<PAGE>   1
                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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

For the quarterly period ended September 30, 1999

                                       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 number 1-6868

                              SIENA HOLDINGS, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                    Delaware                                      75-1043392
         -------------------------------                     -------------------
         (State or other jurisdiction of                      (I.R.S. employer
          incorporation or organization)                     identification no.)

5068 West Plano Parkway,  Suite 300,  Plano, Texas                 75093
--------------------------------------------------              ----------
    (Address of principal executive offices)                    (Zip code)

                                 (972) 381-4255
              ----------------------------------------------------
              (Registrant's telephone number, including area code)

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

                                 YES  X   NO
                                     ---     ---

          APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                        DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

                                 YES  X   NO
                                     ---     ---

On October 10, 1995, the Registrant and certain of its subsidiaries filed
bankruptcy proceedings under Chapter 11 of the Federal Bankruptcy Code in the
District of Delaware.

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

The number of shares outstanding of each of the issuer's classes of common stock
as of October 29, 1999: Common Stock, $.10 par value -- 6,000,000 shares.
<PAGE>   2
                      SIENA HOLDINGS, INC. AND SUBSIDIARIES

               FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1999

                                      INDEX

<TABLE>
<CAPTION>
                                                                                                   PAGE
                                                                                                   ----
<S>                                                                                                <C>
                                        PART I -- FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

         Consolidated Balance Sheets - September 30, 1999 and June 30, 1999........................  2
         Statements of Consolidated Operations-Quarters Ended September 30, 1999 and 1998..........  3
         Statements of Consolidated Cash Flows - Quarters Ended September 30, 1999 and 1998........  4
         Notes to Consolidated Financial Statements................................................  5

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

         Results of Operations..................................................................... 11
         Liquidity and Capital Resources........................................................... 12

                                          PART II -- OTHER INFORMATION

Item 1.  Legal Proceedings......................................................................... 13

Item 3.  Defaults Upon Senior Securities........................................................... 13

Item 6.  Exhibits and Reports on Form 8-K.......................................................... 13
</TABLE>


                                        1

<PAGE>   3
                         PART I -- FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

                           CONSOLIDATED BALANCE SHEETS

                      SIENA HOLDINGS, INC. AND SUBSIDIARIES
                        (IN THOUSANDS, EXCEPT PAR VALUE)


<TABLE>
<CAPTION>
                                                                    September 30, 1999   June 30, 1999
                                                                    ------------------   -------------
                                                                        (unaudited)
<S>                                                                 <C>                  <C>
ASSETS

Current Assets:
    Cash and cash equivalents ......................................      $  4,016          $  4,111
    Receivables ....................................................           181               138
    Prepaid expenses ...............................................           113               117
                                                                          --------          --------
                                                                             4,310             4,366
                                                                          --------          --------
Long Term Investments:
    Investment in real estate ......................................         4,899             4,879
    Deferred tax assets - net ......................................         1,175             1,175
                                                                          --------          --------
                                                                             6,074             6,054
                                                                          --------          --------
         Total Assets ..............................................      $ 10,384          $ 10,420
                                                                          ========          ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
    Accounts payable and accrued expenses ..........................      $    147          $    230
Long Term Liabilities:
    Accrued medical insurance premiums .............................           633               649
    Deferred compensation and fees .................................            72                52
                                                                          --------          --------
                                                                               705               701
                                                                          --------          --------
                                                                               852               931
                                                                          --------          --------
Stockholders' Equity:
    Preferred stock --($1.00 par value, 1,000 shares authorized,
        0 shares issued and outstanding) ...........................            --                --
    Common stock--($.10 par value, 15,000 shares authorized,
        6,000 shares issued and outstanding) .......................           600               600
    Other paid-in capital ..........................................         8,912             8,894
    Accumulated earnings (deficit) .................................            20                (5)
                                                                          --------          --------
                                                                             9,532             9,489
                                                                          --------          --------
         Total Liabilities and Stockholders' Equity ................      $ 10,384          $ 10,420
                                                                          ========          ========
</TABLE>


See notes to consolidated financial statements.


                                        2

<PAGE>   4
                STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)

                      SIENA HOLDINGS, INC. AND SUBSIDIARIES
              (IN THOUSANDS, EXCEPT NET EARNINGS PER SHARE AMOUNTS)


<TABLE>
<CAPTION>
                                                       Quarter Ended    Quarter Ended
                                                       September 30,    September 30,
                                                           1999             1998
                                                       -------------    -------------
                                                                        (as restated)
<S>                                                    <C>              <C>
Revenues:
   Commissions and fees ............................      $  103           $  131
   Interest ........................................          51               33
   Trust expense reimbursement .....................          63               87
   Other ...........................................           7                8
                                                          ------           ------
                                                             224              259
                                                          ------           ------
Expenses:
   Personnel .......................................          98              110
   Other operating .................................          87              113
                                                          ------           ------
                                                             185              223
                                                          ------           ------
Income from operations before federal income tax ...          39               36
Federal income tax expense .........................          14               13
                                                          ------           ------
Net income .........................................      $   25           $   23
                                                          ======           ======



Basic earnings per share:
   Net income ......................................      $ 0.00*          $ 0.01*

Average number of shares ...........................       6,000*           4,000*

Diluted earnings per share:
   Net income ......................................      $ 0.00*          $ 0.01*
Average number of shares ...........................       6,060*           4,066*
</TABLE>


*    Per share amounts are based on shares issued or reserved for issuance to
     creditors.

See notes to consolidated financial statements.


                                        3

<PAGE>   5
                STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)

                      SIENA HOLDINGS, INC. AND SUBSIDIARIES
                                 (IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                    Quarter Ended     Quarter Ended
                                                                                    September 30,     September 30,
                                                                                        1999              1998
                                                                                    -------------     -------------
                                                                                                      (as restated)
<S>                                                                                 <C>               <C>
Operating activities:
      Net income ................................................................      $    25           $    23
      Adjustments to reconcile net income to net cash used by operations:
         Federal income tax expense charged to additional paid-in capital due
            to the utilization of pre-reorganization tax attributes .............           14                13
         Compensation expense for stock options .................................            4                 4
         Increase in current accounts receivable and prepaid expenses ...........          (39)              (27)
         Decrease in current accounts payable and accrued expenses ..............          (83)              (29)
         Decrease in long term accrued medical insurance premiums ...............          (16)              (15)
         Increase in long term deferred compensation and fees ...................           20                --
                                                                                       -------           -------
               Net cash used by operating activities ............................          (75)              (31)
                                                                                       -------           -------

Investing activities:
      Increase in investment in real estate .....................................          (20)               (3)
                                                                                       -------           -------
                 Net cash used by investing activities ..........................          (20)               (3)
                                                                                       -------           -------

Financing activities:
      Stock offering expenses charged to additional paid-in capital .............           --               (90)
                                                                                       -------           -------
                 Net cash used by financing activities ..........................           --               (90)
                                                                                       -------           -------

Net decrease in cash and cash equivalents .......................................          (95)             (124)
Cash and cash equivalents at beginning of period ................................        4,111             2,475
                                                                                       -------           -------
Cash and cash equivalents at end of period ......................................      $ 4,016           $ 2,351
                                                                                       =======           =======

Cash payments for:
      Interest ..................................................................      $    --               $--
      Federal income tax ........................................................      $    --               $--

Non-cash transactions:
      Issuance of stock options .................................................      $     4           $     4
</TABLE>


See notes to consolidated financial statements.


                                        4

<PAGE>   6
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

                      SIENA HOLDINGS, INC. AND SUBSIDIARIES

                               SEPTEMBER 30, 1999


NOTE A -- BASIS OF FINANCIAL STATEMENT PRESENTATION

         The accompanying unaudited consolidated financial statements include
the accounts of Siena Holdings, Inc. ("SHI"), formerly Lomas Financial
Corporation ("LFC"), and its subsidiaries (collectively, the "Company"). SHI's
wholly-owned, principal subsidiaries are Siena Housing Management Corp. and LLG
Lands, Inc. Prior to October 1, 1996, SHI's wholly-owned principal subsidiary
was Lomas Mortgage USA, Inc. ("LMUSA"), now known as Nomas Corp. As a result of
the confirmation of LMUSA's Chapter 11 reorganization plan, the Company's
interest in LMUSA was extinguished effective October 1, 1996. LFC's plan of
reorganization was confirmed on October 4, 1996, but not effective until March
1997 (see "Note B -- Reorganization").

         In accordance with the American Institute of Certified Public
Accountants' Statement of Position 90-7, "Financial Reporting by Entities in
Reorganization Under the Bankruptcy Code", the Company adopted fresh-start
accounting as of April 1, 1997, after all material conditions required by the
Plan were satisfied. The delay in the adoption of fresh-start accounting was due
to uncertainties surrounding the resolution of claims and intercompany disputes
between the LMUSA Creditors' Committee and the LFC Creditors' Committee. Since
April 1, 1997, the Company's financial statements have been prepared as if it is
a new reporting entity. Under fresh-start accounting, all assets and liabilities
were restated to reflect their reorganization value, which approximated fair
value at the date of reorganization.

         The financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. 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) considered
necessary for a fair presentation have been included. The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results
could differ from those estimates. Certain reclassifications have been made to
prior quarters' financial statements to conform to the current presentation.
Operating results for the quarter are not necessarily indicative of the results
that may be expected for the fiscal year. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's annual report on Form 10-K for the year ended June 30, 1999.

         The Company restated its unaudited quarterly consolidated financial
statements for all quarters of fiscal year 1999. The restatements resulted from:
(1) a change to charge certain stock offering expenses against the gross
proceeds of the offering in the first and second quarters; (2) the recognition
of income from the proceeds received from the Creditors' Trust and a
corresponding recognition of directors' additional compensation expense as a
result of the approval by the shareholders of the Directors' Additional
Compensation Plan in the second quarter; and, (3) the reversal of stock option
expense in the second and third quarters for stock options granted to the
directors' due to a change in the measurement date. The net effect of the
restatement on the quarter ended September 30, 1998, is as follows:

<TABLE>
<CAPTION>
                                                                Restatement
                                                As reported       effect      Restated
                                                -----------     -----------   --------
<S>                                             <C>             <C>           <C>
  Income (loss) before federal income tax....   $       (54)    $        90   $     36
  Federal income tax expense.................            --             (13)       (13)
  Net income (loss)..........................           (54)             77         23
</TABLE>


                                        5

<PAGE>   7
NOTE B -- REORGANIZATION

         On October 10, 1995, LFC, two subsidiaries of LFC and LMUSA
(collectively the "Debtor Corporations") filed separate voluntary petitions for
reorganization under Chapter 11 of the Federal Bankruptcy Code in the District
of Delaware. The petitioning subsidiaries were Lomas Information Systems, Inc.
("LIS") and Lomas Administrative Services, Inc. ("LAS"). The Debtor Corporations
filed two separate plans of reorganization with the Bankruptcy Court. An order
confirming the second amended joint plan of reorganization filed on October 4,
1996 for LFC, LIS and LAS (the "Joint Debtors") and a stipulation and order
among the Joint Debtors and the appointed statutory committee of unsecured
creditors of LFC (the "LFC Creditors' Committee") regarding technical
modifications to the plan of reorganization and confirmation order filed on
January 27, 1997 together with the second amended joint plan of reorganization
filed on July 3, 1996 are collectively referred to herein as the "Joint Plan".
The Joint Plan was confirmed on October 4, 1996, but not effective until March
7, 1997, after certain conditions were either met or waived by the LFC
Creditors' Committee. Refer to the Company's annual report on Form 10-K for the
year ended June 30, 1999 for more information on the reorganization of the
Company.

         The Joint Plan provided for a transfer by the Company of $3 million in
cash to partially fund a litigation trust to pursue third-party claims pursuant
to the LFC/LMUSA joint litigation trust agreement among LFC and its subsidiaries
and LMUSA, dated March 6, 1997 (the "LFC/LMUSA Litigation Trust"). Subject to
certain exceptions, the LFC Creditors' Trust (as defined herein) and the
creditors' trust established pursuant to the LMUSA Plan will receive sixty and
forty percent, respectively, of net proceeds from litigation. There can be no
assurance that the LFC/LMUSA Litigation Trust will produce any proceeds which
will benefit the Creditors Trust and former creditors.

         The Class 3 general unsecured creditors were to receive a combination
of cash and new common stock as settlement of their allowed claim, pursuant to
the Joint Plan. The total of cash distributions through June 30, 1999 is $23
million. The amounts ultimately distributed to the former creditors will be
solely dependent on the success of the Company, the amounts realized from the
collection of assets and the settlement of liabilities for both the Creditors'
Trust and the Litigation Trust. See "Note C -- Creditors' Trust".

         As provided for in the Joint Plan and a decision of the LFC Creditors'
Committee, 4,000,000 shares of the new common stock were issued by the stock
transfer agent on the initial distribution date of November 12, 1997. For
balance sheet presentation and earnings (loss) per share, the 4,000,000 shares
were considered issued as of April 1, 1997. As of March 7, 1999, the stock
distribution agent had distributed 3,986,720 shares of the new common stock to
former creditors. There were 13,280 shares of common stock issued but not
delivered related to bonds not exchanged for stock by the March 7, 1999 deadline
and 164,599 shares of common stock held for disputed claims that have now been
resolved. The Company expects the stock distribution agent to redistribute by
December 31, 1999, the total of 177,879 shares to all allowed creditors that
have received prior stock distributions.

         On November 5, 1998, the Company received $2.102 million, net of stock
offering expenses of $98,000, in exchange for 2 million shares of the Company's
common stock, as approved by the Company's Board of Directors on September 23,
1998. This transaction increased the number of outstanding shares of common
stock to 6 million. THE 6,000,000 SHARES OF THE NEW COMMON STOCK ARE RESTRICTED
IF THE EFFECT OF A TRANSFER WOULD RESULT IN AN OWNERSHIP INCREASE TO 4.5 PERCENT
OR ABOVE OF THE TOTAL OUTSTANDING SHARES OR FROM 4.5 PERCENT TO A GREATER
PERCENTAGE OF THE TOTAL OUTSTANDING SHARES, WITHOUT PRIOR APPROVAL BY THE BOARD
OF DIRECTORS AS DESCRIBED IN THE RESTATED CERTIFICATE OF INCORPORATION.

         THE LFC CREDITORS TRUST AND ANY PROCEEDS FROM THE LFC/LMUSA LITIGATION
TRUST ARE SOLELY FOR THE BENEFIT OF THE FORMER CREDITORS OF THE JOINT DEBTORS.
STOCKHOLDERS WILL NOT BENEFIT FROM THESE TRUSTS UNLESS THEY HELD CLASS 3 -
GENERAL UNSECURED CLAIMS AS DEFINED IN THE JOINT PLAN. SEE "NOTE C -- CREDITORS'
TRUST".


                                        6

<PAGE>   8
NOTE C -- CREDITORS' TRUST

         The Joint Plan established a creditors' trust (the "Creditors' Trust")
in which the Company serves as trustee. The Creditors' Trust holds the
non-reorganized assets of the Company in trust pending their disposition and/or
distribution to the creditors in accordance with the terms of the Joint Plan.
The Creditors' Trust is organized for the sole purpose of liquidating the
non-reorganized assets including proceeds, if any from the LFC/LMUSA Litigation
Trust and will terminate on October 4, 2001, unless an extension is approved by
the Bankruptcy Court. The assets and liabilities of the Creditors' Trust are not
reflected in the accompanying Consolidated Balance Sheets as the Company is not
the beneficiary of the Trust. Accordingly, revenues and expenses related to the
Creditors' Trust assets and liabilities since April 1, 1997, are not reflected
in the accompanying Statements of Consolidated Operations. The allocation of
costs between the Creditors' Trust and the Company is based on management's
estimate of each entity's proportional share of costs. Gains and losses from the
Creditors' Trust are solely for the former creditors' benefit and the Company
has no risk of loss on the assets or liabilities. The amounts ultimately
distributed to the former creditors will be solely dependent on the success of
the Company, the amounts realized from the collection of assets and settlement
of liabilities for both the Creditors' Trust and the LFC/LMUSA Litigation Trust.
Stockholders who are not former creditors of the Joint Debtors are not
beneficiaries of the Creditors' Trust.

         There can be no assurance that the LFC/LMUSA Litigation Trust will
produce any proceeds which will benefit the Creditors' Trust and former
creditors.

         The Company charged to the Creditors' Trust expenses of $63,000 and
$87,000 for the quarters ended September 30, 1999 and 1998, respectively,
reported as trust expense reimbursement on the Company's Statement of
Consolidated Operations. The expenses consisted of an overhead allocation from
the Company, based upon management's estimate of resources used by the
Creditors' Trust. The allocation of overhead to the Creditors' Trust is expected
to decrease during fiscal year 1999.

         THE LFC CREDITORS TRUST AND ANY PROCEEDS FROM THE LFC/LMUSA LITIGATION
TRUST ARE SOLELY FOR THE BENEFIT OF THE FORMER CREDITORS OF THE JOINT DEBTORS.
STOCKHOLDERS WILL NOT BENEFIT FROM THESE TRUSTS UNLESS THEY HELD CLASS 3 -
GENERAL UNSECURED CLAIMS AS DEFINED IN THE JOINT PLAN. SEE "NOTE B -
REORGANIZATION".

NOTE D -- STOCKHOLDERS' EQUITY

         As of September 30, 1999 and June 30, 1999, the Company had 15,000,000
shares of $.10 par value common stock (the "Reorganized Common Stock")
authorized, with 6,000,000 shares issued and outstanding. On November 12, 1997,
pursuant to the Joint Plan and a decision by the LFC Creditors' Committee,
4,000,000 shares of the new common stock were issued by the stock transfer
agent. For balance sheet presentation and earnings (loss) per share, the
4,000,000 shares were considered issued as of April 1, 1997. As of March 7,
1999, the stock distribution agent had distributed 3,986,720 shares of the new
common stock to former creditors. There were 13,280 shares of common stock
issued but not delivered related to bonds not exchanged for stock by the March
7, 1999 deadline and 164,599 shares of common stock held for disputed claims
that have now been resolved. The Company expects the stock distribution agent to
redistribute by December 31, 1999, the total of 177,879 shares to all allowed
creditors that have received prior stock distributions. The Reorganized Common
Stock has no preemptive or other subscription rights and there are no conversion
rights, redemption or sinking fund provisions with respect to such shares.

         Recognizing the need of the Company for additional working capital, the
Chairman of the Company offered to make a cash investment for a certain number
of shares of the Company's common stock. This offer was considered and accepted
by the Company's Board of Directors at its regularly scheduled quarterly meeting
held in Wilmington, Delaware on September 23, 1998. The Chairman did not
participate in the vote of the Board accepting this offer. On November 5, 1998,
the Company received $2.102 million, net of stock offering expenses of $98,000,
in exchange for 2 million shares of the Company's common stock. This transaction
increased the number of outstanding shares of common stock to 6 million.


                                        7

<PAGE>   9
         SHI and its subsidiaries reported a tax benefit of $14,000 and $13,000
as an increase to additional paid-in capital for the quarters ended September
30, 1999 and 1998, respectively, resulting from the utilization of a portion of
the Company's pre-reorganization net operating loss carryforwards and deductible
temporary differences. Future utilization of these pre-reorganization tax
attributes on a consolidated basis will result in adjustments to additional
paid-in capital.

NOTE E -- DEFERRED TAX ASSETS

         SHI and its subsidiaries had no gross deferred tax liabilities and
approximately $95 million and $95 million in gross deferred tax assets as of
September 30 and June 30, 1999, respectively, subject to an offsetting valuation
allowance of approximately $94 million and $94 million, respectively.
Essentially all of this valuation allowance is considered to be attributable to
pre-reorganization tax attributes. Accordingly, future utilization of these
pre-reorganization tax attributes on a consolidated basis will result in
adjustments to additional paid-in capital.

         Due to the change in zoning received on certain tracts and improved
market conditions, management believes that the Company would be able to sell
the Allen property for a value in excess of the tax basis. As a result, during
the year ended June 30, 1999, the Company decreased the valuation allowance by
$1.175 million and additional paid-in capital was increased by $1.175 million to
reflect potential utilization of a portion of the consolidated net operating
loss carryforward.

         In assessing the realizability of deferred tax assets, management
considers whether it is more likely than not that some portion or all of the
deferred tax assets will not be realized. The ultimate realization of deferred
tax assets is dependent upon the generation of future taxable income during the
periods in which these temporary differences become deductible. Management
considers the reversal of any deferred tax liabilities, projected future taxable
income and tax planning strategies in making this assessment. Management
believes that it is more likely than not that the Company will realize the
benefit of these deferred tax assets, net of the existing valuation allowance as
of September 30, 1999.

NOTE F -- EARNINGS PER SHARE

         Earnings per common share for the quarters ended September 30, 1999 and
1998, were determined using the weighted average shares issued or reserved for
issuance as of September 30, 1999 and 1998, respectively. Effective December 1,
1997 the Company granted options under the Siena Holdings, Inc. Nonqualified
Stock Option Agreements (the "Nonqualified Stock Option Agreements"), included
as exhibits to the Company's quarterly report on Form 10-Q as of December 31,
1997. The effects of outstanding options are included in the calculation of
diluted earnings per common share to the extent that they are dilutive to
earnings.

NOTE G -- LEGAL PROCEEDINGS

         On September 25, 1998 the Company was advised that it was named as a
Counter-Defendant in the counterclaim filed by the defendants of the LFC/LMUSA
Litigation Trust's lawsuit against certain former officers and directors of
Lomas Financial Corporation and subsidiaries. The counterclaim seeks joint and
several liability. The Company has responded to the counterclaim denying
liability and preserving the Company's rights and defenses. Separately the
Company initiated litigation in the Delaware Bankruptcy Court to obtain a
declaration of rights and an order to turn over records. A successful outcome in
the Delaware court should resolve the counterclaim.

         In December 1997, the Company received a letter from the attorney of
the insurance company that carried the former directors and officers insurance
coverage, stating that there is a $1.0 million per claim retention which must be
completely exhausted before the insurance company is implicated. Management at
this time believes that the Company is not responsible for this retention amount
as a result of the Joint Plan.

         The LFC Creditors' Trust and any proceeds from the LFC/LMUSA Litigation
Trust are solely for the benefit of the former creditors of the Joint Debtors.
Stockholders will not benefit from these trusts unless they held Class 3 general
unsecured claims as defined in the Joint Plan.


                                        8

<PAGE>   10
         The assisted care facility management subsidiary, SHM, is a
wholly-owned subsidiary of the Company, and conducts business in Houston, Texas
pursuant to a management agreement. SHM manages and maintains an assisted care
facility in Houston, Texas under a management agreement into which it entered on
June 27, 1977 with Treemont. In the fourth quarter of fiscal year 1998, the
owners of Treemont contacted the Company's management and requested a legal
review of the management agreement as they believed certain parts of the
contract were illegal. The Company's position is that the agreement is
substantially secured at this time by the Treemont property in Houston. The
owners of Treemont have requested the Company consider possible changes to the
contract. Management does not believe the changes, if any are made, will have a
material impact on the Company.

NOTE H -- INDUSTRY SEGMENT DATA OF OPERATIONS

          As of June 30, 1999, the Company adopted SFAS No. 131, "Disclosures
about Segments of an Enterprise and Related Information", which requires that
companies disclose segment data on a basis that is used internally by management
for evaluating segment performance and allocating resources to segments. The
Company has two reportable segments: (1) assisted care management, which
receives a fee for managing and maintaining an assisted care facility in
Houston, Texas, and (2) real estate investment and development. The accounting
policies of the segments are the same as those of the Company . Refer to the
"Significant Accounting Policies" footnote as reported in the annual report on
Form 10-K for the year ended June 30, 1999, for more information.

          The Company's management evaluates performance of each segment based
on profit and loss from operations excluding allocation of corporate overhead
expenses and interest income. Segment data for the quarter ended September 30,
1998 has been restated to conform to the fiscal year 2000 presentation.

      The following table summarizes the Company's identifiable assets by
segment as of September 30, 1999 and June 30, 1999 (in thousands):

<TABLE>
<CAPTION>
                                                                           September 30,        June 30,
                                                                               1999               1999
                                                                           -------------        --------
<S>                                                                        <C>                  <C>
Identifiable assets:
     Assisted care facility management (including receivable from
         parent company eliminated in consolidation) ..................      $    769           $    717
     Real estate ......................................................         4,907              4,882
                                                                             --------           --------
                                                                                5,676              5,599
                                                                             --------           --------
     Reconciling items:
        Corporate cash, receivables and prepaid expenses (including
            receivable from subsidiary eliminated in consolidation) ...         4,138              4,231
        Deferred tax assets--net ......................................         1,175              1,175
        Elimination of intercompany receivables .......................          (605)              (585)
                                                                             --------           --------
Total assets per Consolidated Balance Sheet ...........................      $ 10,384           $ 10,420
                                                                             ========           ========
</TABLE>


                          (continued on following page)


                                        9

<PAGE>   11
         The following table summarizes the Company's segment data of operations
for the quarters ended September 30, 1999 and 1998 (in thousands):

<TABLE>
<CAPTION>


                                                   Quarter Ended       Quarter Ended
                                                   September 30,       September 30,
                                                        1999               1998
                                                   ---------------    ---------------

<S>                                                <C>                <C>

Revenues:
   Assisted care management ....................   $           103    $           134
   Real estate .................................                 1                 --
                                                   ---------------    ---------------
                                                               104                134
                                                   ---------------    ---------------
   Reconciling items:
      Corporate interest income ................                51                 30
      Trust expense reimbursement ..............                63                 87
      Other corporate revenue ..................                 6                  8
                                                   ---------------    ---------------
                                                               120                125
                                                   ---------------    ---------------
Total revenues per Statement of Consolidated
   Operations ..................................   $           224    $           259
                                                   ===============    ===============


Operating income (loss):
   Assisted care management ....................   $            55    $            90
   Real estate .................................                (3)                (4)
                                                   ---------------    ---------------
                                                                52                 86
                                                   ---------------    ---------------
   Reconciling items:
      Corporate interest income ................                51                 30
      Trust expense reimbursement ..............                63                 87
      Unallocated corporate expenses ...........              (133)              (173)
      Other ....................................                 6                  6
                                                   ---------------    ---------------
                                                               (13)               (50)
                                                   ---------------    ---------------
Income from operations before federal
   income tax per Statement of Consolidated
   Operations ..................................   $            39    $            36
                                                   ===============    ===============
</TABLE>


NOTE I -- SUBSEQUENT EVENTS

         On October 21, 1999, the Company's Board of Directors met and approved
a proposed one for 100 reverse stock split to be immediately followed by a 100
for one forward stock split, pending stockholder consideration and approval.
Each stockholder who would be entitled to less than one whole share as a result
of the reverse stock split, if implemented, would be entitled to receive, upon
surrender of such certificate or certificates, the cash value (as defined) of
such fractional shares. The transaction will be detailed in the annual proxy to
be mailed to all stockholders and voted on at the next annual meeting of the
Company's stockholders. The Board of Directors, in its sole discretion, may
abandon such proposed transactions without further action by the stockholders.



                                       10
<PAGE>   12



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

RESULTS OF OPERATIONS

         Statements contained herein that are not purely historical are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including
but not limited to statements regarding the Company's expectations, hopes,
beliefs, intentions or strategies regarding the future. Actual results could
differ materially from those projected in any forward-looking statements as a
result of a number of factors, including those detailed in this Management's
Discussion and Analysis of Financial Condition and Results of Operations, as
well as those set forth elsewhere herein. The forward-looking statements are
made as of the date of these financial statements and the Company undertakes no
obligation to update or revise the forward-looking statements, or to update the
reasons why actual results could differ materially from those projected in the
forward-looking statements.

         The operating results of the Company during the quarters ended
September 30, 1999 and 1998 were as follows (in thousands):

<TABLE>
<CAPTION>

                                                 Quarter Ended     Quarter Ended
                                                 September 30,      September 30,
                                                     1999               1998
                                                ---------------    ---------------
                                                                    (as restated)
<S>                                             <C>                <C>
Operating income (loss):
  Assisted care management ..................   $            55    $            90
  Real estate ...............................                (3)                (4)
  Other .....................................               120                123
                                                ---------------    ---------------
                                                            172                209
Expenses:
  General and administrative ................              (133)              (173)
                                                ---------------    ---------------

Income before federal income tax expense ....                39                 36
Federal income tax expense ..................                14                 13
                                                ---------------    ---------------
    Net income ..............................   $            25    $            23
                                                ===============    ===============
</TABLE>

         Assisted Care Management. The decrease in the profitability of the
assisted care management operations of $35,000 for the quarter ended September
30, 1999 as compared to the same quarter in the prior year, is primarily
attributable to the decreased management fee received by Siena Housing
Management, Inc. ("SHM"), a wholly-owned subsidiary of the Company. SHM manages
and maintains an assisted care facility in Houston, Texas under a management
agreement into which it entered on June 27, 1977 with Treemont, Inc.
("Treemont"). Under this agreement, SHM receives a fee based on gross revenues
and net income of Treemont. Refer to the Company's annual report on Form 10-K
for the fiscal year ended June 30, 1999, for more information on the Company's
assisted care business and management contract. Management fee income was
$28,000 lower in the in the first quarter of fiscal year 2000 as compared to
fiscal year 1999, as a result of a decrease in occupancy at Treemont. This
decrease was partially offset by a decrease of $12,000 in commission based
personnel expense for a net decrease in operating income of $16,000.
Additionally, the subsidiary reported an increase of approximately $15,000 in
other operating expenses related to increased travel expense and certain
computer related costs.

         In the fourth quarter of fiscal year 1998, the owners of Treemont
contacted the Company's management and requested a legal review of the
management agreement as they believed certain parts of the contract were
illegal. The Company's position is that the agreement is substantially secured
at this time by the Treemont property in Houston. The owners of Treemont have
requested the Company consider possible changes to the contract. Management does
not believe the changes, if any are made, will have a material impact on the
Company.




                                       11
<PAGE>   13

         The Treemont management agreement is not shown as an asset on the
balance sheet of the Reorganized Company because there can be no assurance that
the contract will continue in effect for an extended period and the
uncertainties inherent in the projected earnings of the facilities.

         Real Estate. The Company's investment in real estate is owned by LLG
Lands, Inc. ("LLG"), a wholly-owned subsidiary of the Company. The property
consists of 179.4 acres (approximately 147.2 acres net of right-of-way and flood
plain) of unimproved land in Allen, Texas (the "Allen property"). The southern
boundary of the Allen property is the recently constructed Exchange Parkway,
which provides access to the property from Central Expressway on the west and
from Highway 5 on the east. The Allen property includes four tracts of land: one
tract of approximately 36.5 net acres zoned multi-family, one tract of
approximately 85.5 net acres zoned light industrial (formerly single-family) and
two tracts of approximately 25.2 net acres zoned commercial. The City of Allen
recently completed the construction of a city park off of Exchange Parkway near
the multi-family tract.

         The Company attempted to increase the values of the property through
the re-zoning and relocation of zoning in certain tracts. The Company was
notified in fiscal year 1999 that its re-zoning application was approved,
relocating its multi-family tract to a more accessible location and changing the
single family zoning to light industrial. The Company has reviewed the real
estate interests held and has continued to market the property zoned for
multi-family use, approximately 36.5 net acres, and has begun to market the
light industrial property. A concept site plan and related marketing materials
have been developed for the light industrial property. Management of the Company
intends to market and/or develop the property over an estimated period not to
exceed five years. During fiscal year 1999 and continued into fiscal year 2000,
the Company has held negotiations with third parties for the sale of certain
parcels of the Allen property. The Company has not entered into a contract with
any of the third parties, however, based on these negotiations, management
believes that the Company would be able to sell the Allen property for a value
in excess of the carrying amount.

         The operating income loss for the first quarter in both fiscal year
2000 and fiscal year 1999 of $3,000 and $4,000, respectively, are consistent.
Costs related to the re-zoning, marketing and developing the property will
continue, some of which may be capitalized.

         Other Operations. The Company reported other operating income of
$120,000 and $123,000 for the quarters ended September 30, 1999 and 1998,
respectively. This included an overhead allocation based upon managements
estimate of resources used by the Creditors' Trust and charged to the Creditors'
Trust of $63,000 and $87,000 for the quarters ended September 30, 1999 and 1998,
respectively. The allocation of overhead to the Creditors' Trust is expected to
decrease during fiscal year 2000 as the net assets of the Creditors' Trust are
liquidated.

         Expenses. General and administrative expenses decreased from $173,000
for the first quarter in fiscal year 1999 to $133,000 for the same period in
fiscal year 2000. The decrease is primarily attributable to: (1) reduction in
corporate insurance expense of $12,000, (2) a decrease in directors' fees of
$16,000 as a result of a fewer number of meetings, and (3) a decrease of $10,000
in travel expense.

         Due to the Company's lack of dependence on computer software, the
Company does not expect the cost of addressing the Year 2000 issue to have a
material impact on the Company's future operating results.

LIQUIDITY AND CAPITAL RESOURCES

         As of September 30, 1999, the only liabilities of the Company were
accounts payable and accrued expenses which will be paid from current operating
cash available as of September 30, 1999.




                                       12
<PAGE>   14


PART II -- OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

         On September 25, 1998 the Company was advised that it was named as a
Counter-Defendant in the counterclaim filed by the defendants of the LFC/LMUSA
Litigation Trust's lawsuit against certain former officers and directors of
Lomas Financial Corporation and subsidiaries. The counterclaim seeks joint and
several liability. The Company has responded to the counterclaim denying
liability and preserving the Company's rights and defenses. Separately the
Company initiated litigation in the Delaware Bankruptcy Court to obtain a
declaration of rights and an order to turn over records. A successful outcome in
the Delaware court should resolve the counterclaim.

         In December 1997, the Company received a letter from the attorney of
the insurance company that carried the former directors and officers insurance
coverage, stating that there is a $1.0 million per claim retention which must be
completely exhausted before the insurance company is implicated. Management at
this time believes that the Company is not responsible for this retention amount
as a result of the Joint Plan.

         The LFC Creditors' Trust and any proceeds from the LFC/LMUSA Litigation
Trust are solely for the benefit of the former creditors of the Joint Debtors.
Stockholders will not benefit from these trusts unless they held Class 3 general
unsecured claims as defined in the Joint Plan.

         The assisted care facility management subsidiary, SHM, is a
wholly-owned subsidiary of the Company, and conducts business in Houston, Texas
pursuant to a management agreement. SHM manages and maintains an assisted care
facility in Houston, Texas under a management agreement into which it entered on
June 27, 1977 with Treemont. In the fourth quarter of fiscal year 1998, the
owners of Treemont contacted the Company's management and requested a legal
review of the management agreement as they believed certain parts of the
contract were illegal. The Company's position is that the agreement is
substantially secured at this time by the Treemont property in Houston. The
owners of Treemont have requested the Company consider possible changes to the
contract. Management does not believe the changes, if any are made, will have a
material impact on the Company.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

         Refer to the Company's annual report on Form 10-K for the year ended
June 30, 1999, for information regarding defaults by the Company relating to the
debt obligations of the Predecessor Company.


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

        (a)  Exhibits:

                  Exhibit
                  Number

                  (11)    Computation of Earnings (Loss) Per Share

                  (27)    Financial Data Schedule (submitted to the Securities
                          and Exchange Commission for its information).

        (b)  Reports on Form 8-K: None.



                                       13
<PAGE>   15






SIGNATURES

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


                                                  SIENA HOLDINGS, INC.
                                        ----------------------------------------
                                                     (Registrant)




Date:  November 8, 1999            By:          /s/ W. JOSEPH DRYER
                                       -----------------------------------------
                                                      President




Date:  November 8, 1999            By:          /s/ W. JOSEPH DRYER
                                      ------------------------------------------
                                             Principal Accounting Officer



<PAGE>   16

                               INDEX TO EXHIBITS



<TABLE>
<CAPTION>

   EXHIBIT
   NUMBER           DESCRIPTION
   -------          -----------

<S>                 <C>
      (11)          Computation of Earnings (Loss) Per Share

      (27)          Financial Data Schedule (submitted to the Securities and
                    Exchange Commission for its information).
</TABLE>