SECURITIES AND EXCHANGE COMMISSION

                       WASHINGTON, D. C. 20549

                            FORM 10 - QSB

             Quarterly Report Under Section 13 or 15 (d)
                of the Securities Exchange Act of 1934

For the Quarter ended September 30, 2000    Commission File Number 2-89559
                            Zachary Bancshares, Inc.
          (Exact name of registrant as specified in its charter)

             Louisiana                     72-0981148
   (State of or other jurisdiction  (I.R.S. Employer incorporation
        of organizaton)                 or Identification No.)

       4743 Main Street
Post Office Box 497
       Zachary, Louisiana                      70791-0497
(Address of principal executive office)         (Zipcode)

Registrant's telephone number, including area code     225 654 2701

                                None
              (Former name, former address and former fiscal
                    year if changed since last report)

     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

     Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.

     Common Stock, $10 par value, 193,667 shares outstanding as of
September 30, 2000.












                               I N D E X



Financial Statements:


  Consolidated Balance Sheets - September 30, 2000,
    December 31, 1999 and September 30, 1999                           2

  Consolidated Statements of Income - for the three
    and nine months ended September 30, 2000 and 1999                  3

  Consolidated Statements of Changes in Stockholders'
    Equity - for the nine months ended September 30,
    2000 and 1999                                                      4

  Consolidated Statements of Cash Flows -
    for the nine months ended September 30, 2000 and 1999            5 - 6

  Notes to Consolidated Financial Statements                         7 - 11

  Management's Discussion and Analysis of Financial
    Condition and Results of Operations                             12 - 14

  Part II - Other Information                                         15

  Signatures                                                          16

  Management's Responsibility for Financial Reporting                 17

  Independent Accountant's Report                                     18


                                   1

                  Zachary Bancshares, Inc. and Subsidiary
                        CONSOLIDATED BALANCE SHEETS
       September 30, 2000, December 31, 1999 and September 30, 1999
                             ($ in Thousands)
                                  ASSETS
                                   (UNAUDITED)                    (UNAUDITED)
                                   September 30,  December 31,   September 30,
                                      2000           1999            1999
Cash and Due from Banks             $ 2,946        $ 3,161         $ 3,875
Interest Bearing Deposits in
  Other Institutions                     10             29              58
Reserve Funds Sold                    1,500          1,425           1,975
Securities Available for Sale
 (Amortized Cost $15,568,
  $15,876 and $16,842)               15,216         15,433          16,442

Loans                                65,090         61,252          59,936
  Less: Allowance for Loan Losses    (1,141)          (965)           (950)
                                     63,949         60,287          58,986
Bank Premises and Equipment           3,946          4,157           4,236
Accrued Interest Receivable             577            502             595
Other Assets                            346            301             257
      Total Assets                  $88,490        $85,295         $86,424

                                   LIABILITIES
Deposits:
  Noninterest Bearing               $18,118        $17,848         $18,441
  Interest Bearing                   58,690         55,718          58,102
                                     76,808         73,566          76,543
Borrowed Funds                        1,000          2,000            -
Accrued Interest Payable                232            194             183
Other Liabilities                       320            122             237
      Total Liabilities             $78,360        $75,882         $76,963

                           STOCKHOLDERS' EQUITY

Common Stock - $10 Par Value; Authorized
  2,000,000 Shares; Issued 216,000
  Shares, Respectively              $ 2,160        $ 2,160         $ 2,160
Surplus                               1,480          1,480           1,480
Retained Earnings                     7,169          6,513           6,532
Unrealized (Loss) on Securities
      Available for Sale, Net          (232)          (293)           (264)
Treasury Stock (22,333 Shares at Cost) (447)          (447)           (447)
      Total Stockholders' Equity     10,130          9,413           9,461
      Total Liabilities and
        Stockholders' Equity        $88,490        $85,295         $86,424

The accompanying notes are an integral part of these financial statements.
                                     2


                   Zachary Bancshares, Inc. and Subsidiary
                     CONSOLIDATED STATEMENTS OF INCOME
      for the three and nine months ended September 30, 2000 and 1998
                             ($ in Thousands)except per share data

                                   (UNAUDITED)            (UNAUDITED)
                                  QUARTER ENDED        NINE MONTHS ENDED
                                   SEPTEMBER 30,         SEPTEMBER 30,
                                   2000      1999        2000      1999
Interest Income:
  Interest and Fees on Loans      $1,454    $1,333      $4,271    $3,762
  Interest on Securities             257       258         765       780
  Other Interest Income               19        50          98       201
    Total Interest Income         $1,730    $1,641      $5,134    $4,743

Interest Expense:
  Interest Expense on Deposits    $  638    $  576      $1,785    $1,683
  Interest Expense on Borrowings      17       -            59       -
       Total Interest Expense     $  655    $  576      $1,844    $1,683

Net Interest Income               $1,075    $1,065      $3,290    $3,060

Provision for Loan Losses             76        45         205       135
   Net Interest Income  After
     Provision for  Loan Losses      999     1,020       3,085     2,925

Other Income:
 Service Charges on Deposit Accounts 151      137         448       376
  Gain on Sale of Assets              -       387          -        387
  Other Operating Income              54       37         151       119
     Total Other Income              205      561         599       882

    Income before Other Expenses  $1,204   $1,581      $3,684    $3,807

Other Expenses:
  Salaries and Employee Benefits     453      421       1,354     1,190
  Occupancy Expense                   85       80         246       176
  Net Other Real Estate Expense      (40)     (25)       (122)       58
  Other Operating Expenses           299      288         892       836
      Total Other Expenses           797      764       2,370     2,260

      Income before Income Taxes     407      817       1,314     1,547
Applicable Income Taxes              137      278         445       525
      Net Income                 $   270  $   539      $  869   $ 1,022

Per Share:
  Net Income                     $  1.39  $  2.78      $ 4.49   $  5.28
  Cash Dividends                 $  1.10  $  1.00      $ 1.10   $  1.00

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

                                     3


                  Zachary Bancshares, Inc. and Subsidiary

        CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

           for the nine months ended September 30, 2000 and 1999
                             ($ in Thousands)

                                              ACCUMULATED
                                                 OTHER                  TOTAL
                    COMMON          RETAINED COMPREHENSIVE TREASURY STOCKHOLDERS
                     STOCK  SURPLUS EARNINGS   INCOME        STOCK    EQUITY

Balances,
  January 1, 1999    $2,160  $1,480   $5,704    $   6      $(447)     $ 8,903
Comprehensive Income:
  Net Income                           1,022                            1,022
  Change in Unrealized
    Gain (Loss) on Securities
    Available for Sale                           (270)                   (270)
  Less:  Reclassification
    Adjustment                                     -                       -

  Total Comprehensive
    Income                                                                752

Cash Dividends                          (194)                            (194)
  Balances, (Unaudited)
  September 30, 1999     $2,160 $1,480 $6,532  $ (264)    $(447)      $ 9,461


Balances,
  January 1, 2000        $2,160 $1,480 $6,513  $ (293)    $(447)      $ 9,413

Comprehensive Income:
  Net Income                              869                             869
  Change in Unrealized
   Gain (Loss) on Securities
   Available for Sale                              61                      61
Less:  Reclassification
    Adjustment                                      -                       -

  Total Comprehensive                                                    ____
    Income                                                                930

Cash Dividends                                (213)                      (213)
Balances, (Unaudited)
 September 30, 2000  $2,160 $1,480  $7,169  $ (232)       $(447)      $10,130





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

                                     4
                   Zachary Bancshares, Inc. and Subsidiary
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
         for the nine months ended September 30, 2000 and 1999
                           ($ in Thousands)


                                                    (UNAUDITED)
                                                     September,
                                                    2000          1999
Cash Flows From Operating Activities:

  Net Income                                       $  869       $ 1,022
  Adjustments to Reconcile Net Income to
    Net Cash Provided by Operating Activities:
     Provision for Loan Losses                        205           135
     Provision for Depreciation and  Amortization     249           187
     Stock Dividends - Federal Home Loan  Bank        (22)          (14)
Net Amortization (Accretion)  of  Securities          (24)           27
     Charge Off of Other Real Estate                   -             93
     (Gain) on Sale of Other Real Estate             (125)          (37)
     (Gain) on Sale of Bank Assets                     (1)         (387)
     (Increase) in Accrued Interest Receivable        (75)          (77)
     (Increase) Decrease in Other  Assets             (75)          114
     Increase (Decrease) in Accrued Interest Payable   38           (49)
     Increase (Decrease) in Other  Liabilities        198            32

       Net Cash Provided by Operating Activities    1,237         1,046

Cash Flows From Investing Activities:

 Net (Increase) Decrease in Reserve Funds Sold        (75)        4,200
 Purchases of Securities Available for Sale          (969)       (8,786)
 Maturities or Calls of Securities Available for Sale 500         7,000
 Principal Payments on Mortgage-Backed Securities     823         2,495
 Net Increase in Loans                             (3,867)       (7,607)
 Purchases of Premises and   Equipment                (38)       (1,542)
 Proceeds from Sales of Other Real Estate             125           136
 Proceeds from Sale of Bank Assets                      1           574

    Net Cash Provided by  Investing Activities     (3,500)       (3,530)



                              (CONTINUED)
                                   5

                                                           (UNAUDITED)
                                                           September 30,
                                                         2000          1999
Cash Flows From Financing Activities:

  Decrease in Borrowed Funds                            (1000)          -
  Net Increase (Decrease)  in Demand Deposits,
  NOW Accounts and Savings Accounts                    (1,514)        2,921
  Net Increase (Decrease) in Certificates of Deposits   4,756          (828)
  Cash Dividends                                         (213)         (194)

    Net Cash Provided by Financing Activities           2,029         1,899

Increase (Decrease) in Cash and Cash Equivalents         (234)         (585)

Cash and Cash Equivalents -
  Beginning of Period                                   3,190          4,518

Cash and Cash Equivalents -
  End of Period                                      $  2,956       $  3,933

Supplemental Disclosures of Cash Flow
  Information:
    Noncash Investing Activities:

    Change in Unrealized Gain or (Loss)
      on Securities Available for Sale               $     91       $   (409)

    Change in Deferred Tax Effect on
      Unrealized Gain or (Loss) on Securities
      Available for Sale                             $     31       $    139

Cash Payments For:
  Interest Paid on Deposits                          $  1,753       $  1,731

  Income Tax                                         $    485       $    613






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

                                   6
             Zachary Bancshares, Inc. and Subsidiary

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           (UNAUDITED)

                   September 30, 2000 and 1999

 Summary of Significant Accounting Policies -
   The accounting principles followed by Zachary Bancshares, Inc.
and its wholly-owned Subsidiary, Bank of Zachary, are those which
are generally practiced within the banking industry.  The methods
of  applying  those  principles conform with  generally  accepted
accounting  principles  and have been  applied  on  a  consistent
basis.    The   principles   which   significantly   affect   the
determination  of  financial  position,  results  of  operations,
changes  in  stockholders' equity and cash flows  are  summarized
below.

Presentation

   The  accompanying  unaudited  consolidated  interim  financial
statements  do  not include all of the information and  footnotes
required by generally accepted accounting principles.  Management
is of the opinion that the unaudited interim financial statements
reflect  all  normal, recurring accrual adjustments necessary  to
provide  a fair statement of the results for the interim  periods
presented.   It  is  noted that the results for  the  first  nine
months  ended  September  30, 2000  are   no  indication  of  the
expected  results for the annual period which ends  December  31,
2000.   Additional  information concerning the audited  financial
statements   and  notes  can   be   obtained   from   Zachary   B
ancshares,  Inc.'s annual report and Form 10-KSB  filed  for  the
period ended December 31, 1999.

Principles of Consolidation
   The consolidated financial statements include the accounts  of
Zachary  Bancshares,  Inc. (the Company),  and  its  wholly-owned
subsidiary,    Bank   of   Zachary  (the  Bank).  All    material
intercompany   accounts    and     transactions    have      been
eliminated.   Certain  reclassifications to previously  published
financial  statements  have  been made  to  comply  with  current
reporting requirements.

Estimates

   The  preparation  of financial statements in  conformity  with
generally  accepted accounting principles requires management  to
make estimates and assumptions that





                                7
affect  the  reported  amounts  of  assets  and  liabilities  and
disclosure  of contingent assets and liabilities at the  date  of
the  financial statements and the reported amounts  of   revenues
and  expenses during the reporting period.  Actual results  could
differ from those estimates.

   The  determination of the adequacy of the allowance  for  loan
losses is based on estimates that are particularly susceptible to
significant  changes  in  the  economic  environment  and  market
conditions.   In  connection  with  the  determination   of   the
estimated   losses  on  loans,  management  obtains   independent
appraisals for significant collateral.

   The  Bank's loans are generally secured by specific  items  of
collateral including real property, consumer assets, and business
assets.   Although the Bank has a diversified loan  portfolio,  a
substantial  portion  of  its debtors'  ability  to  honor  their
contracts is dependent on local economic conditions.

  While management uses available information to recognize losses
on loans, further reductions in the carrying amounts of loans may
be  necessary based on changes in local economic conditions.   In
addition,  regulatory  agencies, as an  integral  part  of  their
examination process, periodically review the estimated losses  on
loans.    Such  agencies  may  require  the  Bank  to   recognize
additional  losses  based  on their judgments  about  information
available  to them at the time of their examination.  Because  of
these  factors,  it  is reasonably possible  that  the  estimated
losses on loans may change materially in the near term.  However,
the  amount of the change that is reasonably possible  cannot  be
estimated.

 Securities

   Securities  classified  as held to  maturity  are  those  debt
securities  the Bank has both the intent and ability to  hold  to
maturity  regardless  of changes in market conditions,  liquidity
needs  or  changes  in  general economic conditions.   Securities
classified  as  trading are those securities held for  resale  in
anticipation  of short-term market movements.  The  Bank  had  no
securities classified as held to maturity or trading at September
30, 2000 or 1999.

   Securities  classified as available for sale  are  those  debt
securities that the Bank intends to hold for an indefinite period
of time but not necessarily to maturity.  Any decision to sell  a
security  classified  as available for sale  would  be  based  on
various  factors,  including significant  movements  in  interest
rates,  changes  in  the maturity mix of the  Bank's  assets  and
liabilities,  liquidity needs, regulatory capital considerations,
and  other similar factors.    Securities available for sale  are
carried  at fair value.   Unrealized gains or losses are reported
as  increase  or decreases in stockholders' equity,  net  of  the
related   deferred  tax  effect.   Realized  gains   or   losses,
determined on the basis of the cost of specific securities  sold,
are included in earnings.

                                8
Loans

   Loans  are  stated at principal amounts outstanding  less  the
allowance  for loan losses. Interest on commercial and individual
loans is accrued daily based on the principal outstanding.

  Generally, the Bank discontinues the accrual of interest income
when a loan becomes 90 days past due as to principal or interest.
When   a  loan  is  placed  on   non-accrual  status,  previously
recognized  but  uncollected interest is reversed  to  income  or
charged  to  the allowance for loan losses.  Interest  income  is
subsequently  recognized  only to the extent  cash  payments  are
received.   The Bank classifies loans as impaired  if,  based  on
current   information and events, it is probable  that  the  Bank
will be unable to collect the scheduled payments of principal and
interest when due according to the contractual terms of the  loan
agreement.   The measurement of impaired loans is  based  on  the
present value of the expected future cash flows discounted at the
loan's  effective  interest rate or the loan's observable  market
price or based on the fair value of the collateral if the loan is
collateral-dependent.

Allowance for Loan Losses

  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 allowance for loan losses is
based  upon  management's  review  and  evaluation  of  the  loan
portfolio.   Factors  considered  in  the  establishment  of  the
allowance  for  loan  losses include management's  evaluation  of
specific  loans;  the level and composition of classified  loans;
historical loss experience; results of examinations by regulatory
agencies;  an  internal  asset review  process;  expectations  of
future   economic  conditions  and  their  impact  on  particular
borrowers; and other judgmental factors.  Allowances for impaired
loans are generally determined based on collateral values or  the
present value of estimated cash flows.  Although management  uses
available  information to recognize losses on loans,  because  of
uncertainties   associated   with  local   economic   conditions,
collateral values, and future cash flows on impaired loans, it is
reasonably  possible that a material change could  occur  in  the
allowance for loan losses in the near term.  However, the  amount
of the change that is reasonably possible cannot be estimated.

   The  allowance  for  loan  losses is  based  on  estimates  of
potential  future losses, and ultimate losses may vary  from  the
current estimates.  These estimates are reviewed periodically and
as  adjustments  become necessary, the effect of  the  change  in
estimate is charged to operating expenses in the period incurred.
All  losses are charged to the allowance for loan losses when the
loss  actually  occurs  or  when  management  believes  that  the
collectibility  of  the  principal is unlikely.   Recoveries  are
credited to the allowance at the time of recovery.


                                9
Bank Premises and Equipment

  Bank premises and equipment are stated at cost less accumulated
depreciation.   Depreciation  is provided  at  rates  based  upon
estimated useful service lives using the straight-line method for
financial  reporting purposes and accelerated methods for  income
tax reporting.

   The  cost of assets retired or otherwise disposed of  and  the
related accumulated depreciation are eliminated from the accounts
in  the  year of disposal and the resulting gains or  losses  are
included in current operations.

   Expenditures  for  maintenance  and  repairs  are  charged  to
operations as incurred.  Cost of major additions and improvements
are capitalized.

Other Real Estate

   Other  real estate is comprised of properties acquired through
foreclosure  or  negotiated settlement.  The  carrying  value  of
these  properties is lower of cost or fair value, minus estimated
costs to sell.  Loan losses arising from the acquisition of these
properties  are  charged against the allowance for  loan  losses.
Any  subsequent  market reductions required are  charged  to  Net
Other Real Estate Expense.  Revenues and expenses associated with
maintaining  or disposing of foreclosed properties  are  recorded
during the period in which they are incurred.

Income Taxes

   The  provision for income taxes is based on income as reported
in  the  financial statements.  Also certain items of income  and
expenses  are recognized in different time periods for  financial
statement purposes than for income tax purposes.  Thus provisions
for  deferred  taxes are recorded in recognition of  such  timing
differences.

   Deferred  taxes  are  provided utilizing  a  liability  method
whereby   deferred  tax  assets  are  recognized  for  deductible
temporary   differences  and  operating  loss  and   tax   credit
carryforwards  and  deferred tax liabilities are  recognized  for
taxable  temporary  differences.  Temporary differences  are  the
differences   between  the  reported  amounts   of   assets   and
liabilities and their tax bases.  Deferred tax assets are reduced
by  a valuation allowance when, in the opinion of management,  it
is  more likely than not that some portion or all of the deferred
tax  assets  will  not  be  realized.  Deferred  tax  assets  and
liabilities are adjusted for the effects of changes in  tax  laws
and rates on the date of enactments.

   The corporation and its subsidiary file a consolidated federal
income  tax  return.  In addition, state income tax  returns  are
filed  individually  by  the Company  in  accordance  with  state
statutes.

                               10
Earnings per Common Share

   Basic  EPS is computed by dividing income applicable to common
shares  by  the weighted average shares outstanding; no  dilution
for  any  potentially  convertible  shares  is  included  in  the
calculation.   Diluted EPS, reflects the potential dilution  that
could  occur  if  securities or other contracts to  issue  common
stock  were exercised or converted into common stock or  resulted
in  the issuance of common stock that then shared in the earnings
of  the  Company.   At  September 30, 2000, the  Company  had  no
convertible shares or other contracts to issue common stock.  The
weighted  average  number  of shares  of  common  stock  used  to
calculate  basic EPS was 193,667 for the periods ended  September
30, 2000 and 1999, respectively.

Statement of Cash Flows

   For  the  purposes  of  reporting cash flows,  cash  and  cash
equivalents includes cash and due from banks and interest bearing
deposits in other banks.

Comprehensive Income

   Components  of  comprehensive income are  revenues,  expenses,
gains  and  losses that under GAAP are included in  comprehensive
income   but   excluded  from  net  income.  The  components   of
comprehensive income are disclosed in the Statements  of  Changes
in Stockholders' Equity for all periods presented.

















                               11

             Zachary Bancshares, Inc. and Subsidiary

                     MANAGEMENT'S DISCUSSION

                       September 30, 2000

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
     RESULTS OF OPERATIONS ($ in Thousands)

The  following  is management's discussion and  analysis  of  the
significant  changes in income and expenses in  relation  to  the
changes in financial position for the nine months ended September
30, 2000 and 1999. This information should be read in conjunction
with  the  financial statements and notes relating thereto.   The
Company  is unaware of any trends, uncertainties or events  which
would  or  could  have  a  material impact  on  future  operating
results, liquidity, or capital.

FINANCIAL CONDITION ANALYSIS

Loans

Total loans were $65,090 at September 30, 2000 compared to $59,936
at  September 30, 1999.  This represents an increase of $5,154 or
9%.   Loan  growth  was  funded from reallocation  of  investment
securities as they matured and from deposit growth.

Investment Securities

Investment  securities decreased 8% to $15,216 at  September  30,
2000  compared  to $16,442 at September 30, 1999.  This  decrease
was  due to the reallocation of these funds to the loan portfolio
as the securities matured.

Bank Premises and Equipment

Total  bank  premises and equipment were $3,946 at September  30,
2000  compared  to  $4,236 at September 30,  1999.   The  Company
completed  a contract totaling $2,921 for the construction  of  a
new  main  office  facility located in Zachary,  La.  during  the
second quarter of 1999 and began depreciating the facility in the
third quarter of 1999.




                               12
Deposits

Total  deposits increased  $265 to $76,808 at September 30,  2000
compared  to $76,543 at September 30, 1999 as the bank  bid  less
aggressively  on  public  funds  and  was  able  to  attract  new
checking,  savings and certificate accounts from individuals  and
commercial customers.

RESULTS OF OPERATION

For the Nine Month Period Ended September 30, 2000 over 1999

Net Income

Net Income was $869 for the nine month period ended September 30,
2000  compared  to  $1,022 in the same period  in  1999.   1999's
results  included  the $387 gain on sale of the Company's  former
main  office  facilities and the tax effect of that  transaction.
Without  that transaction net income would have been  $767.   Net
interest  income  increased $230 or 8% for the  2000  nine  month
period offset by a $110 increase in other overhead expenses.

Interest Income

Interest Income for the nine month period ended September 30, 2000
increased 8% to $5,134 compared to $4,743 for the same period  in
1999.   The  interest income increase resulted from the Company's
continued  asset mix reallocation from lower yielding  securities
into  higher yielding loans.  The Bank's loan portfolio increased
9%  to  $65,090  while its investment portfolio decreased  8%  to
$15,216 in the time period under consideration.

Interest Expense

Interest Expense for the nine months ended September 30, 2000 was
$1,844  or  an increase of 10% over the same period  in  1999  at
$1,683.   Interest bearing deposits increased 1% to $58,690  from
$58,102  at  September 30, 1999.  Weight average  interest  costs
increased  to 3.20% from 2.98% at September 30, 1999 as  interest
rate  hikes  in  the general U.S. economy led to slightly  higher
rates  in certificates of deposit locally and the Company used  a
Federal   Home  Loan  Bank  advance  of  $1,000  for   additional
liquidity.

Provision for Loan Losses

The Company included $205 for provision for loan losses during the
nine month period ended September 30, 2000 compared to $135 at
September 30, 1999 due to continued increases in the loan

                               13
portfolio  and  the  start of credit tightening  in  the  general
economy.  Loans are reviewed monthly to facilitate identification
and  monitoring of potentially deteriorating credit.   Management
considers  the  current allowance adequate  to  absorb  potential
losses but continues to monitor the situation.

Total Other Income

Total other income for the nine month period ended September  30,
2000  decreased  $283 compared to September 30,  1999.  The  1999
results  included  the non-recurring $387 gain  on  sale  of  the
Company's  former main office facility while service  charges  on
deposit  accounts  increased  $72  and  other  operating   income
increased $32.

Total Other Expense

Total  other expenses increased 5% or $110 to $2,370 at September
30, 2000 from $2,260 at September 30, 1999. Employee salaries and
benefits   increased  $164  for  the  nine  month  period   under
consideration.   Salary  increases,  new  hires,  and   increased
hospitalization insurance and retirement expenses all contributed
to  this increase.  Occupancy expense increased $70 for the  2000
nine  month  time period as compared to 1999 as the  Company  has
occupied  its new facility for the whole period in 2000  compared
to only three months in the 1999 nine month period.

Income Tax

The  Company is fully taxable at the maximum rate (34%)  in  both
2000  and 1999 and expects to remain taxable at the current  rate
throughout 2000.

Earnings Per Share

The  Company's 2000 earnings per share at September 30, 2000  was
$4.49  a  15% decrease or $.79 per share compared to the previous
year  due  to  the 1999 period including the $387 gain  on  sale.
Without  the gain on sale in 1999 earnings per share  would  have
been $3.96.

Dividends

The  Company's cash dividend increased $.10 at June 30,  2000  to
$1.10 per share or 10% over the previous year.

                               14







                                PART II





     Item l.  LEGAL PROCEEDINGS

         During  the  normal  course of business,  the  Company  is
     involved  in  various legal proceedings.  In  the  opinion  of
     management  and  counsel, any liability  resulting  from  such
     proceedings  would not have a material adverse effect  on  the
     Company's financial statements.



     Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

          a.  None

















                                  15









                              SIGNATURES






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

                                        ZACHARY BANCSHARES, INC.



     Date:                                 ____________________
                                           Harry S. Morris, Jr.
                                           President



                                           __________________
                                           Larry Bellard
                                           Treasurer







                                  16

          Management's Responsibility for Financial Reporting

      The management of Zachary Bancshares, Inc. is responsible for
 the  preparation  of the financial statements,  related  financial
 data  and  other  information  in  this  quarterly  report.    The
 financial  statements  are prepared in accordance  with  generally
 accepted  accounting principles and include some amounts that  are
 necessarily   based   on  management's  informed   estimates   and
 judgments, with consideration given to materiality.  All financial
 information contained in this quarterly report is consistent  with
 that in the financial statements.

      Management  fulfills its responsibility  for  the  integrity,
 objectivity,  consistency and fair presentation of  the  financial
 statements and financial information through an accounting  system
 and  related  internal accounting controls that  are  designed  to
 provide reasonable assurance that assets are safeguarded and  that
 transactions  are  authorized  and  recorded  in  accordance  with
 established  policies and procedures.  The concept  of  reasonable
 assurance is based on the recognition that the cost of a system of
 internal  accounting  controls  should  not  exceed  the   related
 benefits.   As  an  integral part of the  system  of  internal  ac
 counting  controls,  Zachary Bancshares, Inc. has  a  professional
 staff  who monitors compliance with and assesses the effectiveness
 of  the  system  of internal accounting controls  and  coordinates
 audit coverage with the independent public accountants.

       The  Audit  Committee  of the Board of  Directors,  composed
 solely  of  outside directors, meets periodically with management,
 and  the independent public accountants to review matters relating
 to  financial  reporting,  internal  accounting  control  and  the
 nature,  extent and results of the audit effort.  The  independent
 public accountants have direct access to the Audit Committee  with
 or without management present.

       The  financial  statements, as of December  31,  1999,  were
 examined  by  Hannis  T.  Bourgeois,  LLP,  independent  public
 accountants, who rendered an independent professional  opinion  on
 the  financial  statements prepared by management.  The  financial
 statements, as of September 30, 2000, have been reviewed by Hannis
 T. Bourgeois, LLP.

                                    __________________
 Larry Bellard, Treasurer

                                  17
                    INDEPENDENT ACCOUNTANT'S REPORT


November 6, 2000

To the Shareholders and Board of Directors
Zachary Bancshares, Inc. and Subsidiary
Zachary, Louisiana

     We have reviewed the accompanying Consolidated Balance Sheets of
Zachary Bancshares, Inc. and Subsidiary as of September 30, 2000  and
the  related  Consolidated Statements of Income for  three  and  nine
month periods then ended, and the related Consolidated Statements  of
Changes  in  Stockholders' Equity and Cash Flows for the  nine  month
periods then ended.

      We previously audited and expressed our unqualified opinion  in
our report dated January 7, 2000 on the Consolidated Balance Sheet of
Zachary Bancshares, Inc. and Subsidiary as of December 31, 1999.

       We   conducted  our  reviews  in  accordance  with   standards
established   by   the   American  Institute  of   Certified   Public
Accountants.   A  review  of interim financial  information  consists
principally  of  obtaining an understanding of  the  system  for  the
preparation  of  interim financial information,  applying  analytical
review  procedures to financial data, and making inquiries of persons
responsible   for   financial   and  accounting   matters.    It   is
substantially  less in scope than an examination in  accordance  with
generally accepted auditing standards, the objective of which is  the
expression of an opinion regarding the financial statements taken  as
a whole.  Accordingly, we do not express such an opinion.

      Based  on  our  reviews,  we  are not  aware  of  any  material
modifications  that  should be made to the accompanying  consolidated
financial  statements  for  them to be in conformity  with  generally
accepted accounting principles.

Respectfully submitted,


HANNIS T. BOURGEOIS, LLP
Baton Rouge, Louisiana

                                  18