<PAGE>   1

                                 UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                  Form 10-QSB


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

                  For the quarterly period ended March 31, 1997

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

                  For the transition period from           to
                                                 ---------   -------- 

                         Commission File Number 1-13824


                         CITISAVE FINANCIAL CORPORATION
               (Exact name of issuer as specified in its charter)

              Louisiana                                      72-1289214
       (State or other jurisdiction                        (I.R.S. Employer
     of incorporation or organization)                    Identification No.)

               665 Florida Street, Baton Rouge, Louisiana 70801
                   (Address of principal executive offices)

Issuer's telephone number, including area code: (504)383-4102

Indicate by check mark 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. Yes   X   No
                      ----    ----

Shares of common stock, par value $.01 per share, outstanding as of March 31,
1997: 962,207. Transitional Small Business Disclosure Format: Yes      No X 
                                                                 ----    ----



<PAGE>   2
                         CITISAVE FINANCIAL CORPORATION

                                  FORM 10-QSB
                          QUARTER ENDED MARCH 31, 1997


                         PART I - FINANCIAL INFORMATION

Interim Financial Information required by Rule 10-01 of Regulation S-X and Item
303 of Regulation S-B is included in this Form 10-QSB as referenced below:

<TABLE>
<S>                                                                           <C>
Item 1 - Financial Statements                                                   Page

         Consolidated Statements of Financial Condition at
                 March 31, 1997 and December 31, 1996                             3

         Consolidated Statements of Income For the Three Months
                 Ended March 31, 1997 and 1996                                    4

         Consolidated Statements of Stockholders' Equity for
                 the Three Months Ended March 31, 1997 and 1996                   5

         Consolidated Statements of Cash Flows For the Three Months Ended
                 March 31, 1997 and 1996                                      6 - 7

         Notes to Consolidated Financial Statements                          8 - 11

Item 2 - Management's Discussion and Analysis of Financial
                 Condition and Results of Operations                        12 - 17

                          PART II - OTHER INFORMATION

Item 1 - Legal Proceedings                                                       18

Item 2 - Changes in Securities                                                   18

Item 3 - Defaults Upon Senior Securities                                         18

Item 4 - Submission of Matters to a Vote of Security Holders                     18

Item 5 - Other Information                                                       18

Item 6 - Exhibits and Reports on Form 8-K                                        18

Signatures                                                                       19
</TABLE>



<PAGE>   3
                         CITISAVE FINANCIAL CORPORATION
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                   AS OF MARCH 31, 1997 AND DECEMBER 31, 1996





<TABLE>
<CAPTION>
                                                                                     (UNAUDITED)            (UNAUDITED)
                                                                                       MARCH 31,            DECEMBER 31,
                                                                                        1997                     1996
                                                                                     -----------------------------------
<S>                                                                                <C>                         <C>
ASSETS:                                                                                           (In Thousands)
Cash and Cash Equivalents                                                             $  1,388                   $ 1,755
Interest-Earning Deposits in Other Institutions                                            209                       664
                                                                                      ----------------------------------   
  Total Cash and Cash Equivalents                                                        1,597                     2,419
                                                                                               
Federal Funds Sold                                                                       3,550                     2,650
Securities:                                                                                    
  Investment Securities held to maturity                                                19,168                    19,254
         (Market Value $18,933 and $19,229)                                                    
  Mortgage-Backed Securities held to maturity                                            2,222                     2,275
         (Market Value $2,229 and $2,293)                                                      
  Federal Home Loan Bank Stock                                                             408                       380
                                                                                      ----------------------------------   
Total Securities                                                                        21,798                    21,909
                                                                                               
Insurance Accounts Receivable                                                                3                        42
Loans Held for Sale                                                                        415                       363
Real Estate Owned                                                                           76                        64
                                                                                               
Loans Receivable                                                                        44,982                    45,254
    Less:  Allowance for Loan Losses                                                       (70)                      (61)
                                                                                      ----------------------------------   
Total Loans Receivable                                                                  44,912                    45,193
Accrued Interest Receivable                                                                456                       500
Premises and Equipment                                                                   1,946                     1,966
Other Assets                                                                               189                       180
                                                                                      ----------------------------------   
Total Assets                                                                          $ 74,942                   $75,286
                                                                                      ==================================
                                                      
LIABILITIES & STOCKHOLDERS' EQUITY:                    
Deposits                                                                              $ 61,294                   $61,457
Accounts Payable                                                                            40                       187
Advances from Borrowers for Taxes & Insurance                                              111                        77
Federal Income Taxes:                                  
      Current                                                                               86                        42
      Deferred                                                                             151                       151
Accrued Expenses & Other Liabilities                                                       765                     1,040
                                                                                      ----------------------------------   
        Total Liabilities                                                               62,447                    62,954
                                                       
Minority Interest in Subsidiary                                                            38                         40
                                                       
STOCKHOLDERS' EQUITY:                                  
  Common Stock, $.01 Par Value; Authorized             
     10,000,000 Shares, 964,707 Shares Issued                                              10                         10
  Paid-in Capital in Excess of Par                                                      7,403                      7,376
  Retained Earnings                                                                     6,115                      6,020
  Less:  Unearned ESOP Shares                                                            (561)                      (582)
  Less:  Unearned Compensation-MRP                                                       (475)                      (497)
  Less:  Treasury Shares ( 2,500 shares at cost)                                          (35)                       (35)
                                                                                      ----------------------------------   
Total Stockholders' Equity                                                             12,457                     12,292
                                                                                      ----------------------------------   
Total Liabilities & Stockholders Equity                                               $74,942                    $75,286
                                                                                      ==================================
</TABLE>

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






                                      -3-
<PAGE>   4



                         CITISAVE FINANCIAL CORPORATION
                       CONSOLIDATED STATEMENTS OF INCOME
          FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND MARCH 31, 1996
<TABLE>
<CAPTION>
                                  (UNAUDITED)
                                 QUARTER ENDED
                                                                MAR 31,       MAR 31,
                                                                 1997          1996
                                                           -----------------------------------
                                                            In Thousands, Except Per Share Data)
<S>                                                             <C>         <C>
Interest Income:
   Loans                                                           $  949   $  920
    Investment Securities                                             297      309
    Mortgage-Backed Securities                                         37       41
    Other Interest-earning Assets                                      43      127
                                                                   ---------------
        Total Interest Income                                       1,326    1,397
                                                                   ---------------

Interest Expense:
    Deposits                                                          606      642
    Other Interest-bearing Liabilities                                  0        0
                                                                   ---------------
        Total Interest Expense                                        606      642
                                                                   ---------------

         Net Interest Income                                          720      755
    Provision for Loan Losses                                           8        7
                                                                   ---------------

         Net Interest Income After Provision
              for Loan Losses                                         712      748
                                                                   ---------------

Noninterest Income:
   Insurance Agency Commissions                                       189      201
    Rent Income                                                         2        2
    Loan Fees and Service Charges                                      74       80
    Gain on Sales of Loans                                             29       25
    Other                                                               7        6
                                                                   ---------------

        Total Noninterest Income                                      301      314
                                                                   ---------------

Noninterest Expense:
   Compensation and Benefits                                          440      406
   Occupancy and Equipment Expense                                     93       86
   Federal Insurance Premium                                            2       38
   Other                                                              179      164
   Goodwill Amortization                                                0        4
                                                                   ---------------
        Total Noninterest Expense                                     714      698
                                                                   ---------------

   Income Before Provision for Taxes &
        Minority Interest                                             299      364
   Income Tax Expense                                                  95      115
                                                                   ---------------
        Net Income Before Minority Interest                           204      249

Minority Interest in Subsidiary                                        13       14
                                                                   ---------------
        Net Income                                                 $  191   $  235
                                                                   ===============

Per Share:
        Net Income-Note 4                                          $  .19   $  .26
        Dividends-Note 4
                                                                      .10     .075
</TABLE>
The accompanying notes are an integral part of these financial statements.

                                      -4-


<PAGE>   5
                CITISAVE FINANCIAL CORPORATION AND SUBSIDIARY
               CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
              FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996


<TABLE>
<CAPTION>

                                                                               (UNAUDITED)          (UNAUDITED)
                                                                                 MAR 31,               MAR 31,
                                                                                  1997                  1996
                                                                             ----------------------------------
                                                                                       (In Thousands)
<S>                                                                            <C>                     <C>
COMMON STOCK:                                                       
    Balance-Beginning of Period                                                 $    10                $    10
    Shares Activity                                                                   0                      0
                                                                                ------------------------------
                                                                                     10                     10
    Balance-End of Period                                                       ==============================
                                                                    
PAID-IN CAPITAL IN EXCESS OF PAR:                                   
    Balance-Beginning of Period                                                 $ 7,376                $ 9,144
                                                                                     27                     10
    ESOP Shares Released for Allocation-Note 2                                  ------------------------------
                                                                                  7,403                  9,154
    Balance-End of Period                                                       ==============================
                                                                    
RETAINED EARNINGS:                                                  
    Balance-Beginning of Period                                                 $ 6,020                $ 5,879
    Net Income                                                                      191                    235
    Cash Dividends-Note 4                                                           (96)                   (67)
                                                                                ------------------------------
    Balance-End of Period                                                         6,115                  6,047
                                                                                ==============================
                                                                    
UNEARNED ESOP SHARES:                                               
    Balance-Beginning of Period                                                 $  (582)               $  (733)
    Shares Released for Allocation-Note 2                                            21                     19
                                                                                ------------------------------
    Balance-End of Period                                                          (561)                  (714)
                                                                                ==============================
                                                                    
UNEARNED COMPENSATION-MRP SHARES:                                   
    Balance-Beginning of Period                                                    (497)                     0
    Shares Earned by Participants of MRP-Note 3                                      22                      0
                                                                                ------------------------------
    Balance-End of Period                                                          (475)                     0
                                                                                ==============================
                                                                    
TREASURY STOCK:                                                     
    Balance-Beginning of Period (2,500 shares at cost)                              (35)                     0
    Shares Activity                                                                   0                      0
                                                                                ------------------------------
    Balance - End of Period                                                         (35)                     0
                                                                                ==============================
Total Stockholders' Equity                                                      $12,457                $14,497
                                                                                ==============================
</TABLE>

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








                                      -5-



<PAGE>   6


                 CITISAVE FINANCIAL CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996

<TABLE>
<CAPTION>
                                                                                   (UNAUDITED)              (UNAUDITED)
                                                                                      MAR 31,                  MAR 31,
                                                                                       1997                     1996
                                                                               -----------------------------------------------
                                                                                               (In Thousands)
    <S>                                                                            <C>                          <C>
    CASH FLOWS FROM OPERATING ACTIVITIES:                        
    Net Income                                                                        $   191                     $   235
    Adjustments to Reconcile Net Income                          
      to Net Cash Provided by (Used in)                          
      Operating Activities:                                                                                              
            Provision for Loan  Losses                                                     (8)                         (9)
            Provision for Depreciation and Amortization                                    31                          28 
            Other                                                                          70                          29 
            Increase (Decrease) in Minority Interest, Net                                  (2)                         (1)
            Stock Dividends on Federal Home Loan Bank Stock                                (5)                         (5)
            Loans Originated for Sale                                                  (2,477)                     (2,600)
            Sale of Loans                                                               2,425                       2,058 
            Amortization (Accretion) of Securities                                                                         
                Premiums (Discounts)                                                      (14)                         (9)
       Changes in Assets and Liabilities:                                                                                 
            (Increase) Decrease in Insurance Receivables                                   39                          21 
            (Increase) Decrease in Accrued Interest Receivable                             44                          66 
            (Increase) Decrease in Other Assets                                           (10)                        (33)
            Increase (Decrease) in Accounts Payable                                         5                         (18)
            Increase (Decrease) in In Taxes Payable                                        44                          87 
            Increase (Decrease) in Accrued                                                                                
                Expenses and Other Liabilities                                           (431)                        248 
                                                                                      ----------------------------------- 
                                                                                                                          
             Net Cash Provided by (Used in) Operating Activities                          (98)                         97 
                                                                                      ----------------------------------- 
    Cash Flows from Investing Activities:                                                                                 
            Purchase of Premises and Equipment                                            (11)                        (94)
            Maturities of Investment Securities                                           100                       8,495 
            Purchase of Investment Securities                                               0                      (7,000)
            Maturities of Mortgage-Backed Securities                                       53                         119 
            Net (Increase) Decrease in Federal Funds Sold                                (900)                      1,025 
            Net (Increase) Decrease in Loans                                              259                      (1,317)
            Net Proceeds from Sales of Foreclosed Real Estate                               0                          58 
                                                                                      ----------------------------------- 

            Net Cash Provided by (Used in) Investing Activities                          (499)                      1,286 
                                                                                      ----------------------------------- 
</TABLE>                                                                 
                                                                 
                                                                 
                                                                 
                                                                 

                                      -6-







<PAGE>   7


<TABLE>
<S>                                                                    <C>                    <C>
CASH FLOWS FROM FINANCING ACTIVITIES:                          
      Dividends                                                                (96)               (67)
      Net Increase (Decrease) in Certificates of Deposit                    (1,067)               (91)
      Net Increase  in Other Deposit Accounts                                  904              1,042
      Net Increase in Advances from Borrowers                  
         for Taxes and Insurance                                                34                 35
                                                                           --------------------------
      Net Cash Provided by (Used in) Investing Activities                     (225)               919
                                                                           --------------------------
                                                               
      Increase (Decrease) in Cash and Cash Equivalents                        (822)             2,302
      Cash and Cash Equivalents-Beginning of Period                          2,419              3,936
                                                                           --------------------------
                                                               
      Cash and Cash Equivalents-End of Period                              $ 1,597             $6,238
                                                                           ==========================

      Supplemental Disclosures of Cash Flow Information 
      Cash Payments for:                                       
         Interest Paid to Depositors                                       $   600             $  642
                                                                           ==========================
                                                               
         Income Taxes                                                           81                 87
                                                                           ==========================

      Supplemental Schedules of Noncash Investing              
         and Financing Activities:                             
              Transfers from Loans to Real Estate              
                 Acquired through Foreclosure                                   12                  0
                                                                           ==========================
                                                               
                                                               


</TABLE>
The accompanying notes are an integral part of these financial statements.


                                     -7-






<PAGE>   8
                        CITISAVE FINANCIAL CORPORATION
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (UNAUDITED)
                                MARCH 31, 1997


NOTE 1 - BASIS OF PRESENTATION
         The accompanying consolidated financial statements for the three-month
period ended March 31, 1997 include the accounts of CitiSave Financial
Corporation and its wholly owned subsidiary, Citizens Savings Association, F.A.
(Association). The Association has been consolidated with its wholly owned
subsidiary, 665 Florida Street Corp. 665 Florida Street Corp. has been
consolidated with Roberts and Eastland (a Louisiana partnership), of which it
owns an 80% interest. Currently, the business and management of CitiSave
Financial Corporation is primarily the business and management of the
Association. All significant intercompany transactions and balances have been
eliminated in the consolidation. The minority interest's share of the net
income of Roberts and Eastland has been properly reflected in these financial
statements.

         The accompanying unaudited financial statements were prepared in
accordance with instructions for Form 10-QSB and, therefore, do not include
information or footnotes necessary for a complete presentation of financial
position, results of operations and cash flows in conformity with generally
accepted accounting principles. However, all adjustments (consisting only of
normal recurring accruals) which, in the opinion of management, are necessary
for a fair presentation of the financial statements have been included.

NOTE 2 - EMPLOYEE STOCK OWNERSHIP PLAN
         The Company sponsors a leveraged employee stock ownership plan (ESOP)
that covers all employees who have at least one year of service with the
Company. The ESOP is accounted for in accordance with AICPA SOP 93-6,
"Employers' Accounting for Employee Stock Ownership Plans". The ESOP shares
initially were pledged as collateral for its debt. The debt is being repaid
based on a ten-year amortization and the shares are being released for
allocation to active employees annually over the ten-year period. The shares
pledged as collateral are deducted from stockholders' equity as unearned ESOP
shares in the accompanying balance sheets.

         As shares are released from collateral, the Company reports
compensation expense equal to the current market price of the shares. Dividends
on allocated ESOP shares are recorded as a reduction of retained earnings.
Compensation expense of the ESOP was $39,180 for the three months ended March
31, 1997 based on the release of 2,102 shares. As of March 31, 1997, there were
18,990 allocated shares, 2,102 shares had been committed to be released and
56,085 shares were uncommitted and held in suspense by the ESOP.






                                      -8-

<PAGE>   9


NOTE 3 - MANAGEMENT RECOGNITION PLAN AND STOCK OPTION PLANS

         A special stockholders' meeting was held on July 23, 1996 for the
purpose of approving the following stock benefit plans: (1) 1996 Key Employee
Stock Compensation Program; (2) 1996 Directors' Stock Option Plan; and (3) 1996
Management Recognition Plan for Officers. At that meeting, all of the above
plans were adopted and approved by the stockholders.

         Stock Option Plans-Under the 1996 Directors' Stock Option Plan, the
Company may grant options to its non-employee directors for up to 28,941 shares
of common stock. The exercise price of each option equals the market price of
the Company's stock on the date of grant and an option's maximum term is 10
years. 26,040 or ninety percent of the options were granted on the date the
Plan was approved by the stockholders of the Company, at an exercise price of
$13.875 per share. The remaining 2,901 shares are scheduled to be granted after
one year on July 23, 1997. The options became exercisable after six months from
the grant date. Under the 1996 Key Employee Stock Compensation Program, the
Company may grant both incentive and compensatory options to its officers and
key employees up to 67,529 shares of common stock. The exercise price of each
option equals the market price of the Company's stock on the date of the grant,
$13.875; and an option's maximum term is 10 years for incentive options and 10
years and one month for compensatory options. Options are granted and vest at
the discretion of the Program Administrators. At March 31, 1997, shares
available for grant under the 1996 Directors' Stock Option Plan and the 1996
Key Employee Stock Compensation Program amounted to 2,901 and 6,962,
respectively.

         Management Recognition Plan-Under the 1996 Management Recognition Plan
instituted by the Company, it may grant awards to its officers and key
employees for up to 38,588 shares of common stock. The awards are allocated at
the discretion of the Compensation Committee of the Board. Shares vest at the
rate of 20% on each annual anniversary date. At March 31, 1997, 32,847 shares
were granted and 5,741 shares remain available for grant.

NOTE 4 - DIVIDENDS AND EARNINGS PER SHARE

         During the three-month period ended March 31, 1997, the Company paid
dividends of $0.10 per share to shareholders of record on March 17, 1997. The
dividends were paid to shareholders on March 31, 1997.

         The Company had a net income of $191,000 or $.19 per share for the
three-month period ending March 31, 1997 based on weighted average shares
outstanding for the quarter of 990,650 shares. The weighted average shares
outstanding calculation was based on the issuance of 964,707 shares less the
unreleased ESOP shares held in the collateral account in each period plus the
86,607 directors and employee stock options approved at the July 23, 1996
special stockholders meeting, less Treasury Stock of 2,500 shares purchased on
August 1, 1996.






                                      -9-

<PAGE>   10


NOTE 5 - ALLOWANCE FOR LOAN LOSSES

         The following is a summary of the activity in the allowance for loan
losses.
<TABLE>
<CAPTION>
                                                      (UNAUDITED)
                                                  THREE MONTHS ENDED
                                        MAR 31, 1997              MAR 31,1996
                                        ------------              -----------
                                                  (In Thousands)
     <S>                                   <C>
     Balance at Beginning of Period         $61                       $82
        Provision for Loan Losses             8                         7
        Recovery of Loan Losses               1                        17
        Charged-Off Loans                     0                       (13)
                                            ---                       ---
     Balance at End of Period               $70                       $93
                                            ===                       === 
</TABLE>

         The Association had non-performing loans contractually past due 90
days or more totaling approximately $76,000 and $167,000 at March 31, 1997 and
1996, respectively. Impairment of loans having recorded investments of $76,000
at March 31, 1997 has been recognized in conformity with SFAS No. 114 as
amended by SFAS No. 118. The total allowance for loan losses related to these
loans at March 31, 1997 was $10,058. The allowance for loan loss of $70,000 as
of March 31, 1997 was .16% of the total loan portfolio and was 92.1% of the
non-performing loan balance.

NOTE 6-AGREEMENT AND PLAN OF MERGER

         On March 26, 1997, the Company and the Association entered into an
Agreement and Plan of Merger ("Agreement") by and among Deposit Guaranty
Corporation ("DGC"), CSF Acquisition Corporation, a Louisiana corporation and
wholly owned subsidiary of DGC ("CSF Acquisition"), the Company and the
Association, which provides for DGC's acquisition of all the issued and
outstanding Common Stock, par value $.01 per share, of the Company. Under the
terms of the Agreement, CSF Acquisition shall be merged with and into the
Company and the Company shall be the surviving corporation. As a result of the
merger, the Company will become a wholly owned subsidiary of DGC.

         Pursuant to the Agreement, upon the effective date of the Merger
("Effective Date"), each share of the Company Common Stock, other than those as
to which the Company stockholders properly perfect their dissenters' rights
under Louisiana law (if applicable), will be converted into the right to
receive from DGC $20.50 in cash (the "Merger Price"). In addition, pursuant to
the Agreement, at or immediately prior to the Effective Date, each outstanding
option to purchase the Company Common Stock issued by the Company ("CitiSave
Option") shall be canceled, and each holder of any such CitiSave Option,
whether or not then vested or exercisable, shall be entitled to receive from
the Company at the Effective Date for each CitiSave Option an amount determined
by multiplying (i) the excess of the Merger Price over the applicable exercise
price per share of the stock option by (ii) the number of shares of the Company
Common Stock subject to such CitiSave Option, subject to the execution by any
such holder of such instruments of cancellation as DGC may reasonably deem
appropriate. At or

                                     -10-
<PAGE>   11
immediately prior to the Effective Date, each outstanding award ("MRP Award")
to acquire the Company Common Stock pursuant to the Company's 1996 Management
Recognition Plan for Officers shall be canceled to the extent not previously
vested, and each holder of any such unvested MRP Award shall be entitled to
receive at or immediately prior to the Effective Date for each MRP Award an
amount determined by multiplying (i) the Merger Price by (ii) the number of
shares of unvested Company Common Stock subject to such MRP Award, subject to
the execution by any such holder of such instruments of cancellation as DGC may
reasonably deem appropriate.

Consummation of the Merger is subject to the prior receipt of all necessary
regulatory or governmental approvals and consents, the necessary approval of
stockholders of the Company and certain closing conditions.







                                      -11-

<PAGE>   12
                 CITISAVE FINANCIAL CORPORATION AND SUBSIDIARY
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

         The following discussion compares the consolidated financial condition
of CitiSave Financial Corporation and Subsidiary at March 31, 1997 to December
31, 1996 and the results of operations for the three months ended March 31,
1997 with the same period in 1996. Currently, the business and management of
CitiSave Financial Corporation is primarily the business and management of the
Association. This discussion should be read in conjunction with the interim
consolidated financial statements and footnotes included herein.

CHANGES IN FINANCIAL CONDITION

         Total assets decreased $344,000 or .5% from $75.3 million at December
31, 1996 to $74.9 million at March 31, 1997. The decrease in assets primarily
reflected decreases in total cash and cash equivalents and loans receivable
offset by an increase infederal funds sold at March 31, 1997.

         Interest-earning deposits in other institutions decreased from
$664,000 at December 31, 1996 to $209,000 at March 31, 1997. Federal funds sold
increased 33.3% from $2.7 million at December 31, 1996 to $3.6 million at March
31, 1997.

         The securities portfolio decreased from $21.9 million at 
December 31, 1996 to $21.8 million at March 31, 1997, due to maturities of 
securities.

         The net loan portfolio decreased $281,000 or .6% from $45.2 million at
December 31, 1996 to $44.9 million at March 31, 1997 and loans held for sale
increased from $363,000 at December 31, 1996 to $415,000 at March 31, 1997.
These changes in mix were primarily due to an increase in loan rates in the
Association's market area and normal seasonal patterns.

         Total deposits decreased $163,000 or .3% to $61.3 million at 
March 31, 1997 from $61.5 million at December 31, 1996.

         Total stockholders' equity increased by $165,000 or 1.3% to $12.5
million at March 31, 1997 compared to $12.3 million at December 31, 1996. The
increase was the result of net income of $191,000, release of ESOP shares of
$48,000 and $22,000 MRP stock earned, partially offset by the cash dividends of
$96,000 on common stock paid to stockholders at March 31, 1997.





                                      -12-


<PAGE>   13
REGULATORY CAPITAL

         As of March 31, 1997, the Association meets the criteria for a "well
capitalized" institution following the Office of Thrift Institution's three
capital requirements. The Association's management believes that under the
current regulations, the Association will continue to meet its minimum capital
requirements in the foreseeable future.

The table below shows the three different capital requirements and the
Association's amount of capital in each category.

<TABLE>
<CAPTION>
         REGULATORY                                 TANGIBLE           CORE            RISK-BASED
         CAPITAL REQUIREMENTS:                       CAPITAL          CAPITAL           CAPITAL
                                                     -------          -------          ----------
                                                                (DOLLARS IN THOUSANDS)
         <S>                                          <C>              <C>            <C>
         GAAP Capital                                  $10,803          $10,803         $10,803
         Additional Capital Items:          
            General Valuation Allowances                   ---              ---              70
                                                       -------          -------         -------
         Regulatory Capital Computed                    10,803           10,803          10,873
                                            
         Minimum Capital Requirement                     1,109            2,218           2,724
                                                       -------          -------         -------
         Regulatory Capital Excess                     $ 9,694          $ 8,585         $ 8,149
                                                       =======          =======         =======
                                            
         Regulatory Capital as a Percentage              14.61%           14.61%          31.93%
         Minimum Capital Required as a Percentage         1.50%            3.00%           8.00%
                                                       -------          -------         -------
         Regulatory Capital as a            
            Percentage in Excess            
               of Requirements                           13.11%           11.61%          23.93%
                                                       =======          =======         =======
</TABLE>





LIQUIDITY
         The Association is required under applicable federal regulations to
maintain specified levels of "liquid" investments in qualifying types of U.S.
Government, federal agency and other investments having maturities of five
years or less. Current OTS regulations require that a savings institution
maintain liquid assets of not less than 5% of its average daily balance of net
withdrawable deposit accounts and borrowings payable in one year or less, of
which short-term liquid assets must consist of not less than 1%. At March 31,
1997, the Association's regulatory liquidity was 38.5% or $20.3 million in
excess of the minimum OTS requirement of 5%.


                                      -13-




<PAGE>   14

RESULTS OF OPERATIONS
         The Company reported net income of $191,000 or $.19 per share for the
three months ended March 31, 1997, compared to net income of $235,000 or $.26
per share during the three month period ended March 31, 1996. The decrease in
first quarter earnings for 1997 compared to 1996 was the result of a 4.6%
decrease in net interest income. This decrease was due primarily to a decrease
in average net interest earning assets of $2.4 million from 1996 to 1997.
Contributing to this decrease was the payment of a special cash distribution
totaling $1.9 million or $2 per share to shareholders on June 28, 1996.

NET INTEREST INCOME
         The primary source of earnings for the Company is net interest income,
which is the difference between income generated from interest-earning assets
and interest expense from interest-bearing liabilities. The major factors that
affect net interest income are changes in the volume and type of
interest-earning assets and interest-bearing liabilities, along with changes in
market rates.

         Net interest income for the three months ending March 31, 1997
decreased $35,000 or 4.6% to $720,000 as compared to $755,000 for the three
months ended March 31, 1996. This decline was due to a decrease of $71,000 in
interest income offset by a $36,000 decrease in interest expense. The decrease
in interest income was the result of a $4.8 million or 6.4% decrease in the
average balance of interest-earning assets offset by an increase in the average
yield of those assets from 7.42% to 7.52%. The decrease in interest expense was
due to a decrease of $2.4 million or 4.1% in the average balance of
interest-bearing liabilities and a decrease in the average cost of those
liabilities from 4.27% to 4.20%.

         Average interest rate spread is the average yield of interest-earning
assets minus the average cost of interest-bearing liabilities. The
Association's average interest rate spread for the three months ended March 31,
1997 was 3.32% compared to 3.15% for the same period in 1996. Net interest
margin represents net interest income as a percent of average interest-earning
assets. Net interest margin was 4.09% for the three months ended March 31, 1997
as compared to 4.01% for the three months ended March 31, 1996.

         The table of Average Balance Sheets and Interest Rate Analysis for the
three months period ended March 31, 1997 and 1996 on page 15 and the
corresponding table of Rate/Volume Analysis on page 16 detail the effects the
changes in average balances and the changes in interest rates had on net
interest income during the respective periods.


                                     -14-


<PAGE>   15


                                      
                        CITISAVE FINANCIAL CORPORATION
              AVERAGE BALANCE SHEETS AND INTEREST RATE ANALYSIS
              FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996


<TABLE>
<CAPTION>
                                                                                   (UNAUDITED)
                                                                        THREE MONTHS ENDED MAR 31, 1997
                                                                        -------------------------------
                                                                                                AVERAGE
                                                                       AVERAGE                   YIELD/
                                                                       BALANCE       INTEREST     RATE
                                                                       --------------------------------
                                                                             (Dollars In Thousands)

INTEREST-EARNING ASSETS:
<S>                                                                    <C>            <C>          <C>
     Loans                                                             $   45,340     $    949     8.37 %
       Investment Securities                                               19,621          297     6.08
       Mortgage-Backed Securities                                           2,248           37     6.58
       Other Interest-Earning Assets                                        3,344           43     5.14
                                                                           ------        -----     ----
            Total Interest-Earning Assets                                  70,553        1,326     7.52
Noninterest-Earning Assets                                                  3,940                      
                                                                           ------                      
            Total Assets                                               $   74,493                      
                                                                           ======                      
Interest-Bearing Liabilities:                                                                          
       Passbook, NOW and Money Market Accounts                         $   18,198           94     2.07
       Certificates of Deposit                                             39,529          512     5.18
                                                                           ------        -----     ----
            Total Interest-Bearing Liabilities                             57,727          606     4.20
Noninterest-Bearing Liabilities                                             4,361                      
                                                                           ------                      
            Total Liabilities                                              62,088                      
                                                                                                       
Stockholders' Equity                                                       12,405                      
                                                                           ------                      
       Total Liabilities and Stockholders' Equity                      $   74,493                      
                                                                           ======                      
                                                                                                       
Net Interest-Earning Assets                                            $   12,826                      
                                                                           ======                      
                                                                                                       
Net Interest Income; Average Interest Rate Spread                                     $    720     3.32 %
                                                                                      ========     ====
                                                                                                       
Net Interest Margin                                                                                4.09 %
                                                                                                   ====
Average Interest-Earning Assets to                                                                     
      Average Interest-Bearing Liabilities                                                       122.22 %
                                                                                                 ======
</TABLE>                                                           
                                                           
                                                           
                                                           



<TABLE>
<CAPTION>
                                                                                          (UNAUDITED)
                                                                                THREE MONTHS ENDED MAR 31, 1996
                                                                                ---------------------------------
                                                                                                          AVERAGE
                                                                               AVERAGE                     YIELD/
                                                                               BALANCE        INTEREST      RATE
                                                                               ----------------------------------
                                                                                       (Dollars In Thousands)

INTEREST-EARNING ASSETS:                          
<S>                                                                                <C>             <C>           <C>
     Loans                                                                      $   42,487      $  920        8.66 %
     Investment Securities                                                          19,934         309        6.20
     Mortgage-Backed Securities                                                      2,517          41        6.52
     Other Interest-Earning Assets                                                  10,439         127        4.90
                                                                                    ------       -----        ----
            Total Interest-Earning Assets                                           75,377       1,397        7.42
            Noninterest-Earning Assets                                               3,184                        
                                                                                    ------                        
            Total Assets                                                        $   78,561                        
                                                                                    ======                        
Interest-Bearing Liabilities:                                                                                     
       Passbook, NOW and Money Market Accounts                                  $   18,156          96        2.12
       Certificates of Deposit                                                      42,013         546        5.20
                                                                                    ------       -----        ----
            Total Interest-Bearing Liabilities                                      60,169         642        4.27
Noninterest-Bearing Liabilities                                                      3,985                        
                                                                                    ------                        
            Total Liabilities                                                       64,154                        
                                                                                                                  
Stockholders' Equity                                                                14,407                        
                                                                                    ------                        
            Total Liabilities and Stockholders' Equity                           $  78,561                        
                                                                                    ======                        
                                                                                                                  
Net Interest-Earning Assets                                                      $  15,208                        
                                                                                 =========                        
                                                                                                                  
Net Interest Income; Average Interest Rate Spread                                               $  755        3.15 %
                                                                                                ======        ====
                                                                                                                  
Net Interest Margin                                                                                           4.01 %
                                                                                                              ====
Average Interest-Earning Assets to                                                                                
      Average Interest-Bearing Liabilities                                                                  125.28 %
                                                                                                            ======
                                                          
</TABLE>                                                          



                                      -15-




<PAGE>   16

                         CITISAVE FINANCIAL CORPORATION
                              RATE/VOLUME ANALYSIS
          FOR THE THREE MONTHS ENDED MARCH 31, 1997 VS. MARCH 31, 1996
                                  (UNAUDITED)

<TABLE>
<CAPTION>

                                                   ---------------------------------------------------
                                                            INCREASE (DECREASE)              TOTAL
                                                                DUE TO                     INCREASE

                                                   --------------------------------
                                                       RATE          VOLUME               (DECREASE)

                                                   ---------------------------------------------------
                                                                      (In Thousands)
<S>                                               <C>               <C>                   <C>
INTEREST-EARNING ASSETS:                  
  Loans                                           $    (31)          $      60            $      29
  Investment Securities                                 (6)                 (6)                 (12)
  Mortgage-Backed Securities                             0                  (4)                  (4)
  Other Interest-Earning Assets                          6                 (90)                 (84)
                                                  ----------------------------------------------------
                                                       (31)                (40)                 (71)
                                                  ----------------------------------------------------
                                          
INTEREST-BEARING LIABILITIES:             
  Passbook, NOW & Money                   
         Market Accounts                               (2)                   0                   (2)
  Certificates of Deposit                              (2)                 (32)                 (34)
                                                  ----------------------------------------------------
                                          
Total Interest-Bearing Liabilities                     (4)                 (32)                 (36)
                                                  ----------------------------------------------------

Increase (Decrease) in Net Interest Income            (27)                  (8)                 (35)
                                                  ====================================================
</TABLE>

PROVISION FOR LOAN LOSSES
         The provision for loan losses increased $1,000 for the three months
ended March 31, 1997 compared to the same period in 1996. The Association
recorded a provision for loan losses in the amount of $8,000 for the three
months ended March 31, 1997, compared to $7,000 for the three months ended
March 31, 1996. The allowance for loan losses is maintained at a level which,
in management's judgment, is adequate to absorb credit losses inherent in the
loan portfolio. The amount of the allowance is based on management's quarterly
evaluation of the collectibility of the loan portfolio, including the nature of
the portfolio, credit concentrations, trends in historical loss experience,
specific impaired loans, and economic conditions. Allowances for impaired loans
are generally determined based on collateral values or the present value of
estimated cash flows. The allowance is increased by a provision for loan
losses, which is charged to expense, and reduced by charge-offs, net of
recoveries. The allowance for loan loss was $70,000 at March 31, 1997 or .16%
of the total loan portfolio. The allowance for loan loss as a percentage of
non-performing loans at March 31, 1997 was 92.1%.

                                      -16-






<PAGE>   17
NON INTEREST INCOME
         Non interest income decreased by $13,000 or 4.1% to $301,000 for the 
three months ended March 31,  1997 compared to $314,000 for the same three month
period in 1996.

NON INTEREST EXPENSE
         Non interest expense increased $16,000 to $714,000 for the three
months ended March 31, 1997 compared to $698,000 for the same period in 1996.
The 2.3% increase in 1997 is due to an increase of $34,000 in compensation and
benefits expense, an increase of $15,000 in other non interest expenses such as
professional fees, data processing, La. Shares Tax, printing and postage, and
an increase of $7,000 in building occupancy expense, which increases were
partially offset by a decrease of $36,000 in the federal insurance premiums for
FDIC SAIF coverage. The Association opened its sixth full service branch on
October 1, 1996 which contributed to the increase in these expense categories.

INCOME TAX EXPENSE
         Income tax expense for the quarter ended March 31, 1997  decreased by 
$20,000 to $95,000 as compared to $115,000 for the same quarter in 1996.  This 
decrease  reflects the decrease in income before income taxes during the first 
quarter of 1997.










                                      -17-
<PAGE>   18
                         CITISAVE FINANCIAL CORPORATION
                                  FORM 10-QSB

                          QUARTER ENDED MARCH 31, 1997

                          PART II - OTHER INFORMATION

Item 1 - Legal Proceedings:                                                 
               There are no matters required to be reported under this item.
                                                                            
Item 2 - Changes in Securities:                                             
               There are no matters required to be reported under this item.
                                                                            
Item 3 - Defaults Upon Senior Securities:                                   
               There are no matters required to be reported under this item.
                                                                            
Item 4 - Submission of Matters to a Vote of Security Holders:               
               There are no matters required to be reported under this item.
                                                                            
Item 5 - Other Information:                                                 
               There are no matters required to be reported under this item.
                                                                            
Item 6 - Exhibits and Reports on Form 8-K:                                  
               a) Exhibits:                                                 
                  The following exhibit is filed herewith:                  
<TABLE>                                                                     
<CAPTION>                                                                   
                       Exhibit No.               Description                
                       -----------               -----------                
<S>                        <C>                   <C>                        
                           27.1                  Financial Data Schedule    
</TABLE>                                                                    
               b) Reports:                                                  
                  A Form 8-K current report was filed by the Registrant on  
                  April 7, 1997 under Item 5. Other Events to report the    
                  execution of an Agreement and Plan of Merger with         
                  Deposit Guaranty Corp on March 26, 1997. No financial     
                  statements were required to be filed with the Form 8-K.   
                                                                            



                                      -18-
<PAGE>   19
                                   SIGNATURES

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

                                          CITISAVE FINANCIAL CORPORATION
                                          Registrant



Date:   May 7, 1997                       /s/ LEE F. NETTLES
     -----------------                    ----------------------
                                          Lee F. Nettles
                                          Chairman of the Board,
                                          President and Chief Executive Officer


Date:   May 7, 1997                       /s/ J. LARRY BELLARD
     -----------------                    ---------------------- 
                                          J. Larry Bellard
                                          Sr. Vice-President and Controller


                                      -19-