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 March 31, 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  March
31, 2000.











                                 I N D E X




Financial Statements:


  Consolidated Balance Sheets -
    March 31, 2000, December 31, 1999 and March 31, 1999          2

  Consolidated Statements of Income -
    for the three months ended March 31, 2000 and 1999            3

  Consolidated Statements of Changes in Stockholders' Equity -
    for the three months ended March 31, 2000 and 1999            4

  Consolidated Statements of Cash Flows -
    for the three months ended March 31, 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
           March 31, 2000, December 31, 1999 and March 31, 1999
                             ($ in Thousands)
                                  ASSETS

                                 (UNAUDITED)                     (UNAUDITED)
                                   MARCH 31,      DECEMBER 31,    MARCH 31,
                                     2000             1999           1999
Cash and Due from Banks             $3,129          $ 3,161        $ 2,417
Interest Bearing Deposits in
  Other Institutions                    38               29          1,720
Reserve Funds Sold                   3,375            1,425          5,150
Securities Available for Sale
  (Amortized Cost $15,098
  $15,876 and $16,631)              14,596           15,433         16,621
Loans                               62,891           61,252         54,643
  Less:  Allowance for Loan Losses  (1,027)            (965)          (881)
                                    61,864           60,287         53,762

Bank Premises and Equipment          4,081            4,157          3,709
Accrued Interest Receivable            578              502            536
Other Assets                           367              301            248
         Total Assets             $ 88,028          $85,295        $84,163

                                LIABILITIES
Deposits:
  Noninterest Bearing              $19,622          $17,848        $17,754
  Interest Bearing                  56,746           55,718         56,728
                                    76,368           73,566         74,482
Borrowed Funds                       1,500            2,000
-
Accrued Interest Payable               193              194            193
Other Liabilities                      303              122            389
Total Liabilities                   78,364           75,882         75,064

                           STOCKHOLDERS' EQUITY

Common Stock - $10 Par Value;
  Authorized 2,000  Shares;
  Issued 216 Shares, Respectively    2,160            2,160          2,160
Surplus                              1,480            1,480          1,480
Retained Earnings                    6,802            6,513          5,912
Accumulated Other Comprehensive Income(331)            (293)            (6)
Treasury Stock (22 Shares at Cost)    (447)            (447)          (447)
      Total Stockholders' Equity     9,664            9,413          9,099

      Total Liabilities and
        Stockholders' Equity       $88,028          $85,295        $84,163




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


                  Zachary Bancshares, Inc. and Subsidiary
                     CONSOLIDATED STATEMENTS OF INCOME
                        for the three months ended
                          March 31, 2000 and 1999
                  ($ in Thousands, except per share data)


                                            (UNAUDITED)
                                         THREE MONTHS ENDED
                                              MARCH 31,
                                           2000     1999
Interest Income:
  Interest and Fees on Loans              $1,404   $1,180
    Interest on Securities                   249      262
    Other Interest Income                     48       72
      Total Interest Income                1,701    1,514
Interest Expense:
 Interest Expense on Deposits                560      544
  Interest Expense on Borrowings              24       -
     Total Interest Expense                  584      544
      Net Interest Income                  1,117      970
Provision for Loan Losses                     59       44
      Net Interest Income After Provision for
      Loan Losses                          1,058      926
Other Income:
  Service Charges on Deposit Accounts         143     116
  Other Operating Income                       46      40
      Total Other Income                      189     156

       Income before Other Expenses         1,247   1,082

Other Expenses:
  Salaries and Employee Benefits              452     378
  Occupancy Expense                            78      47
  Net Other Real Estate Expense               (22)     81
  Other Operating Expenses                    302     262
      Total Other Expenses                    810     768

      Income before Income Taxes              437     314
Applicable Income Taxes                       148     105
      Net Income                           $  289  $  209

Per Share:
      Net Income                           $ 1.49  $ 1.08


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 three months ended  March 31, 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  $5,703    $  6         $(447)     $8,902
Comprehensive Income:
  Net Income                          209                               209
  Change in Unrealized
    Gain (Loss) on Securities
    Available for Sale                        (12)                      (12)
  Less:  Reclassification
    Adjustment                                  -

  Total Comprehensive                                                  (197)
    Income

Cash Dividends                                  -                        -
  Balances, (Unaudited)
  March 31, 1999     $2,160 $1,480  $5,912  $  (6)        $(447)     $9,099


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

Comprehensive Income:
  Net Income                           289                              289
  Change in Unrealized
   Gain (Loss) on Securities
   Available for Sale                         (38)                      (38)
Less:  Reclassification
    Adjustment                                 -                         -

  Total Comprehensive
    Income                                                              251

Cash Dividends                                 -                         -
Balances, (Unaudited)
 March 31, 2000     $2,160 $1,480   $6,802  $ (331)       $(447)     $9,664







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



                                     4
                  Zachary Bancshares, Inc. and Subsidiary

                   CONSOLIDATED STATEMENTS OF CASH FLOWS

            for the three months ended March 31, 2000 and 1999

                             ($ in Thousands)

                                                      (UNAUDITED)
                                                        MARCH 31
                                                   2000          1999
Cash Flows From Operating Activities:

  Net Income                                     $   289       $   209
  Adjustments to Reconcile Net Income to
    Net Cash Provided by Operating  Activities:
    Provision for Loan  Losses                        59            44
    Provision for Depreciation and Amortization       83            48
    Stock Dividends - Federal Home Loan Bank          (5)           (5)
    Net Amortization Securities Premium                1             5
    Charge Off of Other  Real Estate                 -              93
    Gain on Sale of Real Estate                      (24)          (11)
   (Increase) in Accrued Interest Receivable         (77)          (18)
     (Increase)in Other  Assets                      (44)          (16)
      (Decrease) in  Accrued Interest Payable         (1)          (38)
      Increase in Other Liabilities                   181           192

          Net Cash Provided by Operating
            Activities                                462           503


Cash Flows From Investing Activities:

   Net (Increase) Decrease in Reserve Funds Sold   (1,950)        1,025
   Purchase of Securities Available for Sale          -          (2,996)
   Maturities or Calls of Securities Available
     for Sale                                         500         3,000
   Principal Payments on Mortgaged Back Securities    283           928
     Net Increase in Loans                         (1,636)       (2,293)
     Purchases of Premises and Equipment               (7)         (689)
     Proceeds from Sales of Other Real Estate          24           110

      Net Cash Used in Investing Activities        (2,786)         (915)








                                   (CONTINUED)

                                         5

                                                        (UNAUDITED)
                                                         MARCH 31
                                                    2000          1999

Cash Flows From Financing Activities:
Decrease in Borrowed Funds                          (500)          -
Net Increase (Decrease) in Demand Deposits,
  NOW Accounts and Savings Accounts                2,421          (552)
  Net Increase (Decrease) in Certificate
    of Deposit                                       380           583

  Net Cash Provided by Financing Activities        2,301            31

  Increase (Decrease) in Cash and Interest
     Bearing Deposits                                (23)         (381)

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

Cash and Cash Equivalents -
     End of Period                               $ 3,167       $ 4,137


Supplemental Disclosures of Cash Flow
  Information:

    Noncash Investing Activities:

      Change in Unrealized Gain or (Loss)
         on Securities Available for Sale        $   (59)      $   (18)

      Change in Deferred Tax  Effect on
         Unrealized Gain or (Loss) on Securities
         Available for Sale                      $   (20)      $    (6)
Cash Payments For:
  Interest Paid on Deposits                      $   560       $   582













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

                                     6


                  Zachary Bancshares, Inc. and Subsidiary

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              (UNAUDITED)

                        March 31, 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  three months ended  March  31,  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  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 March 31, 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'  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

     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 March 31,  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 March 31,
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

                            March 31, 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 three months ended March 31, 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 $62,891 at March 31, 2000 compared to $54,643 at March
31,  1999.  This represents an increase of $8,248 or 15%.  Loan  growth
was  funded from reallocation of investment securities as they  matured
and from deposit growth.

Investment Securities

Investment  securities  decreased 12% to  $14,596  at  March  31,  2000
compared to $16,621  at March 31, 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 $4,081  at  March  31,  2000
compared to $3,709 at March 31, 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  increased $1,886 or 3% to $76,368 at  March  31,  2000
compared to $74,482 at March 31, 1999.

RESULTS OF OPERATION
For the Three Month Period Ended March 31, 2000 over 1999

Net Income

Net  Income  was $289 for the three month period ended March  31,  2000
compared to $209 in the same period in 1999.  This change was primarily
due  to  an  increase  in  interest income offset  by  an  increase  in
occupancy  expense as the Company moved into their new building  during
the latter part of the second quarter of 1999.

Interest Income

Interest  Income for the three month period ended March  31,  2000  was
$1,701  or  a 12% increase over 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  Subsidiary's  loan portfolio increased 15% to  $62,891  while  its
investment portfolio decreased 12% to $14,596 in the time period  under
consideration.

Interest Expense

Interest  Expense for the quarter ended March 31, 2000 was $584  or  an
increase  of  7%  over the same quarter in 1999 at $544.   Non-interest
bearing deposits increased $1,868 to $19,622 at March 1999 from $17,754
at  March  31, 1999. Interest bearing deposits also increased  slightly
to  $56,746  at March 31, 2000 from $56,728.  Weighted average  deposit
rates  increased  to 3.02% at March 31, 2000 from 2.99%  at  March  31,
1999.

Provision for Loan Losses

The Company included $59 for provision for loan losses during the three
month  period  ended March 31, 2000 due to continued increases  in  the
loan  portfolio.  Loans are reviewed to facilitate  identification  and
monitoring  of potentially deteriorating credit.  Management  considers
the current allowance adequate to absorb potential losses.



                                  12
Total Other Expense

Total Other Expenses increased 5% or $42 to $810 at March 31, 2000 from
$768 at March 31, 1999.

Employee  salaries and benefits increased to $452 for the  three  month
period under consideration compared to $378 in the period ending  March
31,  1999.  Officer raises granted in the third quarter 1999, new hires
and  increased hospitalization and retirement benefits all  contributed
to  the  increase.  Other expenses increased $40 to $302 from  $262  at
March 31, 1999.

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 March 31,  2000  was  $1.49
compared to $1.08 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


















                                  14








                              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:   May 11, 2000                 _______________________
                                     Harry S. Morris, Jr.
                                     President



                                     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,  L.L.P.,  independent  public  accountants,  who
rendered an independent professional opinion.  The financial statements
as of March 31, 2000 were reviewed by Hannis T. Bourgeois, LLP.





                                Larry Bellard, Treasurer



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                    INDEPENDENT ACCOUNTANT'S REPORT




May 10, 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 March 31, 2000 and  1999,
and  the  related Consolidated Statements of Income and Cash Flows  for
the three 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

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