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, 1999   Commission File Number 13397



                          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 organization)              or Identification No.)

          4743 Main Street
          Post Office Box 497
          Zachary, LA                          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 of change 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, 1999.











                                  I N D E X




Financial Statements:


  Consolidated Balance Sheets -
    September 30, 1999, December 31, 1998 and September 30, 1998          2

  Consolidated Statements of Income -
    for the three and nine months ended September 30, 1999 and 1998       3

  Consolidated Statements of Changes in Stockholders' Equity -
    for the nine months ended September 30, 1999 and 1998                 4

  Consolidated Statements of Cash Flows -
    for the nine months ended September 30, 1999 and 1998                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









                                    1


                                    Zachary Bancshares, Inc. and Subsidiary
                                          CONSOLIDATED BALANCE SHEETS
                                      September 30, 1999,  December 31,  &
                                               September 30, 1998
                                                     ASSETS

                                     (UNAUDITED)   (UNAUDITED)   (UNAUDITED)
                                    September 30,  DECEMBER 31,  September 30,
                                       1999           1998           1998

     Cash and Due from Banks         $ 3,875,416   $ 2,815,507  $ 2,694,650
     Interest Bearing Deposits
       in Other Institutions              58,031     1,701,873    1,685,233
     Reserve Funds Sold                1,975,000     6,175,000    4,100,000
     Securities Available for Sale
       (Amortized Cost $16,842,186,
       $17,563,961 and $20,545,751)   16,442,066    17,572,539   20,607,858

     Loans                            59,935,564    52,372,002   50,459,315
       Less: Allowance for Loan
         Losses                         (949,843)     (858,856)    (791,373)
                                     $58,985,721   $51,513,146  $49,667,942

      Bank Premises and Equipment      4,235,914     3,067,869    2,517,947
      Other Real Estate                       45       191,592      194,805
      Accrued Interest Receivable        595,308       518,258      563,422
      Other Assets                       256,954       231,935      226,193
            Total Assets             $86,424,455   $83,787,719  $82,258,050

    Deposits
     Noninterest Bearing             $18,440,942   $17,636,206  $16,101,756
     Interest Bearing                 58,102,419    56,814,190   56,664,086
                                      76,543,361    74,450,396   72,765,842
     Accrued Interest Payable            182,696       231,360      217,425
     Other Liabilities                   236,948       203,202      448,554
       Total Liabilities             $76,963,005   $74,884,958  $73,431,821

     Common Stock - $10 Par Value;
        Authorized 2,000,000 Shares;
        Issued 216,000 Shares          2,160,000     2,160,000    2,160,000
     Surplus                           1,480,000     1,480,000    1,480,000
     Retained Earnings                 6,532,188     5,703,759    5,591,898
     Unrealized Gain (Loss) on Securities
       Available for Sale, Net          (264,078)        5,662       40,991
     Treasury Stock-22,333 Shares,
       at Cost                          (446,660)     (446,660)    (446,660)
         Total Stockholders'Equity     9,461,450     8,902,761    8,826,229

         Total Liabilities and
           Stockholders' Equity      $86,424,455   $83,787,719  $82,258,050

   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, 1999 and 1998
                                     (UNAUDITED)              (UNAUDITED)
                                    QUARTER ENDED          NINE MONTHS ENDED
                                    SEPTEMBER  30,            SEPTEMBER 30,
                                   1999        1998        1999         1998
Interest Income:
  Interest and Fees on Loans    $1,333,416  $1,124,829  $3,762,058  $3,219,363
  Interest on Securities           257,635     328,454     780,381   1,062,324
  Other Interest Income             50,394      81,581     200,358     209,790
   Total Interest Income        $1,641,445  $1,534,864  $4,742,797  $4,491,477

Interest Expense:
  Interest Expense on Deposits  $  575,687  $  592,846  $1,682,818  $1,748,353
  Interest Expense on Borrowings        (0)         80         233         521
   Total Interest Expense       $  575,687  $  592,926  $1,683,051  $1,748,874

       Net Interest Income       1,065,758     941,938   3,059,746   2,742,603

Provision for Loan Losses           45,370      52,134     134,630     127,486
  Net Interest Income After
    Provision for Loan Losses   $1,020,388  $  889,804  $2,925,116  $2,615,117

Other Income:
  Service Charges on Deposit
     Accounts                      137,483     124,979     376,005     363,975
  Gain on Sale of Assets           386,937        -        386,937        -
  Other Operating Income            36,287      50,655     119,498     131,921
    Total Other Income          $  560,707  $  175,634  $  882,440  $  495,896

    Income before Other Expenses 1,581,095  $1,065,438  $3,807,556  $3,111,013

Other Expenses:
 Salaries and Employee Benefits $  420,920  $  381,257  $1,190,014  $1,125,121
 Occupancy Expense                  79,950      41,468     176,499     122,583
 Net Other Real Estate Expense     (24,579)        756      57,627       6,435
 Other Operating Expenses          288,300     271,010     836,147     737,847
   Total Other Expenses            764,591     694,491   2,260,287   1,991,986

   Income before Income Taxes      816,504     370,947   1,547,269   1,119,027
Applicable Income Tax              277,657     131,760     525,173     376,895
   Net Income                   $  538,847  $  239,187  $1,022,096  $  742,132

Per Share
    Net Income                  $     2.78  $     1.23  $     5.28  $     3.83
    Cash Dividends              $     1.00  $     0.90  $     1.00  $     0.90

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 30,1999 and 1998

                                                    ACCUMULATED         TOTAL
                                                      OTHER             STOCK-
                  COMMON               RETAINED  COMPREHENSIVE TREASURY HOLDERS'
                   STOCK     SURPLUS   EARNINGS     INCOME      STOCK   EQUITY

Balances, (Unaudited)
  January 1, 1999 $2,160,000 $1,480,000 $5,703,759$  5,662 $(446,660)$8,902,761
Comprehensive Income:
  Net Income                             1,022,096                    1,022,096
  Change in Unrealized
    Gain (Loss) on Securities
    Available for Sale                            (269,740)            (269,740)
  Less:  Reclassification
    Adjustment                                        -                    -

 Total Comprehensive
   Income                                                               752,356

Cash Dividends                            (193,667)                    (193,667)
  Balances, (Unaudited)
September 30, 1999$2,160,000$1,480,000$6,532,188$ (264,078)$(446,660)$9,461,450


Balances, (Unaudited)
January 1, 1998   $2,160,000$1,480,000$5,024,066$   (2,671)$(446,660)$8,214,735

Comprehensive Income:
  Net Income                             742,132                        742,132
  Change in Unrealized
   Gain (Loss) on Securities
   Available for Sale                               43,662               43,662
Less:  Reclassification
    Adjustment                                        -                    -

  Total Comprehensive                                           _________
    Income                                                              785,794

Cash Dividends                           (174,300)                     (174,300)
Balances, (Unaudited)
September 30, 1998 $2,160,000$1,480,000$5,591,898$ 40,991 $(446,660) $8,826,229




  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, 1999 and 1998

                                                           (UNAUDITED)
                                                           SEPTEMBER 30

                                                       1999          1998
Cash Flows From Operating Activities:

  Net Income                                      $  1,022,096   $   742,132
  Adjustments to Reconcile Net Income to
    Net Cash Provided by Operating  Activities:
    Provision for Loan  Losses                          134,630       127,486
      Provision for Depreciation and Amortization       187,066       152,988
  Stock Dividends - Federal Home Loan Bank              (13,700)      (12,600)
      Net Amortization Securities Premium                26,535        (2,107)
      Charge Off of Other  Real Estate                   92,613          -
      Gain on Sale of Real Estate                       (36,702)         -
      Gain on Sale of Bank Property                    (386,937)         -
   (Increase) in Accrued Interest Receivable            (77,050)      (4,921)
     (Increase)  Decrease in Other  Assets              113,939     (157,054)
      Increase (Decrease) in  Accrued Interest Payable (48,664)       29,237
      Increase (Decrease) in Other Liabilities          33,746       204,077

          Net Cash Provided by Operating
            Activities                               1,047,572     1,079,238


Cash Flows From Investing Activities:

  Net (Increase) Decrease in Reserve  Funds Sold    4,200,000     (2,400,000)
  Purchase of Securities Available for Sale        (8,786,186)       (51,300)
  Maturities or Calls of Securities Available
    for Sale                                        7,000,000      2,500,000
  Principal Payments on Mortgaged Back
    Securities                                      2,495,126      2,644,417
  Net (Increase) in Loans                          (7,607,205)    (4,425,705)
  Purchases of Premises and Equipment              (1,542,174)      (977,048)
  Proceeds from Sales of Other Real Estate            135,636         22,596
  Proceeds from Sales of Bank Property                574,000           -

    Net Cash Used in Investing Activities          (3,530,803)    (2,687,040)







                                 (CONTINUED)

                                      5



                                                       (UNAUDITED)
                                                       SEPTEMBER 30,
                                                   1999             1998

Cash Flows From Financing Activities:

  Net Increase (Decrease) in Demand
    Deposits, NOW Accounts and
    Savings Accounts                             2,920,566       2,904,206
  Net Increase (Decrease) in Certificate
    of Deposit                                    (827,601)        680,864
  Cash Dividends                                  (193,667)       (174,300)

  Net Cash Provided by Financing Activities      1,899,298       3,410,770

  Increase (Decrease) in Cash and Interest
     Bearing Deposits                             (583,933)      1,802,968

Cash and Interest Bearing Deposits -
     Beginning of Period                         4,517,380       2,576,915

Cash and Interest Bearing Deposits -
     End of Period                             $ 3,933,447     $ 4,379,883


Supplemental Disclosures of Cash Flow
  Information:

    Noncash Investing Activities:

      Change in Unrealized Gain or (Loss)
         on Securities Available for Sale     $   (408,698)    $    66,154

      Change in Deferred Tax  Effect on
         Unrealized Gain or (Loss) on Securities
         Available for Sale                   $    138,958     $   (22,492)
Cash Payments For:
  Interest Paid on Deposits                   $  1,731,482     $ 1,719,116

Income Tax
                                              $    613,000     $   374,500




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, 1999 and 1998

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,  1999  are  no
indication  of  the expected results for the annual period  which  ends
December  31,  1999.  Additional  information concerning   the  audited
financial statements and notes can be obtained from Zachary Bancshares,
Inc.'s  annual  report  and  Form 10-KSB filed  for  the  period  ended
December 31, 1998.

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 gener
ally  accepted accounting principles requires management to make esti
mates and assumptions that 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.



                                   7
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  move
ments.  The  Bank had no securities classified as held to  maturity  or
trading at September 30, 1999 or 1998.

     Securities classified as available for sale are those debt  securi
ties 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.   Secu
rities available for sale are carried at fair value.  Unrealized  gains
or  losses  are reported as increases or decreases in stockholders'  eq
uity,  net of the related deferred tax effect.  Realized gains or losse
s, determined on the basis of the cost of specific securities sold, are
included in earnings.

Loans
     Loans are stated at principal amounts outstanding, less the  allow
ance  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

                                   8
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  un
likely.  Recoveries  are  credited to the  allowance  at  the  time  of
recovery.

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 fore
closure  or  negotiated settlement.  The carrying value of  these  prop
erties  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 taxes 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

                                   9

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 enactment.

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

Earnings per Common Share

      In  February 1997, Statement of Financial Accounting Standard No.
128  "Earnings Per Share" ("SFAS No. 128") was issued which establishes
standards for computing and presenting earnings per share (EPS).  Under
SFAS  No.  128, primary EPS is replaced with basic EPS.  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.  Fully diluted EPS, now  called
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,
1999, 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, 1999 and 1998, respectively.

Statements of Cash Flows

     For  purposes of reporting cash flows, cash and due from banks  in
cludes cash on hand and amounts due from banks (including cash items in
process of clearing).

Comprehensive Income

     The  Financial Accounting Standards Board (FASB) issued  Statement
No.  130  "Reporting Comprehensive Income." which became effective  for
fiscal  years  beginning  after  December  15,  1997.   This  statement
established  standards for the reporting and display  of  comprehensive
income  and  its  components which are revenues, expenses,  gains,  and
losses  that  under  GAAP  are  included in  comprehensive  income  but
excluded  from net income. The Company adopted this statement in  1998.
The  components of comprehensive income are disclosed in the Statements
of Changes in Stockholder's Equity for all periods presented.












                                  10
                Zachary Bancshares, Inc. and Subsidiary

                       MANAGEMENT'S DISCUSSION

                          September 30, 1999

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
     FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The  following is management's discussion and analysis of  the  signifi
cant  changes in income and expenses in relation to the changes  in  fi
nancial position for the nine months ended September 30, 1999 and 1998.
This  information  should  be read in conjunction  with  the  financial
statements  and the 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  $59,935,564  at  September  30,  1999  compared  to
$50,459,315  at  September 30, 1998.  This represents  an  increase  of
$9,476,249  or  19%.   Loan  growth was  funded  from  reallocation  of
investment securities as they matured and from deposit growth.

Investment Securities

Investment  securities decreased 20% to $16,442,066  at  September  30,
1999 compared to $20,607,858 at September 30, 1998.  This decrease  was
due  to  the  reallocation of funds to the loan portfolio as securities
matured;  the funding of the new main office facility, and the  buildup
of vault cash for Y2K currency needs.

Bank Premises and Equipment

Total bank premises and equipment were $4,235,914 at September 30, 1999
compared to $2,517,947 at September 30, 1998.  The Company entered into
a  contract  totaling $2,923,721 for the construction  of  a  new  main
office  facility  to  be  located in Zachary, Louisiana.   Construction
began  in  March, 1998 and was completed during the second  quarter  of
1999.    Under  the  terms  of  the  contract,  disbursements  totaling
$2,896,666 have been made as of September 30, 1999.  The operations  of
the Bank were moved to the new location on June 14, 1999 and the Bank's
former headquarters were sold to the City of Zachary for the sale price
of $570,000 July 30, 1999.

                                  11
Deposits

Total  deposits increased $3,777,519 or 5% to $76,543,361 at  September
30, 1999 compared to $72,765,842 at September 30, 1998.

RESULTS OF OPERATION
For the Nine Month Period Ended September 30, 1999 over 1998

Net Income

Net Income was $1,022,096 for the nine month period ended September 30,
1999  compared to $742,132 in the same period in 1998.  This net income
increase included a non-recurring gain of $386,937 on the sale of  bank
property  previously occupied as the Bank's main office and  operations
annex.

Interest Income

Interest Income for the nine month period ended September 30, 1999  was
$4,742,797 or a 6% increase over the same period in 1998.  The interest
income  increase  resulted  from  the  Company's  continued  asset  mix
reallocation  from lower yielding securities to higher yielding  loans.
The  Subsidiary's loan portfolio increased 19% to $59,935,564 while its
investment  portfolio decreased 20% to $16,442,066 in the  time  period
under consideration.

Interest Expense

Interest  Expense  for  the nine months ended September  30,  1999  was
$1,683,051  or  a  decrease  of 4% over the  same  period  in  1998  at
$1,748,874.   Non-interest  bearing deposits  increased  $2,339,186  to
$18,440,942  at  September 30, 1999 from $16,101,756 at  September  30,
1998.  Interest  bearing  deposits also  increased  to  $58,102,419  at
September  30,  1999 from $56,664,086.  Weighted average deposit  rates
decreased  to  2.98% at September 30, 1999 from 3.26% at September  30,
1998.

Provision for Loan Losses

The  Company included $134,630 for provision for loan losses during the
nine  month period ended September 30, 1999 due to continued  increases
in the loan portfolio.  During the last several years, with the periods
of rather stable mortgage interest rates, the Bank's Watch List has not
increased  in  volume.  Indications are that this trend  will  continue
with a slight increase possible due to the increased volume of loans.


                                  12

Total Other Expense

Total  Other  Expenses  increased 13%  or  $268,301  to  $2,260,287  at
September  30, 1999 from $1,991,986 at September 30, 1998.  $92,613  of
this  increase  was due  to the  write-off of Other  Real  Estate Owned
property  which had been on the books of  the  Company  for  ten years.
After ten years  Louisiana  State Law  requires  that property  in this
situation be  written  off.  The  amount  represented  42  lots  in  an
existing  residential subdivision.  Subsequent to the writedown,  three
of these lots were sold resulting in gains totaling $36,702.

Employee  salaries and benefits increased 6% for the nine month  period
under  consideration.   Other  expenses increased  13%  or  $98,300  to
$836,147  from  $737,847  at  September 30,1998.   This   increase  was
primarily  due  to expenditures of $36,154 for Year 2000  expenses  and
expenses related to moving into the Company's new Main Office in June.

Income Tax

The Company's income is fully taxable at the maximum rate (34%) both in
1999  and  1998  and  expects to remain taxable  at  the  current  rate
throughout 1999.

Earnings Per Share

The  Company's 1999 earnings per share at September 30, 1999 were $5.28
compared to $3.83 per share the previous year.

Year 2000 Issues

Management  does not feel that the issues related to Y2K are reasonably
likely  to  have  or  will  have a material  effect  on  the  Company's
liquidity,  capital resources, or results of operation.  The  following
information is given regarding this determination.

The  Bank has satisfactorily passed all FDIC Y2K readiness exams during
the last nine months and  continues to  review its plans and procedures
for the coming year end situations.

Approximately  $15,000 was expensed during 1998 for  software  upgrades
and  testing.  For 1999, $60,000 has been budgeted for these  types  of
expenses,  of  which  $36,154 has been expensed through  September  30,
1999.


                                  13

The  Board of Directors of the Bank have been given monthly updates  on
the  status  of  our  Y2K  readiness and have  approved  the  following
policies:   (a)  Policy for responding to Customer Inquiries  Regarding
Y2K; (b)  Bank of Zachary 2000 Test Plan; (c) Bank of Zachary Emergency
Operating Procedures; Y2K Business Resumption Plan, and a Y2K Liquidity
Contingency plan.  The liquidity plan includes approval by the Board of
Directors to pledge 1-4 family loans as collateral to secure $6,000,000
line of credit from the Federal Reserve Bank of Atlanta Discount Window
program. This credit is in addition to the Bank's regular correspondent
bank $2,100,000 line of credit and a $7,010,000 line of credit  at  the
Federal  Home  Loan  Bank of Dallas secured by the Bank's  FHLB  Stock.
Customer liquidity issues have been analyzed and additional amounts  of
vault  cash have been accumulated in preparation for year end liquidity
needs.

This  discussion entitled "Year 2000 Issues" includes certain  "forward
looking  statements"  within  the meaning  of  the  Private  Securities
Litigation  Act  of 1995 (PSLA).  This statement is  included  for  the
purpose  of availing the Company of the protections of the safe  harbor
provisions of the PSLA.  Management's ability to predict the results of
the effects of Year 2000 issues is inherently uncertain and subject  to
factors  that may cause actual results to materially differ from  those
anticipated.   Factors  that could affect actual  results  include  the
possibility  that  contingency plans and remediation efforts  will  not
operate  as  intended,  the  Bank's failure  to  timely  or  completely
identify   all   software  and  hardware  applications   that   require
remediation,  unexpected costs, and the general uncertainty  associated
with the impact of Year 2000 issues on the banking industry, the Bank's
customers, vendors, and others with whom it conducts business.  Readers
are  cautioned  not  to place undue reliance on these  forward  looking
statements.














                                  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:   November 8, 1999             _______________________
                                     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 princi
ples and include some amounts that are necessarily based on manage
ment'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, objec
tivity, 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 author
ized and recorded in accordance with established policies and proce
dures.  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 accounting controls, Zachary Bancshares, Inc. has a profes
sional 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 indepen
dent public accountants to review matters relating to financial report
ing, 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, 1998 were examined by
Hannis T. Bourgeois, L.L.P., independent public accountants, who
rendered an independent professional opinion on the financial state
ments prepared by management. Hannis T. Bourgeois, L.L.P. has not
reviewed the financial statements as of September 30, 1999.




                               Larry Bellard, Treasurer


                                  17