statement of
         income for the nine-month period ended June 30, 2001 is not necessarily
         indicative of the results which may be expected for the entire year.

         It is suggested that these unaudited financial statements be read in
         conjunction with the audited consolidated financial statements and
         notes thereto for Quitman Bancorp, Inc. and Subsidiary for the year
         ended September 30, 2000.

Note 2 - Plan of Conversion
---------------------------

         On October 14, 1997, the Bank's Board of Directors approved a plan
         ("Plan") to convert from a federally chartered mutual savings bank to a
         federally chartered stock savings bank subject to approval by the
         Bank's members. The Plan, which included formation of the holding
         company, Quitman Bancorp, Inc., was subject to approval by the Office
         of Thrift Supervision (OTS) and included the filing of a registration
         statement with the SEC. The conversion was completed on April 2, 1998.
         Actual conversion costs were accounted for as a reduction in gross
         proceeds.

         The Plan called for the common stock of the Bank to be purchased by the
         holding company and for the common stock of the holding company to be
         offered to various parties in an offering at a price of $10.00 per
         share.

         The stockholders of the holding company approved a proposed stock
         option plan and a proposed restricted stock plan at a meeting of the
         stockholders on April 13, 1999. Shares issued to directors and
         employees under these plans may be from authorized but unissued shares
         of common stock or they may be purchased in the open market. In the
         event that options or shares are issued under these plans, such
         issuances will be included in the earnings per share calculation; thus,
         the interests of existing stockholders would be diluted.

         The Bank may not declare or pay a cash dividend if the effect thereof
         would cause its net worth to be reduced below either the amounts
         required for the liquidation account discussed below or the regulatory
         capital requirements imposed by federal regulations.

         At the time of conversion, the Bank established a liquidation account
         (which is a memorandum account that does not appear on the balance
         sheet) in an amount equal to its retained income as reflected in the
         latest balance sheet used in the final conversion prospectus. The
         liquidation account will be maintained for the benefit of eligible
         account holders who continue to maintain their deposit accounts in the
         Bank after the conversion. In the event of a complete liquidation of
         the Bank (and only in such an event), eligible depositors who continue
         to maintain accounts shall be entitled to receive a distribution from
         the

                                      -8-
<PAGE>

         liquidation account before any liquidation may be made with respect to
         common stock.


Note 3 - Stock Repurchase
-------------------------

         The Company has adopted a stock repurchase program that allows for the
         repurchase, from time to time, of up to 153,988 shares of common stock.
         Any shares repurchased may be used for general and other corporate
         purposes, including the issuance of shares upon the exercise of stock
         options. On December 9, 1999, the Company completed its stock
         repurchase program, having repurchased 153,988 shares of its common
         stock at a cost of $1,718,524.


Note 4 - Earnings Per Share
---------------------------

         The following table sets forth the reconciliation of the numerators and
         denominators of the basic and diluted earnings per share (EPS)
         computations:

<TABLE>
<CAPTION>
                                                                THREE MONTHS ENDED                  NINE MONTHS ENDED
                                                                      JUNE 30,                           JUNE 30,
                                                             --------------------------         -----------------------
                                                               2001              2000             2001           2000
                                                             --------        ----------         ---------     ---------
<S>                                                           <C>                <C>              <C>           <C>
(a)   Net income available to shareholders                    $71,120            85,326           153,523       202,073
                                                              -------        ----------         ---------     ---------
         Denominator:
           Weighted-average shares outstanding                507,262           507,262           507,262       513,704
           Less:  ESOP weighted-average shares
           unallocated                                         39,675            44,965            41,438        46,741
                                                             --------        ----------         ---------     ---------

(b)   Basic EPS weighted-average shares
         outstanding                                          467,587           462,297           465,824       466,963

         Effect of dilutive securities                         10,777                 0            13,609             0
                                                             --------        ----------         ---------     ---------

(c)   Diluted EPS weighted-average shares
         outstanding                                          478,364           462,297           479,433       466,963
                                                             ========        ==========         =========     =========

         Basic earnings per share (a/b)                      $    .15               .18               .33           .43
                                                             ========        ==========         =========     =========

         Diluted earnings per share (a/c)                    $    .15               .18               .32           .43
                                                             ========        ==========         =========     =========
</TABLE>

                                      -9-
<PAGE>

       ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Comparison of Financial Condition at June 30, 2001 and September 30, 2000

Quitman Bancorp, Inc. (the "Company") may from time to time make written or oral
"forward-looking statements" including statements contained in the Company's
filings with the Securities and Exchange Commission (including this report on
Form 10-QSB), in its reports to stockholders and in other communications by the
Company, which are made in good faith by the Company pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements involve risks and uncertainties, such as
statements of the Company's plans, objectives, expectations, estimates and
intentions, that are subject to change based on various important factors (some
of which are beyond the Company's control). The following factors, among others,
could cause the Company's financial performance to differ materially from the
plans, objectives, expectations, estimates and intentions expressed in
forward-looking statements: the strength of the United States economy in general
and the strength of the local economies in which the Company conducts
operations; the effect of, and changes in, trade, monetary and fiscal policies
and laws, including interest rate policies of the Board of Governors of the
Federal Reserve System, inflation, interest rate and market and monetary
fluctuations; the timely development of and acceptance of new products and
services of the Company and the perceived overall value of these products and
services by users, including the features, pricing and quality compared to
competitors' products and services; the willingness of users to substitute
competitors' products and services for the Company's products and services; the
success of the Company in gaining regulatory approval of its products and
services, when required; the impact of changes in financial services' laws and
regulations (including laws concerning taxes, banking, securities and
insurance); technological changes, acquisitions; changes in consumer spending
and saving habits; and the success of the Company at managing the risks
described above involved in the foregoing.

The Company cautions that these important factors are not exclusive. The Company
does not undertake to update any forward-looking statement, whether written or
oral, that may be made from time to time by or on behalf of the Company.

Total assets increased by $4.8 million or 7.9% due primarily to the increase in
cash and cash equivalents and loans resulting from funds received from an
increase in deposits.

Total equity decreased by $1,162,837 as result of net income for the nine months
ended June 30, 2001, changes in other comprehensive income, reduction of a
guaranty of a loan to the Bank's employee stock ownership plan and a special
distribution of $2.92 per share, $1,481,205, to the Company's stockholders.

Non-Performing Assets and Delinquencies

Loans accounted for on a non-accrual basis increased to $267,253 at June 30,
2001 from $193,519 at September 30, 2000. The increase was the result of
seventeen loans being reclassified to performing loans and fifteen loans being
added to non-accrual, with higher average balances for the non-accrual loans.
The allowance for loan losses was $452,347 at June 30, 2001.

                                      -10-
<PAGE>

Comparison of the Results of Operations for the Three Months Ended June 30, 2001
and 2000

Net Income. Net income decreased by $14,206 or 16.6% from net income of $85,326
for the three months ended June 30, 2000 to net income of $71,120 for the three
months ended June 30, 2001. This decrease is primarily the result of increased
non-interest expense that was only partially offset by increased non-interest
income, primarily service charges. The special dividend payment in January 2001
of $1,481,205 reduced the amount of funds that could be invested during the
three months ended June 30, 2001 and, therefore, negatively impacted interest
income. Had this dividend not been paid, interest income and net interest income
for the three months ended June 30, 2001 would have been greater amounts. The
Company does not expect to pay any additional dividends during calendar year
2001. The annualized return on average assets decreased from .60% to .44% for
the three months ended June 30, 2000 and 2001, respectively.

Net Interest Income. Net interest income decreased $288 or .06% from $450,022
for the three months ended June 30, 2000 to $449,734 for the three months ended
June 30, 2001. Between the two periods, the cost of funds increased by 23 basis
points (100 basis points equals 1%).

Interest Income. Interest income increased $177,000 for the three months ended
June 30, 2001 compared to the same three months ended June 30, 2000. The
increase in interest income was primarily due to an increase in the average
balance of interest-earning assets. The average balance of interest-earning
assets increased by 15.03%. This increase in average interest-earning assets
added an additional $177,000 of interest income. The average yield on
interest-earning assets increased moderately to 8.68% from 8.65% for the three
months ended June 30, 2001 and 2000, respectively.

Interest Expense. Interest expense increased $177,000 from $700,000 for the
three months ended June 30, 2000 to $877,000 for the three months ended June 30,
2001. The increase in interest expense was due to an increase in average
interest-bearing liabilities of $9.8 million and an increase in the cost of
funds of 23 basis points (100 basis points equals 1%). The average balances of
deposits and advances from the Federal Home Loan bank increased by $9.8 million,
from the three months ended June 30, 2000 to the three months ended June 30,
2001. Many of the certificates of deposit originated during 2000 carry higher
rates of interest than that being offered currently. Many of these certificates
of deposit mature during the next quarter.

Non-Interest Income. Non-interest income increased by $26,000 primarily from an
increase in late charges of $3,400, service charges of $16,000, gain on sale of
fixed assets of $3,500, and miscellaneous income of $3,100.

Non-Interest Expense. Non-interest expense increased by $49,000 primarily due to
increased compensation and other personnel expense, furniture and equipment
expense and other operating expenses. Our compensation and other personnel
expense increased an aggregate of $24,000 between the periods as a result of
year-end pay raises, hiring of additional employees and contributions to the
Bank's Restricted Stock Plan approved in April of 1999. Other non-interest
expenses increased $25,000.

Although no definite plans have been made, we are exploring whether to purchase
land and construct a branch. We would likely hire experts or spend money before
we commit to purchasing land or constructing a new branch. If we decided not to
build a new branch, any money that we had spent up to that time would be a
non-interest expense and would negatively affect our income.

                                      -11-
<PAGE>

Non-interest expense increased as a result of staffing and equipping the bank
building opened in April 1999. These expenses have stabilized and our operations
in the building have now produced higher overall levels of loan and deposit
activity. Our ability to fully offset these increased non-interest expenses will
depend in part on our ability to continue to increase the size of the loan
portfolio without increasing the provision for loan losses and increase the
amount of deposits we hold without substantially increasing interest expense.
Our non-interest expense would further increase if we built the new branch
discussed in the prior paragraph.

Income Taxes. Income tax expense amounted to $85,326 for the three months ended
June 30, 2000 compared to $71,120 for the three months ended June 30, 2001.

Comparison of the Results of Operations for the Nine Months Ended June 30, 2001
and 2000

Net Income. Net income decreased by $48,500 or 24% from net income of $202,000
for the nine months ended June 30, 2000 to net income of $153,500 for the nine
months ended June 30, 2001. This decrease is primarily the result of increased
interest income and non-interest income that was more than offset by an increase
in interest and non-interest expense. The annualized return on average assets
decreased from .49% to .32% for the nine months ended June 30, 2000 and 2001,
respectively.

Net Interest Income. Net interest income decreased $27,500 or 2% from $1,352,000
for the nine months ended June 30, 2000 to $1,324,500 for the nine months ended
June 30, 2001. The decrease was primarily due to an increase in loans and a
moderate increase in rates, offset by an increase in interest expense.

Interest Income. Interest income increased $565,000 for the nine months ended
June 30, 2001 compared to the same nine months ended June 30, 2000. The increase
in interest income was primarily due to an increase in the average balance of
interest-earning assets. The average balance of interest-earning assets
increased by 16.2%. This increase in average interest-earning assets added an
additional $565,000 of interest income. The average yield on interest-earning
assets increased moderately to 8.79% from 8.74% for the nine months ended June
30, 2001 and 2000, respectively.

Interest Expense. Interest expense increased $592,000 from $1,983,000 for the
nine months ended June 30, 2000 to $2,575,000 for the nine months ended June 30,
2001. The increase in interest expense was due to an increase in average
interest-bearing liabilities of $8.8 million and an increase in the cost of
funds of 51 basis points (100 basis points equals 1%). The average balances of
deposits and advances from the Federal Home Loan bank increased by $8.8 million,
from the nine months ended June 30, 2000 to the nine months ended June 30, 2001.
Many of the certificates of deposit originated during 2000 carry higher rates of
interest than that being offered currently. Many of these certificates of
deposit mature during the next quarter.

Non-Interest Income. Non-interest income increased by $60,000 primarily from an
increase in service charges of $37,000 and miscellaneous income of $23,000.

Non-Interest Expense. Non-interest expense increased by $108,000 primarily due
to increased compensation and other personnel expense, furniture and equipment
expense and other operating expenses. Our compensation and other personnel
expense increased an aggregate of $58,000 between the periods as a result of
year-end pay raises, hiring of additional employees and contributions to the
Bank's Restricted Stock Plan approved in April of 1999. Other non-interest
expenses, including expenses of the Parent Company in the amount of $59,000,
increased $50,000.

Although no definite plans have been made, we are exploring whether to purchase
land and construct a branch. We would likely hire experts or spend money before
we commit to purchasing land or constructing a new branch. If we decided not to
build a new branch, any money that we had spent up to that time would be a
non-

                                      -12-
<PAGE>

interest expense and would negatively affect our income.

Non-interest expense has increased as a result of staffing and equipping the
bank building opened in April 1999. These expenses have stabilized and our
operations in the building have now produced higher overall levels of loan and
deposit activity. Our ability to fully offset these increased non-interest
expenses will depend in part on our ability to continue to increase the size of
the loan portfolio without increasing the provision for loan losses and increase
the amount of deposits we hold without substantially increasing interest
expense. Our non-interest expense would further increase if we built the new
branch discussed in the prior paragraph.

Income Taxes. Income tax expense amounted to $81,286 for the nine months ended
June 30, 2000 compared to $107,883 for the nine months ended June 30, 2001.

Liquidity and Capital Resources

Management monitors our risk-based capital and leverage capital ratios in order
to assess compliance with regulatory guidelines. At June 30, 2001, the Bank had
tangible capital, leverage, and total risk-based capital of 8.04%, 8.04% and
13.76%, respectively, which exceeded the OTS's minimum requirements of 1.50%,
4.00% and 8.00%, respectively.

Holders of the common stock of the Company are entitled to share ratably in
dividends, if and when, declared by the Board of Directors of the Company, out
of funds legally available therefore. Federal banking law provides that a
savings bank may, by providing prior regulatory notice, generally pay dividends
during a calendar year in an amount equal to net income for the calendar year
plus retained net income for the preceding two years. Any amount in excess of
that level requires prior regulatory approval from the Office of Thrift
Supervision (the "OTS"). The OTS may disapprove any dividend if the Bank is
undercapitalized or the dividend would render the Bank undercapitalized. The OTS
may also disapprove any dividend for, among other reasons, safety and soundness
concerns. Also, the Bank may not pay a dividend if the payment would cause its
net worth to be reduced below the amount required for the liquidation account
established at the time of the conversion of the Bank from mutual to stock form.

On December 19, 2000 the Board of Directors approved a dividend of $2.92 per
share payable January 11, 2001 to shareholders of record on December 29, 2000.
This dividend was partially paid from funds made available by dividends from the
subsidiary bank and partially paid from funds held by the Company. Approximately
$1.43 per share is deemed to be a return of capital.

On April 4, 2000 the Board of Directors approved a dividend of $.20 per share,
payable May 31, 2000 to shareholders of record on May 17, 2000. This dividend
was paid from funds made available by dividends from the subsidiary bank.

On April 20, 1999, the Board of Directors approved a dividend of $.20 per share,
payable on May 24, 1999 to shareholders of record on May 10, 1999. While the
Company paid this dividend from its cash funds, the primary source of funds
available for the payment of cash dividends by the Company are dividends from
the subsidiary bank.

We are exploring whether to purchase land and construct a branch. Although no
definite plans have been made, if a new branch is built, the land and
construction cost would total approximately $600,000. We have sufficient liquid
assets to pay for these costs.

Pursuant to FASB No. 130 the Company is required to record changes in the value
of its investment portfolio as regards unrealized gains or losses that may
result from movements in interest rates. For the quarter and nine

                                      -13-
<PAGE>


 months ended June 30, 2001, the savings bank showed unrealized gains (losses),
 net of tax effect, totaling $(7,550) and $111,945, respectively due to a
 decrease in interest rates as the National Money Market reacted to actions by
 the Federal Open Market Committee. Although these gains are unrealized, they do
 have a positive impact on the Company's capital. The unrealized gains, net of
 applicable taxes, combined with net operating income of $153,523, a reduction
 in the receivable from the Bank's Employee Stock Ownership Plan of $52,900 and
 the payment of a $2.92 per share dividend yields a net decrease in the
 Company's capital of $1,162,837. The book value per share of common stock
 decreased from $15.03 on September 30, 2000 to $12.73 as of June 30, 2001. The
 Bank's capital continues to exceed regulatory requirements and continues to be
 adequate to support future asset growth.

                                      -14-
<PAGE>

                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings
         -----------------

                  Not applicable.

Item 2.  Changes in Securities and Use of Proceeds
         -----------------------------------------

                  Not applicable.

Item 3.  Defaults Upon Senior Securities
         -------------------------------

                  Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------

                  Not applicable.

Item 5.  Other Information
         -----------------

                  Not applicable.

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

                  (a)      None.

                  (b)      None.

                                      -15-
<PAGE>

                                   SIGNATURES


     In accordance with the requirements of the Securities Exchange Act of 1934,
as amended,  the registrant has caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.


                                 QUITMAN BANCORP, INC.



Date: August 8, 2001             By:      /s/ Melvin E. Plair
                                          --------------------------------------
                                          Melvin E. Plair
                                          President and Chief Executive Officer
                                          (Principal Executive and Financial
                                            Officer)
                                          (Duly Authorized Officer)



Date: August 8, 2001             By:      /s/ Peggy L. Forgione
                                          --------------------------------------
                                          Peggy L. Forgione
                                          Vice President and Controller
                                          (Chief Accounting Officer)

                                      -16-