U.S. 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 quarterly period ended     March 31, 2001

     Commission file number          000-24498


              DIAMOND HILL INVESTMENT GROUP, INC.
               fna, THE BANC STOCK GROUP, INC.

     (Exact name of small business issuer as specified in its charter)

          FLORIDA                       65-0190407
   (State of incorporation)  (IRS Employer Identification No.)

                  1105 SCHROCK ROAD, COLUMBUS, OHIO  43229
                  (Address of principal executive offices)

                              (614) 848-5100
                        (Issuer's telephone number)

  Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12
months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes  X     No

  State the number of shares outstanding of each of the issuer's
classes of common equity, as of April 30, 2001:
     CLASS                              NUMBER OF SHARES
Class A shares, No Par Value               8,218,974

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


      DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                              INDEX
                                                        PAGE

Part I Financial Information:

     Item 1.  Consolidated Financial Statements          3-7

     Notes to Consolidated Financial Statements          8-19

     Item 2.  Management's Discussion and Analysis
             of Financial Condition and Results of
             Operations                                 20-24

Part II Other Information:

     Item 4                                             25

     Item 6                                             26

Signatures                                              27

       DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                              PART I
                      FINANCIAL INFORMATION

ITEM 1.   Financial Statements

The accompanying consolidated financial statements of Diamond Hill
Investment Group, Inc., formerly known as, The Banc Stock Group,
Inc., are unaudited but, in the opinion of management, reflect all
adjustments (which include only normal recurring accruals)
necessary to present fairly such information for the periods and at
the dates indicated and to make the consolidated financial
statements not misleading.  The results of operations for the three
months ended March 31, 2001 may not be indicative of the results of
operations for the year ending December 31, 2001.  Since the
accompanying consolidated financial statements have been prepared
in accordance with Item 310 of Regulation S-B, they do not contain
all information and footnotes normally contained in annual
consolidated financial statements; accordingly, they should be read
in conjunction with the consolidated financial statements and notes
thereto appearing in the Company's Annual Report.


DIAMOND HILL INVESTMENT GROUP, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
AS OF MARCH 31, 2001
UNAUDITED
                              ASSETS
Cash                                                           $     2,801,143
Trading portfolio:
   Mutual fund shares and limited partnership interests              3,184,453
   Marketable equity securities, at market value                     2,377,978
   Not readily marketable equity securities, at estimated fair value   256,916
Accounts receivable:
   Affiliates                                                           57,202
   Pending settlements and other                                       126,604
   Refundable income taxes                                             508,280
Property and equipment, net of accumulated depreciation of $275,802    227,487
Deposits and other                                                     152,140

          Total assets                                         $     9,692,203

                            LIABILITIES

Accounts payable to broker-dealers and other                      $     37,490
Accrued expenses                                                       504,904

          Total liabilities                                            542,394

                        SHAREHOLDERS' EQUITY

Preference stock,150,000,000 shares authorized,                           -
          none issued or outstanding
Common stock:
     Class A, no par value, 150,000,000 shares authorized,
          8,759,862 shares issued and 8,496,694 shares outstanding   9,562,747
     Treasury stock, at cost
          (263,168 Class A shares)                                    (450,905)
     Deferred compensation                                             (61,304)
Retained earnings                                                       99,271

          Total shareholders' equity                                 9,149,809

          Total liabilities and shareholders' equity           $     9,692,203

The accompanying notes are an integral part of these consolidated financial
statements.

DIAMOND HILL INVESTMENT GROUP, INC. and SUBSIDIARIES
CONSOLIDATED  STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED MARCH 31, 2001 and 2000
UNAUDITED

                                                         2001           2000
OPERATING REVENUES:
     Management fees and commissions                    306,641        554,480
     Market making gains and losses                      75,054       (225,015)
     Investment banking                                    -            32,982

          Total operating revenues                      381,695        362,447

OPERATING EXPENSES:
     Salaries, benefits and payroll taxes               438,847        249,244
     Brokers' commission                                 33,947        275,495
     Professional fees                                  139,049         75,967
     General and administrative                         246,986        262,197

          Total operating expenses                      858,829        862,903

OPERATING INCOME (LOSS)                                (477,134)      (500,456)

OTHER REVENUE AND EXPENSES:
     Trading gains and losses                           509,242       (233,736)
     Dividend income                                     73,085         67,381
     Interest and other income                            4,998         14,208
     Interest expense                                      (333)       (10,219)

          Total other revenue and expenses              586,992       (162,366)

INCOME (LOSS) BEFORE TAXES                              109,858       (662,822)

INCOME TAX PROVISION (CREDIT)                              -          (318,500)

INCOME (LOSS) BEFORE EQUITY IN NET EARNINGS             109,858       (344,322)
     OF AFFLIATED COMPANY

Equity in net losses of ShareholderOnline, Inc.             -          (77,410)

NET INCOME (LOSS)                                  $    109,858   $   (421,732)

     BASIC EARNINGS (LOSS) PER SHARE               $       0.01   $      (0.05)

     DILUTED EARNINGS (LOSS) PER SHARE             $       0.01   $      (0.05)

The accompanying notes are an integral part of these consolidated financial
statements.

DIAMOND HILL INVESTMENT GROUP, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS of CHANGES in SHAREHOLDERS' EQUITY
FOR THE QUARTER ENDED MARCH 31, 2001
UNAUDITED

                                  Treasury  Deferred    Retained
                       Class A      Stock  Compensation Earnings      Total
Balance 12/31/00     $9,562,747   ($87,428)  ($73,150)  ($10,587)   $9,391,582

Amortization of
deferred compensation      -          -        11,846       -           11,846

Purchase of
treasury stock                    (363,477)                           (363,477)

Net income                 -          -          -       109,858       109,858

Balance 3/31/01      $9,562,747  ($450,905)  ($61,304)   $99,271    $9,149,809

The accompanying notes are an integral part of these consolidated financial
statements.

DIAMOND HILL INVESTMENT GROUP, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS of CASH FLOWS
FOR THE QUARTERS ENDED MARCH 31, 2001 and 2000
UNAUDITED
                                                        2001            2000
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                              $    109,858   $    (421,732)
   Adjustments to reconcile net income (loss)
     to net cash provided by (used in)
     operating activities:
     Depreciation and amortization                       8,160          24,045
     Recovery of bad debts in kind                     (14,025)
     Amortization of deferred compensation              11,846            -
     Deferred taxes                                       -           (496,000)
     Equity in undistributed losses of
       ShareholderOnline, Inc.                            -             77,410
     Unrealized (gain) loss                           (860,629)      1,400,004
     (Increase) decrease in certain assets-
       Trading profits, net                            167,600         754,993
       Mortgage participation notes                    223,500            -
       Accounts receivable clients                        -             17,885
       Other accounts receivable                        31,407            -
       Refundable income taxes                           2,937        (257,000)
       Other assets                                     36,239           5,961
     Increase (decrease) in certain liabilities-
       Securities sold not yet purchased                  -            124,543
       Accounts payable to broker-dealers and other     35,792           5,673
       Accrued expenses and other                       77,567         212,033
  Net cash provided by (used in) operating activities (169,748)      1,447,815

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and equipment                   (75,193)         (6,066)
  Sale of property                                        -             12,634
  Net cash provided by (used in) investing activities  (75,193)          6,568

CASH FLOWS FROM FINANCING ACTIVITIES:
  Purchase of treasury stock                          (363,477)           -
  Advances from affiliates                                -              4,254
  Advances to affiliates                               (33,667)         (3,284)
  Net cash provided by (used in) financing activities (397,144)            970

NET INCREASE (DECREASE) IN CASH                       (642,085)      1,455,353

CASH, BEGINNING OF PERIOD                            3,443,228       2,456,527

CASH, END OF PERIOD                             $    2,801,143  $    3,911,880

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

     Cash paid during the period for:
          Interest                                    $    333     $    10,219
          Income taxes                                    -               -

The accompanying notes are an integral part of these consolidated financial
statements.


              DIAMOND HILL INVESTMENT GROUP, INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         MARCH 31, 2001

(1)  ORGANIZATION AND NATURE OF BUSINESS

Diamond Hill Investment Group, Inc., (the Company) changed its name
from The Banc Stock Group, Inc., at the annual shareholders'
meeting held on April 26, 2001.  The Company is a Florida
corporation incorporated in April, 1990.  The Company has two
subsidiary operating companies.

Diamond Hill Capital Management, Inc., (DHCM), an Ohio corporation,
is a wholly-owned subsidiary of the Company and a registered
investment adviser.  DHCM is the Investment Adviser to the Diamond
Hill Focus Fund (symbol DIAMX) and the Diamond Hill Small Cap Fund
(symbol DHSCX), mutual funds, and offers advisory accounts to
institutional and individual investors.

Banc Stock Financial Services, Inc. (BSFS), an Ohio corporation, is
a wholly-owned subsidiary of DHCM and an NASD registered
broker-dealer.  BSFS is registered with the Securities and Exchange
Commission and the securities commissions of thirty states,
including Ohio.  BSFS trades securities on a fully-disclosed basis
and clears customer transactions through an unaffiliated
broker-dealer which also maintains the customer accounts.  BSFS is
also a registered investment adviser and offers advisory accounts
to institutional and individual investors.  BSFS is the Investment
Adviser to The Banc Stock Group Fund (symbol BANCX), a mutual fund.

Effective December 31, 2000, the Company changed its fiscal year-end to
December 31 from the last day of February.

(2)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the reported amounts of revenues and
expenses for the period.  Actual results could differ from those
estimates.

The following is a summary of the Company's significant accounting
policies:

Principles of Consolidation

The accompanying consolidated financial statements include the
operations of the Company, DHCM and BSFS.  All material
intercompany transactions and balances have been eliminated in
consolidation.

Cash

The Company has defined cash as demand deposits and money market
accounts.

Valuation of Trading Portfolio

Securities and related options traded on national securities
markets and securities not traded on national securities markets,
but with readily ascertainable market values, are valued at market
value.  Other securities for which market quotations are not
readily available, due to infrequency of transactions, are valued
at fair value as determined in good faith by the management of the
Company. Realized and unrealized gains and losses are included in
trading profits.

Property and Equipment

Property and equipment is carried at cost less accumulated
depreciation.  Depreciation is calculated using the straight-line
method over estimated lives of five to seven years.

Goodwill

The excess purchase price over the fair market value of the net
assets acquired from BSFS is being amortized on a straight line
basis over 20 years.

Revenues

Securities transactions and commissions are accounted for on the
trade date basis.  Dividend income is recorded on the ex-dividend
date and interest income is accrued as earned.  Realized gains and
losses from sales of securities are determined utilizing the
first-in, first-out method (FIFO).  Investment banking revenue is
recorded upon completion of the underwriting.

Earnings Per Share

Basic and diluted earnings per common share are computed in
accordance with Statement of Financial Accounting Standards No.
128, "Earnings per Share."  A reconciliation of the numerators and
denominators used in these calculations is shown below:
                                     For the Quarter Ended March 31, 2001
                                     Income          Shares        Per-Share
                                    (Numerator)   (Denominator)      Amount
Basic Earnings                       $109,858       8,618,112         $ .01
     Effect of Dilutive Securities:
          Assumed exercise of:
               Stock Options                           45,698          (.00)
               Warrants                               307,443          (.00)
Diluted Earnings                     $109,858       8,971,253         $ .01

Stock options and warrants with exercise prices greater than the
average market price of the common stock during the quarter were
not included in the computation of diluted earnings because their
inclusion would have been anti-dilutive.

                                      For the Quarter Ended March 31, 2000
                                      Income         Shares         Per-Share
                                    (Numerator)   (Denominator)       Amount
Basic Earnings                       ($421,732)     8,456,817         ($ .05)

Diluted Earnings                     ($421,732)     8,456,817         ($ .05)

Fair Value of Financial Instruments

Substantially all of the Company's financial instruments are
carried at fair value or amounts approximating fair value.  Assets,
including accounts receivable, mortgage participation notes, notes
and interest receivable and securities owned are carried at amounts
which approximate fair value.  Similarly, liabilities, including
margin accounts payable to broker-dealers, accounts payable and
accrued expenses are carried at amounts approximating fair value.

(3)  CAPITAL STOCK

Common Stock
Effective December 1, 2000, the Company has only one class of
securities, Class A Common Stock.

Treasury Stock
On July 17, 2000, the Company announced a program to repurchase up
to 2,000,000 shares of its Class A Common Stock through open market
purchases and privately negotiated transactions, if any.  During
the quarter ended March 31, 2001, the Company purchased 207,818
shares for $363,477.

Authorization of Preference Stock
The Company's Articles of Incorporation authorize the issuance of
50,000,000 shares of "blank check" preference stock with such
designations, rights and preferences as may be determined from time
to time by the Company's Board of Directors.  The Board of
Directors is empowered, without shareholder approval, to issue
preference stock with dividend, liquidation, conversion, voting, or
other rights which could adversely affect the voting or other
rights of the holders of the common stock.

(4) TRADING PORTFOLIO

Mutual fund shares and limited partnership interests at March 31, 2001 were
$3,184,453 at market value.

Marketable equity securities at March 31, 2001 consist primarily of bank
stocks, at market value, as follows:

       Traded on national securities markets                     $  581,940
       Not traded on national securities
         markets, but with readily ascertainable
         market value                                             1,796,038

               Total marketable equity securities                $2,377,978

As of March 31, 2001, the Company had two individual equity
security investment representing 28% and 22% of its marketable equity
securities.

Securities not readily marketable include securities for which
there is no market on a securities exchange and no independent
publicly quoted market.  These securities at March 31, 2001 were
$256,916 at fair value with a cost of $295,250.


(5)  MARGIN ACCOUNTS PAYABLE TO BROKER-DEALERS

The Company had no margin accounts payable to broker-dealers as of
March 31, 2001.  Margin accounts bear interest at variable rates
which approximate the Broker Call Rate.  Margin accounts are
secured by the securities held by the respective broker-dealers.

(6)  RELATED PARTY TRANSACTIONS

Operating Expenses

The Company and ShareholderOnline, Inc., an Ohio corporation that
has ceased operations, were under common management through April
27, 2000.  Certain expenses were paid by the Company and allocated
to ShareholderOnline, Inc., based upon predetermined percentages as
approved by the officers of the Companies.  Operating expenses in
the allocation were primarily salaries and benefits.  There were no
expenses allocated to ShareholderOnline, Inc., for the quarter
ended March 31, 2001 but $44,070 was allocated for the quarter
ended March 31, 2000.

(7)  INCOME TAXES

The Company files a consolidated Federal income tax return.  It is
the policy of the Company to allocate the consolidated tax
provision to subsidiaries as if each subsidiary's tax liability or
benefit were determined on a separate company basis.  As part of
the consolidated group, subsidiaries transfer to the Company their
current Federal tax liability or assets.

The provisions for income taxes for the quarters ended March 31,
2001 and 2000 are composed of the following:
                                        2001                 2000
Current income taxes                      -               $ 177,500
Deferred income taxes                     -                (496,000)
Provision for income taxes                -               $(318,500)

Deferred tax assets and liabilities consist of the following at
March 31, 2001 and 2000:

                                                2001                 2000
Deferred tax benefit of NOL carryforward     $ 606,000          $      -
Deferred tax benefit of stock options and
     Warrants compensation                      65,000                 -
Deferred tax benefit (liabilities) on unrealized
     gains on securities owned                (189,000)              25,000
Valuation allowance                           (485,000)             (25,000)
Deferred taxes                               $    -              $     -

(8)  OPERATING LEASES

The Company leases office space and a vehicle under operating
leases.  Total lease expenses were approximately $106,000 in the
ten months ended December 31,  2000.  The future minimum lease
payments under existing leases are as follows:
                                   Amount
                    2001          $129,700
                    2002            73,500
                                  $203,200

(9) EMPLOYEE INCENTIVE PLANS

Incentive Compensation Plan

All full-time executive employees of the Company are eligible to
participate in the Diamond Hill Investment Group Incentive
Compensation Plan.  The Plan provides that a bonus fund will be
established in an amount equal to 20% of the pre-tax realized
profits of the Company in excess of a 15% pre-tax return on equity.
The amount of the bonus fund is calculated each quarter on a
cumulative basis.  The allocation of the bonus fund is to be made
by the President of the Company.  The Company did not incur any
expense under the Plan for the quarters ended March 31, 2001 or
2000.

Stock Option Plan and Stock Warrants

The Company has a Non-Qualified and Incentive Stock Option Plan
which authorizes the grant of options to purchase an aggregate of
2,500,000 shares of the Company's Class A Common Stock.  The Plan
provides that the Board of Directors, or a committee appointed by
the Board, may grant options and otherwise administer the Option
Plan.  The exercise price of each incentive stock option or
non-qualified stock option must be at least 100% of the fair market
value of the shares of Class A Common Stock at the date of grant,
and no such option may be exercisable for more than 10 years after
the date of grant.  However, the exercise price of each incentive
stock option granted to any shareholder possessing more than 10% of
the combined voting power of all classes of capital stock of the
Company on the date of grant must not be less than 110% of the fair
market value on that date, and no such option may be exercisable
more than 5 years after the date of grant.

Effective March 5, 2001, an option to purchase 10,000 shares of
Class A Common Stock was issued to a new employee with an exercise
price of $1.66 per share.  This option vests 20% each year over the
next five years.  This option is a qualified stock option which has
a ten year term.

The Company applies Accounting Principles Board Opinion 25 and
related Interpretations (APB 25) in accounting for stock options
and warrants issued to employees and Directors.  Accordingly,
compensation cost is recognized based on the intrinsic value of the
stock options or warrants.

Because stock options and warrants issued to independent contractor
representatives and consultants, do not fall within the scope of
APB 25, compensation expense is recorded for these instruments
based on the fair value method, as computed in accordance with
Statement of Financial Accounting Standards No. 123 (FAS 123).

Had compensation cost for all of the Company's  stock-based awards
been determined in accordance with FAS 123, the Company's net
income and earnings per share would have been reduced to the pro
forma amounts indicated below:
                                                   Quarter Ended
                                           March 31, 2001    March 31, 2000

Net income (loss)          As reported          $109,858      ($421,732)
                           Pro forma           ($ 92,650)     ($589,689)

Basic earnings per share   As reported          $ 0.01        ($ 0.05)
                           Pro forma           ($ 0.01)       ($ 0.07)

Diluted earnings per share As reported          $ 0.01        ($ 0.05)
                           Pro forma           ($ 0.01)       ($ 0.07)

To make the computations of pro forma results under FAS 123, the
fair value of each option grant is estimated on the date of grant
using the Black-Scholes option-pricing model with the following
weighted-average assumptions: no dividend yield for all years and
expected lives of ten years. For 2001, the average expected
volatility was 49%, and the average assumed risk-free interest rate
was 5.25%.  The options and warrants granted under these plans are
not registered and, accordingly, there is no quoted market price.

A summary of the status of the Company's stock option and warrants
plans as of March 31, 2001 and 2000 and changes during the quarters
is presented below:
                                         Options              Warrants
                                              Exercise              Exercise
                                     Shares    Price       Shares    Price
Outstanding January 1, 2000        1,097,010   $ 5.791     322,000   $ 5.718
Granted                               77,000   $ 2.250      70,000   $ 2.250
Expired unexercised                     (500)  $ 4.500
Forfeited                               (500)  $ 4.500
Outstanding March 31, 2000         1,173,010   $ 5.560     392,000   $ 5.099

Exercisable March 31, 2000           829,356   $ 5.128     392,000   $ 5.099

Outstanding January 1, 2001        1,332,010   $ 4.738   1,402,000   $ 2.579
Granted                               10,000   $ 1.656
Expired unexercised                 (236,000)  $ 4.210
Outstanding March 31, 2001         1,106,010   $ 4.823   1,402,000   $ 2.579

Exercisable March 31, 2001           749,710   $ 5.496     602,000   $ 3.881

Weighted-average fair value
   of options and warrants
   granted during the quarter,
   computed in accordance
   with FAS 123                                $ 1.112

The following table summarizes information about fixed stock
options and warrants outstanding at March 31, 2001:
                                     Options                  Warrants
Range of exercise prices                 $14.750                  $14.750
Number outstanding                   201,510                   70,000
Weighted-average remaining
   contractual life in years               7.112                    7.112
Weighted-average exercise price          $14.750                  $14.750
Number exercisable                   165,810                   70,000

Range of exercise prices          $4.375 - $4.500           $4.440- $4.500
Number outstanding                   133,000                   82,000
Weighted-average remaining
   contractual life in years               8.119                    8.115
Weighted-average exercise price           $4.499                   $4.499
Number exercisable                    79,800                   82,000

Range of exercise prices          $1.590 - $2.875           $1.600- $2.875
Number outstanding                   771,500                1,250,000
Weighted-average remaining
   contractual life in years               6.541                    8.548
Weighted-average exercise price           $2.286                   $1.772
Number exercisable                   504,100                  450,000

(10)  REGULATORY REQUIREMENTS

BSFS is subject to the uniform net capital rule of the Securities
and Exchange Commission (Rule 15c3-1), which requires that the
ratio of "aggregate  indebtedness" to "net capital" not exceed 15
to 1 (as those terms are defined by the Rule).  BSFS had net
capital of $735,496 as of March 31, 2001, which was in excess of
its required minimum net capital of $100,000.  The  ratio of
aggregate indebtedness to net capital was 0.1 to 1 as of March 31,
2001.  BSFS is also subject to regulations of the District of
Columbia and thirty states in which it is registered as a licensed
broker-dealer.

DHCM and BSFS are Registered Investment Advisers and subject to
regulation by the SEC pursuant to the Investment Advisors Act of
1940.

(11) CONCENTRATIONS OF CREDIT RISK AND FINANCIAL INSTRUMENTS WITH
         OFF-BALANCE SHEET RISK

BSFS, under a correspondent agreement with its clearing broker, has
agreed to indemnify the clearing broker from damages or losses
resulting from customer transactions.  The Company is, therefore,
exposed to off-balance sheet risk of loss in the event that
customers are unable to fulfill contractual obligations.  The
Company manages this risk by requiring customers to have sufficient
cash in their account before a buy order is executed and to have
the subject securities in their account before a sell order is
executed.  The Company has not incurred any losses from customers
unable to fulfill contractual obligations.

BSFS also provides investment management services to an agency of
the State of Ohio.  In conjunction with these services BSFS has
agreed to indemnify the agency against losses resulting from
violations of the investment management agreement entered into with
the agency or violations of fiduciary duties under applicable law.

In the normal course of business, BSFS is a market maker for a
limited number of community bank stocks, and quotes bid and ask
prices for those stocks.  In the event of sudden price movements,
BSFS may be required to honor a quote at an undesirable price.
BSFS controls this risk by monitoring markets closely and updating
quotes as required and generally limits its quotes to 100 or 200
shares of a given security.

In the normal course of business, the Company periodically sells
securities not yet purchased (short sales) for its own account and
writes options.  The establishment of short positions and option
contracts exposes the Company to off-balance sheet market risks in
the event prices change, as the Company may be obligated to cover
such positions at a loss. At March 31, 2001, the Company had no
short security positions, had not written any option contracts and
did not own any options. The Company did not experience any credit
losses due to the failure of any counterparties to perform during
the quarter ended March 31, 2001.  Senior management of the Company
is responsible for reviewing trading positions, exposures, profits
and losses, trading strategies and hedging strategies on a daily
basis.

The Company's significant industry concentration, primarily through
the operations of BSFS, which arises within its normal course of
business activities, is with financial institutions for bank
securities transactions.

(12) SEGMENT INFORMATION

With the change in senior executive management in May of 2000, the
Company has shifted its emphasis from its traditional investment
related activities at its BSFS subsidiary, to the investment
advisory services of its DHCM subsidiary.  In conjunction with this
change in emphasis, the Company redefined its operating segments
effective January 1, 2001. These segments have been designed to aid
the operating decision makers in deciding how to allocate resources
and in assessing performance.  Segment information for prior
periods has been restated to conform to the new segments.

Description of the types of services from which each reportable
segment derives its revenues

The Company has three reportable segments: Investment Advisory
Services, Brokerage Services and Corporate Portfolio. The
Investment Advisory Services segment provides investment advisory
services to the Diamond Hill Focus Fund, the Diamond Hill Small Cap
Fund, and the Banc Stock Group Fund, mutual funds, Diamond Hill
Investment Partners, an investment limited partnership, and offers
investment advisory services and accounts to institutional and
individual investors, specializing in domestic securities.  The
Brokerage Services segment offers brokerage, investment banking and
managed accounts to institutional and individual investors,
specializing in regional and community bank stocks.  The Corporate
Portfolio segment is represented by revenue generating investments
unrelated to the other operating segments.

Measurement of segment profit or loss and segment assets

The accounting policies of the segments are the same as those
described in the summary of significant accounting policies.  The
Company evaluates performance based on profit or loss from
operations before income taxes.  The Company focuses its attention
on providing services to external customers.

Factors management used to identify the enterprises's reportable
segments

The Company's reportable segments are primarily defined by legal
entities that specialize in different financial products and
services.  Investment Advisory Services are provided by DHCM.
Brokerage Services are provided by  BSFS.  The Corporate Portfolio
segment is managed by the Company. These segments are managed
separately because each entity operates in a different regulatory
environment.

Financial information for each reportable segment is shown below.
The Company does not operate, or hold assets, in any foreign
country.  The Company does not have any single customer generating
10% or more of revenue.

Financial information for the quarter ended March 31, 2001

                       Investment
Revenue from external  Advisory    Brokerage  Corporate
customers:             Services    Services   Portfolio    Combined


 Management fees &
 commissions            $138,436      $168,205                   $306,641

 Market making gains
 and (losses)                           75,054                     75,054

Interest revenue               9            76        $1,168        1,253

Interest expense                           333                        333

Depreciation and
amortization               4,090         3,332           738        8,160

Segment operating
income (loss)           (385,792)      (13,002)      (42,906)     (441,700)

Segment assets         3,345,141     1,326,926     5,020,136     9,692,203

Expenditures for
segment assets            29,675        26,411        19,107        75,193

Reconciliation to Consolidated Financial Statements
     Operating income (loss) for reportable segments         ($441,700)
     Other corporate expenses                                  (35,434)
     Operating income (loss)  - Consolidated                  (477,134)
     Other revenue and expenses                                586,992
     Income (Loss) before taxes - Consolidated                $109,858


Financial information for the quarter ended March 31, 2000

                        Investment
Revenue from external    Adviosry      Brokerage   Corporate
customers:               Services      Services    Portfolio   Combined

 Management fees &
 commissions           $100,596      $447,776       $6,108        $554,480

 Market making gains
 and (losses)                        (225,015)                    (225,015)

 Investment banking                    32,982                       32,982

Interest revenue                       13,614           594         14,208

Interest expense                        5,860         4,359         10,219

Depreciation and
amortization              3,831        16,126         3,831         23,788

Segment operating
income (loss)           (81,968)      (69,162)     (349,326)      (500,456)

Segment assets          639,593     5,556,492     6,499,692     12,695,777

Expenditures for
segment assets            1,516         3,033         1,517          6,066

Reconciliation to Consolidated Financial Statements
     Operating income (loss) for reportable segments         ($500,456)
     Other revenue and expenses                               (162,366)
     Income (Loss) before taxes - Consolidated               ($662,822)

ITEM 2:   Management's Discussion and Analysis of Financial
          Condition and Results of Operations

General

With the change in executive management in May of 2000, the Company
has shifted its emphasis from its traditional investment related
activities through its BSFS subsidiary, to the investment advisory
services of its DHCM subsidiary.  DHCM manages portfolios of stocks
representing interests in entities operating in various economic
sectors, as opposed to a portfolio of bank stocks only.  Staffing
and costs associated with this shift and the various marketing
initiatives at DHCM are expected to negatively impact the Company
through calendar year 2002.  Management believes that this process
is necessary in order to achieve a critical threshold of assets
under management to support operations in the future.  However,
there can be no assurance that the Company will be able to achieve
the critical threshold of assets under management to support future
operations.

Forward-looking Statements

Throughout this discussion, the Company may make forward-looking
statements relating to such matters as anticipated operating
results, prospects for achieving the critical threshold of assets
under management, technological developments, economic trends
(including interest rates and market volatility), expected
transactions and acquisitions and similar matters.  While the
Company believes that the assumptions underlying its forward-looking
statements are reasonable, any of the assumptions could
prove to be inaccurate, and accordingly, the actual results and
experiences of the Company could differ materially from the
anticipated results or other expectations expressed by the Company
in its forward-looking statements.  Factors that could cause such
actual results or experiences to differ from results discussed in
the forward-looking statements include, but are not limited to:
economic conditions; volatility and direction of interest rates or
market values of trading securities; governmental legislation and
regulation; and other risks identified, from time-to-time in the
Company's other public documents on file with the SEC.

Quarter Ended March 31, 2001, Compared to the Quarter Ended March
31, 2000

Operating revenues for the quarter ended March 31, 2001 increased
to $381,695 compared to $362,447 for the quarter ended March 31,
2000, an increase of 5%.  This increase results primarily from
increases in revenue from market making gains and losses.

The Company generated management fees and commission revenue of
$306,641 for the quarter ended March 31, 2001 compared to $554,480
for the quarter ended March 31, 2000, a decrease of 45%.  In
conjunction with the shift in emphasis to the investment advisory
services of DHCM, a program has been initiated to attempt to gather
assets under management at the DHCM level.  However, there can be
no assurance that the Company will be able to achieve the critical
threshold of assets under management at DHCM to support future
operations.

Revenues from market making gains and losses were gains of $75,054
for the quarter ended March 31, 2001 compared to losses of $225,015
for the quarter ended March 31, 2000, an increase of 133%.  These
gains result primarily from increases in market values of financial
services sector securities.  Management is unable to predict how
future fluctuations in market values will impact the performance of
the Company's market making portfolio.

There is no revenue from investment banking for the quarter ended
March 31, 2001 compared to $32,982 for the quarter ended March 31,
2000.  Because of weakness in the regional and community banking
sector, the Company has not engaged in any investment banking
transactions since November 1999.  There are no investment banking
engagements in progress and none are being pursued.

Operating expenses for the quarter ended March 31, 2001, decreased
to $858,829 compared to $862,903 for the quarter ended March 31,
2000, a decrease of less than 1%.  Salaries, benefits, and payroll
taxes increased to $438,847 for the quarter ended March 31, 2001
compared to $249,244 for the quarter ended March 31, 2000, an
increase of 76%.  This increase reflects personnel hired to
position DHCM for the anticipated growth of assets under its
management.  Brokers' commission expenses decreased to $33,947 for
the quarter ended March 31, 2001 compared to $275,495 for the
quarter ended March 31, 2000, a decrease of 88%.  In conjunction
with the Company's shift in emphasis from its traditional
investment related activities through BSFS, to the investment
advisory services of DHCM, the Company arranged for its retail
broker representatives to be employed by an unaffiliated broker-dealer.
This transaction was completed in early December 2000,
primarily causing the reduction of brokers' commission expense.
Professional fees increased to $139,049 for the quarter ended March
31, 2001 compared to $75,967 for the quarter ended March 31, 2000,
an increase of 83%.  This increase results primarily from expenses
related to DHCM creating and sponsoring two mutual funds, the
Diamond Hill Focus Fund (symbol DIAMX) and the Diamond Hill Small
Cap Fund (symbol DHSCX). General and administrative expenses
decreased to $246,986 for the quarter ended March 31, 2001 compared
to $262,197 for the quarter ended March 31, 2000, a decrease of 6%.
This decrease results primarily from reductions of investment
banking expenses, goodwill amortization and travel costs.

Other revenue and expenses for the quarter ended March 31, 2001
increased to $586,992 compared to losses of $162,366 for the
quarter ended March 31, 2000, an increase of 462%.  This increase
results primarily from increases in revenue from trading gains and
losses.  Revenues from trading gains and losses were gains of
$509,242 for the quarter ended March 31, 2001 compared to losses of
$233,736 for the quarter ended March 31, 2000, an increase of 318%.
These trading gains result primarily from increases in market
values of financial services sector securities.  Management is
unable to predict how future fluctuations in market values will
impact the performance of the Company's trading portfolios.

Because of the change in the executive management of the Company,
the business philosophies and strategies are changing.  As the
Company is repositioned to support strategies emphasizing advisory
services, certain fee reductions will take place to reflect these
changes.  Management expects this process to negatively impact
operating results over the remainder of this year and it is most
likely that the Company will not be profitable in 2002.  Management
believes this process will enable the Company to achieve a critical
threshold of assets under management at the DHCM level to support
successful operations in the future.

Liquidity and Capital Resources

Approximately 35% of the value of the Company's trading portfolio
is comprised of small capitalization stocks which are thinly traded
and there can be no assurance that active markets will develop.
The failure of such markets to develop could negatively affect the
Company's operations and financial condition.  Approximately 65% of
the Company's trading portfolio is readily marketable.  Investments
in securities traded on national securities markets and securities
not traded on national securities markets, but with readily
ascertainable market values are valued at market value.  Other
securities for which market quotations are not readily available,
due to infrequency of transactions, are valued at fair value as
determined in good faith by management of the Company.  While
management employs objective criteria to ascertain these values,
there is no independent benchmark by which the values assigned by
management can be judged.

As of March 31, 2001, the Company had working capital of
approximately $8,770,000.  Working capital includes cash,
securities owned and accounts and notes receivable, net of all
liabilities.  The Company has no long term debt.

BSFS, under a correspondent agreement with its clearing broker, has
agreed to indemnify the clearing broker from damages or losses
resulting from customer transactions.  The Company is, therefore,
exposed to off-balance sheet risk of loss in the event that
customers are unable to fulfill contractual obligations.  The
Company manages this risk by requiring customers to have sufficient
cash in their account before a buy order is executed and to have
the subject securities in their account before a sell order is
executed.  The Company has not incurred any losses from customers
unable to fulfill contractual obligations.

BSFS also provides investment management services to an agency of
the State of Ohio.  In conjunction with these services BSFS has
agreed to indemnify the agency against losses resulting from
violations of the investment management agreement entered into with
the agency or violations of fiduciary duties under applicable law.

In the normal course of business, BSFS is a market maker for a
limited number of community bank stocks, and quotes bid and ask
prices for those stocks.  In the event of sudden price movements,
BSFS may be required to honor a quote at an undesirable price.
BSFS controls this risk by monitoring markets closely and updating
quotes as required and generally limits its quotes to 100 or 200
shares of a given security.

In the normal course of business, the Company periodically sells
securities not yet purchased (short sales) for its own account and
writes options.  The establishment of short positions and option
contracts exposes the Company to off-balance sheet market risks in
the event prices change, as the Company may be obligated to cover
such positions at a loss. At March 31, 2001, the Company had no
short security positions, had not written any option contracts and
did not own any options. The Company did not experience any credit
losses due to the failure of any counterparties to perform during
the quarter ended March 31, 2001.  Senior management of the Company
is responsible for reviewing trading positions, exposures, profits
and losses, trading strategies and hedging strategies on a daily
basis.

The Company's significant industry concentration, primarily through
the operations of BSFS, which arises within its normal course of
business activities, is with financial institutions for bank
securities transactions.

The net cash balance decreased $642,085 during the quarter ended
March 31, 2001.  Net cash used by operating activities was
$169,748.  Unrealized gains on the trading portfolio caused cash
receipts to be less than would otherwise be expected.

Investing activities used $75,193 of cash during the quarter ended
March 31, 2001, primarily for the purchase of computer equipment.

Financing activities used $397,144 of cash during the quarter ended
March 31, 2001, primarily to purchase Company stock under a stock
buy-back program.

The operations of the Company are funded primarily by investment
management fees and revenue from the trading portfolio.  Management
believes that the Company's existing resources, including available
cash and cash provided by operating activities, will be sufficient
to satisfy its working capital requirements in the foreseeable
future.  However, no assurance can be given that additional funds
will not be required.  To the extent that returns on investments
are less than anticipated, or expenses are greater than
anticipated, the Company may be required to reduce its activities,
liquidate inventory or seek additional financing.  Further, this
additional financing may not be available on acceptable terms, if
at all.  No significant capital expenditures are expected in the
foreseeable future.

Impact of Inflation and Other Factors

The Company's operations have not been significantly affected by
inflation.  The Company's management fees are dependent on the
amount of assets under management and the negotiation of rates
within a very competitive environment.  The amount of assets under
management is primarily influenced by investment performance,
customer service and the success of marketing efforts.  The
Company's trading portfolios of equity securities, primarily in the
community banking sector, are carried at current market values.
Therefore, the Company's profitability is affected by general
economic and market conditions, including volatility in the banking
sector, the volume of securities trading and fluctuations in
interest rates.

The Company's business is also subject to government regulation and
changes in legal, accounting, tax and other compliance
requirements.  Changes in these regulations may have a significant
effect on the Company's operations.

The Revenue Reconciliation Act of 1993 includes Mark-to-Market
Rules which essentially require securities dealers to include
unrealized gains on their trading portfolios, in taxable income for
income tax purposes. Accordingly, these Rules have a materially
adverse impact on the Company's cash flow because tax payments are
greater than would otherwise be required.

       DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                             PART II
                        OTHER INFORMATION

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

The Annual Meeting of Shareholders was held April 26, 2001.  The
Shareholders voted on the following issues:

     a.   Election of Directors.

          The following individuals were elected to serve on the
          board until the Annual Meeting of Shareholders in 2004:

     Name of Director         Votes for           Votes withheld
     David R. Meuse           8,266,334             65,623
     John Rettig              8,161,834            170,123

          The following individual was elected to serve on the
          board until the Annual Meeting of Shareholders in 2002:

     Name of Director         Votes for           Votes withheld
     Roderick H. Dillon, Jr   8,239,434             92,523

          The following Directors continue to serve on the board:

     Larry A. Beres; Roger D. Blackwell; Richard Desich; James G.
     Mathias; David  R. Meuse; and John Rettig.

     b.   Adoption of an amendment to Article I of the Amended
          Articles of Incorporation of The Banc Stock Group, Inc.,
          to change its name to Diamond Hill Investment Group, Inc.
          This issue was approved with 8,078,946 votes for, 150,215
          votes against and 102,796 abstained.

     c.   Ratification of PricewaterhouseCoopers LLP to serve as
          independent auditors for the ten months ended December
          31, 2000.  This issue was approved with 8,268,102 votes
          for, 4,235 votes against and 59,620 abstained.

Item 6.  Exhibits and Reports on Form 8-K

       a)   10.01   Banc Stock Financial Services, Inc. Sub-Advisory
                    Agreement with Diamond Hill Capital Management, Inc.

       b)  No reports on Form 8-K were filed during the quarter for
                    which this report is filed.

                            SIGNATURES

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

              DIAMOND HILL INVESTMENT GROUP, INC.
                           (Registrant)

Date     May 14, 2001                   /S/ Roderick H. Dillon, Jr.
                                        Roderick H. Dillon, Jr.
                                        President, and Chief Executive Officer

Date     May 14, 2001                   /S/ Jeffrey C. Barton
                                        Jeffrey C. Barton
                                        Chief Financial Officer
                                        (chief financial and chief
                                        accounting officer)