FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

(Mark One)

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


             For the quarterly period ended September 30, 2000
                                            -------------------

                                       OR

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


             For the transition period from ____________ to _______________

                           Commission File No. 0-23525
                                               -------
                         NORTH ARKANSAS BANCSHARES, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

         Tennessee                                             71-0800742
--------------------------------------------------------------------------------
(State or other jurisdiction of                            (I.R.S. Employer
incorporation or organization)                          Identification Number)

200 Olivia Drive, Newport, Arkansas                            72112
--------------------------------------------------------------------------------
(Address of principal                                       (Zip Code)
executive office)

         Issuer's telephone number, including area code: (870) 523-3611
                                                               --------

Check  whether  the issuer  (1) has 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  [   ]

As of November  8, 2000,  the latest  practicable  date,  299,973  shares of the
registrant's common stock were issued and outstanding.

Transitional small business disclosure format (check one):

Yes  [   ]                                 No  [ X ]

<PAGE>


                          PART I. FINANCIAL STATEMENTS

Item 1. Consolidated Financial Statements

        Consolidated Statements of Financial Condition as of
        September 30, 2000 (unaudited) and June 30, 2000 .....................3

        Consolidated  Statements  of  Operations  for the
        Three  Months  Ended September 30, 2000 and 1999 (unaudited) .........4

        Consolidated  Statements  of Cash  Flows  for the
        Three  Months  Ended September 30, 2000 and 1999 (unaudited) .........5

        Notes to Consolidated Financial Statements ...........................6


        Item 2.  Management's Discussion and Analysis or Plan of Operations ..7


                           PART II. OTHER INFORMATION

Item 1.      Legal Proceedings ...............................................10
Item 2.      Changes in Securities and Use of Proceeds .......................10
Item 3.      Defaults Upon Senior Securities .................................10
Item 4.      Submission of Matters to a Vote of Security Holders .............10
Item 5.      Other Information ...............................................10
Item 6.      Exhibits and Reports on Form 8-K ................................10


                                   SIGNATURES


                                       2
<PAGE>


                           PART I FINANCIAL STATEMENTS

                         NORTH ARKANSAS BANCSHARES, INC.

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                      SEPTEMBER 30, 2000 AND JUNE 30, 2000
<TABLE>
<CAPTION>


                                                                     September 30,      June 30,
                         Assets                                          2000            2000
                         ------                                      ------------    ------------
                                                                                      (Audited)
<S>                                                                  <C>             <C>
Cash and amount due from banks,  includes  interest  bearing
    deposits of $487,350 and $1,096,221 at September 30, and
    June 30, 2000, respectively                                      $    627,187    $  1,236,521
Certificates of Deposit with other financial institutions               1,098,000       1,198,000
Investment securities held-to-maturity, at cost                        12,444,395      12,741,700
Loans receivable, net                                                  28,577,189      28,251,774
Real Estate Owned                                                          26,322          26,322
Office properties and equipment, net                                    1,359,984       1,368,767
Accrued interest receivable                                               348,974         321,787
Other Assets                                                              217,328         214,230
                                                                     ------------    ------------
         Total Assets                                                $ 44,699,379    $ 45,359,101
                                                                     ============    ============


                  Liabilities and Stockholders' Equity
                  ------------------------------------

Deposits                                                             $ 29,336,150    $ 30,125,720
Federal Home Loan Bank advances                                        10,286,967      10,158,957
Other liabilities                                                         173,375         200,804
                                                                     ------------    ------------
         Total Liabilities                                             39,796,492      40,485,481
                                                                     ------------    ------------

                  Stockholders' Equity
                  --------------------

Preferred Stock, $.01 par value per share, 3,000,000
      shares authorized, no shares issued or outstanding                       --              --
Common Stock, $.01 par value per share, 9,000,000 shares
      authorized, 299,973 and 303,100 shares issued and
      outstanding at September 30, and June 30, 2000, respectively          3,000           3,031
Unearned MRP Shares                                                       (10,818)        (10,818)
Additional paid-in capital                                              2,631,373       2,656,357
Retained earnings -- substantially restricted                           2,486,700       2,432,418
Loan to employee stock ownership plan                                    (207,368)       (207,368)
                                                                     ------------    ------------
         Total Stockholders' Equity                                     4,902,887       4,873,620
                                                                     ------------    ------------

         Total Liabilities and Stockholders' Equity                  $ 44,699,379    $ 45,359,101
                                                                     ============    ============

</TABLE>

See accompanying condensed notes to consolidated financial statements.


                                       3

<PAGE>


                         NORTH ARKANSAS BANCSHARES, INC.

                      CONSOLIDATED STATEMENTS OF OPERATIONS
             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                     THREE MONTHS ENDED
                                                         SEPTEMBER 30,
                                                    -------------------
                                                      2000        1999
                                                    --------   --------
<S>                                                 <C>        <C>
Interest income:
         Loans receivable                           $568,279   $570,578
         Deposits in other financial institutions     24,751     25,182
         Mortgage-backed securities                  152,760    167,894
         Investment securities                        53,423     51,533
                                                    --------   --------
                  Total interest income              799,213    815,187
                                                    --------   --------

Interest expense:
         Deposits                                    361,180    405,463
         Federal Home Loan advances                  156,882    110,698
                                                    --------   --------
                  Total interest expense             518,062    516,161
                                                    --------   --------
                  Net interest income                281,151    299,026

Provision for loan losses                                 --      5,920
                                                    --------   --------
         Net interest income after provision         281,151    293,106
                                                    --------   --------

Non-interest income - other                           44,854     35,127
                                                    --------   --------

Non-interest expenses:
         Salaries and employee benefits              107,413    110,542
         Contribution Expense--ESOP                    7,404      7,404
         Legal and professional fees                  15,084     13,004
         Data processing fees                         33,324     31,384
         Federal insurance expense                     5,498      9,968
         Furniture and equipment expense              11,261     11,873
         Occupancy expense                            19,610     21,095
         Other                                        48,829     37,424
                                                    --------   --------
                                                     248,423    242,694
                                                    --------   --------

         Net income before income taxes               77,582     85,539

Income tax expense                                    23,300     23,400
                                                    --------   --------
                  Net income                        $ 54,282   $ 62,139
                                                    ========   ========

Earnings per share
         Basic and diluted                          $   0.20    $  0.20
         Weighted average shares outstanding         278,345    307,405
</TABLE>

See accompanying condensed notes to consolidated financial statements.

                                       4


<PAGE>



                         NORTH ARKANSAS BANCSHARES, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                 Three months ended September 30, 2000 and 1999
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                          Three Months Ended
                                                                             September 30,
                                                                     ---------------------------
                                                                        2000            1999
                                                                     -----------    -----------
<S>                                                                  <C>            <C>
Cash Flow from operating activities:
   Net income                                                        $    54,282    $    62,139
   Adjusted to reconcile net income to net cash
     provided by operating activities:
      Depreciation and Amortization                                       15,460         15,460
      Provision for Loan Loss                                                 --          5,920
      FHLB Stock Dividends                                                (8,400)        (6,000)
      Net premium amortization on investments                              8,468          8,678
      Increase in interest receivable                                    (27,187)        (2,552)
      Increase in other assets                                            (4,340)       (86,768)
      Decrease in other liabilities                                      (27,429)       (26,810)
                                                                     -----------    -----------
         Net cash provided by (used in) operating activities              10,854        (29,933)
                                                                     -----------    -----------

Cash flows from investing activities:
   Purchase of held to maturity ("HTM") securities                            --             --
   Proceeds from maturities/principal repayments of HTM securities       297,237        442,463
   Net decrease (increase) in loans receivable                          (325,415)       439,211
   Net decrease in certificates of deposit with other
     financial institutions                                              100,000        300,000
   Purchase of office properties and equipment                            (5,434)        (4,950)
                                                                     -----------    -----------

         Net cash provided by investing activities                        66,388      1,176,724
                                                                     -----------    -----------

Cash flows from financing activities:
   Repurchase of common stock                                            (25,016)            --
   Net decrease in deposits                                             (789,570)      (233,225)
   Net (decrease) increase in Federal Home Loan Bank advances            128,010       (149,045)
                                                                     -----------    -----------
         Net cash used in financing activities                          (686,576)      (382,270)
                                                                     -----------    -----------

Net increase (decrease) in cash and amounts due from banks              (609,334)       764,521
Cash and amounts due from banks at beginning of year                   1,236,521        307,907
                                                                     -----------    -----------
Cash and amounts due from banks at end of year                       $   627,187    $ 1,072,428
                                                                     ===========    ===========

Supplemental  disclosures  of  cash  flow  information:
   Noncash  investing  and financing activities:
      Transfer from real estate acquired through foreclosure                  --             --
   Cash paid during the period:
         Interest on deposits                                            359,145        401,831
         Income taxes                                                         --             --

</TABLE>

See accompanying condensed notes to consolidated financial statements.

                                       5


<PAGE>

                         NORTH ARKANSAS BANCSHARES, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
             For the three months ended September 30, 2000 and 1999


NOTE 1 - NORTH ARKANSAS BANCSHARES, INC.
----------------------------------------

North Arkansas Bancshares,  Inc. (the "Company") was incorporated under the laws
of the State of  Tennessee  for the purpose of becoming  the holding  company of
Newport  Federal  Savings  Bank  (the  "Bank")  in  connection  with the  Bank's
conversion  from a  federally  chartered  mutual  savings  bank  to a  federally
chartered  capital  stock  savings  bank.  On  November  12,  1997,  the Company
commenced a  subscription  offering of its shares in connection  with the Bank's
conversion.  The Company's offering and the Bank's conversion closed on December
18, 1997. A total of 370,300 shares were sold at $10.00 per share.

NOTE 2 - BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION
--------------------------------------------------------------

The accompanying  unaudited  financial  statements  (except for the statement of
financial  condition at June 30, 2000,  which is audited)  have been prepared in
accordance with generally accepted  accounting  principles for interim financial
statements and with the  instructions to Form 10-QSB.  Accordingly,  they do not
include all of the  information  and  footnotes  required by generally  accepted
accounting  principles  for  complete  financial  statements.  In the opinion of
management, all adjustments,  consisting of normal recurring accruals, necessary
to present fairly the financial position,  results of operations, and cash flows
for the interim periods presented have been included.  The financial  statements
of the Company are presented on a consolidated basis with those of the Bank. The
results of  operations  for the three  months ended  September  30, 2000 are not
necessarily indicative of the results expected for the full year.

Certain  information  and note  disclosures  normally  included in the Company's
annual  financial  statements  prepared in accordance  with  generally  accepted
accounting   principles   have  been  condensed  or  omitted.   These  condensed
consolidated  financial  statements  should  be read  in  conjunction  with  the
consolidated  financial  statements and notes thereto  included in the Company's
Annual  Report on Form 10-KSB for the fiscal year ended June 30, 2000 filed with
the Securities and Exchange Commission.

NOTE 3 - EARNINGS PER SHARE
---------------------------

Earnings per share have been calculated in accordance with Financial  Accounting
Standards  Board  Statement  No.128,  "Earnings  Per  Share," and  Statement  of
Position 93-6,  "Employers'  Accounting for Employee Stock Ownership Plans." For
purposes of this computation,  the number of shares of common stock purchased by
the employee stock  ownership plan (the "ESOP") which have not been allocated to
participant's  accounts are not assumed to be  outstanding.  As of September 30,
2000,  8,886 of the  29,624  shares  of common  stock  held by the ESOP had been
allocated to participants'  accounts. The weighted average number of shares used
for basic and diluted  earnings per share for the three  months ended  September
30, 2000 was 278,345 shares.

NOTE 4 - PLAN OF CONVERSION
---------------------------

On May 29, 1997, the Bank's Board of Directors formally approved a plan ("Plan")
to  convert  from a  federally  chartered  mutual  savings  bank to a  federally
chartered  stock savings bank subject to approval by the Bank's  members and the
Office of Thrift  Supervision.  The Plan called for the common stock of the Bank
to be purchased by the Company and the common stock of the Company to be offered
to  various  parties  in a  subscription  offering  at a  price  based  upon  an
independent appraisal of the Bank. All requisite approvals were obtained and the
conversion and the Company's  offering were consummated  effective  December 18,
1997. Upon  consummation of the conversion,  the Bank  established a liquidation
account in an amount equal to its  retained  earnings as reflected in the latest
statement of financial  condition used in the final conversion  prospectus.  The
liquidation  account will be maintained for the benefit of certain depositors of
the Bank who  continue  to  maintain  their  deposit  accounts in the Bank after
conversion.  In the event of a complete liquidation of the Bank, such depositors
will be entitled to receive a distribution  from the liquidation  account before
any liquidation may be made with respect to the common stock.

                                       6

<PAGE>



                         NORTH ARKANSAS BANCSHARES, INC.

            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30, 2000 AND JUNE 30, 2000

     The  Company's  total assets at September  30, 2000 were $44.7  million,  a
decrease of $660,000, or 1.45%, from June 30, 2000's level of $45.4 million. The
decrease in assets was due primarily to the combined  effects of a $609,000 , or
49.28%, reduction in cash and due from banks, a $297,000, or 2.33%, reduction in
investment  securities  classified as held-to-maturity and a $100,000, or 8.35%,
decrease in  certificates of deposit with other  financial  institutions.  These
decreases were partially offset by a $325,000,  or 1.15%,  increase in net loans
receivable

     Net loans at September 30, 2000 amounted to $28.6  million,  an increase of
$325,000,  or 1.15%,  from $28.3  million at June 30,  2000.  The  increase  was
attributable  to new loan  originations  during  the  quarter.  During the three
months ended  September 30, 2000, the Bank  originated $1.3 million in new loans
consisting  of $776,000 in one-to  four-family  mortgage  loans and  $549,000 in
consumer loans.  The decrease in the investment  securities  portfolio  reflects
maturities and principal  repayments on such investments  during the period. The
decreases  in  balances  of cash  and of  certificates  of  deposit  with  other
institutions  reflects the Company's decision not to renew certain  certificates
upon maturity due to the Company's  higher than normal cash needs as a result of
a decrease in deposits.

     Total  deposits at  September  30, 2000 were $29.3  million,  a decrease of
$790,000 from June 30, 2000's level of $30.1 million. The decrease was primarily
attributable to a decrease in certificate of deposit accounts. Federal Home Loan
Bank advances at September 30, 2000 totaled $10.3 million, up from $10.2 million
at June 30, 2000. Rather than attempt to match the rates offered on certificates
of deposit by some  competitors,  the Bank has opted to use FHLB  advances  as a
source of short term funding.  In the current interest rate  environment,  these
advances are a lower cost source of funds than  certificates  of deposit.  Total
stockholders' equity at September 30, 2000 amounted to $4.9 million, an increase
of $29,000 or 0.60% from $4.9 million at June 30, 2000. The increase  during the
quarter  was due to the  retention  of  earnings  of  $54,000  from  the  period
partially  offset by the cost of shares of the Company's  common stock that were
repurchased during the period. During the three months ended September 30, 2000,
the  Company  repurchased  3,100  shares in the open  market at a total  cost of
$25,000 which accounted for the reduction.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999

     Net income for the three  months  ended  September  30, 2000 was $54,000 as
compared to net income of $62,000 for the three month period ended September 30,
1999,  for a decrease of $8,000.  The decrease was primarily  attributable  to a
reduction  in total  interest  income  and, to a lesser  extent,  an increase in
non-interest expenses, partially offset by an increase in non-interest income.

     Net  interest  income  during the three  months  ended  September  30, 2000
decreased  by  $18,000,  or 5.98%,  as  compared  to the same period in 1999 due
mainly to a $15,000 decrease in interest income from mortgage-backed  securities
which  reflects a decrease in the average  balance of these types of investments
during the  current  period.  Also  contributing  to the  decrease  was a $2,000
increase in total interest expense from $516,000 for the quarter ended September
30, 1999 to $518,000 for the quarter  ended  September 30, 2000 as a decrease in
interest  expense from  deposit  accounts was more than offset by an increase in
interest expense from FHLB advances.  In recent months, the Bank has experienced
an outflow of certificate of deposit accounts due to its decision not to attempt
to match certificate rates offered by some competitors. Deposits in checking and
other  transactional  accounts  increased  during the period  however.  Interest
expense on these  types of deposit  accounts is lower than with  certificate  of
deposit accounts. In addition, the Bank has replaced the certificates of deposit
with FHLB  advances  which can be obtained on a short term basis at a lower cost
than certificates.

     A  provision  for loan  losses is  charged to  earnings  to bring the total
allowance for loan losses to a level considered  appropriate by management based
on historical experience,  the volume and type of lending conducted by the Bank,
the  status  of past due  principal  and  interest  payments,  general  economic
conditions, particularly as such conditions relate to the Bank's market area and
other factors related to the  collectibility of the Bank's loan portfolio.  As a
result of such analysis,  management recorded a $6,000 provision for loan losses
during the three months ended

                                       7

<PAGE>

September 30, 1999 and no provision during the current period.  During the three
months ended September 30, 2000,  charge-offs  totaled $2,000.  While management
believes that the total allowance for loans losses is adequate,  there can be no
assurance that the allowance for loan losses will be adequate to cover losses on
nonperforming assets in the future.

     Non-interest income which consists mainly of deposit and loan fees amounted
to $45,000 for the three months ended  September 30, 2000 as compared to $35,000
for the three months ended September 30, 1999. The $10,000, or 27.69%,  increase
resulted  from  increased  checking  account  fees and gain on other real estate
owned.

     Total  non-interest  expense for the three months ended  September 30, 2000
increased by $6,000,  or 2.36%,  to $248,000  from $243,000 for the three months
ended  September  30,  1999  due  primarily  to an  $11,000  increase  in  other
non-interest  expenses,  partially  offset by decreases in salaries and employee
benefit expenses and deposit insurance  premiums.  Other  non-interest  expenses
amounted to $49,000 for the three months ended September 30, 2000 as compared to
$37,000 for the three  months ended  September  30, 1999 with the  $111,000,  or
30.48%,  increase  attributable to approximately  $13,000 in expenses related to
two pieces of real estate  owned.  Salaries  and employee  benefits  amounted to
$107,000 for the three months ended  September  30, 2000 as compared to $111,000
for the three months ended September 30, 1999 with the decline attributable to a
decrease in staffing.  Federal deposit  insurance expense totaled $6,000 for the
first quarter of fiscal year 2001, a decrease of $4,000, or 44.84%, from $10,000
for the same period in fiscal year 2000 with the decline due to the  decrease in
the rate of premiums  paid by the Bank due to an overall  decrease in rates that
became effective as of January 1, 2000.

     The Company's  income tax expense for the three months ended  September 30,
2000  amounted to $23,000 which was  comparable to the expense  incurred for the
same period the previous year..

LIQUIDITY AND CAPITAL RESOURCES

     The Bank is required to maintain minimum levels of liquid assets as defined
by OTS regulations.  This requirement,  which varies from time to time depending
upon  economic  conditions  and deposit  flows,  is based upon a  percentage  of
deposits and short-term borrowings. The required ratio at September 30, 2000 was
4%. For the month  ended  September  30, 2000 the Bank was in  compliance.  As a
result  of  the  conversion,  the  Bank's  liquidity  has  increased  due to the
additional funds it received.  The Bank's primary sources of funds are deposits,
repayment of loans and mortgage-backed securities, maturities of investments and
interest-bearing  deposits, funds provided from operations and advances from the
FHLB  of  Dallas.  While  scheduled  repayments  of  loans  and  mortgage-backed
securities and maturities of investment  securities are  predictable  sources of
funds,  deposit flows and loan prepayments are greatly influenced by the general
level of interest rates, economic conditions and competition.  The Bank uses its
liquidity resources principally to fund existing and future loan commitments, to
fund maturing certificates of deposit and demand deposit withdrawals,  to invest
in other interest-earning  assets, to maintain liquidity,  and to meet operating
expenses.  At September 30, 2000, the Bank was in compliance with all applicable
regulatory  capital  requirements  with total core and tangible  capital of $4.3
million  (9.70% of adjusted total assets) and total  risk-based  capital of $4.4
million (21.25% of risk-weighted assets).

FINANCIAL MODERNIZATION LEGISLATION.

     On November 12, 1999,  President  Clinton signed into law legislation which
could  have a  far-reaching  impact  on the  financial  services  industry.  The
Gramm-Leach-Bliley   ("G-L-B")  Act  authorizes  affiliations  between  banking,
securities  and  insurance  firms and  authorizes  bank  holding  companies  and
national banks to engage in a variety of new financial activities. Among the new
activities  that will be permitted to bank holding  companies are securities and
insurance  brokerage,   securities  underwriting,   insurance  underwriting  and
merchant banking. The Federal Reserve Board, in consultation with the Department
of  Treasury,  may  approve  additional  financial  activities.   National  bank
subsidiaries  will be permitted to engage in similar  financial  activities  but
only on an  agency  basis  unless  they are one of the 50  largest  banks in the
country.   National  bank   subsidiaries   will  be  prohibited  from  insurance
underwriting,  real estate  development  and  merchant  banking.  The G-L-B Act,
however, prohibits future affiliations between existing unitary savings and loan
holding companies,  like the Company,  and firms which are engaged in commercial
activities and prohibits the formation of new unitary holding companies.

     The G-L-B Act imposes  new  requirements  on  financial  institutions  with
respect to customer  privacy.  The G-L-B Act generally  prohibits  disclosure of
customer  information  to  non-affiliated  third parties unless the customer has
been given the  opportunity  to object and has not objected to such  disclosure.
Financial  institutions  are further required to disclose their privacy policies
to customers  annually.  Financial  institutions,  however,  will be required to

                                       8
<PAGE>

comply  with state law if it is more  protective  of customer  privacy  than the
G-L-B Act.  The G-L-B Act directs the federal  banking  agencies,  the  National
Credit Union Administration,  the Secretary of the Treasury,  the Securities and
Exchange  Commission and the Federal Trade Commission,  after  consultation with
the National Association of Insurance Commissioners,  to promulgate implementing
regulations  within six months of enactment.  The privacy provisions will become
effective six months thereafter.

     The G-L-B Act contains significant  revisions to the Federal Home Loan Bank
System. The G-L-B Act imposes new capital  requirements on the Federal Home Loan
Banks and authorizes them to issue two classes of stock with differing  dividend
rates and redemption requirements. The G-L-B Act deletes the current requirement
that the  Federal  Home Loan  Banks  annually  contribute  $300  million  to pay
interest on certain  government  obligations  in favor of a 20% of net  earnings
formula.  The G-L-B Act expands the  permissible  uses of Federal Home Loan Bank
advances by community  financial  institutions (under $500 million in assets) to
include   funding   loans  to  small   businesses,   small   farms   and   small
agri-businesses.  The G-L-B Act makes  membership  in the Federal Home Loan Bank
voluntary for federal savings associations.

     The  G-L-B  Act  contains  a  variety  of  other  provisions   including  a
prohibition  against ATM surcharges  unless the customer has first been provided
notice of the  imposition  and  amount of the fee.  The  G-L-B Act  reduces  the
frequency of Community  Reinvestment Act  examinations for smaller  institutions
and imposes certain reporting requirements on depository  institutions that make
payments  to   non-governmental   entities  in  connection  with  the  Community
Reinvestment  Act.  The  G-L-B  Act  eliminates  the SAIF  special  reserve  and
authorizes a federal  savings  association  that converts to a national or state
bank charter to continue to use the term "federal" in its name and to retain any
interstate branches.

     The  Company  is  unable  to  predict  the  impact  of the G-L-B Act on its
operations  at this time.  Although the G-L-B Act reduces the range of companies
with which the  Company  may  affiliate,  it may  facilitate  affiliations  with
companies in the financial services industry.

                                       9

<PAGE>
                         NORTH ARKANSAS BANCSHARES, INC.

                                     PART II


ITEM 1.    LEGAL PROCEEDINGS
           -----------------
     None.

ITEM 2.    CHANGES IN SECURITIES AND USE OF PROCEEDS
           -----------------------------------------
     Not applicable

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES
           -------------------------------
     Not applicable

ITEM 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
           ---------------------------------------------------
     None.

ITEM 5.    OTHER INFORMATION
           -----------------
     None.

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

     (a)      Exhibits.

              Exhibit 27     Financial Data Schedule (EDGAR only)

     (b)      Reports on Form 8-K.

              None.


                                       10

<PAGE>


                         NORTH ARKANSAS BANCSHARES, INC.

                                   SIGNATURES


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




Date: November 14, 2000      By:/s/ Brad Snider
                                ----------------------------------
                                Brad Snider
                                President, Chief Executive Officer and Treasurer
                                (Duly Authorized and Principal
                                Executive, Accounting and Financial Officer)



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