UNITED STATES

                    SECURITIES AND EXCHANGE COMMISSION

                          Washington, D. C. 20549

                                 FORM 10-Q

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

For the quarterly period ended          September 30, 2001

Commission file Number        2-89561

                          Teche Bancshares, Inc.

Louisiana                          72-1008552
(State or other jurisdiction of         (I.R.S Employer
incorporation or organization)          Identification No.)

606 South Main Street, St. Martinville, Louisiana 70582
(Address of principal executive offices 70582

Registrant's telephone number, including area code:
(337) 394-9726

     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 ( )

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

     Common Stock, $10 Par Value - 27,925 shares as of September 30, 2001.















TECHE BANCSHARES, INC. AND SUBSIDIARY
  St. Martinville, Louisiana
         (UNAUDITED)
 CONSOLIDATED BALANCE SHEETS
September 30, 2001 and December 31, 2000
    (Dollars in Thousands)
                                                     Sept. 30,  December 31,
                                                         2001       2000
            ASSETS
Cash and due from banks                                 $1,800     $2,714
Interest-bearing deposits with banks                     2,174         85
Securities Available for Sale at mkt value              16,428     15,456
Securities Held To Maturity (Market Value
     of $1,510 and $3,162, respectively)                 1,498      3,161
Other securities at cost                                   482        431
Federal funds sold                                         700        100
Loans, net of allowance for loan losses
     of $289 and $270, respectively)                    29,342     27,638
Bank premises, furniture, and equipment                    887        759
Accrued interest receivable                                318        399
Other real estate owned                                    180        198
Other assets                                               291         61
                                                    ----------------------
Total assets                                           $54,100    $51,002
                                                    ======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
    Deposits -
        Non-interest demand                              6,183     $7,045
        Interest bearing -
            NOW and MMDA accounts                        7,738      8,806
            Savings                                      3,892      3,536
            Time, $100 and over,                        11,627     10,902
            Other time                                  12,517     11,597
                                                    ----------------------
                Total deposits                          41,957     41,886

Accrued interest payable                                   174        238
Federal Home Loan Borrowings                             6,613      4,252
Other liabilities and accrued expenses                     458        231
                                                    ----------------------
               Total liabilities                        49,202     46,607
Stockholders' equity
    Common stock ($10 par value, 100,000
        shares authorized, 28,125 shares
        issued and outstanding)                            281        281
    Surplus                                              1,144      1,144
    Retained earnings                                    3,303      2,973
                                                    ----------------------
                                                         4,728      4,398
    Less:   200 shares of treasury stock                   (19)       (19)
                Market Value Allowance on
                  AFS Bonds                                189        16
                                                    ----------------------
                Total stockholders' equity               4,898      4,395
                                                    ----------------------
Total liabilities and stockholders' equity             $54,100    $51,002
                                                    ======================

The accompanying notes are an integral part of this statement.
















































TECHE BANCSHARES, INC. AND SUBSIDIARY
  St. Martinville, Louisiana
         (UNAUDITED)
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended September 30, 2001 and 2000;
(Dollars in Thousands except Earnings per Share and Average Shares)

                                Three Months Ended     Nine Months Ended
                                Sept. 30,  Sept. 30,  Sept. 30,  Sept. 30,
                                  2001       2000       2001       2000
Interest income:
    Interest and fees on loans      $651       $628     $1,931     $1,727
    Interest on investment securities -
        U.S. government's            237        276        738        870
        State/political sub's          6         13         23         39
    Dividends on equities              6          -         13         19
    Interest on balances from banks   12          1         28          3
    Interest on federal funds         13          5         95         29
                              --------------------------------------------
        Total interest income        925        923      2,828      2,687
Interest expense:
    Interest on deposits            $388       $360     $1,179     $1,033
    Interest on fed funds purchased    -          1          -          1
    Interest on borrowed funds        86         52        236        143
                              --------------------------------------------
        Total interest expense       474        413      1,415      1,177
                              --------------------------------------------
Interest inc. before provision       451        510      1,413      1,510
Provision for Credit Losses           10         10         32         27
                              --------------------------------------------
    Net interest income              441        500      1,381      1,483
                              --------------------------------------------
Other income:
    Service charges deposits          87         86        257        252
    Other income and charges          22         23         65         72
                              --------------------------------------------
           Total other income        109        109        322        324
Other expenses:
    Salaries/employee benefits       218        201        646        592
    Occupancy expense                 64         52        182        152
    Other operating expenses         128        116        385        359
                              --------------------------------------------
        Total other expenses         410        369      1,213      1,103
                              --------------------------------------------
    Income before income taxes       140        240        490        704

    Income taxes                      44         79        159        228
                              --------------------------------------------
            Net income              $ 96       $161       $331       $476

    Net income per share           $3.43      $5.78     $11.84     $17.06

    Average shares outstanding    27,925     27,925     27,925     27,925
The accompanying notes are an integral part of this statement.


TECHE BANCSHARES, INC. AND SUBSIDIARY
  St. Martinville, Louisiana

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
         (UNAUDITED)
For the Nine Months Ended September 30, 2001 and 2000



                                           Unrealized
                                Common     Gain (Loss)
                                Stock,         on
                              Treasury &       AFS
                                Surplus    Securities    Total

Balances, January 1, 2001           $4,378     $ 17     $4,395

    Net income nine months             331        -        331

    Change in Unrealized AFS                    172        172
                                    ------    ------    ------

Balances, September 30, 2001        $4,709    $ 189     $4,898
                                    ======    ======    ======



Balances, January 1, 2000         $3,840       $(73)    $3,767

    Net income nine months           476         -         476

    Change in Unrealized AFS                     17         17
                                   ------      ------    ------

Balances, September 30, 2000      $4,316       $(56)    $4,260
                                  ======      ======    ======




The accompanying notes are an integral part of this statement.












TECHE BANCSHARES, INC. AND SUBSIDIARY
  St. Martinville, Louisiana

CONSOLIDATED STATEMENTS OF CASH FLOWS
         (UNAUDITED)
For the Nine Months Ended September 30, 2001 and 2000

                                                     Sept. 30,  Sept. 30,
                                                       2001       2000
Cash flows from operating activities:
    Net income                                            $331       $476
    Adjustments to reconcile net income
      to net cash provided by
      operating activities -
        Depreciation of bank premises                       79         73
        Provision for Credit Losses                         31         27
        Write down of other real estate owned               17         14
        (Inc)dec accrued int receivable                     82         34
        (Inc) dec other assets                            (230)      (178)
        Inc(dec) accrued interest payable                  (64)       (13)
        Inc(dec) other liabilities                         227        209
          Net cash provided by operating            ----------------------
            activities                                     473        642
Cash flows from investing activities:
    Dec(inc) in interest bearing deposits in banks      (2,090)        46
    Dec(inc) in federal funds                             (600)     1,475
    Dec(inc) in investment securities                      854      2,359
    Purchase of Other Securities                           (42)       (39)
    Net dec (inc) in loans                              (1,734)    (4,761)
    Capital expenditures premises & equip                 (207)       (23)
                                                    ----------------------
      Net cash used in investing activities             (3,819)      (943)

Cash flows from financing activities:
    Net increase (decrease) in -
      Demand deposits                                     (862)      (625)
      NOW and MMDA                                      (1,068)       142
      Savings deposits                                     356         92
      Time deposits $100,000 and over                      725     (1,624)
      Other time deposits                                  920      1,383
      Federal Home Loan Borrowings                       2,361        432
      Increase in federal funds purchased                    -        550
                                                    ----------------------
  Net cash provided by financing activities              2,432        350

Net increase in cash and cash equivalents                 (914)        49

Cash and cash equivalents, beginning                     2,714      2,159

Cash and cash equivalents, end of period                $1,800     $2,208


Cash paid during the period:
    Interest                                            $1,479     $1,190

    Income Taxes                                          $213       $154


The accompanying notes are an integral part of this statement.


















































                          TECHE BANCSHARES, INC.

                       NOTES TO FINANCIAL STATEMENTS

                            September 30, 2001

     The information furnished reflects all normal, recurring adjustments
which are, in the opinion of management, necessary for a fair statement of
Teche Bancshares, Inc. and its subsidiary for the nine (9) months ended
September 30, 2001.  Results for the interim period presented are not
necessarily indicative of results which may be expected for any other interim
period or for the year as a whole.










































                          TECHE BANCSHARES, INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 2001.

Liquidity

Liquidity is the ability to insure that adequate funds are available to
satisfy contractual liabilities, fund operations, meet withdrawal
requirements of depositors and provide for customer's credit needs in a
timely manner. Our primary source of liquidity is our core deposits. We
supplement our core deposits with a line of credit with one of our
correspondent banks, public fund time deposits, repurchase agreements with
correspondent banks and a line of credit with the Federal Home Loan Bank. Our
sources of liquidity are adequate to fund the loan demand that we are
experiencing.

The primary source of funding for the parent company is dividends from the
Bank.  Management believes the parent's current sources of funds are
sufficient to meet its liquidity needs for the foreseeable future.

Capital Resources and Asset Quality

Our consolidated risk based capital to asset ratio was 18.22% and Tier one
capital ratio was 8.71% at September 30, 2001.  The bank only risk based
capital ratio was 18.18% and Tier one capital ratio was 8.69%. Banks are
required to maintain a risk weighted capital to asset ratio of 8% and Tier
one capital ratio of 5%.  Our risk based capital ratio and Tier one capital
ratio both exceed the required amount.  Management is monitoring our capital
ratio and asset growth to assure that the bank will continue to have adequate
capital to support its assets.

Asset quality continues to be satisfactory due to our emphasis on credit
quality in our loan portfolio.  Management is of the opinion that we have all
of our problem credits identified and that an adequate allowance has been
made for any potential future losses.

We continuously monitor the quality of our loans.  Loans past due 90 days or
greater still accruing at September 30, 2001, were $134,625 a decrease of
$13,068 from December 31, 2000. Loans on which the accrual of interest had
been discontinued at September 30, 2001 totalled $0.

We own one piece of other real estate.  At the present time our other real
estate is leased at the rate of $1,300 per month.  The lessee has an option
to purchase the property at the end of the lease.  We are writing down our
other real estate $1,957 per month.  At September 30, 2001 other real estate
totalled $180,376 which is down $17,114 from December 31, 2000.

Results of Operations

Net Income.  Our net income for the nine (9) months ended September 30, 2001
was $330,702 down $145,574 as compared to that of the same period last year.
The decrease in net income was mostly attributed to an increase in salaries
and employee benefits and to the Federal Reserve Bank lowering the Fed Funds
rate nine times since the beginning of the year.

Revenue. Our net interest income for the nine (9) months ended September 30,
2001 is down $102,088 as compared to the same period in 2000.  The decrease
in net interest income was the result of the Federal Reserve Bank lowering
the Fed Funds rate nine times since the beginning of the year.  Total
interest income increased $40,770.  The increase was mostly due to an
increase in loans outstanding.  Total interest expense increased $238,025.
The effect of the Federal Reserve Bank's rate reductions was to reprice our
loans and investments quicker than our deposits.  We anticipate that once
rates stabilize our deposit repricing will catch up and our net interest
margin will begin to improve.

Provision for Loan Losses. Our bad debt reserve totalled $289,446 at
September 30, 2001 which represents .98% of our gross loans.  During the nine
months of 2001, we added $31,497 to our reserve for loan loss account.  We
increased our provision for loan losses to set aside reserves for the
increase in loans that we have experienced.  Our reserve for loan loss
balance was considered adequate at September 30, 2001.

Other Income. Our other income was down $2,157 as compared to the same period
last year.  The decrease was mostly due to a decrease in commission income
for the nine months of the year.

Other Expenses.  Other expenses are up $110,306 as compared to the same time
last year.  Other expenses increased due to increases in salaries and
employee benefits, occupancy expense and other operating expense.  Salaries
and benefits increased as the result of raises that were given in the fourth
quarter of 2000.  Occupancy expense increased due to an increase in building
repairs and an increase in depreciation expense on new equipment purchased
and the renovation of our Coteau Branch.  Other operating expense increased
due to increases in directors fees and ad valorem tax expense.

Provision for Income Tax. A provision is made for income tax to reflect three
fourths (9/12ths) of the annualized income tax that we anticipate we will
incur. The provision for income tax for the period ended September 30, 2001
was $159,509 as compared to $228,486 for the same period last year. Income
tax expense decreased due to a decrease in income for the current year.

Year 2000 Preparation.  Thanks to the diligence of our employees and
management, we did not experience any significant disruptions with our
computer systems as the result of the year 2000 date change or any of the
subsequent critical millennium change dates.












                        PART II - OTHER INFORMATION

Item #1   Legal proceedings

          Inapplicable

Item #2   Changes in Securities

          Inapplicable

Item #3   Defaults Upon Senior Securities

          Inapplicable

Item #4   Submission of Matters to be a Vote of Securities Holders

          Inapplicable

Item #5   Other information

          Inapplicable

Item #6   Exhibits and Reports on Form 8-K

          Inapplicable






























                          TECHE BANCSHARES, INC.

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

                              TECHE BANCSHARES, INC.
                              Registrant


                              /s/ Alcee J. Durand, Jr.

October 26, 2001              Alcee J. Durand, Jr.
Date                          President/CEO