<PAGE>
                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                   Quarterly report under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                 For the fiscal quarter ended February 28, 2002

                           Commission File No.: 0-0880

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

                                    New York
         (State or Other Jurisdiction of Incorporation or Organization)

                 (I.R.S. Employer Identification No.) 11-2196303

               1535 Memphis Junction Road, Bowling Green, KY 42101
                    (Address of Principal Executive Offices)
       Registrant's Telephone Number, including Area Code: (270) 781-8453


         Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of Act: Common Stock, $.01 par
value per share.

           Check whether the issuer: (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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. [X] Yes [ ] No.

           As of April 10, 2002, the aggregate market value of the voting and
non-voting common equity held by non-affiliates of the Registrant was
approximately $232,700. This aggregate market value is computed by reference to
the last sale price of such common equity on such date.

           14,947,215 shares, $.01 par value per share, as of April 10, 2002
(Number of shares outstanding of each of the issuer's classes of common stock,
as of the latest practicable date)


<PAGE>

                    THE BANKER'S STORE, INC. AND SUBSIDIARIES


                                    INDEX


<TABLE>
<CAPTION>
                                                                                              PAGE
<S>                                                                                           <C>

PART I -  FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

          CONDENSED CONSOLIDATED BALANCE SHEETS
              FEBRUARY 28, 2002 (UNAUDITED) AND MAY 31, 2001                                    2

          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              NINE AND THREE MONTHS ENDED FEBRUARY 28, 2002 AND 2001 (UNAUDITED)                3

          CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              NINE MONTHS ENDED FEBRUARY 28, 2002 AND 2001 (UNAUDITED)                          4

          NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)                      5-7

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION                             8-14

PART II.  OTHER INFORMATION                                                                     15

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K                                                      16

          SIGNATURES                                                                            17
</TABLE>

                                    *  *  *
                                       1



<PAGE>
PART I
ITEM 1. FINANCIAL STATEMENTS

                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                       FEBRUARY 28, 2002 AND MAY 31, 2001




<TABLE>
<CAPTION>
                                                            February           May
         ASSETS                                             28, 2002          31, 2001
         ------                                           -----------     -----------
                                                            (Unaudited)(See Note 1)
<S>                                                       <C>             <C>
Current assets:
      Cash and cash equivalents                           $   277,596     $   257,524
      Accounts receivable, net                                134,099         157,680
      Inventories                                             680,685         763,641
      Prepaid expenses and other current assets                33,419          27,043
                                                          -----------     -----------
                Total current assets                        1,125,799       1,205,888

Equipment and improvements, net                                89,016          98,858
Other assets                                                    7,331           7,331
                                                          -----------     -----------

                Totals                                    $ 1,222,146     $ 1,312,077
                                                          ===========     ===========


         LIABILITIES AND STOCKHOLDERS' EQUITY
         ------------------------------------


Current liabilities:
      Current portion of long-term debt                   $    11,673     $    13,874
      Short-term borrowings                                    10,000
      Accounts payable and accrued expenses                   119,956          86,911
      Customer deposits                                       160,376         103,881
      Advances from principal stockholder                     317,773         261,972
      Private placement funds in dispute                       42,000          42,000
                                                          -----------     -----------
                Total current liabilities                     661,778         508,638

Long-term debt, net of current portion                          1,555           9,646
                                                          -----------     -----------
                Total liabilities                             663,333         518,284
                                                          -----------     -----------

Contingencies

Stockholders' equity:
      Common stock, $.01 par value; 80,000,000 shares
           authorized; 14,947,215 shares outstanding          149,473         149,473
      Additional paid-in capital                              497,216         497,216
      Retained earnings (accumulated deficit)                 (87,876)        147,104
                                                          -----------     -----------
                Total stockholders' equity                    558,813         793,793
                                                          -----------     -----------

                Totals                                    $ 1,222,146     $ 1,312,077
                                                          ===========     ===========
</TABLE>


See Notes to Condensed Consolidated Financial Statements.


                                       2

<PAGE>


                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             NINE AND THREE MONTHS ENDED FEBRUARY 28, 2002 AND 2001
                                   (Unaudited)




<TABLE>
<CAPTION>
                                                Nine Months Ended                Three Months Ended
                                                  February 28,                     February 28,
                                          --------------------------------  -------------------------------
                                             2002             2001            2002                2001
                                          -------------    --------------   ------------     --------------

<S>                                         <C>            <C>              <C>              <C>
Revenue                                     $1,245,225     $  2,005,891     $    412,598     $    685,752

Cost of goods sold                             916,074        1,267,863          358,936          262,332
                                          ------------     ------------     ------------     ------------

Gross profit                                   329,151          738,028           53,662          423,420

Selling, general and administrative
    expenses                                   564,540          437,276          176,305          197,177
                                          ------------     ------------     ------------     ------------

Income (loss) from operations                 (235,389)         300,752         (122,643)         226,243
                                          ------------     ------------     ------------     ------------

Other income (expense):
    Interest income                              2,381            2,018              300              707
    Interest expense                            (1,972)          (2,046)            (795)            (712)
                                          ------------     ------------     ------------     ------------
        Totals                                     409              (28)            (495)              (5)
                                          ------------     ------------     ------------     ------------

Net income (loss)                         $   (234,980)    $    300,724     $   (123,138)    $    226,238
                                          ============     ============     ============     ============

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

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.



                                       3
<PAGE>


                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED FEBRUARY 28, 2002 AND 2001
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                   2002          2001
                                                                                 ---------     ---------

<S>                                                                              <C>           <C>
Operating activities:
      Net income (loss)                                                          $(234,980)    $ 300,724
      Adjustments to reconcile net income (loss) to net cash
           provided by (used in) operating activities:
           Depreciation and amortization                                            18,864        17,659
           Changes in operating assets and liabilities:
                Accounts receivable                                                 23,581       (33,795)
                Inventories                                                         82,956      (114,442)
                Prepaid expenses and other current assets                           (6,376)        6,526
                Accounts payable and accrued expenses                               33,045      (132,673)
                Customer deposits                                                   56,495        20,619
                                                                                 ---------     ---------
                          Net cash provided by (used in) operating activities      (26,415)       64,618
                                                                                 ---------     ---------

Investing activities - purchase of equipment and improvements                       (9,022)      (19,115)
                                                                                 ---------     ---------

Financing activities:
      Repayments of long-term debt                                                 (10,292)       (6,343)
      Advances from principal stockholders                                          55,801
      Short-term borrowings                                                         10,000
                                                                                 ---------     ---------
                          Net cash provided by (used in) financing activities       55,509        (6,343)
                                                                                 ---------     ---------

Net increase in cash and cash equivalents                                           20,072        39,160
Cash and cash equivalents, beginning of period                                     257,524       161,385
                                                                                 ---------     ---------

Cash and cash equivalents, end of period                                         $ 277,596     $ 200,545
                                                                                 =========     =========

Supplemental disclosure of cash flow information:
      Interest paid                                                              $   1,972     $   2,046
                                                                                 =========     =========
</TABLE>


See Notes to Condensed Consolidated Financial Statements.


                                       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, 2002, and its results of operations for the nine
                  and three months ended February 28, 2002 and 2001 and its cash
                  flows for the nine months ended February 28, 2002 and 2001.
                  Information included in the condensed consolidated balance
                  sheet as of May 31, 2001 has been derived from the audited
                  consolidated balance sheet included in the Company's Form
                  10-KSB for the year ended May 31, 2001 (the "10-KSB")
                  previously filed with the Securities and Exchange Commission
                  (the "SEC"). Pursuant to rules and regulations of the SEC,
                  certain information and disclosures normally included in
                  financial statements prepared in conformity with accounting
                  principles generally accepted in the United States of America
                  have been condensed 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 consolidated
                  financial statements and other information in the 10-KSB.

                  The consolidated results of operations for the nine and three
                  months ended February 28, 2002 are not necessarily indicative
                  of the results to be expected for the full year.

                  Certain amounts that were previously reported have been
                  reclassified to conform to the current year's presentation.


Note 2 - Net income (loss) per share:
                  The Company presents "basic" income (loss) per share and, if
                  applicable, "diluted" earnings per 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, 2002 and 2001.


Note 3 - Contingencies:
             Private placement - B.G. Banking:
                  Prior to The Banker's Store, Inc.'s reverse acquisition 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 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.

                                       5



<PAGE>


                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



Note 3 - Contingencies (continued):
             Private placement - B.G. Banking (concluded):
                  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, 2002, 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.

                  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, 2002, the Company has reserved 329,500
                  shares of common stock pending possible issuance of shares in
                  satisfaction of outstanding subscription agreements.

                                       6


<PAGE>


                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



Note 3 - Contingencies (concluded):
             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 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
                  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. In November 2001, the
                  Company and its president filed a motion to dismiss or abate
                  the action and are awaiting the scheduling by the court of a
                  hearing on the motion. If the case is not dismissed, the
                  Company believes it has a meritorious defense and intends to
                  vigorously defend the action.

                  On March 7, 2000, the Company filed an action in the Supreme
                  Court 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 is 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 November 15, 2000, a motion filed by Taurus' counsel to be
                  relieved as counsel was granted. On December 14, 2000, the
                  court granted the Company oral motion for the entry of a
                  default judgment against Taurus. By an Order entered on May 4,
                  2001, this action was transferred to Delaware County and the
                  action is continuing.


                                    *  *  *

                                       7


<PAGE>






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

The matters discussed in this management's discussion and analysis of financial
condition and results of operations contain forward-looking statements that
involve risks and uncertainties. The Company's actual results could differ
materially from those discussed here. Factors that could cause or contribute to
such differences include, but are not limited to those discussed elsewhere in
this filing on Form 10-QSB. The Company disclaims, any intent or obligation to
update these forward-looking statements.

OVERVIEW

The Banker's Store, Inc. (the "Company") was established in 1968. The Company
remained dormant for many years until the Company completed the acquisition of
B.G. Banking Equipment, Inc., ("B.G. Banking") and Financial Building Equipment
Exchange, Inc., ("FBEE"), Kentucky corporations. The Company buys, sells, and
trades both new and refurbished financial equipment to banks and other financial
institutions. Commencing in June 2001, the Company entered the office equipment
and furniture retail business. To date sales in the Company's office equipment
and furniture retail segment have been immaterial. The Company markets products
throughout the United States primarily through direct sales to financial
institutions and other distributors supported by the Company's direct sales
force and through new contacts due to its presence on the Internet.

The Company anticipates that its 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 may also be adversely affected by a downturn in the market for
the Company's current and future products, order cancellations, or order
rescheduling or remanufacturing delays. The Company purchases and resells new
merchandise and refurbishes and ships its other products after receipt of orders
and has not developed a significant backlog for such products and does not
anticipate it will develop a material backlog for such products in the future.

The Company plans to increase its operating expenses primarily for personnel in
the security equipment servicing sector, a planned new segment of the business,
and activities supporting newly introduced products, new product development and
entering new markets. The Company's operating results may be adversely affected
if sales do not correspondingly increase or if product development efforts are
unsuccessful or are delayed.



                                       8
<PAGE>




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

Use of estimates:
            The preparation of financial statements in conformity with
            accounting principles generally accepted in the United States of
            America requires management to make estimates and assumptions that
            affect certain reported amounts and disclosures. Actual results
            could differ from those estimates.

Revenue recognition:
            Revenue is recognized when products are shipped or services are
            rendered.

Inventories:
            Inventories, consisting primarily of finished goods, are stated at
            the lower of cost or market. Cost is determined by the first-in,
            first-out method. Management monitors and periodically reviews
            inventory quantities and agings and, when appropriate, inventory is
            sold at lower than normal margins in order to reduce the levels of
            excess or older goods.

Related party transactions:
            On August 1, 1998, the Company entered into a three-year operating
            lease with its President and principal stockholder 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. The Company has extended the lease through August 2004
            under the same terms.

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. 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 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 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




                                       9
<PAGE>




            and refused to remit to the Company the proceeds of the shares sold.
            As of February 28, 2002, 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 purchases have as yet
            remained unidentified.

            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, 2002 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
            and 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 plaintiff's claims alleging violations of the
            Securities Exchange Act of 1934. 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.
            In November 2001, the Company



                                       10
<PAGE>



            and its president filed a motion to dismiss or abate the action and
            are awaiting the scheduling by the court of a hearing on the motion.
            If the case is not dismissed, the Company believes it has a
            meritorious defense and intends to vigorously defend the action.

            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 is 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 November 15, 2000 a motion
            filed by Taurus' counsel to be relieved as counsel was granted. On
            December 14, 2000, the court granted the Company 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 thereby the
            action has been transferred to the New York State Supreme Court,
            Delaware County. The Company is awaiting a date for a hearing on
            plaintiff's damages. The Company intends to continue to litigate
            this action.


RESULTS OF OPERATIONS

The following table sets forth operating data as a percentage of net sales:

<TABLE>
<CAPTION>
                                  Three Months Ended   Nine Months Ended
                                    February 28,          February 28,
                                   2002      2001       2002      2001
                                 --------------------  ------------------

<S>                              <C>         <C>       <C>        <C>
Net sales                         100.0%     100.0%    100.0%     100.0%
Cost of sales                      73.6%      63.2%     87.0%      38.3%
                                   -----      -----     -----      -----

Gross profit                       26.4%      36.8%     13.0%      61.7%

Expenses                           45.3%      21.8%     42.7%      28.7%
                                   -----      -----     -----      -----

Income(loss) from operations      (18.9)%     15.0%    (29.7)%     33.0%
Other                                                   (.1)%
                                   -----      -----     -----      -----

Net income(loss)                  (18.9)%     15.0%    (29.8)%     33.0%
                                   =====      =====     =====      =====
</TABLE>



                                       11
<PAGE>



RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED FEBRUARY 28, 2002 AS COMPARED
TO THE THREE MONTHS ENDED FEBRUARY 28, 2001.

Revenues:

Revenues were approximately $413,000 for the three months ended February 28,
2002 as compared to approximately $686,000 for the three months ended February
28, 2001 reflecting a decrease of approximately $273,000 or 39.8%. The decrease
in revenues during the three months ended February 28, 2002 was caused primarily
by the low interest rate environment which has negatively impacted the earnings
of financial institutions. Therefore, financial institutions have reduced their
spending on new construction and are focusing instead on small remodeling
projects, upgrading of ATMs, drive up systems and other new technologies. This
trend by the financial institutions will probably continue for the next quarter.

Cost of goods sold:

Cost of goods sold and related expenses for the three months ended February 28,
2002 were approximately $359,000 or 87.0% of net sales as compared to
approximately $263,000 or 38.3% of net sales for the three months ended February
28, 2001. Gross profit decreased during the three months ended February 28, 2002
as compared to the three months ended February 28, 2001 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:

Selling, general and administrative expenses were approximately $176,000 for the
three months ended February 28, 2002 as compared to approximately $197,000 for
the three months ended February 28, 2001 reflecting a decrease of approximately
$21,000 or 10.7% over the same period last year.

Net Income:

As a result of the aforementioned, the Company's net income during the three
months ended February 28, 2002 decreased by approximately $349,000 to
approximately a net loss of $123,000 ($(.01) per share) as opposed to
approximately $226,000 ($.02 per share) net profit for the comparable prior
period.


                                       12


<PAGE>



RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED FEBRUARY 28, 2002 AS COMPARED TO
THE NINE MONTHS ENDED FEBRUARY 28, 2001.

Revenues:

Revenues were approximately $1,245,000 for the nine months ended February 28,
2002 as compared to approximately $2,006,000 for the nine months ended February
28, 2001 reflecting a decrease of approximately $761,000 or 38.0%. The decrease
in revenues during the nine months ended February 28, 2002 was caused primarily
by the low interest rate environment and lower economic activity which has
negatively impacted the earnings of financial institutions. Financial
institutions have reduced spending on new construction and focused on small
remodeling projects, upgrading of ATMs, drive up systems and other new
technologies. This trend by the financial institutions is expected to continue
into the fourth quarter.

Cost of goods sold:

Cost of goods sold and related expenses for the nine months ended February 28,
2002 were approximately $916,000 or 73.6% of net sales as compared to
approximately $1,268,000 or 63.2% of net sales for the nine months ended
February 28, 2001. Gross profit decreased during the nine months ended February
28, 2002 as compared to the nine months ended February 28, 2001 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:

Selling, general and administrative expenses were approximately $565,000 for the
nine months ended February 28, 2002 as compared to approximately $437,000 for
the nine months ended February 28, 2001 reflecting an increase of approximately
$128,000 or 29.3% over the same period last year. In the current year, the
Company has increased general and administrative expenses reflect the company's
work to create the infrastructure necessary to meet marketing and production
goals.

Net Income (loss):

As a result of the aforementioned, the Company's net income (loss) during the
nine months ended February 28, 2002 decreased by approximately $536,000 to
approximately a net loss of $235,000 ($(.02) per share) as opposed to net income
of approximately $301,000 ($.02 per share) for the comparable prior period.


                                       13




<PAGE>






LIQUIDITY AND CAPITAL RESOURCES

The Company has historically financed its 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.

At February 28, 2002, the Company had cash and cash equivalents of $277,596 and
working capital of $464,021. During the nine months ended February 28, 2002, the
Company's cash and cash equivalents increased by $20,072. Cash and cash
equivalents used in operations was $26,415. Cash was primarily provided by the
increase in customer deposits and accounts payable and accrued expenses of
$56,495 and $33,045, respectively. The collection of accounts receivable and
reduction of inventory also provided an aggregate amount of cash of $106,537.
The cash provided by accounts receivable, inventory, customer deposits and
accounts payable were offset by the Company funding its net loss of $234,980.
During the nine months ended February 28, 2002, the Company also received
advances totaling $55,801 from its principal stockholder.

The Company is evaluating various alternatives in addressing its future
facilities expansion needs. 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.

The Company believes that available cash, cash from operations and funds from
existing credit arrangements will be sufficient to satisfy funding needs for at
least the next 12 months. Thereafter, if cash generated from operations is
insufficient to satisfy the Company's working capital and capital expenditure
requirements, the Company 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. The Company's future liquidity and capital funding requirements will
depend on numerous factors, including the extent to which the Company's 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, facilities expansion
needs. The failure by the Company to raise capital on acceptable terms when
needed could have a material adverse effect on the Company's business, financial
condition and results of operations.



                                       14
<PAGE>




PART II

ITEM 1.  LEGAL PROCEEDINGS

         As of the date of this Quarterly Report on Form 10-QSB, the Registrant
was not involved in any material legal proceedings, other than those referenced
in Note 7 to the Registrant's financial statements contained in its Annual
Report on Form 10-KSB, to which reference is made, and except as follows:

         On September 26, 2001, the Registrant was named as a defendant (under
the names The Bank Store, Inc. and B.G. Banking Equipment, Inc. ("BGB")), in an
action filed in the Circuit Court of the Twelfth Judicial District, Manatee
County, Florida, by Taurus Venture Capital Fund, LLC and Taurus International
Investments, Inc. The Registrant's President was also named as a defendant. The
action alleges that the Registrant and Mr. Clark violated various Florida
statutes, by failing to effect the exchange of 150,000 shares of BGB common
stock held by Alexander Brosda and Andrew Seim (allegedly as beneficial owners
for plaintiffs), for 225,000 shares of the common stock of the Registrant. The
action seeks $2,000,000 for actual damages based upon a per-share price of
$4.50, treble damages of $6,615,000, and interest and attorney's fees. In
November, 2001, Registrant and Mr. Clark filed a motion to dismiss or abate the
action, and are awaiting the scheduling by the court of a hearing on the motion.
If the case is not dismissed, the Registrant believes it has meritorious
defenses, and intends to defend the action with vigor.

         An action was originally filed by the Registrant on March 7, 2000,
against Taurus International Investments, Inc. ("Taurus"), Stamford Financial
Consulting, Inc., and Messrs. Seim, Brosda and George C. Bergleitner in New York
State Supreme Court, New York County, 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. A
counterclaim dated April 5, 2000 was brought by Mr. Bergleitner against
Registrant. The counterclaim alleges that Registrant failed to transfer 180,000
shares of Registrant's stock without any legal endorsement, pursuant to Rule
144(k) under the regulations promulgated under the Securities and Exchange Act
of 1934, as amended. The counterclaim seeks damages of $900,000, based upon the
value of the stock at the highest amount at which it traded, which is alleged to
be $5.00 per share. Registrant believes it has meritorious defenses to the
counterclaim and is defending the counterclaim with vigor. On December 14, 2000,
the court granted the



                                       15
<PAGE>



Registrant's oral motion for a default judgement against Taurus and Messrs. Seim
and Brosda, and the Registrant is awaiting a date for a hearing on its damages
against Taurus and Messrs. Seim and Brosda. By order entered on May 4, 2001,
this action was transferred to New York State Supreme Court, Delaware County.



ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         During the period covered by this Quarterly Report on Form 10-QSB,
there were: (a) no material modifications to the instruments defining the rights
of the holders of any of Registrant's securities, nor (b) any securities issued
by the Registrant.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         During the period covered by this Quarterly Report on Form 10-QSB,
there were no defaults upon the senior securities of Registrant.

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

         During the period covered by this Quarterly Report on Form 10-QSB,
there were no matters submitted to a vote of security holders.

ITEM 5.  OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         There are no exhibits filed with this Quarterly Report on Form 10-QSB.

         There were no Current Reports on Form 8-K filed during the period
covered by this Quarterly Report on Form 10-QSB.


                                       16
<PAGE>


                                   SIGNATURES


         In accordance with the requirements of the Securities Exchange Act of
1934, the Registrant has caused this Quarterly Report on Form 10-QSB 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 and
     Chief Executive Officer

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

Dated: April 15, 2002


                                       17