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 June 30, 2000   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 June 30,
2000.

                                 I N D E X




Financial Statements:


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

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

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

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

  Notes to Consolidated Financial Statements                          7-10

  Management's Discussion and Analysis of Financial
    Condition and Results of Operations                              11-13

Part II - Other Information                                           14

Signatures                                                            15

Management's Responsibility for Financial Reporting                   16

Independent Accountant's Report                                       17















                                    1
                  Zachary Bancshares, Inc. and Subsidiary
                        CONSOLIDATED BALANCE SHEETS
            June 30, 2000, December 31, 1999 and June 30, 1999
                             ($ in Thousands)
                                  ASSETS

                                   (UNAUDITED)                    (UNAUDITED)
                                     JUNE 30,      DECEMBER 31,     JUNE 30,
                                      2000            1999           1999

Cash and Due from Banks              $2,954         $ 3,161        $ 3,227
Interest Bearing Deposits
  in Other Institutions                  11              29          1,740
Reserve Funds Sold                    2,100           1,425          2,950
Securities Available for Sale (Amortized
Cost $15,789, $15,876 and $18,371)   15,320          15,433         18,132

Loans                                63,014          61,252         56,656
  Less:  Allowance for Loan Losses   (1,078)           (965)          (913)
                                     61,936          60,287         55,743

Bank Premises and Equipment           4,025           4,157          4,271
Accrued Interest Receivable             517             502            537
Other Assets                            346             301            168
         Total Assets              $ 87,209         $85,295        $86,768

                                LIABILITIES
Deposits:
  Noninterest Bearing              $ 19,566         $17,848        $18,997
  Interest Bearing                   56,417          55,718         58,388
                                     75,983          73,566         77,385
Borrowed Funds                        1,000           2,000            -
Accrued Interest Payable                202             194            196
Other Liabilities                       242             122            159
Total Liabilities                    77,427          75,882         77,740
                           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                     6,899           6,513          5,993
Accumulated Other Comprehensive Income (310)           (293)          (158)
Treasury Stock (22,333 Shares at Cost) (447)           (447)          (447)
      Total Stockholders' Equity      9,782           9,413          9,028

      Total Liabilities and
        Stockholders' Equity        $87,209         $85,295        $86,768


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 six months ended
                          June 30, 2000 and 1999
                  ($ in Thousands, except per share data)


                                        (UNAUDITED)           (UNAUDITED)
                                    THREE MONTHS ENDED      SIX MONTHS ENDED
                                          JUNE 30,              JUNE 30,
                                      2000       1999        2000      1999
Interest Income:
  Interest and Fees on Loans         $1,413     $1,248      $2,817    $2,428
  Interest on Securities                259        261         508       523
  Other Interest Income                  31         78          79       150
    Total Interest Income             1,703      1,587       3,404     3,101
Interest Expense:
  Interest Expense on Deposits          587        563       1,147     1,107
  Interest Expense on Borrowings         18        -            42       -
    Total Interest Expense              605        563       1,189     1,107

    Net Interest Income               1,098      1,024       2,215     1,994
Provision for Loan Losses                70         45         129        89
    Net Interest Income After Provision
      for Loan Losses                 1,028        979       2,086     1,905
Other Income:
 Service Charges on Deposit Accounts    154        122         297       239
 Other Operating Income                  51         43          97        83
   Total Other Income                   205        165         394       322

   Income before Other Expenses       1,233      1,144       2,480     2,227

Other Expenses:
 Salaries and Employee Benefits         449        391         901       769
 Occupancy Expense                       83         49         161        97
 Net Other Real Estate Expense          (60)         1         (82)       82
 Other Operating Expenses               291        286         593       548
   Total Other Expenses                 763        727       1,573     1,496

   Income before Income Taxes           470        417         907       731
Applicable Income Taxes                 160        142         308       248
   Net Income                        $  310     $  275     $   599   $   483

Per Share:
    Net Income                       $ 1.60     $ 1.42     $  3.09   $  2.49
    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 six months ended  June 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                            483                                483
  Change in Unrealized
    Gain (Loss) on
    Securities Available
      for Sale                                   (164)                    (164)
  Less:  Reclassification
    Adjustment                                     -                        -

  Total Comprehensive
   Income                                                                  319

Cash Dividends                         (194)                              (194)
  Balances, (Unaudited)
  June 30, 1999       $2,160 $1,480  $5,993      $  (158)    $(447)     $9,028


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

Comprehensive Income:
  Net Income                            599                                599
  Change in Unrealized
   Gain (Loss) on Securities
   Available for Sale                                (17)                  (17)
Less:  Reclassification
    Adjustment                                        -                     -

  Total Comprehensive
    Income                                                                 582

Cash Dividends                         (213)                              (213)
Balances, (Unaudited)
 June 30, 2000        $2,160 $1,480  $6,899      $ (310)     $(447)     $9,782






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




                                     4


                  Zachary Bancshares, Inc. and Subsidiary

                   CONSOLIDATED STATEMENTS OF CASH FLOWS

              for the six months ended June 30, 2000 and 1999

                             ($ in Thousands)

                                                        (UNAUDITED)
                                                          JUNE  30
                                                     2000         1999
Cash Flows From Operating Activities:

  Net Income                                         $  599       $   483
  Adjustments to Reconcile Net Income to
    Net Cash Provided by Operating  Activities:
    Provision for Loan  Losses                          129            89
    Provision for Depreciation and Amortization         165           104
    Stock Dividends - Federal Home Loan Bank            (21)           (5)
    Net Amortization (Accretion) of Securities          (11)           16
    Charge Off of Other  Real Estate                     -             93
    Gain on Sale of Other Real Estate                   (85)          (11)
    (Increase) in Accrued Interest Receivable           (15)          (19)
    (Increase) Decrease in Other  Assets                (35)          145
    Increase (Decrease) in  Accrued Interest Payable      8           (36)
    Increase (Decrease) in Other Liabilities            120           (42)

      Net Cash Provided by Operating
       Activities                                       854           817


Cash Flows From Investing Activities:

   Net(Increase)Decrease in Reserve Funds Sold         (675)        3,225
   Purchase of Securities Available for Sale           (969)       (8,786)
   Maturities or Calls of Securities Available for Sale 500         6,000
   Principal Payments on Mortgaged Back Securities      588         1,968
   Net Increase in Loans                             (1,778)       (4,319)
   Purchases of Premises and Equipment                  (33)       (1,307)
   Proceeds from Sales of Other Real Estate              85           110

      Net Cash Used in Investing Activities          (2,282)       (3,109)







                                (CONTINUED)

                                     5

                                                       (UNAUDITED)
                                                         JUNE 30,
                                                   2000          1999

Cash Flows From Financing Activities:
Decrease in Borrowed Funds                       (1,000)          -
Net Increase in Demand Deposits,
  NOW Accounts and Savings Accounts               2,352         3,637
  Net Increase in Certificate of Deposit             64          (702)
Cash Dividends                                     (213)         (194)

  Net Cash Provided by Financing Activities       1,203         2,741

  Increase (Decrease) in Cash and Cash Equivalents (225)          449

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

Cash and Cash Equivalents -
  End of Period                                 $ 2,965       $ 4,967


Supplemental Disclosures of Cash Flow
 Information:

  Noncash Investing Activities:

    Change in Unrealized Gain or (Loss)
      on Securities Available for Sale          $   (26)      $   (248)

    Change in Deferred Tax  Effect on
      Unrealized Gain or (Loss) on Securities
      Available for Sale                        $   ( 9)      $     84
Cash Payments For:
  Interest Paid on Deposits                     $ 1,139       $  1,143


Income Tax                                      $   334       $    315







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

                                     6


                  Zachary Bancshares, Inc. and Subsidiary

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              (UNAUDITED)

                        June 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 six months ended June 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 Bancshares,  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 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  gen
eral  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 June 30, 2000 or 1999.

     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'
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.

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 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



                                   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

     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 June 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 June 30, 2000 and
1999, respectively.

Statements of Cash Flows

     For purposes of reporting cash flows, cash and cash equivalents in
cludes  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 Stockholder's Equity for  all
periods presented.




















                                  10


                Zachary Bancshares, Inc. and Subsidiary

                       MANAGEMENT'S DISCUSSION

                            June 30, 2000

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 six months ended June 30, 2000 and 1999.  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 -
Unaudited - ($ in Thousands)

Loans

Total  loans were $63,014 at June 30, 2000 compared to $56,656 at  June
30,  1999.  This represents an increase of $6,358 or 11%.  Loan  growth
was  funded from reallocation of investment securities as they  matured
and from deposit growth.

Investment Securities

Investment  securities  decreased 16%  to  $15,320  at  June  30,  2000
compared  to $18,132 at June 30, 1999.  This decrease was  due  to  the
reallocation  of  these funds to the loan portfolio as  the  securities
matured, and payments made on the building contract discussed below.

Bank Premises and Equipment

Total bank premises and equipment were $4,025 at June 30, 2000 compared
to  $4,271 at June 30, 1999.  The Company completed a contract totaling
$2,921  for  the construction of a new main office facility located  in
Zachary,  Louisiana.   Construction  began  in  March,  1998  and   was
completed during the second quarter of 1999.






                                  11
Deposits

Total  deposits  decreased $1,402 or 2% to $75,983  at  June  30,  2000
compared  to $77,385 at June 30, 1999 as the bank bid less aggressively
on public funds that were renewing.

RESULTS OF OPERATION
For the Six Month Period Ended June 30, 2000 over 1999

Net Income

Net  Income  was  $599  for the six month period ended  June  30,  2000
compared to $483 in the same period in 1999.  This change was primarily
due  to  an 11% increase in net interest income offset by a 5% increase
in  other  overhead expense.  The Company moved into their new building
during the latter part of the second quarter of 1999 which has resulted
in additional occupancy expenses primarily depreciation compared to the
prior period.

Interest Income

Interest  Income for the six month period ended June 30, 2000 increased
10%  to  $3,404 compared to $3,101 for the same period  in  1999.   The
interest  income  increase resulted from the Company's continued  asset
mix  reallocation  from lower yielding securities  to  higher  yielding
loans.   The bank's loan portfolio increased 11% to $63,014  while  its
investment portfolio decreased 16% to $15,320 in the time period  under
consideration.

Interest Expense

Interest  Expense for the six months ended June 30, 2000 was $1,189  or
an increase of 7% over the same period in 1999 at $1,107.  Non-interest
bearing  deposits  increased $569 to $19,566  at  June  30,  2000  from
$18,997  at  June  30,  1999. Interest bearing  deposits  decreased  to
$56,417 at June 30, 2000 from $58,388 as the bank bid less aggressively
on  public  fund CDs than in the past.  Weighted average deposit  rates
increased  to  3.10% at June 30, 2000 from 2.97% at June  30,  1999  as
interest  rate  hikes in the general U.S. economy have  led  to  higher
rates in the local market for CDs.

Provision for Loan Losses

The  Company included $129 for provision for loan losses during the six
month period ended June 30, 2000 due to continued increases in the loan
portfolio and the beginnings of tightening in the general economy.
Loans are reviewed 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 very closely.

                                  12

Total Other Expense

Total  Other  Expenses increased 5% or $77 to $1,573 at June  30,  2000
from $1,496 at June 30, 1999.

Employee salaries and benefits increased $132 for the six months  ended
June  30,  2000 compared to the same period in 1999.  Salary increases,
new  hires,  and  increased  hospitalization insurance  and  retirement
expenses all contributed to this increase.  Occupancy expense increased
$64  for  the period reviewed as the Company occupied its new  building
resulting in additional depreciation expense along with other  overhead
expenses relating to a larger facility.

Income Tax

The Company's income is fully taxable at the maximum rate (34%) both in
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 June  30,  2000  was  $3.09
compared to $2.49 per share the previous year.

Year 2000 Issues

The Year 2000 threshold was crossed without any problems encountered to
date  that  effected  significantly the  Company's  liquidity,  capital
resources,  or results of operation.  The Company will remain  vigilant
for  the  remainder of the year 2000 for any undiscovered  date  change
problems.

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.


                                  13









                                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


















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                              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:   August 11, 2000             /s/ Harry S. Morris, Jr.
                                     Harry S. Morris, Jr.
                                     President


                                     /s/ Larry Bellard
                                     Larry Bellard
                                     Treasurer












                                  15



          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, 1999 were examined by
Hannis  T. Bourgeois, LLP, independent public accountants, who rendered
an  independent professional opinion.  The financial statements  as  of
June 30, 2000 were reviewed by Hannis T. Bourgeois, LLP.





                                Larry Bellard, Treasurer



                                  16




                    INDEPENDENT ACCOUNTANT'S REPORT



August 08, 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 June 30, 2000 and  1999,
and the related Consolidated Statements of Income for the three and six
month  periods  then ended, and the related Consolidated Statements  of
Changes  in  Stockholders' Equity and Cash  Flows  for  the  six  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

                                  17