UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

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

    FOR THE QUARTERLY PERIOD ENDED FEBRUARY 28, 2003

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES ACT OF
1934

    FOR THE TRANSITION PERIOD FROM ___________TO ____________

                        COMMISSION FILE NUMBER: 000-08880

                            THE BANKER'S STORE, INC.
             (Exact name of registrant as specified in its charter)

             NEW YORK                             11-2196303
  (State or other jurisdiction of              (I.R.S. Employer
   incorporation or organization)              Identification No.)

               1535 MEMPHIS JUNCTION ROAD, BOWLING GREEN, KY 42101
          (Address, including zip code, of principal executive offices)

                                 (270) 781-8453
              (Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes [X]  No [ ]  __



                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:

     Common stock, par value $0.01: 14,947,215 shares outstanding as of
April 14, 2003.


Transitional Small Business Disclosure Format (Check one): Yes [ ]   No [X]

<PAGE>
                            THE BANKER'S STORE, INC.

                                   FORM 10-QSB

                                FEBRUARY 29, 2003

                         PART I - FINANCIAL INFORMATION

ITEM 1.

     See financial statements beginning on page F-1.

ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                  AND RESULTS OF OPERATION

     The matters discussed in this management's discussion and analysis or plan
of operations contain forward-looking statements that involve risks and
uncertainties. Our actual results in our two operating segments could differ
materially from those discussed here. Factors that could cause or contribute to
such differences are discussed elsewhere in this quarterly report on Form
10-QSB. The Company disclaims, any intent or obligation to update these
forward-looking statements.

OVERVIEW

     The Banker's Store, Inc. ("Store") was established in 1968. It remained
dormant for many years until it completed the acquisition of B.G. Banking
Equipment, Inc., ("B.G. Banking") and Financial Building Equipment Exchange,
Inc., ("FBEE"). We are now in the business of buying, selling, and trading new
and refurbishing financial equipment for banks and other financial institutions.
Commencing during the fourth quarter of the year ended May 31, 2002, we entered
the office equipment and furniture retail business. We market products
throughout the United States primarily through direct sales to financial
institutions and other distributors supported by our direct sales force and
soliciting new contacts through our presence on the Internet.

     We anticipate that our results of operations may fluctuate for the
foreseeable future due to several factors, including whether and when new
products at competitive prices are obtained and sources of good used banking and
banking related equipment and furniture become available at favorable prices,
market acceptance of current or new products, delays, or inefficiencies,
shipment problems, seasonal customer demand, the timing of significant orders,
competitive pressures on average selling prices and changes in the mix of
products sold.

     Operating results would also be adversely affected by a downturn in the
market for our current and future products, order cancellations, or order
rescheduling or remanufacturing or delays. We purchase and resell new
merchandise and remanufacture and ship our other products shortly after receipt
of orders. We have not developed a significant backlog for such products and do
not anticipate developing a material backlog for such products in the future.

     Because we plan to increase our operating expenses, primarily for personnel
and activities supporting newly-introduced products, new product development and
entering new markets, our operating results would be adversely affected if our
sales did not correspondingly increase or if our product development efforts are
unsuccessful or are subject to delays.
<PAGE>

     We may not be able to sustain revenue growth on a quarterly or annual basis
and our operating results may not be consistent with predictions, if any, made
by securities analysts.

SUMMARY OF SIGNIFICANT ACCOUNTING ESTIMATES, RELATED PARTY TRANSACTIONS
AND CONTINGENCIES:

Significant accounting estimates:

     Our discussion and analysis of our financial condition and results of
operations are based upon our condensed consolidated financial statements, which
have been prepared in conformity with accounting principles generally accepted
in the United States of America. The preparation of these condensed consolidated
financial statements requires us to make estimates and judgments that affect the
reported amounts of assets, liabilities, revenues and expenses, and related
disclosures of contingent assets and liabilities. On an on-going basis, we
evaluate our estimates, including those related to accounts receivable,
inventories, equipment and improvements, income taxes and contingencies. We base
our estimates on historical experience and on various other assumptions that are
believed to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying value of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from
these estimates under different assumptions or conditions. The accounting
estimates used as of May 31, 2002 and as outlined in our previously filed Form
10-KSB have been applied consistently for the nine and three months ended
February 28, 2003.

Related party transactions:

     On August 1, 1998, the Company entered into a three-year operating lease
with our President and principal stockholder, Paul Clark, for the lease of an
aggregate of 23,976 square feet of office and warehouse space located in Bowling
Green, Kentucky. The lease provides for a monthly rent of $5,000 plus applicable
real estate taxes and maintenance expenses. We have extended the lease through
August 2004 under the same terms.

On September 20, 2002, Paul Clark purchased an additional building in Bowling
Green, Kentucky for $225,000, which we are currently using as warehouse space,
and leasing from him under a month to month lease for $2,200 per month.

Contingencies:

         Private placement - B.G. Banking:
                  Prior to the Store's reverse merger with B.G. Banking and
                  FBEE, B.G Banking offered and received subscriptions for
                  126,500 shares of its common stock at $1.00 per share.
                  Subsequent to the date of the reverse merger, the subscribers
                  of shares of B.G. Banking's common stock were offered and they
                  received shares of common stock in the Store at a ratio of 1
                  share of B.G. Banking common stock to 1.5 shares of the
                  Store's common stock. We issued 189,750 shares of its common
                  stock in satisfaction of the subscription agreements at a
                  value of $.67 per share.

<PAGE>

                  Two of our directors, acting individually as principals of
                  Taurus Investments International, Inc. (a Nevada corporation)
                  (collectively "Taurus"), and as directors of B.G. Banking
                  prior to its acquisition by the Store and subsequent to the
                  acquisition becoming directors of the Company, offered and
                  sold on behalf of B.G. Banking what Taurus has admitted to
                  being an aggregate of 304,500 shares of B.G. Banking's common
                  stock for an aggregate consideration of $304,500. Taurus has
                  remitted to the Store net proceeds of $109,674 and claims the
                  difference of $194,826 as payment for expenses and
                  commissions. In addition, Taurus has refused to disclose the
                  names and numbers of shares of common stock and refused to
                  remit to the Store the proceeds of the shares sold. As of
                  February 28, 2003, Taurus has failed to turn over the balance
                  of money, provide the names of the stock subscribers and the
                  number of shares of common stock purchased.

                  Based upon the accounting provided by Taurus to the Store, the
                  Store may be liable for the issuance of up to 329,500 shares
                  of common stock if and when Taurus substantiates their
                  representation as to the number of shares of common stock sold
                  and aggregate consideration. This number of shares represents
                  the number of shares admittedly sold by Taurus for which the
                  purchases have as yet remained unidentified.

                  We may also be forced to defend ourself against actions to be
                  brought by unknown subscribers to shares of common stock of
                  B.G. Banking whose purchase price has never been disclosed or
                  delivered to the  Store. We are aware of one alleged
                  purchaser who claims to have delivered funds to Taurus and
                  whose funds were apparently not turned over to us. In the
                  opinion of management, the  Store has no liability to
                  such purchasers and intends to vigorously defend such actions,
                  if and when brought.

                  We have received approximately $42,000 from Taurus relating to
                  the purchase of shares by an unknown investor in June 1999. We
                  are holding such funds in escrow pending disposition.

                  As of February 28, 2003, we have reserved 329,500 shares of
                  common stock pending possible issuance of shares in
                  satisfaction of outstanding subscription agreements.

         Litigation:

                  On February 29, 2000, Alexander C. Brosda and Andrew Seim
                  filed an action in the United States District Court in Florida
                  against the Store. The action alleges that we violated the
                  Securities and Exchange Act of 1934, as amended, and various
                  Florida statutes, by failing to affect the exchange of 150,000
                  shares of B.G. Banking common stock held by Brosda and Seim
                  for 225,000 shares of our common stock. On June 5, 2000, we
                  filed a motion to dismiss the complaint for failure to state a
                  claim, improper venue and lack of jurisdiction, respectively.

<PAGE>

                  On January 23, 2001, the court dismissed the plaintiff's
                  claims alleging violations of the Securities Exchange Act of
                  1934. The plaintiffs did not file an amended complaint, and
                  the action has been dismissed by the court without prejudice.

                  However, on September 26, 2001, Taurus Venture Capital Fund,
                  LLC and Taurus filed a similar claim against the Store and our
                  President, Paul Clark. The claim seeks $2,000,000 for actual
                  damages based upon a per share price of $4.50, treble damages
                  of $6,615,000 plus interest and fees. On August 6, 2002, we
                  filed an answer, affirmative defenses and counterclaims
                  against plaintiffs, denying the allegations in the complaint
                  and alleging as counterclaims the same claims as are alleged
                  in the following described action pending in New York State,
                  seeking damages in the amount of not less than $1,700,000 for
                  breach of fiduciary duty, breach of contract, conversion and
                  unjust enrichment, and seeking an accounting of plaintiffs'
                  books and records. We intend to continue to vigorously defend
                  ourself against the claims of the plaintiffs and to vigorously
                  pursue our claims against the plaintiffs.

                  On March 7, 2000, we filed an action in the Supreme Court of
                  New York, County of New York, against Taurus, seeking an
                  amount of not less than $1,700,000 for breach of fiduciary
                  duty, breach of contract, conversion and unjust enrichment and
                  seeking an accounting of Taurus' books and records. The action
                  arises out of B.G. Banking's confidential private placement
                  memorandum dated January 31, 1998 for the sale of 3,000,000
                  shares of common stock at $1.00 per share. Taurus filed a
                  motion to dismiss the action which the court denied on October
                  5, 2000. On December 14, 2000, the court granted our oral
                  motion for the entry of a default judgment against Taurus. On
                  May 4, 2001, the Court granted the motion filed by the
                  defendant and, as a result, the action has been transferred to
                  the New York State Supreme Court, Delaware County. We are
                  awaiting a date for a hearing on plaintiff's damages. We
                  intend to continue to vigorously pursue our litigation against
                  the plaintiff.

                  Although we cannot predict the outcome of the litigation
                  described above, we do not believe that the ultimate outcome
                  will have any material adverse effect on our consolidated
                  financial statements in subsequent periods.

<PAGE>


RESULTS OF OPERATIONS

The following table sets forth operating data as a percentage of revenue for the
nine and three months ended February 28, 2003 and 2002:

<TABLE>
<CAPTION>
                                            Nine Months Ended             Three Months Ended
                                                February 28,                  February 28,
                                          2003            2002               2003          2002
                                         ---------------------         ------------------------

<S>                                      <C>             <C>               <C>          <C>
Net sales                                100.0%          100.0%            100.0%       100.0%
Cost of goods sold                        71.2%           73.6%             81.6%        87.0%
                                         -----           -----             -----        -----

Gross profit                              28.8%           26.4%             18.4%        13.0%

Expenses                                  28.7%           45.3%             20.8%        42.7%
                                         -----           -----             -----        -----

Income
  (loss) from operations                    .1%          (18.9)%            (2.4)%      (29.7)%
Other                                      (.1)%            --%               --%          --%
                                         -----           -----             -----        -----

Net income
  (loss)                                    --%          (18.9)%             (2.4)%     (29.7)%
                                         =====           =====             ======       =====
</TABLE>

RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED FEBRUARY 28, 2003 AS COMPARED TO
THE NINE MONTHS ENDED FEBRUARY 28, 2002.

Revenues were approximately $1,883,000 for the nine months ended February 28,
2003 as compared to approximately $1,245,000 for the nine months ended February
28, 2002 reflecting an increase of approximately $638,000 or 51.2%. The increase
in revenues during the nine months ended February 28, 2003 was caused primarily
by the sale of a substantial amount of inventory to a new customer during the
year. Sales to this customer approximated $410,000. In addition, there were
increased sales to several banks in the area who upgraded their ATM machines
during the period. Also, we commence operations in our office equipment segment
which accounted for approximately $114,000 of this increase

Cost of goods sold and related expenses for the nine months ended February 28,
2003 were approximately $1,342,000 or 71.2% of net sales as compared to
approximately $916,000 or 73.6% of net sales for the nine months ended February
28, 2002. Gross profit increased during the nine months ended February 28, 2003
as compared to the nine months ended February 28, 2002 primarily due to the
ratio of refurbished products sold to new products sold. The sale of refurbished
or used items carries a much higher gross profit than the sales of new items.

Selling, general and administrative expenses were approximately $540,000 for the
nine months ended February 28, 2003 as compared to approximately $565,000 for
the nine months ended February 28, 2002 reflecting a decrease of approximately
$25,000 or 4.4% over the same period last year. The decrease is mainly due to a
reduction in professional fees incurred relating to the litigation and SEC
compliance matters during the nine months ended February 28, 2003 as compared to
the nine months ended February 28, 2002.

As a result of the aforementioned, the Company's net loss during the nine months
ended February 28, 2003 decreased by approximately $234,000 to approximately a

<PAGE>

net loss of $1,000 as opposed to a net loss of approximately $235,000 for the
comparable prior period.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED FEBRUARY 28, 2003 AS COMPARED
TO THE THREE MONTHS ENDED FEBRUARY 28, 2002.

         Revenues were approximately $791,000 for the three months ended
February 28, 2003 as compared to approximately $413,000 for the three months
ended February 28, 2002 reflecting an increase of approximately $378,000 or
91.5%. The increase in revenues during the three months ended February 28, 2003
was caused primarily by banks in the area opening new branches as well as
several banks upgrading their ATM machines during the three months ended
February 28, 2003. In addition, the office equipment segment which commenced
operations in the fourth quarter of fiscal year 2002, had sales of approximately
$52,000 during this quarter.

         Cost of goods sold and related expenses for the three months ended
February 28, 2003 were approximately $645,000 or 81.6% of net sales as compared
to approximately $359,000 or 87.0% of net sales for the three months ended
February 28, 2002. Gross profit increased during the three months ended February
28, 2003 as compared to the three months ended February 28, 2002 primarily due
to the ratio of refurbished products sold to new products sold. During this
quarter we sold more refurbished products which carry a higher gross profit
percentage.

         Selling, general and administrative expenses were approximately
$164,000 for the three months ended February 28, 2003 as compared to
approximately $176,000 for the three months ended February 28, 2002 reflecting a
decrease of approximately $12,000 or 6.8% over the same period last year. The
decrease is mainly due to a reduction in professional fees incurred relating to
the litigation and SEC compliance matters during the period.

         As a result of the aforementioned, the Company's net loss during the
three months ended February 28, 2003 decreased by approximately $104,000 to a
net loss of approximately $19,000 as opposed to a net loss of approximately
$123,000 for the comparable prior period.

LIQUIDITY AND CAPITAL RESOURCES

         We have historically financed our operations through revenues from
operations, private and public placements of equity securities, debt and capital
lease financing and interest income earned on the net proceeds from the private
placements.

         We had cash and cash equivalents of $275,883 and working capital of
$342,319 at February 28, 2003. During the nine months ended February 28, 2003,
our cash and cash equivalents increased by $26,237. Cash and cash equivalents
used in operations was $55,498 primarily due to the increase in inventory of
$65,815 due to an increase in purchases for anticipated future sales, an
increase in accounts receivable of $149,908 resulting from higher level of sales
during the last month of the period. These fluctuations were partially offset by
the increase in customer deposits of $215,373. During the nine months ended
February 28, 2003, we also received net cash advances of $44,100 from our line
of credit and $55,800 from our principal stockholder. We used part of these
proceeds to purchase $33,215 of equipment.

         At February 28, 2003, we had a $150,000 revolving bank line of credit
with borrowings that bear interest at .25% above the prime rate and are secured

<PAGE>

only by the guarantee of our principal stockholder. The line of credit expires
on August 5, 2003. At February 28, 2003 and April 10, 2003, we have $72,000 and
$87,000, respectively, available to us under the revolving bank line of credit.

         We are evaluating various alternatives in addressing our future
facilities expansion needs. The alternatives being evaluated include
negotiations with various parties for the leasing of additional facility space
and the purchase of additional property to build a new or additional office and
warehousing facility. Relocation to a new facility or leasing of additional
facility space would be expected to result in an increase in rent upon
occupancy.

         We believe that our available cash, cash from operations and funds from
existing credit arrangements will be sufficient to satisfy our funding needs for
at least the next 12 months. Thereafter, if cash generated from operations is
insufficient to satisfy our working capital and capital expenditure
requirements, we may be required to sell additional equity or debt securities or
obtain additional credit facilities. There can be no assurance that such
additional capital, if needed, will be available on satisfactory terms, if at
all. Furthermore, any additional equity financing may be dilutive to
stockholders, and debt financing, if available, may include restrictive
covenants. Our future liquidity and capital funding requirements will depend on
numerous factors, including the extent to which our new products and products
under consideration are successfully developed, gain market acceptance and
become and remain competitive, the timing and results of regulatory actions in
the banking industry, the costs and timing of further expansion of sales,
marketing and manufacturing activities, and facilities expansion needs. The
failure by us to raise capital on acceptable terms when needed could have a
material adverse effect on our business, financial condition and results of
operations.

ITEM 3.           CONTROLS AND PROCEDURES

         (a) DISCLOSURE CONTROLS AND PROCEDURES. Within 90 days before filing
this report, the Company evaluated the effectiveness of the design and operation
of its disclosure controls and procedures. The Company's disclosure controls and
procedures are the controls and other procedures that it designed to ensure that
it records, processes, summarizes and reports in a timely manner the information
it must disclose in reports that it files with or submits to the Securities and
Exchange Commission. Paul D. Clark, the Company's President and CEO and Albert
Blankenship, our Principal Accounting Officer, supervised and participated in
this evaluation. Based on this evaluation, Messrs. Clark and Blankenship
concluded that, as of the date of their evaluation, the Company's disclosure
controls and procedures were effective.

         (b) INTERNAL CONTROLS. Since the date of the evaluation described
above, there have not been any significant changes in the Company's internal
accounting controls or in other factors that could significantly affect those
controls.

<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.           LEGAL PROCEEDINGS

         No material developments occurred during the quarter with respect to
our on-going litigation. For a discussion of this litigation, please see Item 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operation-Litigation herein.

ITEM 2.           CHANGES IN SECURITIES AND USE OF PROCEEDS

None.

ITEM 3.           DEFAULTS BY THE COMPANY UPON ITS SENIOR SECURITIES

None.

ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5.           OTHER INFORMATION

None.

ITEM 6.        EXHIBITS AND REPORTS ON FORM 8-K

a)  Exhibits

                   99.1     Certification of Chief Executive and Financial
                            Officer Pursuant to Section 906 of the
                            Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)


b) Reports on Form 8-K

         None.
<PAGE>


                              FINANCIAL STATEMENTS
                    THE BANKER'S STORE, INC. AND SUBSIDIARIES




                                    I N D E X

                                                                            PAGE

PART I -  FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

             CONDENSED CONSOLIDATED BALANCE SHEET
                FEBRUARY 28, 2003 (UNAUDITED)                                F-2

             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                NINE AND THREE MONTHS ENDED FEBRUARY 28, 2003 AND 2002
                (UNAUDITED)                                                  F-3

             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                NINE MONTHS ENDED FEBRUARY 28, 2003 AND 2002 (UNAUDITED)     F-4

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
             (UNAUDITED)                                                 F-5-F-9

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

ITEM 3.      CONTROLS AND PROCEDURES

PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

             SIGNATURES

                                      * * *


                                       F-1
<PAGE>



                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                FEBRUARY 28, 2003

                                   (Unaudited)

                                     ASSETS

Current assets:

     Cash and cash equivalents                                       $  275,883
     Accounts receivable, net                                           229,414
     Inventories                                                        819,631
     Prepaid expenses and other current assets                           73,273
                                                                     ----------
              Total current assets                                    1,398,201

Equipment and improvements, net                                          99,170
Other assets                                                             25,894
                                                                     ----------

              Total                                                  $1,523,265
                                                                     ==========


                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

     Notes payable - bank                                            $   78,000
     Current portion of long-term debt                                   12,911
     Accounts payable and accrued expenses                              157,208
     Customer deposits                                                  373,590
     Advances from principal stockholder                                392,173
     Private placement funds in dispute                                  42,000
                                                                     ----------
              Total current liabilities                               1,055,882

Long-term debt, net of current portion                                  17,128
                                                                     ----------
              Total liabilities                                       1,073,010
                                                                     ----------

Contingencies

Stockholders' equity:

     Common stock, $.01 par value; 80,000,000 shares
         authorized; 14,947,215 shares outstanding                      149,473
     Additional paid-in capital                                         497,216
     Accumulated deficit                                               (196,434)
                                                                     ----------
              Total stockholders' equity                                450,255
                                                                     ----------

              Total                                                  $1,523,265
                                                                     ==========


See Notes to Condensed Consolidated Financial Statements.

                                       F-2
<PAGE>



                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             NINE AND THREE MONTHS ENDED FEBRUARY 28, 2003 AND 2002
                                   (Unaudited)
<TABLE>
<CAPTION>


                                          Nine Months Ended                  Three Months Ended
                                               February 28,                      February 28,
                                     -------------------------------- -----------------------------
                                         2003               2002          2003             2002
                                     -------------      ------------- -----------     -------------

<S>                                   <C>             <C>             <C>             <C>
Revenue                               $  1,883,218    $  1,245,225    $    790,901    $    412,598

Cost of goods sold                       1,341,668         916,074         645,494         358,936
                                      ------------    ------------    ------------    ------------

Gross profit                               541,550         329,151         145,407          53,662

Selling, general and administrative
    expenses                               540,374         564,540         164,216         176,305
                                      ------------    ------------    ------------    ------------

Income (loss) from operations                1,176        (235,389)        (18,809)       (122,643)

Other income (expense)                      (1,944)            409             216            (495)
                                      ------------    ------------    ------------    ------------

Net loss                              $       (768)   $   (234,980)   $    (18,593)   $   (123,138)
                                      ============    ============    ============    ============

Basic loss per common share           $         --    $       (.02)   $         --    $       (.01)
                                      ============    ============    ============    ============

Basic weighted average number of
    common shares outstanding           14,947,215      14,947,215      14,947,215      14,947,215
                                      ============    ============    ============    ============
</TABLE>



See Notes to Condensed Consolidated Financial Statements.

                                       F-3
<PAGE>

                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED FEBRUARY 28, 2003 AND 2002
                                   (Unaudited)

<TABLE>
<CAPTION>


                                                                  2003           2002
                                                              -----------    ------------

<S>                                                             <C>          <C>
Operating activities:

     Net loss                                                   $    (768)   $(234,980)
     Adjustments to reconcile net loss to net cash
         used in operating activities:
         Depreciation and amortization                             20,742       18,864
         Changes in operating assets and liabilities:
              Accounts receivable                                (149,908)      23,581
              Inventories                                         (65,815)      82,956
              Prepaid expenses and other current assets           (21,665)      (6,376)
              Accounts payable and accrued expenses               (53,457)      33,045
              Customer deposits                                   215,373       56,495
                                                                ---------    ---------
                  Net cash used in operating activities           (55,498)     (26,415)
                                                                ---------    ---------

Investing activities - purchase of equipment and improvements     (33,215)      (9,022)
                                                                ---------    ---------

Financing activities:

     Proceeds from notes payable - bank                           194,000
     Repayments of notes payable - bank                          (149,900)     (10,292)
     Proceeds from long-term debt                                  29,831
     Repayments of long-term debt                                 (14,781)
     Proceeds from loan payable - principal stockholder            55,800       55,801
     Short-term borrowings                                                      10,000
                                                                ---------    ---------
                  Net cash provided by financing activities       114,950       55,509
                                                                ---------    ---------

Net increase in cash and cash equivalents                          26,237       20,072
Cash and cash equivalents, beginning of period                    249,646      257,524
                                                                ---------    ---------

Cash and cash equivalents, end of period                        $ 275,883    $ 277,596
                                                                =========    =========

Supplemental disclosure of cash flow information:

     Interest paid                                              $   4,559    $   1,972
                                                                =========    =========
</TABLE>



See Notes to Condensed Consolidated Financial Statements.


                                       F-4
<PAGE>



                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1 - Basis of presentation:
               In  the  opinion  of  management,   the  accompanying   unaudited
               condensed   consolidated   financial   statements   reflect   all
               adjustments,  consisting of normal recurring accruals,  necessary
               to present fairly the financial  position of The Banker's  Store,
               Inc. and  Subsidiaries  (the  "Company") as of February 28, 2003,
               and its results of operations for the nine and three months ended
               February 28, 2003 and 2002 and its cash flows for the nine months
               ended  February  28,  2003 and  2002.  Pursuant  to the rules and
               regulations   of  the  United  States   Securities  and  Exchange
               Commission  (the  "SEC"),  certain  information  and  disclosures
               normally included in financial  statements prepared in accordance
               with  accounting  principles  generally  accepted  in the  United
               States of America  have been  condensed  in or omitted from these
               consolidated financial statements unless significant changes have
               taken  place  since  the  end of the  most  recent  fiscal  year.
               Accordingly,  these unaudited  condensed  consolidated  financial
               statements  should  be  read  in  conjunction  with  the  audited
               consolidated  financial statements as of May 31, 2002 and for the
               years  ended  May 31,  2002 and 2001 and the notes  thereto  (the
               "Audited   Financial   Statements")  and  the  other  information
               included in the  Company's  Annual  Report on Form 10-KSB for the
               year ended May 31, 2002.

               The  consolidated  results of  operations  for the nine and three
               months ended February 28, 2003 are not necessarily  indicative of
               the results to be expected for the full year.

Note 2 - Net income (loss) per common share:
               The Company  presents "basic" income (loss) per common share and,
               if  applicable,  "diluted"  earnings per common share pursuant to
               the provisions of Statement of Financial Accounting Standards No.
               128,  "Earnings per Share" ("SFAS 128").  Basic income (loss) per
               share  is  calculated  by  dividing  net  income  or  loss by the
               weighted average number of common shares  outstanding during each
               period. The calculation of diluted income per share is similar to
               that of basic income per share,  except that the  denominator  is
               increased to include the number of additional  common shares that
               would have been  outstanding if all  potentially  dilutive common
               shares,  such as  those  issuable  upon  the  exercise  of  stock
               options,  were issued during the period. The Company did not have
               any  potentially  dilutive common shares  outstanding  during the
               nine months ended February 28, 2003 and 2002.

Note 3 - Income taxes:
               As of February  28,  2003,  the Company  had net  operating  loss
               carryforwards  of  approximately  $322,000  available  to  reduce
               future Federal  taxable income which will expire at various dates
               through 2023.  Due to the  uncertainties  related to, among other
               things, the changes in the ownership of the Company,  which could
               subject   those  loss   carryforwards   to   substantial   annual
               limitations,  and the extent  and  timing of its  future  taxable
               income,  the Company offset the deferred tax assets  attributable
               to the  potential  benefits of  approximately  $129,000  from the
               utilization  of those net operating  loss  carryforwards  and its
               other deferred tax assets by an equivalent valuation allowance as
               of February 28, 2003.


                                       F-5
<PAGE>



                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 3 - Income taxes (concluded):
               The  Company  had also  offset the  potential  benefits  from its
               deferred tax assets by equivalent valuation allowances during the
               year  ended  May 31,  2002.  As a result of the  increase  in the
               valuation allowance of $7,000 for the three months ended February
               28, 2003, and the increase in the valuation  allowance of $94,000
               and $49,000  during the nine and three months ended  February 28,
               2002,  respectively,  the Company did not recognize any provision
               for  income  taxes  in the  accompanying  condensed  consolidated
               statements of operations to offset its pre-tax income and loss in
               those periods.

Note 4 - Contingencies:
               Private placement - B.G. Banking:
                  Prior to The Banker's Store,  Inc.'s reverse  acquisition with
                  B.G.  Banking and FBEE on May 31, 1998,  B.G.  Banking offered
                  and received  subscriptions  for 126,500  shares of its common
                  stock  at  $1.00  per  share.  Subsequent  to the  date of the
                  reverse merger,  the  subscribers to shares of B.G.  Banking's
                  common stock were offered and they  received  shares of common
                  stock in The  Banker's  Store,  Inc.  at a ratio of 1 share of
                  B.G.  Banking common stock to 1.5 shares of The Banker's Store
                  Inc.'s common stock.  The Company issued 189,750 shares of its
                  common stock in satisfaction of the subscription agreements at
                  a value of $.67 per share.

                  Two  of  the  Company's  directors,   acting  individually  as
                  principals of Taurus Investments International, Inc. (a Nevada
                  corporation) (collectively "Taurus"), and as directors of B.G.
                  Banking prior to its acquisition by The Banker's  Store,  Inc.
                  and subsequent to the  acquisition  becoming  directors of the
                  Company,  offered  and sold on  behalf  of B.G.  Banking  what
                  Taurus has admitted to being an aggregate of 304,500 shares of
                  B.G. Banking's common stock for an aggregate  consideration of
                  $304,500.  Taurus has  remitted to the Company net proceeds of
                  $109,674 and claims the  difference of $194,826 as payment for
                  expenses and commissions.  In addition,  Taurus has refused to
                  disclose  the names and numbers of shares of common  stock and
                  refused to remit to the  Company  the  proceeds  of the shares
                  sold. As of February 28, 2003,  Taurus has failed to turn over
                  the  balance  of  money,   provide  the  names  of  the  stock
                  subscribers   and  the  number  of  shares  of  common   stock
                  purchased.

                  Based upon the  accounting  provided by Taurus to the Company,
                  the  Company  may be liable for the  issuance of up to 329,500
                  shares of common stock if and when Taurus  substantiates their
                  representation as to the number of shares of common stock sold
                  and  the  aggregate  consideration.   This  number  of  shares
                  represents the number of shares  admittedly sold by Taurus for
                  which the purchasers have as yet remained unidentified.


                                       F-6
<PAGE>



                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 4 - Contingencies (continued):
               Private placement - B.G. Banking (concluded):
                  The  Company  may also be  forced  to  defend  itself  against
                  actions  to be brought  by  unknown  subscribers  to shares of
                  common stock of B.G.  Banking whose  purchase  price has never
                  been  disclosed or  delivered  to the Company.  The Company is
                  aware of one alleged  purchaser  who claims to have  delivered
                  funds to Taurus  and whose  funds were  apparently  not turned
                  over to the Company. In the opinion of management, the Company
                  has no liability to such  purchasers and intends to vigorously
                  defend such actions, if and when brought.

                  The Company has  received  approximately  $42,000  from Taurus
                  relating to the  purchase of shares by an unknown  investor in
                  June 1999. The Company is holding such funds in escrow pending
                  disposition.

                  As of February  28,  2003,  the Company has  reserved  329,500
                  shares of common stock pending possible  issuance of shares in
                  satisfaction of outstanding subscription agreements.

               Litigation:
                  On  February  29,  2000,  Alexander  C. Brosda and Andrew Seim
                  filed an action in the United States District Court in Florida
                  against  the  Company.  The action  alleges  that the  Company
                  violated the Securities Exchange Act of 1934, as amended,  and
                  various Florida statutes, by failing to effect the exchange of
                  150,000 shares of B.G. Banking common stock held by Brosda and
                  Seim for 225,000 shares of the Company's common stock. On June
                  5, 2000,  the Company  filed a motion to dismiss the complaint
                  for  failure  to state a  claim,  improper  venue  and lack of
                  jurisdiction,  respectively.  On January 23,  2001,  the court
                  dismissed the plaintiffs'  claims  alleging  violations of the
                  Securities  Exchange Act of 1934.  The plaintiffs did not file
                  an amended complaint, and the action has been dismissed by the
                  court without prejudice.

                  However,  on September 26, 2001,  Taurus Venture Capital Fund,
                  LLC and Taurus filed a similar  claim  against the Company and
                  its president.  The claim seeks  $2,000,000 for actual damages
                  based  upon a per share  price of  $4.50,  treble  damages  of
                  $6,615,000  plus  interest  and fees.  On August 6, 2002,  the
                  Company  and  its  president  filed  an  answer,   affirmative
                  defenses and  counterclaims  against  plaintiffs,  denying the
                  allegations in the complaint and alleging as counterclaims the
                  same claims as are alleged in the following  described  action
                  pending in New York  State,  seeking  damages in the amount of
                  not less than $1,700,000 for breach of fiduciary duty,  breach
                  of contract,  conversion and unjust enrichment, and seeking an
                  accounting  of  plaintiffs'  books and  records.  The  Company
                  intends to continue to vigorously  defend  itself  against the
                  claims of the plaintiffs  and to vigorously  pursue its claims
                  against the plaintiffs.


                                       F-7
<PAGE>



                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 4 - Contingencies (concluded):
               Litigation (concluded):
                  On March 7, 2000,  the Company  filed an action in the Supreme
                  Court of New York, County of New York, against Taurus, seeking
                  an amount of not less than  $1,700,000 for breach of fiduciary
                  duty, breach of contract, conversion and unjust enrichment and
                  seeking an accounting of Taurus' books and records. The action
                  arises out of B.G.  Banking's  confidential  private placement
                  memorandum  dated  January 31, 1998 for the sale of  3,000,000
                  shares of  common  stock at $1.00 per  share.  Taurus  filed a
                  motion to dismiss the action which the court denied on October
                  5, 2000. On December 14, 2000, the court granted the Company's
                  oral  motion  for the  entry  of a  default  judgment  against
                  Taurus.  On May 4, 2001,  the Court  granted a motion filed by
                  the  defendant   and,  as  a  result,   the  action  has  been
                  transferred  to the New York  State  Supreme  Court,  Delaware
                  County.  The  Company is  awaiting a date for a hearing on its
                  claim against the plaintiff for damages.  The Company  intends
                  to continue to vigorously  pursue its  litigation  against the
                  plaintiff.

                  Although  it cannot  predict  the  outcome  of the  litigation
                  described above, management does not believe that the ultimate
                  outcome of the claims brought by the plaintiffs  will have any
                  material   adverse   effect  on  the  Company's   consolidated
                  financial statements in subsequent periods.

Note 5 - Segment information:
               The Company has adopted the provisions of Statements of Financial
               Accounting  Standards No. 131,  "Disclosures about Segments of an
               Enterprise and Related Information ("SFAS 131").  Pursuant to the
               provisions of SFAS 131, the Company is reporting  segment  sales,
               cost of goods sold,  gross  margins and  inventories  in the same
               format  reviewed by the  Company's  management  (the  "management
               approach").  The Company  has two  reporting  segments:  "Banking
               Equipment" and "Office  Equipment." The Banking Equipment segment
               is comprised of the operations connected with the buying, selling
               and trading of new and refurbished  financial equipment for banks
               and other financial institutions. The Office Equipment segment is
               comprised of buying and selling office equipment and supplies.

               Net  sales,   cost  of  goods  sold  and  other  related  segment
               information  follows for the nine and three months ended February
               28, 2003:


                                       F-8
<PAGE>



                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 5 - Segment information (concluded):
<TABLE>
<CAPTION>


                                                                                             Nine              Three
                                                                                           Months             Months
                                                                                            Ended              Ended
                                                                                          February           February
                                                                                          28, 2003           28, 2003
                                                                                         ----------         ----------

<S>                                                                                       <C>                 <C>
                         Revenue:

                            Banking Equipment                                             $1,768,854          $738,990
                            Office Equipment                                                 114,364            51,911
                                                                                          ----------          --------

                               Totals                                                     $1,883,218          $790,901
                                                                                          ==========          ========

                         Cost of goods sold:
                            Banking Equipment                                             $1,269,878          $617,311
                            Office Equipment                                                  71,790            28,183
                                                                                          ----------          --------

                               Totals                                                     $1,341,668          $645,494
                                                                                          ==========          ========

                         Gross profit:

                            Banking Equipment                                             $  498,976          $121,679
                            Office Equipment                                                  42,574            23,728
                                                                                          ----------          --------

                               Totals                                                     $  541,550          $145,407
                                                                                          ==========          ========
</TABLE>

               The operations of the Office  Equipment  segment did not commence
               until  the  fourth  quarter  of the  year  ended  May  31,  2002.
               Accordingly, segment data has not been provided for 2002.





                                       F-9
<PAGE>


                                   SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                          THE BANKER'S STORE, INC.



                          By: /s/ Paul D. Clark
                              ----------------------------
                              Paul D. Clark,
                              President, CEO and Director
                             (Principal Executive Officer)

                          By: /s/ Albert Blankenship
                              ----------------------------
                              Albert Blankenship,
                              Chief Financial Officer and Director
                             (Principal Accounting Officer)



Date: April 14, 2003


<PAGE>


                                  CERTIFICATION

I, Paul Clark, President and Chief Executive Officer of the Company, hereby
certify, that:

1.   I have reviewed this quarterly report on Form 10-QSB of The Banker's Store,
     Inc.;

2.   based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary in
     order to make the statements made, in light of the circumstances under
     which such statements were made, not misleading with respect to the period
     covered by this quarterly report;

3.   based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officer and I are responsible for
     establishing and maintaining "disclosure controls and procedures" for the
     registrant and have:

a        have designed such disclosure controls and procedures to ensure that
         material information is made known to them, particularly during the
         period in which the periodic report is being prepared;

          b    have evaluated the effectiveness of the registrant's disclosure
               controls and procedures as of a date within 90 days prior to the
               filing date of the report; and

          c    have presented in the report their conclusions about the
               effectiveness of the disclosure controls and procedures based on
               the required evaluation as of the date;

5. The registrant's other certifying officer and I have disclosed to the
registrant's auditors and to the board of directors:

          d    all significant deficiencies in the design or operation of
               internal controls which could adversely affect the registrant's
               ability to record, process, summarize and report financial data
               and have identified for the registrant's auditors any material
               weaknesses in internal controls; and

          e    any fraud, whether or not material, that involves management or
               other employees who have a significant role in the registrant's
               internal controls; and

6.       The registrant's other certifying officers and I have indicated in this
         quarterly report whether or not there were significant changes in
         internal controls or in other factors that could significantly affect
         internal controls subsequent to the date of our evaluation, including
         any corrective actions with regard to significant deficiencies and
         material weaknesses.

 /s/ Paul D. Clark
------------------
Paul D. Clark
President and Chief Executive Officer

April 14, 2003
<PAGE>


                                  CERTIFICATION

I, Albert Blankenship, Chief Financial Officer and Director (Principal
Accounting Officer) of the Company, hereby certify, that:

1.   I have reviewed this quarterly report on Form 10-QSB of The Banker's Store,
     Inc.;

2.   based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary in
     order to make the statements made, in light of the circumstances under
     which such statements were made, not misleading with respect to the period
     covered by this quarterly report;

3.   based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officer and I are responsible for
     establishing and maintaining "disclosure controls and procedures" for the
     registrant and have:

          a    have designed such disclosure controls and procedures to ensure
               that material information is made known to them, particularly
               during the period in which the periodic report is being prepared;

          b    have evaluated the effectiveness of the registrant's disclosure
               controls and procedures as of a date within 90 days prior to the
               filing date of the report; and

          c    have presented in the report their conclusions about the
               effectiveness of the disclosure controls and procedures based on
               the required evaluation as of the date;

5. The registrant's other certifying officer and I have disclosed to the
registrant's auditors and to the board of directors:

          a    all significant deficiencies in the design or operation of
               internal controls which could adversely affect the registrant's
               ability to record, process, summarize and report financial data
               and have identified for the registrant's auditors any material
               weaknesses in internal controls; and

          b    any fraud, whether or not material, that involves management or
               other employees who have a significant role in the registrant's
               internal controls; and

6.       The registrant's other certifying officers and I have indicated in this
         quarterly report whether or not there were significant changes in
         internal controls or in other factors that could significantly affect
         internal controls subsequent to the date of our evaluation, including
         any corrective actions with regard to significant deficiencies and
         material weaknesses.

/s/ Albert Blankenship
-----------------------
Albert Blankenship,
Chief Financial Officer

April 14, 2003