UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q


[ X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                      OF THE SECURITIES EXCAHNGE ACT 1934

For the quarterly period ended March 31, 2001

OR

[    ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
                      OF THE SECURITIES EXCHANGE ACT OF 1934

                         Commission File Number 0-11132

                           FIRST BANKING CENTER, INC.
             (Exact name of registrant as specified in its charter)


                 Wisconsin                                39-1391327
       (State or other jurisdiction of                 (I.R.S. Employer
        incorporation or organization)                  Identification No.)



          400 Milwaukee Ave., Burlington, WI              53105
       (Address of principal executive offices)        (Zip Code)



                                 (262) 763-3581
              (Registrant's telephone number, including area code)

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 May 3, 2001. Common stock, $1.00 par value, 1,471,998 shares
outstanding.

<PAGE>

                    FIRST BANKING CENTER, INC AND SUBSIDIARY
                                      INDEX
                                 March 31, 2001



Part I   Financial Information

         Item 1            Consolidated Financial Statements

                           Unaudited Consolidated Balance Sheets,
                           March 31, 2001 and December 31, 2000

                           Unaudited Consolidated Statements of Income,
                           For the three months ended March 31, 2001 and 2000

                           Unaudited Consolidated Statements of Cash Flows,
                           For the three months ended March 31, 2001 and 2000

                           Notes to Unaudited Consolidated Financial Statements

         Item 2            Management's Discussion and Analysis of
                           Financial Condition and Results of Operations

         Item 3            Quantitative and Qualitative Disclosures about
                           Market Risk

Part II  Other Information

         Item 1            Legal Proceedings

         Item 2            Changes in Securities and Use of Proceeds

         Item 3            Defaults upon Senior Securities

         Item 4            Submission of Matters to a Vote of Security Holders

         Item 5            Other Information

         Item 6            Exhibits and Reports on Form 8-K

         Signature

<PAGE>

PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements

                    FIRST BANKING CENTER, INC. AND SUBSIDIARY
                      UNAUDITED CONSOLIDATED BALANCE SHEETS


                                                       March 31,   December 31,
ASSETS                                                   2001         2000
                                                      --------------------------
                                                           (In thousands)

Cash and due from banks                                    $10,648      $29,287
Federal funds sold                                          14,249            0
Interest-bearing deposits in banks                             708          696
Available for sale securities                               47,267       65,189
Loans, less allowance for loan losses of $3,971 and
 $3,927 in 2001 and 2000, respectively                     318,429      316,641
Office buildings and equipment, net                          9,868        9,825
Other assets                                                10,346        9,220
                                                      --------------------------

    TOTAL ASSETS                                          $411,515     $430,858
                                                      ==========================

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
 Demand                                                    $48,332      $59,602
 Savings and NOW accounts                                  149,174      150,438
 Time                                                      121,460      124,900
                                                      --------------------------
    Total Deposits                                         318,966      334,940
Securities sold under agreements to repurchase
 and federal funds purchased                                19,199       17,299
Short-term borrowings                                       15,290       26,168
Long-term borrowings                                        14,876        9,876
Other liabilities                                            3,755        4,627
                                                      --------------------------

    TOTAL LIABILITIES                                      372,086      392,910
                                                      --------------------------

STOCKHOLDERS' EQUITY
Common Stock, $1.00 par value 3,000,000 shares
 authorized; 1,489,380 shares issued as of
 March 31, 2001 and December 31, 2000, respectively          1,489        1,489
Surplus                                                      4,177        4,178
Retained Earnings                                           33,731       32,525
                                                      --------------------------
                                                            39,397       38,192
Common stock in treasury, at cost-17,486 and 12,358
 shares for March 31, 2001 and December 31, 2000,
 respectively                                                ($639)       ($452)
Accumulated other comprehensive income                         671          208
                                                      --------------------------

    TOTAL STOCKHOLDERS' EQUITY                             $39,429      $37,948
                                                      --------------------------

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $411,515     $430,858
                                                      ==========================


                           "See accompanying notes to financial statements"

<PAGE>

                    FIRST BANKING CENTER, INC. AND SUBSIDIARY
                   UNAUDITED CONSOLIDATED STATEMENTS OF INCOME


                                                             Three months ended
                                                                  March 31,
                                                             2001         2000
                                                          ----------------------
INTEREST INCOME                                                (In thousands)
Interest and fees on loans                                  $7,377       $6,411
Interest and dividends on securities
 Taxable                                                       414          511
 Non-taxable                                                   326          321
Interest on federal funds sold                                  79           40
Interest on interest-bearing deposits in banks                  11            1
                                                          ----------------------
    TOTAL INTEREST INCOME                                    8,207        7,284
                                                          ----------------------

INTEREST EXPENSE
Interest on deposits                                         3,290        2,797
Interest on securities sold under agreements to
 repurchase and federal funds purchased                        293          261
Interest on other borrowings                                   374          392
                                                          ----------------------
    TOTAL INTEREST EXPENSE                                   3,957        3,450
                                                          ----------------------
    NET INTEREST INCOME BEFORE PROVISION FOR
     LOAN LOSSES                                             4,250        3,834
Provision for loan losses                                       90           90
                                                          ----------------------
    NET INTEREST INCOME AFTER PROVISION FOR
     LOAN LOSSES                                             4,160        3,744
                                                          ----------------------

NON-INTEREST INCOME
Trust                                                          138          100
Service charges on deposit accounts                            321          313
Investment securities gains (losses)                             0           (5)
Other income                                                   297          282
                                                          ----------------------
    TOTAL NON-INTEREST INCOME                                  756          690
                                                          ----------------------

NON-INTEREST EXPENSE
Salary and employee benefits                                 1,853        1,656
Occupancy                                                      251          218
Equipment                                                      328          317
Data Processing services                                       192          154
Goodwill amortization                                           25           26
Other                                                          657          605
                                                          ----------------------
    TOTAL NON-INTEREST EXPENSE                               3,306        2,976
                                                          ----------------------

    INCOME BEFORE INCOME TAXES                               1,610        1,458
Income taxes                                                   405          385
                                                          ----------------------
    NET INCOME                                              $1,205       $1,073
                                                          ======================



                           "See accompanying notes to financial statements"

<PAGE>

                    FIRST BANKING CENTER, INC. AND SUBSIDIARY
                 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                             Three months ended
                                                                  March 31,
                                                             2001         2000
                                                          ----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:                          (In thousands)
Net income                                                  $1,205       $1,073
Depreciation                                                   206          216
Provision for loan losses                                       90           90
Loans originated for sale                                  (22,772)      (5,409)
Proceeds from sale of loans                                 18,911        5,873
Gain on sale of loans                                            0           (9)
Gain on disposal of office building and equipment                0           (4)
Amortization of premiums and accretion of discounts
 on securities, net                                            177           17
Amortization                                                    25           26
Loss on sale of investment securities                            0            5
Increase (decrease) in other assets                         (1,389)         264
Decrease in accrued expenses and other liabilities            (872)        (168)
                                                          ----------------------
    NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES     (4,419)       1,974
                                                          ----------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Net increase in interest-bearing deposits in banks             (12)          (5)
Net (increase) decrease in federal funds sold              (14,249)       4,242
Activity in available for sale securities:
 Proceeds from sales of available for sale securities          400        8,436
 Proceeds from maturities of available for sale securities  47,857        3,763
 Purchase of available for sale securities                 (29,811)     (19,933)
Net (increase) decrease in loans                             1,983       (1,899)
Purchase of office buildings and equipment, net               (249)        (461)
                                                          ----------------------
    NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES      5,919       (5,857)
                                                          ----------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in deposits                                   (15,974)      (1,631)
Proceeds from other borrowings                               5,000        3,045
Payments on other borrowings                               (10,878)      (3,045)
Net increase (decrease) in securities sold under
 agreements to repurchase and federal funds purchased        1,900         (714)
Purchase of treasury stock                                    (187)         (34)
Proceeds from reissuance of treasury stock under
 stock option plan                                               0           21
                                                          ----------------------
    NET CASH USED IN FINANCING ACTIVITIES                  (20,139)      (2,358)
                                                          ----------------------
    Net decrease in Cash and Due From Banks                (18,639)      (6,241)
Cash and Due From Banks-Beginning of Period                 29,287       19,123
                                                          ----------------------
    Cash and Due From Banks-End of Period                   $10,648      $12,882
                                                          ======================

Supplemental disclosures of cash flow information:
Cash paid during the period for:
 Interest                                                   $4,213       $3,572
 Income taxes                                                 $317        ($119)
Supplemental schedule of non-cash investing and
 financing activities:
Net change in unrealized gain (loss) on available
 for sale securities                                          $463         ($91)



                           "See accompanying notes to financial statements"

<PAGE>

                    FIRST BANKING CENTER, INC AND SUBSIDIARY
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  March 31,2001

NOTE 1 - Basis of Presentation

The unaudited  consolidated  financial  statements include the accounts of First
Banking  Center,  Inc. and its  subsidiary  (the  "Company").  In the opinion of
management,  all adjustments  (consisting only of normal recurring  adjustments)
necessary  for a  fair  presentation  of  the  financial  position,  results  of
operation and cash flows for the interim  periods have been made. The results of
operations  for the  three  months  ended  March  31,  2001 are not  necessarily
indicative of the results to be expected for the entire fiscal year.

The unaudited interim financial statements have been prepared in conformity with
generally  accepted  accounting   principles  and  industry  practice.   Certain
information in footnote  disclosure  normally  included in financial  statements
prepared  in  accordance  with  generally  accepted  accounting  principles  and
industry   practice  has  been  condensed  or  omitted  pursuant  to  rules  and
regulations  of  the  Securities  and  Exchange   Commission.   These  financial
statements  should  be read  in  conjunction  with  the  consolidated  financial
statements and notes thereto included in the Company's December 31, 2000 audited
financial statements.

The preparation of financial  statements in conformity  with generally  accepted
accounting  principles  requires  management to make  estimates and  assumptions
which affect the reported  amounts of assets and  liabilities  and disclosure of
contingent assets and liabilities as of the date of the financial statements, as
well as the reported amounts of income and expenses during the reported periods.
Actual results could differ from those estimates.

NOTE 2 - Earnings Per Share

The following information  calculates the computation of earnings per share on a
basic and diluted basis.
<TABLE>
<CAPTION>
                                                                                         Three Months Ended
                                                                                              March 31,
                                                                                        2001             2000
                                                                                  ----------------------------------
                                                                                           (In thousands)
<S>                                                                               <C>              <C>
Basic
Net income                                                                                  $1,205           $1,073
Weighted average shares outstanding                                                          1,472            1,479
Basic earnings per share                                                                     $0.82            $0.73
                                                                                  ==================================

Diluted
Net income                                                                                  $1,205           $1,073
Weighted average shares outstanding                                                          1,472            1,479
Effect of dilutive stock options outstanding                                                    17               13
                                                                                  ----------------------------------
Diluted weighted average shares outstanding                                                  1,489            1,492
Diluted earnings per share                                                                   $0.81            $0.72
                                                                                  ==================================
</TABLE>

NOTE 3-Comprehensive Income

The following table presents our comprehensive income.
<TABLE>
<CAPTION>
                                                                                         Three Months Ended
                                                                                              March 31,
                                                                                        2001             2000
                                                                                  ----------------------------------
                                                                                           (In thousands)
<S>                                                                               <C>              <C>
Net income                                                                                  $1,205           $1,073
Other comprehensive income
  Net change in unrealized gain (loss) on available for sale securities                       $463             ($91)
                                                                                  ----------------------------------
Total comprehensive income                                                                  $1,668             $982
                                                                                  ==================================
</TABLE>

<PAGE>

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

                    FIRST BANKING CENTER, INC AND SUBSIDIARY
                       MANAGEMENTS DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                              As of March 31, 2001

The following discussion provides additional analysis of the financial condition
and results of  operations  of the Company for the quarter ended March 31, 2001.
This discussion  focuses on the significant  factors that affected the Company's
earnings so far in 2001, with  comparisons to 2000. As of March 31, 2001,  First
Banking  Center (the "Bank") was the only direct  subsidiary  of the Company and
its operations  contributed  nearly all of the revenue for the year. The Company
provides  various support  functions for the Bank and receives  payment from the
Bank for these  services.  These  intercompany  payments are  eliminated for the
purpose  of these  consolidated  financial  statements.  The Bank has two wholly
owned  subsidiaries,  FBC Financial  Services,  Corp., a brokerage and financial
services subsidiary, and FBC-Burlington,  Inc., an investment subsidiary located
in Nevada.

Overview

As of March 31, 2001,  total Company assets were $411.5 million  decreasing 4.5%
from $430.9 million as of December 31, 2000. Total income, as of March 31, 2001,
was $1.2 million or $0.82 per share, increasing 12.3% from $1.1 million or $0.73
per  share in 2000.  The  significant  items  resulting  in the  above-mentioned
results are discussed below.

Financial Condition

Loans

Loans  outstanding  were $322.4 million and $320.6 million on March 31, 2001 and
December 31, 2000  respectively.  This represents an increase of $1.8 million or
 .57%.  The  following  table  summarizes  the  changes to date in the major loan
classifications.
<TABLE>
<CAPTION>
                                                                                                         As a % of Total Loans
                                           March 31,         December 31,          Change in        March 31,         December 31,
                                            2001                2000               Balance           2001                2000
                                         ----------------------------------     --------------    ----------------------------------
                                                                         (Amounts in million)
<S>                                      <C>              <C>                   <C>               <C>              <C>
Residential Real Estate                    $141.5              $135.7               $5.8             43.9%               42.3%
Commercial Real Estate                      $84.7               $85.2              ($0.5)            26.3%               26.6%
Construction and Land Development           $42.1               $42.2              ($0.1)            13.1%               13.2%
Commercial                                  $26.3               $26.2               $0.1              8.2%                8.2%
</TABLE>

Allowance for Loan Losses

The  allowance for possible loan losses was $3.9 million or 1.23% of gross loans
on March  31,  2001,  compared  with  $3.9  million  or 1.23% of gross  loans on
December 31, 2000.  Net  charge-offs  were $46 thousand or .014% of gross loans,
compared to net charge-offs of $14 thousand or .004% of gross loans for December
31, 2000.

The allowance for loan losses is established through a provision for loan losses
charged to expense. Loans are charged against the allowance for loan losses when
management  believes that the  collectibility of the principal is unlikely.  The
allowance for loan losses is adequate to cover probable  credit losses  relating
to specifically  identified loans, as well as probable credit losses inherent in
the balance of the loan portfolio. In accordance with FASB Statements 5 and 114,
the  allowance is provided for losses that have been  incurred as of the balance
sheet  date.  The  allowance  is  based  on past  events  and  current  economic
conditions,  and does not include  the  effects of  expected  losses on specific
loans or groups of loans that are related to future  events or expected  changes
in economic  conditions.  Management  reviews a calculation of the allowance for
loan losses on a quarterly  basis.  While  management uses the best  information
available to make its  evaluation,  future  adjustments  to the allowance may be
necessary  if there are  significant  changes in economic  conditions.  Impaired
loans are  measured  based on the present  value of  expected  future cash flows
discounted at the loan's effective  interest rate or, as a practical  expedient,
at the loan's observable market price or the fair value of the collateral if the
loan is  collateral  dependent.  A loan is  impaired  when  it is  probable  the
creditor  will be unable to  collect  all  contractual  principal  and  interest
payments due in accordance with the terms of the loan agreement.

<PAGE>

In addition,  various regulatory agencies  periodically review the allowance for
loan  losses.  These  agencies  may  require the bank to make  additions  to the
allowance for loan losses based on their  judgments of  collectibility  based on
information available to them at the time of their examination.

As of March 31, 2001, $90 thousand was charged to current  earnings and added to
the allowance for loan losses.

Non-accrual, Past Due and Renegotiated Loans

<TABLE>
<CAPTION>
                                                                                     March 31,       December 31,
                                                                                        2001             2000
                                                                                   --------------------------------
                                                                                           (In thousands)
<S>                                                                                <C>               <C>
Non-accrual Loans (a)                                                                  $1,100           $827
Past Due 90 days +                                                                          0              0
Restructured Loans                                                                          0              0
</TABLE>

The  policy of the  Company  is to place a loan on  non-accrual  status  if: (a)
payment in full of interest and principal is not  expected,  or (b) principal or
interest  has  been in  default  for a  period  of 90 days  or more  unless  the
obligation is both in the process of collection  and well secured.  Well secured
is defined as collateral with sufficient market value to repay principal and all
accrued  interest.  A debt is in the process of  collection if collection of the
debt  is  proceeding  in due  course  either  through  legal  action,  including
judgement  enforcement  procedures,  or in  appropriate  circumstances,  through
collection  efforts not involving legal action which are reasonably  expected to
result in repayment of the dept or in its  restoration  to current  status.  The
non-accrual  loans  consisted  primarily of $684  thousand of  residential  real
estate  loans,  $241 thousand of  commercial  real estate,  and $120 thousand of
construction  and land  development  loans.  On March  31,  2001,  the  ratio of
non-accrual  loans to the allowance for loan losses was 28.0%  compared to 21.1%
on December 31, 2000.

As of March 31, 2001, the Company had loans totaling  $15,205,000 in addition to
those listed as non-accrual,  past due or  renegotiated  that were identified by
the Banks' internal asset rating systems as classified assets. This represents a
decrease of $2,707,000 or 15.1% from December 31, 2000.  Management is not aware
of any significant  loans,  group of loans or segments of the loan portfolio not
included  above,  where  full  collectibility  cannot  reasonably  be  expected.
Management  has  committed  resources  and is  focusing  on efforts  designed to
control the amount of classified assets. The company does not have a substantial
portion of its loans  concentrated  in one or a few  industries nor does it have
any foreign loans  outstanding  as of March 31, 2001.  The  company's  loans are
concentrated  geographically  in the  Wisconsin  counties  of Racine,  Walworth,
Kenosha, and Green.

Investments securities - Available for Sale

The securities available-for-sale portfolio decreased $17.9 million or 27.5%, as
of March 31, 2001. The decrease came from four areas of the security  portfolio.
Commercial  paper had $2.6 million in  maturities.  $4.2 million of money market
mutual  funds  were  transferred  to  Fed  Funds.  Due to  regulatory  reporting
purposes,  $2.3 million of equity  securities were  transferred to other assets.
U.S.  Government Agency Securities had $6.5 million in calls, due to a declining
rate environment, and $2.4 million in maturities.

Deposits and Borrowed Funds

Total deposits and borrowed funds were $368.3 million on March 31, 2001 compared
to $388.3  million on December 31, 2000.  This is a decrease of $20.0 million or
5.1%.  The  decrease is due to normal  seasonal  decline in the  collection  and
distribution of tax funds by municipal customers. The following table summarizes
the changes in the major classifications of deposits and borrowed funds.

<PAGE>

<TABLE>
<CAPTION>
                                                           March 31,         December 31,          Change in
                                                              2001               2000               Balance
                                                         ----------------------------------      -------------
                                                                   (Amounts in millions)
<S>                                                      <C>               <C>                   <C>
Money Market and Savings                                     $128.1             $121.8               $6.3
Demand  Deposits                                              $48.3              $59.6             ($11.3)
Time Deposits less than $100,000                              $88.2              $86.6               $1.6
Time Deposits equal or greater than $100,000                  $33.2              $38.3              ($5.1)
Securities sold under agreement to repurchase                 $19.2              $17.3               $1.9
Federal Home Loan Borrowings                                  $29.5              $35.3              ($5.8)
</TABLE>

Capital resources

As of March 31, 2001, the Company's  stockholders' equity increased $1.5 million
or 3.9%. Net income of $1.2 million was the primary  reasons for the increase in
equity.  The company  purchased $187 thousand of treasury stock during the first
quarter of 2001.  Unrealized  gains on available for sale  securities  increased
$463 thousand to $671 thousand.

In December 1990,  the Federal  Reserve  Board's  risk-based  guidelines  became
effective.  Under these  guidelines  capital is measured  against the  Company's
subsidiary  bank's  risk-weighted  assets.  The Company's tier 1 capital (common
stockholders'  equity less goodwill) to risk-weighted  assets was 11.9% at March
31, 2001,  well above the 4% minimum  required.  Total capital to  risk-adjusted
assets was 13.1%, also well above the 8% minimum requirement. The leverage ratio
was at 9.2%  compared to the 4% minimum  requirement.  According to FDIC capital
guidelines, the Company is considered to be "well capitalized."

Results of operations

Net Interest Income

Net interest income is the difference  between interest income and fees on loans
and interest expense,  and is the largest  contributing factor to net income for
the  Company.  All  discussions  of rate are on a  tax-equivalent  basis,  which
accounts for income earned on  securities  that are not fully subject to federal
taxes.  Net interest income was $4.3 million and $3.8 million for March 31, 2001
and March 31, 2000 respectively.  Net interest income as a percentage of average
earning  assets (net interest  margin) was 4.67% and 4.43% for the first quarter
of 2001 and 2000 respectively.

The  following  table  summarizes  the  changes  and  reasons for the changes in
interest income and fees on loans during 2001 and 2000. The increase in interest
income and fees on loans as of March 31,  2001 was due  primarily  to  increased
yields on earning  assets.  The increase in interest income and fees on loans as
of March 31, 2000 was due primarily to increased average earning assets.

<TABLE>
<CAPTION>
                                                                                                          Dollar/rate change
                                                         For the quarter ended: March 31,        For the quarter ended:  March 31,
                                                              2001               2000                   2001               2000
                                                       ------------------------------------    -------------------------------------
                                                                                   (Amounts in millions)
<S>                                                    <C>                  <C>                <C>                   <C>
Interest income                                               $8.4               $7.5                   $0.9               $0.6
Earning assets (Average balances)                           $380.9             $364.2                  $16.7              $25.4
Yield on earning assets                                      8.82%              8.22%                  0.60%              0.07%
</TABLE>

The  following  table  summarizes  the  changes  and  reasons for the changes in
interest  expense  for the first  quarter  of 2001 and  2000.  The  increase  in
interest  expense as of March 31, 2001 was due primarily to increased rates paid
for liabilities. The increase in interest expense March 31, 2000 was a result of
average balances outstanding increasing.
<TABLE>
<CAPTION>
                                                                                                         Dollar/rate change
                                                         For the quarter ended: March 31,        For the quarter ended:  March 31,
                                                              2001               2000                   2001               2000
                                                       ------------------------------------    -------------------------------------
                                                                                   (Amounts in millions)
<S>                                                    <C>                  <C>                <C>                   <C>
Interest expense                                              $4.0               $3.5                   $0.5               $0.4
Interest bearing liabilities (Average balances)             $368.7             $353.2                  $15.5              $26.8
Cost of interest bearing liabilities                         4.29%              3.91%                  0.38%              0.15%
</TABLE>

<PAGE>

The major component of interest income and fees on loans is the income generated
by loans.  The table below  summarizes the income,  average balance and yield on
loans for 2001 and 2000.
<TABLE>
<CAPTION>
                                                                                                          Dollar/rate change
                                                         For the quarter ended: March 31,        For the quarter ended:  March 31,
                                                              2001               2000                   2001               2000
                                                       ------------------------------------    -------------------------------------
                                                                                   (Amounts in millions)
<S>                                                    <C>                  <C>                <C>                   <C>
Interest income                                               $7.4               $6.4                   $1.0               $0.7
Loans (Average balances)                                    $323.0             $300.7                  $22.3              $38.3
Yield on loans                                               9.14%              8.53%                  0.61%             -0.18%
</TABLE>

The major  components of interest  expense are interest paid on  Certificates of
Deposit (Time deposits) and on Money Market Deposits. The tables below summarize
the expense,  average  balance and rates on these  components for 2001 and 2000.
The increase in interest  expense on these two  components  was the result of an
increase in both rate and average  balance,  as of March 31, 2001 and 2000.  The
increase in average  balance was due to normal growth in these  deposits as well
as a shift in balances from other deposit accounts.
<TABLE>
<CAPTION>
                                                                                                          Dollar/rate change
                                                         For the quarter ended: March 31,        For the quarter ended:  March 31,
     Time deposits                                            2001               2000                   2001               2000
                                                       ------------------------------------    -------------------------------------
                                                                                   (Amounts in millions)
<S>                                                    <C>                  <C>                <C>                   <C>
Interest expense                                              $2.1               $1.8                   $0.3               $0.1
Time deposits (Average balances)                            $172.6             $171.4                   $1.2               $4.0
Cost of time deposits                                        4.81%              4.27%                  0.54%              0.09%
</TABLE>

<TABLE>
<CAPTION>
                                                                                                          Dollar/rate change
                                                         For the quarter ended: March 31,        For the quarter ended:  March 31,
     Money Market deposits                                    2001               2000                   2001               2000
                                                       ------------------------------------    -------------------------------------
                                                                                   (Amounts in millions)
<S>                                                    <C>                  <C>                <C>                   <C>
Interest expense                                              $1.2               $1.0                   $0.2               $0.3
Money Market deposits (Average balances)                     $98.0              $83.5                  $14.5              $15.5
Cost of Money Market deposits                                4.96%              4.64%                  0.32%              0.62%
</TABLE>

Non-interest income

Non-interest  income  increased  $66 thousand or 9.6% as of March 31, 2001.  The
increase  came in  primarily  two areas.  Service  charges  on deposit  accounts
increased  $8  thousand  as the number of  accounts  grew and  charges  for some
services  were  increased.  Trust income  increased $38 thousand as that line of
business continues to grow.

Non-interest expense

Non-interest  expense  increased  $330  thousand or 11.1% as of March 31,  2001.
Salaries and benefits  accounted for $197 thousand of the increase due to normal
wage increases and increased  health  insurance  costs.  Data  processing  costs
increased $38 thousand due to increased  volumes and  additional  services used.
Occupancy  expense  increased  $33 thousand  due  primarily to increases in real
estate and personal property taxes.

Asset/liability management

The principal  function of  asset/liability  management is to manage the balance
sheet mix,  maturities,  repricing  characteristics  and pricing  components  to
provide an adequate and stable net interest  margin with an acceptable  level of
risk over time and through interest rate cycles.

Interest-sensitive  assets  and  liabilities  are  those  that  are  subject  to
repricing   within  a  specific   relevant  time  horizon.   The  Bank  measures
interest-sensitive  assets and  liabilities,  and their  relationship  with each
other at terms of immediate, quarterly intervals up to 1 year, and over 1 year.

<PAGE>

Changes in net interest income,  other than volume related,  arise when interest
rates on assets  reprice in a time frame or interest  rate  environment  that is
different  from the repricing  period for  liabilities.  Changes in net interest
income  also  arise  from  changes  in the mix of  interest  earning  assets and
interest-bearing liabilities.

The Bank's  strategy with respect to  asset/liability  management is to maximize
net  interest  income  while  limiting  its  exposure  to a  potential  downward
movement.  Strategy is implemented by the Bank's management,  which takes action
based upon its analysis of the Bank's  present  positioning,  its desired future
positioning,  economic  forecasts,  and its goals.  It is the  Bank's  desire to
maintain a cumulative GAP of positive or negative 15% of rate  sensitive  assets
at the 1 year time  frame.  The  current  percentage  is a  positive  9%,  which
compares to a positive 2% as of December 31, 2000.

Liquidity

Liquidity  measures  the  ability  of  First  Banking  Center  to meet  maturing
obligations and its existing commitments,  to withstand  fluctuations in deposit
levels, to fund its operations,  and to provide for customers' credit needs. One
source of  liquidity is cash and  short-term  assets,  such as  interest-bearing
deposits in other banks and federal  funds sold,  which totaled $25.6 million at
March 31, 2001, compared with $30.0 million at December 31, 2000. The Bank has a
variety of sources of short-term  liquidity  available to it, including  federal
funds  purchased from  correspondent  banks,  sales of securities  available for
sale, FHLB advances,  lines of credit and loan  participations  or sales.  First
Banking Center also generates  liquidity from the regular principal payments and
prepayments made on its portfolio of loans and mortgage-backed securities.

The   liquidity  of  First   Banking   Center  is  comprised  of  three  primary
classifications: cash flows from operating activities, cash flows from investing
activities, and cash flows from financing activities. Net cash used in operating
activities  was  $4.4  million.  Net  cash  provided  by  investing  activities,
consisting  principally of the maturities of securities,  was $5.9 million.  Net
cash used in financing activities was $20.1 million.

As of March  31,  2000,  net cash  provided  by  operating  activities  was $2.0
million.  Net cash used in investing  activities was $5.9 million. Net cash used
in financing activities was $2.3 million.

Impact of Inflation and Changing Prices

The  consolidated  financial  statements  and the  accompanying  notes have been
prepared in accordance  with generally  accepted  accounting  principles,  which
require the measurement of financial  position and operating results in terms of
historical  dollar  amounts  without  considering  the  changes in the  relative
purchasing power of money over time due to inflation. The impact of inflation is
reflected in the increased  cost of First Banking  Center's  operations.  Unlike
industrial companies,  nearly all of the assets and liabilities of First Banking
Center are monetary in nature. As a result, interest rates have a greater impact
on First Banking  Center's  performance than do the effects of general levels of
inflation.  Interest rates do not  necessarily  move in the same direction or to
the same extent as the price of goods and services.

Forward Looking  Statements- Safe Harbor Statement Under the Private  Securities
Litigation Reform Act of 1995

This report contains certain  forward-looking  statements  within the meaning of
Section  27A of the  Securities  Act of 1933,  as amended and Section 21E of the
Securities  Exchange Act of 1934, as amended.  First Banking Center intends such
forward-looking  statements  to be covered  by the safe  harbor  provisions  for
forward-looking  statements  contained in the Private  Securities  Reform Act of
1995,  and is  including  this  statement  for  purposes  of these  safe  harbor
provisions.  Forward-looking statements,  which are based on certain assumptions
and describe First Banking  Center's future plans,  strategies and  expectations
are generally  identifiable by use of the words "believe,"  "expect,"  "intend,"
"anticipate,"  "estimate,"  "project"  or  similar  expressions.  First  Banking
Center's  ability to predict  results  or the actual  effect of future  plans or
strategies is inherently uncertain.  Factors which could have a material adverse
affect on First Banking Center's  operations and future prospects  include,  but
are not limited to, changes in: interest  rates,  general  economic  conditions,
legislative/regulatory  changes,  monetary  and  fiscal  policies  of  the  U.S.
Government,  including  policies of the U.S.  Treasury  and the Federal  Reserve
Board, the quality or composition of the loan or investment  portfolios,  demand
for loan products, deposit flows, competition,  demand for financial services in
our market area, our implementation of new technologies,  First Banking Center's
ability to develop  and  maintain  secure and  reliable  electronic  systems and
accounting  principles,  policies and guidelines.  These risks and uncertainties
should be considered in evaluating forward-looking statements and undue reliance
should not be placed on such statements.

<PAGE>

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

First Banking Center,  like other financial  institutions,  is subject to direct
and  indirect  market risk.  Direct  market risk exists from changes in interest
rates.  First  Banking  Center's  net income is  dependent  on its net  interest
income.  Net interest  income is susceptible to interest rate risk to the degree
that  interest-bearing  liabilities  mature or reprice on a different basis than
interest-earning  assets.  When  interest-bearing  liabilities mature or reprice
more quickly  than  interest-earning  assets in a given  period,  a  significant
increase in market rates of interest could adversely affect net interest income.

Similarly,  when  interest-earning  assets  mature or reprice  more quickly than
interest-bearing liabilities,  falling interest rates could result in a decrease
in net income.

In an attempt to manage its  exposure to changes in interest  rates,  management
monitors  First  Banking  Center's  interest  rate  risk.  The   Asset/Liability
Committee  meets quarterly to review First Banking  Center's  interest rate risk
position  and   profitability,   and  to  make  or  recommend   adjustments  for
consideration  by the Board of  Directors.  Management  also  reviews the Bank's
securities portfolio,  formulates investment strategies, and oversees the timing
and   implementation  of  transactions  to  assure  attainment  of  the  Board's
objectives in the most effective manner.  Notwithstanding First Banking Center's
interest rate risk management  activities,  the potential for changing  interest
rates is an uncertainty that can have an adverse effect on net income.

In adjusting  First Banking  Center's  asset/liability  position,  the Board and
management  attempt to manage First  Banking  Center's  interest rate risk while
maintaining or enhancing net interest margins. At times,  depending on the level
of general  interest rates, the  relationship  between  long-term and short-term
interest  rates,  market  conditions  and  competitive  factors,  the  Board and
management  may decide to increase  First  Banking  Center's  interest rate risk
position  somewhat in order to increase its net interest  margin.  First Banking
Center's  results of operations  and net portfolio  values remain  vulnerable to
increases  in  interest  rates and to  fluctuations  in the  difference  between
long-term and short-term interest rates.

One approach  used to quantify  interest  rate risk is the net  portfolio  value
("NPV") analysis.  In essence,  this analysis  calculates the difference between
the present  value of  liabilities  and the present value of expected cash flows
from assets and off-balance-sheet contracts. The most recent NPV analysis, as of
March  31,  2001,   projects  that  net  portfolio   value  would   decrease  by
approximately  5.69% if  interest  rates  would rise 200 basis  points and would
decrease by  approximately  3.95% if interest  rates would rise 100 basis points
over  the  next  year . It  projects  an  increase  in net  portfolio  value  of
approximately  13.01%  if  interest  rates  would  drop  200  basis  points  and
approximately  9.76% if  interest  rates  would  drop  100  basis  points.  Both
simulations are within  board-established  policy limits. First Banking Center's
policy is to limit the  effect of a 200 basis  point rate shock to plus or minus
20% of  projected  net  interest  income and to minus 35% of the market value of
portfolio equity.

First  Banking  Center does not  currently  engage in trading  activities or use
derivative   instruments  to  control  interest  rate  risk.  Even  though  such
activities may be permitted  with the approval of the Board of Directors,  First
Banking  Center does not intend to engage in such  activities  in the  immediate
future.

Interest rate risk is the most  significant  market risk affecting First Banking
Center.  Other types of market risk, such as foreign currency exchange rate risk
and  commodity  price risk,  do not arise in the normal  course of First Banking
Center's business activities.

<PAGE>

Part II-OTHER INFORMATION
Item 1.  Legal Proceedings

              None

Item 2.  Changes in Securities

             None

Item 3.  Defaults upon Senior Securities

             None

Item 4.  Submission of Matters to a Vote of Security Holders

            None

Item 5.  Other Information

             None

Item 6.  Exhibits and Reports on Form 8-K

             None

<PAGE>

                   FIRST BANKING CENTER, INC AND SUBSIDIARIES


                                   SIGNATURES





Pursuant to the requirements of the Securities Exchange Act of 1943, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.










                           First Banking Center, Inc.





May 14, 2001                                         __________________________
Date                                                 Brantly Chappell
                                                     Chief Executive Officer




May 14, 2001                                         __________________________
Date                                                 James Schuster
                                                     Chief Financial Officer
[{"type": "10-Q", "sequence": "1", "filename": "mar200110q.txt", "description": "10-Q FOR THE QUARTER ENDED MARCH 31, 2001", "secsgml_size_bytes": 52676}]
{"company-data": {"conformed-name": "FIRST BANKING CENTER INC", "cik": "0000356858", "assigned-sic": "6022", "irs-number": "391391327", "state-of-incorporation": "WI", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "000-11132", "film-number": "1638499"}, "business-address": {"street1": "400 MILWAUKEE AVE", "street2": "P O BOX 660", "city": "BURLINGTON", "state": "WI", "zip": "53105", "phone": "4147633581"}, "mail-address": {"street1": "567 BROAD ST", "street2": "PO BOX 970", "city": "LAKE GENEVA", "state": "WI", "zip": "53147"}, "former-company": {"former-conformed-name": "FIRST COMMUNITY BANK GROUP INC", "date-changed": "19850312"}}
UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

[ X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                      OF THE SECURITIES EXCAHNGE ACT 1934

For the quarterly period ended March 31, 2001

OR

[    ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
                      OF THE SECURITIES EXCHANGE ACT OF 1934

                         Commission File Number 0-11132

                           FIRST BANKING CENTER, INC.
             (Exact name of registrant as specified in its charter)

                 Wisconsin                                39-1391327
       (State or other jurisdiction of                 (I.R.S. Employer
        incorporation or organization)                  Identification No.)

          400 Milwaukee Ave., Burlington, WI              53105
       (Address of principal executive offices)        (Zip Code)

                                 (262) 763-3581
              (Registrant's telephone number, including area code)

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 May 3, 2001. Common stock, $1.00 par value, 1,471,998 shares
outstanding.
FIRST BANKING CENTER, INC AND SUBSIDIARY
                                      INDEX
                                 March 31, 2001

Part I   Financial Information

         Item 1            Consolidated Financial Statements

                           Unaudited Consolidated Balance Sheets,
                           March 31, 2001 and December 31, 2000

                           Unaudited Consolidated Statements of Income,
                           For the three months ended March 31, 2001 and 2000

                           Unaudited Consolidated Statements of Cash Flows,
                           For the three months ended March 31, 2001 and 2000

                           Notes to Unaudited Consolidated Financial Statements

         Item 2            Management's Discussion and Analysis of
                           Financial Condition and Results of Operations

         Item 3            Quantitative and Qualitative Disclosures about
                           Market Risk

Part II  Other Information

         Item 1            Legal Proceedings

         Item 2            Changes in Securities and Use of Proceeds

         Item 3            Defaults upon Senior Securities

         Item 4            Submission of Matters to a Vote of Security Holders

         Item 5            Other Information

         Item 6            Exhibits and Reports on Form 8-K

         Signature
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements

                    FIRST BANKING CENTER, INC. AND SUBSIDIARY
                      UNAUDITED CONSOLIDATED BALANCE SHEETS

                                                       March 31,   December 31,
ASSETS                                                   2001         2000
                                                      --------------------------
                                                           (In thousands)

Cash and due from banks                                    $10,648      $29,287
Federal funds sold                                          14,249            0
Interest-bearing deposits in banks                             708          696
Available for sale securities                               47,267       65,189
Loans, less allowance for loan losses of $3,971 and
 $3,927 in 2001 and 2000, respectively                     318,429      316,641
Office buildings and equipment, net                          9,868        9,825
Other assets                                                10,346        9,220
                                                      --------------------------

    TOTAL ASSETS                                          $411,515     $430,858
                                                      ==========================

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
 Demand                                                    $48,332      $59,602
 Savings and NOW accounts                                  149,174      150,438
 Time                                                      121,460      124,900
                                                      --------------------------
    Total Deposits                                         318,966      334,940
Securities sold under agreements to repurchase
 and federal funds purchased                                19,199       17,299
Short-term borrowings                                       15,290       26,168
Long-term borrowings                                        14,876        9,876
Other liabilities                                            3,755        4,627
                                                      --------------------------

    TOTAL LIABILITIES                                      372,086      392,910
                                                      --------------------------

STOCKHOLDERS' EQUITY
Common Stock, $1.00 par value 3,000,000 shares
 authorized; 1,489,380 shares issued as of
 March 31, 2001 and December 31, 2000, respectively          1,489        1,489
Surplus                                                      4,177        4,178
Retained Earnings                                           33,731       32,525
                                                      --------------------------
                                                            39,397       38,192
Common stock in treasury, at cost-17,486 and 12,358
 shares for March 31, 2001 and December 31, 2000,
 respectively                                                ($639)       ($452)
Accumulated other comprehensive income                         671          208
                                                      --------------------------

    TOTAL STOCKHOLDERS' EQUITY                             $39,429      $37,948
                                                      --------------------------

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $411,515     $430,858
                                                      ==========================

                           "See accompanying notes to financial statements"
FIRST BANKING CENTER, INC. AND SUBSIDIARY
                   UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

                                                             Three months ended
                                                                  March 31,
                                                             2001         2000
                                                          ----------------------
INTEREST INCOME                                                (In thousands)
Interest and fees on loans                                  $7,377       $6,411
Interest and dividends on securities
 Taxable                                                       414          511
 Non-taxable                                                   326          321
Interest on federal funds sold                                  79           40
Interest on interest-bearing deposits in banks                  11            1
                                                          ----------------------
    TOTAL INTEREST INCOME                                    8,207        7,284
                                                          ----------------------

INTEREST EXPENSE
Interest on deposits                                         3,290        2,797
Interest on securities sold under agreements to
 repurchase and federal funds purchased                        293          261
Interest on other borrowings                                   374          392
                                                          ----------------------
    TOTAL INTEREST EXPENSE                                   3,957        3,450
                                                          ----------------------
    NET INTEREST INCOME BEFORE PROVISION FOR
     LOAN LOSSES                                             4,250        3,834
Provision for loan losses                                       90           90
                                                          ----------------------
    NET INTEREST INCOME AFTER PROVISION FOR
     LOAN LOSSES                                             4,160        3,744
                                                          ----------------------

NON-INTEREST INCOME
Trust                                                          138          100
Service charges on deposit accounts                            321          313
Investment securities gains (losses)                             0           (5)
Other income                                                   297          282
                                                          ----------------------
    TOTAL NON-INTEREST INCOME                                  756          690
                                                          ----------------------

NON-INTEREST EXPENSE
Salary and employee benefits                                 1,853        1,656
Occupancy                                                      251          218
Equipment                                                      328          317
Data Processing services                                       192          154
Goodwill amortization                                           25           26
Other                                                          657          605
                                                          ----------------------
    TOTAL NON-INTEREST EXPENSE                               3,306        2,976
                                                          ----------------------

    INCOME BEFORE INCOME TAXES                               1,610        1,458
Income taxes                                                   405          385
                                                          ----------------------
    NET INCOME                                              $1,205       $1,073
                                                          ======================

                           "See accompanying notes to financial statements"
FIRST BANKING CENTER, INC. AND SUBSIDIARY
                 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                             Three months ended
                                                                  March 31,
                                                             2001         2000
                                                          ----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:                          (In thousands)
Net income                                                  $1,205       $1,073
Depreciation                                                   206          216
Provision for loan losses                                       90           90
Loans originated for sale                                  (22,772)      (5,409)
Proceeds from sale of loans                                 18,911        5,873
Gain on sale of loans                                            0           (9)
Gain on disposal of office building and equipment                0           (4)
Amortization of premiums and accretion of discounts
 on securities, net                                            177           17
Amortization                                                    25           26
Loss on sale of investment securities                            0            5
Increase (decrease) in other assets                         (1,389)         264
Decrease in accrued expenses and other liabilities            (872)        (168)
                                                          ----------------------
    NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES     (4,419)       1,974
                                                          ----------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Net increase in interest-bearing deposits in banks             (12)          (5)
Net (increase) decrease in federal funds sold              (14,249)       4,242
Activity in available for sale securities:
 Proceeds from sales of available for sale securities          400        8,436
 Proceeds from maturities of available for sale securities  47,857        3,763
 Purchase of available for sale securities                 (29,811)     (19,933)
Net (increase) decrease in loans                             1,983       (1,899)
Purchase of office buildings and equipment, net               (249)        (461)
                                                          ----------------------
    NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES      5,919       (5,857)
                                                          ----------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in deposits                                   (15,974)      (1,631)
Proceeds from other borrowings                               5,000        3,045
Payments on other borrowings                               (10,878)      (3,045)
Net increase (decrease) in securities sold under
 agreements to repurchase and federal funds purchased        1,900         (714)
Purchase of treasury stock                                    (187)         (34)
Proceeds from reissuance of treasury stock under
 stock option plan                                               0           21
                                                          ----------------------
    NET CASH USED IN FINANCING ACTIVITIES                  (20,139)      (2,358)
                                                          ----------------------
    Net decrease in Cash and Due From Banks                (18,639)      (6,241)
Cash and Due From Banks-Beginning of Period                 29,287       19,123
                                                          ----------------------
    Cash and Due From Banks-End of Period                   $10,648      $12,882
                                                          ======================

Supplemental disclosures of cash flow information:
Cash paid during the period for:
 Interest                                                   $4,213       $3,572
 Income taxes                                                 $317        ($119)
Supplemental schedule of non-cash investing and
 financing activities:
Net change in unrealized gain (loss) on available
 for sale securities                                          $463         ($91)

                           "See accompanying notes to financial statements"
FIRST BANKING CENTER, INC AND SUBSIDIARY
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  March 31,2001

NOTE 1 - Basis of Presentation

The unaudited  consolidated  financial  statements include the accounts of First
Banking  Center,  Inc. and its  subsidiary  (the  "Company").  In the opinion of
management,  all adjustments  (consisting only of normal recurring  adjustments)
necessary  for a  fair  presentation  of  the  financial  position,  results  of
operation and cash flows for the interim  periods have been made. The results of
operations  for the  three  months  ended  March  31,  2001 are not  necessarily
indicative of the results to be expected for the entire fiscal year.

The unaudited interim financial statements have been prepared in conformity with
generally  accepted  accounting   principles  and  industry  practice.   Certain
information in footnote  disclosure  normally  included in financial  statements
prepared  in  accordance  with  generally  accepted  accounting  principles  and
industry   practice  has  been  condensed  or  omitted  pursuant  to  rules  and
regulations  of  the  Securities  and  Exchange   Commission.   These  financial
statements  should  be read  in  conjunction  with  the  consolidated  financial
statements and notes thereto included in the Company's December 31, 2000 audited
financial statements.

The preparation of financial  statements in conformity  with generally  accepted
accounting  principles  requires  management to make  estimates and  assumptions
which affect the reported  amounts of assets and  liabilities  and disclosure of
contingent assets and liabilities as of the date of the financial statements, as
well as the reported amounts of income and expenses during the reported periods.
Actual results could differ from those estimates.

NOTE 2 - Earnings Per Share

The following information  calculates the computation of earnings per share on a
basic and diluted basis.
Three Months Ended
                                                                                              March 31,
                                                                                        2001             2000
                                                                                  ----------------------------------
                                                                                           (In thousands)
Basic
Net income                                                                                  $1,205           $1,073
Weighted average shares outstanding                                                          1,472            1,479
Basic earnings per share                                                                     $0.82            $0.73
                                                                                  ==================================

Diluted
Net income                                                                                  $1,205           $1,073
Weighted average shares outstanding                                                          1,472            1,479
Effect of dilutive stock options outstanding                                                    17               13
                                                                                  ----------------------------------
Diluted weighted average shares outstanding                                                  1,489            1,492
Diluted earnings per share                                                                   $0.81            $0.72
                                                                                  ==================================
NOTE 3-Comprehensive Income

The following table presents our comprehensive income.
Three Months Ended
                                                                                              March 31,
                                                                                        2001             2000
                                                                                  ----------------------------------
                                                                                           (In thousands)
Net income                                                                                  $1,205           $1,073
Other comprehensive income
  Net change in unrealized gain (loss) on available for sale securities                       $463             ($91)
                                                                                  ----------------------------------
Total comprehensive income                                                                  $1,668             $982
                                                                                  ==================================
Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

                    FIRST BANKING CENTER, INC AND SUBSIDIARY
                       MANAGEMENTS DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                              As of March 31, 2001

The following discussion provides additional analysis of the financial condition
and results of  operations  of the Company for the quarter ended March 31, 2001.
This discussion  focuses on the significant  factors that affected the Company's
earnings so far in 2001, with  comparisons to 2000. As of March 31, 2001,  First
Banking  Center (the "Bank") was the only direct  subsidiary  of the Company and
its operations  contributed  nearly all of the revenue for the year. The Company
provides  various support  functions for the Bank and receives  payment from the
Bank for these  services.  These  intercompany  payments are  eliminated for the
purpose  of these  consolidated  financial  statements.  The Bank has two wholly
owned  subsidiaries,  FBC Financial  Services,  Corp., a brokerage and financial
services subsidiary, and FBC-Burlington,  Inc., an investment subsidiary located
in Nevada.

Overview

As of March 31, 2001,  total Company assets were $411.5 million  decreasing 4.5%
from $430.9 million as of December 31, 2000. Total income, as of March 31, 2001,
was $1.2 million or $0.82 per share, increasing 12.3% from $1.1 million or $0.73
per  share in 2000.  The  significant  items  resulting  in the  above-mentioned
results are discussed below.

Financial Condition

Loans

Loans  outstanding  were $322.4 million and $320.6 million on March 31, 2001 and
December 31, 2000  respectively.  This represents an increase of $1.8 million or
 .57%.  The  following  table  summarizes  the  changes to date in the major loan
classifications.
As a % of Total Loans
                                           March 31,         December 31,          Change in        March 31,         December 31,
                                            2001                2000               Balance           2001                2000
                                         ----------------------------------     --------------    ----------------------------------
                                                                         (Amounts in million)
Residential Real Estate                    $141.5              $135.7               $5.8             43.9%               42.3%
Commercial Real Estate                      $84.7               $85.2              ($0.5)            26.3%               26.6%
Construction and Land Development           $42.1               $42.2              ($0.1)            13.1%               13.2%
Commercial                                  $26.3               $26.2               $0.1              8.2%                8.2%
Allowance for Loan Losses

The  allowance for possible loan losses was $3.9 million or 1.23% of gross loans
on March  31,  2001,  compared  with  $3.9  million  or 1.23% of gross  loans on
December 31, 2000.  Net  charge-offs  were $46 thousand or .014% of gross loans,
compared to net charge-offs of $14 thousand or .004% of gross loans for December
31, 2000.

The allowance for loan losses is established through a provision for loan losses
charged to expense. Loans are charged against the allowance for loan losses when
management  believes that the  collectibility of the principal is unlikely.  The
allowance for loan losses is adequate to cover probable  credit losses  relating
to specifically  identified loans, as well as probable credit losses inherent in
the balance of the loan portfolio. In accordance with FASB Statements 5 and 114,
the  allowance is provided for losses that have been  incurred as of the balance
sheet  date.  The  allowance  is  based  on past  events  and  current  economic
conditions,  and does not include  the  effects of  expected  losses on specific
loans or groups of loans that are related to future  events or expected  changes
in economic  conditions.  Management  reviews a calculation of the allowance for
loan losses on a quarterly  basis.  While  management uses the best  information
available to make its  evaluation,  future  adjustments  to the allowance may be
necessary  if there are  significant  changes in economic  conditions.  Impaired
loans are  measured  based on the present  value of  expected  future cash flows
discounted at the loan's effective  interest rate or, as a practical  expedient,
at the loan's observable market price or the fair value of the collateral if the
loan is  collateral  dependent.  A loan is  impaired  when  it is  probable  the
creditor  will be unable to  collect  all  contractual  principal  and  interest
payments due in accordance with the terms of the loan agreement.
In addition,  various regulatory agencies  periodically review the allowance for
loan  losses.  These  agencies  may  require the bank to make  additions  to the
allowance for loan losses based on their  judgments of  collectibility  based on
information available to them at the time of their examination.

As of March 31, 2001, $90 thousand was charged to current  earnings and added to
the allowance for loan losses.

Non-accrual, Past Due and Renegotiated Loans
March 31,       December 31,
                                                                                        2001             2000
                                                                                   --------------------------------
                                                                                           (In thousands)
Non-accrual Loans (a)                                                                  $1,100           $827
Past Due 90 days +                                                                          0              0
Restructured Loans                                                                          0              0
The  policy of the  Company  is to place a loan on  non-accrual  status  if: (a)
payment in full of interest and principal is not  expected,  or (b) principal or
interest  has  been in  default  for a  period  of 90 days  or more  unless  the
obligation is both in the process of collection  and well secured.  Well secured
is defined as collateral with sufficient market value to repay principal and all
accrued  interest.  A debt is in the process of  collection if collection of the
debt  is  proceeding  in due  course  either  through  legal  action,  including
judgement  enforcement  procedures,  or in  appropriate  circumstances,  through
collection  efforts not involving legal action which are reasonably  expected to
result in repayment of the dept or in its  restoration  to current  status.  The
non-accrual  loans  consisted  primarily of $684  thousand of  residential  real
estate  loans,  $241 thousand of  commercial  real estate,  and $120 thousand of
construction  and land  development  loans.  On March  31,  2001,  the  ratio of
non-accrual  loans to the allowance for loan losses was 28.0%  compared to 21.1%
on December 31, 2000.

As of March 31, 2001, the Company had loans totaling  $15,205,000 in addition to
those listed as non-accrual,  past due or  renegotiated  that were identified by
the Banks' internal asset rating systems as classified assets. This represents a
decrease of $2,707,000 or 15.1% from December 31, 2000.  Management is not aware
of any significant  loans,  group of loans or segments of the loan portfolio not
included  above,  where  full  collectibility  cannot  reasonably  be  expected.
Management  has  committed  resources  and is  focusing  on efforts  designed to
control the amount of classified assets. The company does not have a substantial
portion of its loans  concentrated  in one or a few  industries nor does it have
any foreign loans  outstanding  as of March 31, 2001.  The  company's  loans are
concentrated  geographically  in the  Wisconsin  counties  of Racine,  Walworth,
Kenosha, and Green.

Investments securities - Available for Sale

The securities available-for-sale portfolio decreased $17.9 million or 27.5%, as
of March 31, 2001. The decrease came from four areas of the security  portfolio.
Commercial  paper had $2.6 million in  maturities.  $4.2 million of money market
mutual  funds  were  transferred  to  Fed  Funds.  Due to  regulatory  reporting
purposes,  $2.3 million of equity  securities were  transferred to other assets.
U.S.  Government Agency Securities had $6.5 million in calls, due to a declining
rate environment, and $2.4 million in maturities.

Deposits and Borrowed Funds

Total deposits and borrowed funds were $368.3 million on March 31, 2001 compared
to $388.3  million on December 31, 2000.  This is a decrease of $20.0 million or
5.1%.  The  decrease is due to normal  seasonal  decline in the  collection  and
distribution of tax funds by municipal customers. The following table summarizes
the changes in the major classifications of deposits and borrowed funds.
March 31,         December 31,          Change in
                                                              2001               2000               Balance
                                                         ----------------------------------      -------------
                                                                   (Amounts in millions)
Money Market and Savings                                     $128.1             $121.8               $6.3
Demand  Deposits                                              $48.3              $59.6             ($11.3)
Time Deposits less than $100,000                              $88.2              $86.6               $1.6
Time Deposits equal or greater than $100,000                  $33.2              $38.3              ($5.1)
Securities sold under agreement to repurchase                 $19.2              $17.3               $1.9
Federal Home Loan Borrowings                                  $29.5              $35.3              ($5.8)
Capital resources

As of March 31, 2001, the Company's  stockholders' equity increased $1.5 million
or 3.9%. Net income of $1.2 million was the primary  reasons for the increase in
equity.  The company  purchased $187 thousand of treasury stock during the first
quarter of 2001.  Unrealized  gains on available for sale  securities  increased
$463 thousand to $671 thousand.

In December 1990,  the Federal  Reserve  Board's  risk-based  guidelines  became
effective.  Under these  guidelines  capital is measured  against the  Company's
subsidiary  bank's  risk-weighted  assets.  The Company's tier 1 capital (common
stockholders'  equity less goodwill) to risk-weighted  assets was 11.9% at March
31, 2001,  well above the 4% minimum  required.  Total capital to  risk-adjusted
assets was 13.1%, also well above the 8% minimum requirement. The leverage ratio
was at 9.2%  compared to the 4% minimum  requirement.  According to FDIC capital
guidelines, the Company is considered to be "well capitalized."

Results of operations

Net Interest Income

Net interest income is the difference  between interest income and fees on loans
and interest expense,  and is the largest  contributing factor to net income for
the  Company.  All  discussions  of rate are on a  tax-equivalent  basis,  which
accounts for income earned on  securities  that are not fully subject to federal
taxes.  Net interest income was $4.3 million and $3.8 million for March 31, 2001
and March 31, 2000 respectively.  Net interest income as a percentage of average
earning  assets (net interest  margin) was 4.67% and 4.43% for the first quarter
of 2001 and 2000 respectively.

The  following  table  summarizes  the  changes  and  reasons for the changes in
interest income and fees on loans during 2001 and 2000. The increase in interest
income and fees on loans as of March 31,  2001 was due  primarily  to  increased
yields on earning  assets.  The increase in interest income and fees on loans as
of March 31, 2000 was due primarily to increased average earning assets.
Dollar/rate change
                                                         For the quarter ended: March 31,        For the quarter ended:  March 31,
                                                              2001               2000                   2001               2000
                                                       ------------------------------------    -------------------------------------
                                                                                   (Amounts in millions)
Interest income                                               $8.4               $7.5                   $0.9               $0.6
Earning assets (Average balances)                           $380.9             $364.2                  $16.7              $25.4
Yield on earning assets                                      8.82%              8.22%                  0.60%              0.07%
The  following  table  summarizes  the  changes  and  reasons for the changes in
interest  expense  for the first  quarter  of 2001 and  2000.  The  increase  in
interest  expense as of March 31, 2001 was due primarily to increased rates paid
for liabilities. The increase in interest expense March 31, 2000 was a result of
average balances outstanding increasing.
Dollar/rate change
                                                         For the quarter ended: March 31,        For the quarter ended:  March 31,
                                                              2001               2000                   2001               2000
                                                       ------------------------------------    -------------------------------------
                                                                                   (Amounts in millions)
Interest expense                                              $4.0               $3.5                   $0.5               $0.4
Interest bearing liabilities (Average balances)             $368.7             $353.2                  $15.5              $26.8
Cost of interest bearing liabilities                         4.29%              3.91%                  0.38%              0.15%
The major component of interest income and fees on loans is the income generated
by loans.  The table below  summarizes the income,  average balance and yield on
loans for 2001 and 2000.
Dollar/rate change
                                                         For the quarter ended: March 31,        For the quarter ended:  March 31,
                                                              2001               2000                   2001               2000
                                                       ------------------------------------    -------------------------------------
                                                                                   (Amounts in millions)
Interest income                                               $7.4               $6.4                   $1.0               $0.7
Loans (Average balances)                                    $323.0             $300.7                  $22.3              $38.3
Yield on loans                                               9.14%              8.53%                  0.61%             -0.18%
The major  components of interest  expense are interest paid on  Certificates of
Deposit (Time deposits) and on Money Market Deposits. The tables below summarize
the expense,  average  balance and rates on these  components for 2001 and 2000.
The increase in interest  expense on these two  components  was the result of an
increase in both rate and average  balance,  as of March 31, 2001 and 2000.  The
increase in average  balance was due to normal growth in these  deposits as well
as a shift in balances from other deposit accounts.
Dollar/rate change
                                                         For the quarter ended: March 31,        For the quarter ended:  March 31,
     Time deposits                                            2001               2000                   2001               2000
                                                       ------------------------------------    -------------------------------------
                                                                                   (Amounts in millions)
Interest expense                                              $2.1               $1.8                   $0.3               $0.1
Time deposits (Average balances)                            $172.6             $171.4                   $1.2               $4.0
Cost of time deposits                                        4.81%              4.27%                  0.54%              0.09%
Dollar/rate change
                                                         For the quarter ended: March 31,        For the quarter ended:  March 31,
     Money Market deposits                                    2001               2000                   2001               2000
                                                       ------------------------------------    -------------------------------------
                                                                                   (Amounts in millions)
Interest expense                                              $1.2               $1.0                   $0.2               $0.3
Money Market deposits (Average balances)                     $98.0              $83.5                  $14.5              $15.5
Cost of Money Market deposits                                4.96%              4.64%                  0.32%              0.62%
Non-interest income

Non-interest  income  increased  $66 thousand or 9.6% as of March 31, 2001.  The
increase  came in  primarily  two areas.  Service  charges  on deposit  accounts
increased  $8  thousand  as the number of  accounts  grew and  charges  for some
services  were  increased.  Trust income  increased $38 thousand as that line of
business continues to grow.

Non-interest expense

Non-interest  expense  increased  $330  thousand or 11.1% as of March 31,  2001.
Salaries and benefits  accounted for $197 thousand of the increase due to normal
wage increases and increased  health  insurance  costs.  Data  processing  costs
increased $38 thousand due to increased  volumes and  additional  services used.
Occupancy  expense  increased  $33 thousand  due  primarily to increases in real
estate and personal property taxes.

Asset/liability management

The principal  function of  asset/liability  management is to manage the balance
sheet mix,  maturities,  repricing  characteristics  and pricing  components  to
provide an adequate and stable net interest  margin with an acceptable  level of
risk over time and through interest rate cycles.

Interest-sensitive  assets  and  liabilities  are  those  that  are  subject  to
repricing   within  a  specific   relevant  time  horizon.   The  Bank  measures
interest-sensitive  assets and  liabilities,  and their  relationship  with each
other at terms of immediate, quarterly intervals up to 1 year, and over 1 year.
Changes in net interest income,  other than volume related,  arise when interest
rates on assets  reprice in a time frame or interest  rate  environment  that is
different  from the repricing  period for  liabilities.  Changes in net interest
income  also  arise  from  changes  in the mix of  interest  earning  assets and
interest-bearing liabilities.

The Bank's  strategy with respect to  asset/liability  management is to maximize
net  interest  income  while  limiting  its  exposure  to a  potential  downward
movement.  Strategy is implemented by the Bank's management,  which takes action
based upon its analysis of the Bank's  present  positioning,  its desired future
positioning,  economic  forecasts,  and its goals.  It is the  Bank's  desire to
maintain a cumulative GAP of positive or negative 15% of rate  sensitive  assets
at the 1 year time  frame.  The  current  percentage  is a  positive  9%,  which
compares to a positive 2% as of December 31, 2000.

Liquidity

Liquidity  measures  the  ability  of  First  Banking  Center  to meet  maturing
obligations and its existing commitments,  to withstand  fluctuations in deposit
levels, to fund its operations,  and to provide for customers' credit needs. One
source of  liquidity is cash and  short-term  assets,  such as  interest-bearing
deposits in other banks and federal  funds sold,  which totaled $25.6 million at
March 31, 2001, compared with $30.0 million at December 31, 2000. The Bank has a
variety of sources of short-term  liquidity  available to it, including  federal
funds  purchased from  correspondent  banks,  sales of securities  available for
sale, FHLB advances,  lines of credit and loan  participations  or sales.  First
Banking Center also generates  liquidity from the regular principal payments and
prepayments made on its portfolio of loans and mortgage-backed securities.

The   liquidity  of  First   Banking   Center  is  comprised  of  three  primary
classifications: cash flows from operating activities, cash flows from investing
activities, and cash flows from financing activities. Net cash used in operating
activities  was  $4.4  million.  Net  cash  provided  by  investing  activities,
consisting  principally of the maturities of securities,  was $5.9 million.  Net
cash used in financing activities was $20.1 million.

As of March  31,  2000,  net cash  provided  by  operating  activities  was $2.0
million.  Net cash used in investing  activities was $5.9 million. Net cash used
in financing activities was $2.3 million.

Impact of Inflation and Changing Prices

The  consolidated  financial  statements  and the  accompanying  notes have been
prepared in accordance  with generally  accepted  accounting  principles,  which
require the measurement of financial  position and operating results in terms of
historical  dollar  amounts  without  considering  the  changes in the  relative
purchasing power of money over time due to inflation. The impact of inflation is
reflected in the increased  cost of First Banking  Center's  operations.  Unlike
industrial companies,  nearly all of the assets and liabilities of First Banking
Center are monetary in nature. As a result, interest rates have a greater impact
on First Banking  Center's  performance than do the effects of general levels of
inflation.  Interest rates do not  necessarily  move in the same direction or to
the same extent as the price of goods and services.

Forward Looking  Statements- Safe Harbor Statement Under the Private  Securities
Litigation Reform Act of 1995

This report contains certain  forward-looking  statements  within the meaning of
Section  27A of the  Securities  Act of 1933,  as amended and Section 21E of the
Securities  Exchange Act of 1934, as amended.  First Banking Center intends such
forward-looking  statements  to be covered  by the safe  harbor  provisions  for
forward-looking  statements  contained in the Private  Securities  Reform Act of
1995,  and is  including  this  statement  for  purposes  of these  safe  harbor
provisions.  Forward-looking statements,  which are based on certain assumptions
and describe First Banking  Center's future plans,  strategies and  expectations
are generally  identifiable by use of the words "believe,"  "expect,"  "intend,"
"anticipate,"  "estimate,"  "project"  or  similar  expressions.  First  Banking
Center's  ability to predict  results  or the actual  effect of future  plans or
strategies is inherently uncertain.  Factors which could have a material adverse
affect on First Banking Center's  operations and future prospects  include,  but
are not limited to, changes in: interest  rates,  general  economic  conditions,
legislative/regulatory  changes,  monetary  and  fiscal  policies  of  the  U.S.
Government,  including  policies of the U.S.  Treasury  and the Federal  Reserve
Board, the quality or composition of the loan or investment  portfolios,  demand
for loan products, deposit flows, competition,  demand for financial services in
our market area, our implementation of new technologies,  First Banking Center's
ability to develop  and  maintain  secure and  reliable  electronic  systems and
accounting  principles,  policies and guidelines.  These risks and uncertainties
should be considered in evaluating forward-looking statements and undue reliance
should not be placed on such statements.
Item 3.  Quantitative and Qualitative Disclosures About Market Risk

First Banking Center,  like other financial  institutions,  is subject to direct
and  indirect  market risk.  Direct  market risk exists from changes in interest
rates.  First  Banking  Center's  net income is  dependent  on its net  interest
income.  Net interest  income is susceptible to interest rate risk to the degree
that  interest-bearing  liabilities  mature or reprice on a different basis than
interest-earning  assets.  When  interest-bearing  liabilities mature or reprice
more quickly  than  interest-earning  assets in a given  period,  a  significant
increase in market rates of interest could adversely affect net interest income.

Similarly,  when  interest-earning  assets  mature or reprice  more quickly than
interest-bearing liabilities,  falling interest rates could result in a decrease
in net income.

In an attempt to manage its  exposure to changes in interest  rates,  management
monitors  First  Banking  Center's  interest  rate  risk.  The   Asset/Liability
Committee  meets quarterly to review First Banking  Center's  interest rate risk
position  and   profitability,   and  to  make  or  recommend   adjustments  for
consideration  by the Board of  Directors.  Management  also  reviews the Bank's
securities portfolio,  formulates investment strategies, and oversees the timing
and   implementation  of  transactions  to  assure  attainment  of  the  Board's
objectives in the most effective manner.  Notwithstanding First Banking Center's
interest rate risk management  activities,  the potential for changing  interest
rates is an uncertainty that can have an adverse effect on net income.

In adjusting  First Banking  Center's  asset/liability  position,  the Board and
management  attempt to manage First  Banking  Center's  interest rate risk while
maintaining or enhancing net interest margins. At times,  depending on the level
of general  interest rates, the  relationship  between  long-term and short-term
interest  rates,  market  conditions  and  competitive  factors,  the  Board and
management  may decide to increase  First  Banking  Center's  interest rate risk
position  somewhat in order to increase its net interest  margin.  First Banking
Center's  results of operations  and net portfolio  values remain  vulnerable to
increases  in  interest  rates and to  fluctuations  in the  difference  between
long-term and short-term interest rates.

One approach  used to quantify  interest  rate risk is the net  portfolio  value
("NPV") analysis.  In essence,  this analysis  calculates the difference between
the present  value of  liabilities  and the present value of expected cash flows
from assets and off-balance-sheet contracts. The most recent NPV analysis, as of
March  31,  2001,   projects  that  net  portfolio   value  would   decrease  by
approximately  5.69% if  interest  rates  would rise 200 basis  points and would
decrease by  approximately  3.95% if interest  rates would rise 100 basis points
over  the  next  year . It  projects  an  increase  in net  portfolio  value  of
approximately  13.01%  if  interest  rates  would  drop  200  basis  points  and
approximately  9.76% if  interest  rates  would  drop  100  basis  points.  Both
simulations are within  board-established  policy limits. First Banking Center's
policy is to limit the  effect of a 200 basis  point rate shock to plus or minus
20% of  projected  net  interest  income and to minus 35% of the market value of
portfolio equity.

First  Banking  Center does not  currently  engage in trading  activities or use
derivative   instruments  to  control  interest  rate  risk.  Even  though  such
activities may be permitted  with the approval of the Board of Directors,  First
Banking  Center does not intend to engage in such  activities  in the  immediate
future.

Interest rate risk is the most  significant  market risk affecting First Banking
Center.  Other types of market risk, such as foreign currency exchange rate risk
and  commodity  price risk,  do not arise in the normal  course of First Banking
Center's business activities.
Part II-OTHER INFORMATION
Item 1.  Legal Proceedings

              None

Item 2.  Changes in Securities

             None

Item 3.  Defaults upon Senior Securities

             None

Item 4.  Submission of Matters to a Vote of Security Holders

            None

Item 5.  Other Information

             None

Item 6.  Exhibits and Reports on Form 8-K

             None
FIRST BANKING CENTER, INC AND SUBSIDIARIES

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1943, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                           First Banking Center, Inc.

May 14, 2001                                         __________________________
Date                                                 Brantly Chappell
                                                     Chief Executive Officer

May 14, 2001                                         __________________________
Date                                                 James Schuster
                                                     Chief Financial Officer