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 September 30, 2000

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  October  31,  2000.  Common  stock,  $1.00 par  value,
1,470,272 shares outstanding.
<PAGE>
                    FIRST BANKING CENTER, INC AND SUBSIDIARY
                                      INDEX
                               September 30, 2000


Part I   Financial Information

         Item 1            Consolidated Financial Statements (Unaudited)

                           Consolidated Balance Sheets,
                           September 30, 2000 and December 31, 1999

                           Consolidated Statements of Income
                           For the nine months ended September 30, 2000 and 1999

                           Consolidated  Statements of Cash Flows,  For the nine
                           months ended September 30, 2000 and 1999

                           Notes to Consolidated Financial Statements

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

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 (Unaudited)
<TABLE>
                                        FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                               CONSOLIDATED BALANCE SHEETS
                                        September 30, 2000 and December 31, 1999
                                        (Dollars in thousands except share data)
<CAPTION>

ASSETS                                                                                       9/30/00         12/31/99
                                                                                           (Unaudited)      (Audited)
<S>                                                                                       <C>              <C>
  Cash and due from banks                                                                        $12,623          $19,123
  Federal funds sold                                                                               2,121            4,242
  Interest bearing deposits in banks                                                                 743               40
  Available for sale securities - stated at fair value                                            62,546           54,952
  Loans, less allowance for loan losses of $3,926 and
    $3,581 in 2000 and 1999 respectively                                                         307,528          295,143
  Office buildings and equipment, net                                                              9,733            9,429
  Other assets                                                                                     9,651            9,160
                                                                                          --------------------------------

      TOTAL ASSETS                                                                              $404,945         $392,089
                                                                                          ================================

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
  Deposits
    Demand                                                                                       $48,925          $51,610
    Savings and NOW accounts                                                                     146,436          140,612
    Time                                                                                         126,101          113,922
                                                                                          --------------------------------
      Total Deposits                                                                             321,462          306,144
  Securities sold under repurchase agreements
      and federal funds purchased                                                                 17,000           21,131
  U S Treasury note account                                                                          100              100
  Other borrowings                                                                                26,062           27,768
  Other liabilities                                                                                3,824            3,529
                                                                                          --------------------------------

      TOTAL LIABILITIES                                                                          368,448          358,672
                                                                                          --------------------------------

STOCKHOLDERS' EQUITY
  Common Stock,  $1.00 par value  3,000,000  shares  authorized;  1,489,380  and
    1,489,380 shares issued as of September 30, 2000
    and December 31, 1999, respectively                                                            1,489            1,489
  Surplus                                                                                          4,226            4,236
  Retained Earnings                                                                               31,708           28,717
                                                                                          --------------------------------
                                                                                                  37,423           34,442
  Common stock in treasury, at cost-19,368 and 9,822 shares
   for September 30, 2000 and December 31, 1999, respectively                                      ($697)           ($342)
  Accumulated other comprehensive loss                                                              (229)            (683)
                                                                                          --------------------------------

      TOTAL STOCKHOLDERS' EQUITY                                                                 $36,497          $33,417
                                                                                          --------------------------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                $404,945         $392,089
                                                                                          ================================



                                    "See accompanying notes to financial statements"
</TABLE>
<PAGE>
<TABLE>
                                        FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                            CONSOLIDATED STATEMENTS OF INCOME
                                      Nine months ended  September  30, 2000 and
                                       1999  (Amounts in  thousands,  except per
                                       share data)
                                                       (Unaudited)
<CAPTION>
                                                                   Quarter-to-Date                   Year-to-Date

                                                              9/30/00         9/30/99        9/30/00         9/30/99
<S>                                                           <C>             <C>            <C>             <C>
INTEREST INCOME
  Interest and fees on loans                                        $7,221         $6,096        $20,436          $17,810
  Interest and dividends on securities
    Taxable                                                            478            531          1,482            1,675
    Tax-exempt                                                         333            303            986              901
  Interest on federal funds sold                                        87             32            143              101
  Interest on deposits in banks                                          2              0              3                3
                                                          ----------------------------------------------------------------
      TOTAL INTEREST INCOME                                          8,121          6,962         23,050           20,490
                                                          ----------------------------------------------------------------

INTEREST EXPENSE
  Interest on deposits                                               3,363          2,508          9,142            7,358
  Interest on federal funds purchased and securities
    sold under repurchase agreements                                   255            361            753              989
  Interest on U.S. Treasury Note Account                                 5              1              5                3
  Interest on other borrowings                                         401            312          1,215              882
                                                          ----------------------------------------------------------------
      TOTAL INTEREST EXPENSE                                         4,024          3,182         11,115            9,232
                                                          ----------------------------------------------------------------
      NET INTEREST INCOME BEFORE PROVISION FOR
         LOAN LOSSES                                                 4,097          3,780         11,935           11,258
  Provision for loan losses                                             90             83            270              248
                                                          ----------------------------------------------------------------
      NET INTEREST INCOME AFTER PROVISION FOR
        LOAN LOSSES                                                  4,007          3,697         11,665           11,010
                                                          ----------------------------------------------------------------

NON-INTEREST INCOME
  Trust                                                                100             90            325              270
  Service charges on deposit accounts                                  341            317            988              893
  Investment securities gains (losses)                                   0              7             (5)               7
  Other income                                                         309            298            963              844
                                                          ----------------------------------------------------------------
      TOTAL NON-INTEREST INCOME                                        750            712          2,271            2,014
                                                          ----------------------------------------------------------------

NON-INTEREST EXPENSE
  Salary and employee benefits                                       1,691          1,568          5,038            4,707
  Occupancy expenses                                                   200            195            640              607
  Equipment expenses                                                   345            367          1,034              965
  Data Processing services                                             212            159            520              453
  Goodwill amortization                                                 26             26             78               78
  Other expenses                                                       577            585          1,823            1,695
                                                          ----------------------------------------------------------------
      TOTAL NON-INTEREST EXPENSE                                     3,051          2,900          9,133            8,505
                                                          ----------------------------------------------------------------

      INCOME BEFORE INCOME TAXES                                     1,706          1,509          4,803            4,519
  Income taxes                                                         491            421          1,338            1,351
                                                          ----------------------------------------------------------------
      NET INCOME                                                    $1,215         $1,088         $3,465           $3,168
                                                          ================================================================

Earnings per Common Share:
        Basic earnings per share                                     $0.83          $0.73          $2.36            $2.14
        Diluted earnings per share                                   $0.82          $0.73          $2.33            $2.12
        Weighted average shares outstanding                          1,470          1,482          1,470            1,482
        Weighted average shares outstanding-Diluted                  1,485          1,495          1,485            1,495

Comprehensive Income                                                $1,658           $899         $3,919           $2,169


                                    "See accompanying notes to financial statements"
</TABLE>
<PAGE>
<TABLE>
                                        FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                      Nine months ended September 30, 2000 and 1999
                                                 (Dollars in thousands)
                                                       (Unaudited)
<CAPTION>
                                                                                                 9/30/00          9/30/99
                                                                                          --------------------------------
<S>                                                                                             <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                                                                    $3,465           $3,168
                                                                                          --------------------------------
Adjustments  to  reconcile   net  income  to  net  cash  provided  by  operating
  activities:
    Depreciation                                                                                     653              697
    Provision for loan losses                                                                        270              248
    Loans originated for sale                                                                    (21,507)         (40,731)
    Proceeds from sale of loans                                                                   23,347           47,081
    Gain on sale of loans                                                                             (9)              (8)
    Amortization and accretion of bond
      premiums and discounts - net                                                                    37              (81)
    Amortization of excess cost over equity in
      underlying net assets of subsidiary                                                             78               78
    Loss/(Gain) on sale of investment securities                                                       5               (7)
    Increase in other assets                                                                        (804)            (585)
    Increase in accrued expenses and other liabilities                                               295               77
                                                                                          --------------------------------
        TOTAL ADJUSTMENTS                                                                          2,365            6,769
                                                                                          --------------------------------
        NET CASH PROVIDED BY OPERATING ACTIVITIES                                                  5,830            9,937
                                                                                          --------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Net (increase)/decrease in interest-bearing deposits                                            (703)              59
    Net decrease in federal funds sold                                                             2,121            6,885
    Activity in available for sale securities
       Proceeds from sales of available for sale securities                                        8,669            5,788
       Proceeds from maturities of available for sale securities                                   9,540           60,044
       Purchase of available for sale securities                                                 (25,156)         (66,025)
    Net increase in loans                                                                        (14,486)         (38,772)
    Purchase of office buildings and equipment                                                    (1,061)            (550)
    Proceeds from disposal of office building and equipment                                          104               16
                                                                                          --------------------------------
        NET CASH USED IN INVESTING ACTIVITIES                                                    (20,972)         (32,556)
                                                                                          --------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Net increase in deposits                                                                      15,318            6,753
    Dividends paid                                                                                  (474)            (432)
    Proceeds from other borrowings                                                                     0           20,918
    Payments on other borrowings                                                                  (1,706)         (12,412)
    Net (decrease)/increase in securities sold under
      repurchase agreements and federal funds purchased                                           (4,131)           3,058
    Proceeds from stock options exercised                                                              0               17
    Purchase of treasury stock                                                                      (403)            (239)
    Proceeds from reissuance of treasury stock under
       stock option plan                                                                              38                0
                                                                                          --------------------------------
        NET CASH PROVIDED BY FINANCING ACTIVITIES                                                  8,642           17,663
                                                                                          --------------------------------

    Net decrease in Cash and Due From Banks                                                       (6,500)          (4,956)

Cash and Due From Banks-Beginning of Period                                                       19,123           18,013
                                                                                          --------------------------------

    Cash and Due From Banks-End of Period                                                        $12,623          $13,057
                                                                                          ================================

Supplemental  disclosures of cash flow information:  Cash paid during the period
for:
    Interest                                                                                     $11,106           $9,241
    Income taxes                                                                                  $1,000           $1,346

Supplemental schedule of non-cash investing and financing activities:
    Net change in unrealized gain (loss) on available for sale securities                           $454            ($999)



                                            "See accompanying notes to financial statements"
</TABLE>
<PAGE>
                    FIRST BANKING CENTER, INC AND SUBSIDIARY
                    NOTES TO CONSOLIDATE FINANCIAL STATEMENTS
                               September 30, 2000
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 nine months  ended  September  30, 2000 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, 1999 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 - Principles of Consolidation

The accompanying consolidated financial statements include the accounts of First
Banking Center, Inc. (the "Company"),  a Wisconsin  corporation,  and its wholly
owned   subsidiary,   First  Banking  Center  (the  "Bank").   All   significant
intercompany accounts and transactions have been eliminated in consolidation.

NOTE 3 - Earnings Per Share

The following information was used in the computation of earnings per share on a
basic and diluted basis. Amounts in thousands:


                                                     Nine minths ended
                                                       September 30,
                                                     -----------------
                                                      2000       1999
                                                     -----------------
     Net income, basic and diluted
      Earnings                                       $3,465     $3,168
     Weighted average common shares
      Outstanding                                     1,470      1,482
     Weighted average common shares issuable
      upon exercise of stock options and warrants        15         13
     Weighted average commmon and common
      equivalent shares outstanding                   1,485      1,495
<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 September 30, 2000


The following discussion provides additional analysis of the financial condition
and results of operations of the Company for the  year-to-date  ended  September
30, 2000. This discussion  focuses on the significant  factors that affected the
Company's earnings so far in 2000, with comparisons to 1999. As of September 30,
2000,  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  inter-company  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 September 30, 2000,  total Company assets were $404.9  million  increasing
3.3% from $392.1  million as of December  31,  1999.  Total income for the first
nine months of 2000 was $ 3.5 million or $2.36 per share,  increasing  9.1% from
$3.2  million  or $2.14  per  share  for the  first  nine  months  of 1999.  The
significant items resulting in the above-mentioned results are discussed below.


Balance sheet analysis


Loans


As of September 30, 2000, loans  outstanding were $311.5 million for an increase
of $12.7 million or 4.3% from December 31, 1999. During this nine-month  period,
Residential  Real Estate loans  increased  $18.7 million,  and  Commercial  Real
Estate  loans  increased  $766  thousand  or  16.9%  and 0.9%  respectively.  At
September  30,  2000,  Construction  and Land  Development  loans  were at $41.1
million or 13.2% of total  loans.  Residential  Real Estate loans were at $129.5
million or 41.6% of total loans,  Commercial loans were at $27.2 million or 8.7%
of total loans,  and Commercial Real Estate loans were at $84.4 million or 27.1%
of total loans.


Allowance for Loan Losses


The  allowance for possible loan losses was $3.9 million or 1.26% of gross loans
at  September  30, 2000,  compared  with $3.6 million or 1.21% of gross loans at
December 31, 1999. Net recoveries for the nine-month period were $75 thousand or
 .024% of gross loans,  compared to net  charge-offs of $170 thousand or .057% of
gross loans for 1999.  As of September  30, 2000,  loans on  non-accrual  status
totaled $1.4 million or .44% of gross loans  compared to $1.3 million or .44% of
gross loans at December 31, 1999. The non-accrual  loans consisted  primarily of
$512  thousand of nonfarm  nonresidential  properties  and $451  thousand of 1-4
family  residential  real estate  loans.  At September  30,  2000,  the ratio of
non-accrual  loans to the allowance for loan losses was 34.8%  compared to 35.1%
at December 31, 1999.

The Bank  evaluates  the adequacy of the  allowance  for loan losses based on an
analysis of specific problem loans, as well as on an aggregate basis. Management
reviews a calculation of the allowance for loan losses on a quarterly  basis and
believes that the allowance for loan losses is adequate.  The allowance for loan
loss is  maintained  at a level  management  considers  adequate  to provide for
probable  future  losses.  The level of the  allowance is based on  management's
periodic and comprehensive evaluation of the loan portfolio, including past loan
loss experience;  current economic trends;  underlying  collateral  values:  the
volume,  growth  and  composition  of the loan  portfolio,  and  other  relevant
factors.  Management also considers  reports of examinations  furnished by State
and Federal banking authorities in this regard.
<PAGE>
Investments securities - Available for Sale


The securities available-for-sale portfolio increased $7.6 million or 13.8% from
December 31, 1999 to September  30, 2000.  This increase was due primarily to an
increased  balance in a money market  mutual fund and the purchase of commercial
paper.


Deposits and Borrowed Funds


As of September  30,  2000,  total  deposits  were $321.5  million,  which is an
increase of $15.4 million or 5% from December 31, 1999. Certificates of deposits
increased $12.2 million or 10.7% to $126.1 million.  Now accounts decreased $3.9
million or 15.3% to $21.4  million.  Money  market  savings and regular  savings
deposits  increased  $9.7  million or 8.4% to $125.1  million.  Demand  Deposits
decreased $2.7 million or 5.2% to $48.9 million. Securities sold under agreement
to  repurchase  decreased  $4.1 million or 19.5%.  Federal Home Loan  Borrowings
decreased $2.9 million or 10.2% since December 31, 1999.


Capital resources


During  the  first  nine  month  of 2000,  the  Company's  stockholders'  equity
increased  $3.1  million or 9.2%.  Net income of $3.5  million  was the  primary
reasons for the  increase in equity.  Accumulated  other  comprehensive  loss on
available  for sale  securities  increased  $454  thousand  to a  negative  $229
thousand.  As of September  30, 2000, a cash  dividend of $474 thousand has been
paid.

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  11.1% at
September  30,  2000,  well  above the 4%  minimum  required.  Total  capital to
risk-adjusted assets was 12.3%, also well above the 8% minimum requirement.  The
leverage ratio was at 8.8% compared to the 4% minimum requirement.  According to
the FDIC capital guidelines, the Bank appears to be "well capitalized."


Liquidity


Liquidity  measures  the  ability  of the  Company to meet  obligations  and its
existing commitments,  to withstand  fluctuations in deposit levels, to fund its
operations, and to provide customers' credit needs. The liquidity of the Company
primarily  depends  upon cash flows from  operating,  investing,  and  financing
activities.  Net cash provided by operating activities,  consisting primarily of
net income and the net proceeds from loans sold,  was $ 5.8 million for the nine
months ended  September 30, 2000 compared to $9.9 million  provided by operating
activities for the same period in 1999.  Net cash used in investing  activities,
consisting  principally  of loan  originations,  was $20.9  million for the nine
months  ended  September  30, 2000 and $32.5  million for the nine months  ended
September  30,  1999.  Net cash  provided by  financing  activities,  consisting
primarily  of  deposit  growth  and net  proceeds  from  Federal  Home Loan Bank
advances,  for the nine months ended September 30, 2000 was $8.6 million and for
the same period in 1999 was $17.6 million.


Quantitative and Qualitative Disclosures About Market Risk


The Company  realizes  income  principally  from the spread between the interest
earned on loans,  investments and other interest-earning assets and the interest
paid on deposits and borrowings.  Loan volumes and yields, as well as the volume
of and rates on  investments,  deposits and  borrowings,  are affected by market
interest rates. Additionally, because of the terms and conditions of many of the
bank's loan and deposit  accounts,  a change in interest rates could also affect
the projected  maturities in the loan portfolio and /or the deposit base,  which
could alter the  company's  sensitivity  of future  changes in  interest  rates.
Accordingly,  management considers interest rate risk to be a significant market
risk.

Interest rate risk management  focuses on maintaining  consistent  growth in net
interest income within policy limits  approved by the board of directors,  while
taking into  consideration,  among other factors,  the Company's overall credit,
operating   income,   operating  cost,  and  capital   profile.   The  Company's
ALM/Investment committee,  which includes senior management  representatives and
members of the board of  directors,  monitors and manages  interest rate risk to
maintain an  acceptable  level of change to net  interest  income as a result of
changes in interest rates.
<PAGE>
One  method  used to  quantify  interest  rate risk is the net  portfolio  value
("NPV") analysis.  This analysis  calculates the difference  between the present
value of  liabilities  and the present values of expected cash flows from assets
and off-balance sheet contracts.  The most recent NPV analysis,  as of September
30, 2000,  projects that net  portfolio  value would  decrease by  approximately
21.88% if  interest  rates would rise 200 basis  points  over the next year.  It
projects an increase in net portfolio value of approximately  27.13% if interest
rates would drop 200 basis points. Both simulations are within board-established
policy limits.

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 for the first nine months of 2000 was $11.9 million,
increasing  6% over the 1999 level of $11.3  million.  Net interest  income as a
percentage of average earning assets was 4.59% for the first nine months of 2000
versus 4.55% for the first nine months of 1999.

Total interest income increased $2.6 million as average-earning assets increased
from $344.3 million to $364.4  million or 5.8%.  The yields on interest  earning
asset increased from 8.13% to 8.66%.

The  increase  in  interest  income in 2000 is due  primarily  to an increase in
interest  and fees on  loans.  Interest  and fees on  loans  increased  to $20.5
million or 15.1% from  $17.9.  The  increase  in loan income was the result of a
$26.6 million or 9.6% increase in average balances outstanding.

Total  interest  expense  increased  $1.9  million.  This increase was due to an
increase in average  interest  bearing  deposits of $20.5 million or 8.6% and an
increase in average Federal Home Loan  Borrowings of $6.9 million or 32.8%.  The
cost of all interest bearing liabilities increased from 4.27% to 4.83%.

Provision for loan losses


The Bank has established the allowance for loan losses to reduce the gross level
of loans outstanding by an estimate of uncollectible  loans. As loans are deemed
uncollectible,  they are charged  against the  allowance.  A provision  for loan
losses is expensed  against  current income on a monthly  basis.  This provision
acts to replenish the allowance for loan losses to accommodate  charge-offs  and
growth in the loan portfolio,  thereby  maintaining the allowance at an adequate
level.

During the first nine months of 2000 and 1999,  $270  thousand and $248 thousand
respectively was charged to current earnings and added to the allowance for loan
losses.


Non-interest income


Non-interest  income,  during  the first  nine  months of 2000,  increased  $257
thousand  or 12.8%  from the first nine  months of 1999.  This  increase  is due
primarily to increased  income from service charges on deposit  accounts,  which
increased $95 thousand or 10.6%,  Trust  Department  income which  increased $55
thousand or 20.4%,  and other  income  increased  $119  thousand or 14.9%.  This
increase in other income was the result of a penalty  realized on a contract the
bank had with an equipment vendor.


Non-interest expense


Non-interest expense,  during the first nine months of 2000, increased from $8.5
million to $9.1  million an increase  of $628  thousand  or 7.4%.  Salaries  and
benefits increased $331 thousand or 7%, equipment expense increased $69 thousand
or 7.2%, data  processing  services  increased $67 thousand or 14.8%,  occupancy
expense  increased  $33  thousand or 5.4%,  and postage  expense  increased  $14
thousand or 11.1%.
<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

             a.   No exhibits

             b.   Form 8-K, Item 4.  Changes in Registrant's Certifying
                  Accountant, was filed with the SEC on September 29, 2000.
<PAGE>
                          FIRST BANKING CENTER, INC. AND SUBSIDIARIES


                                   SIGNATURES




     Pursuant to the  requirement  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.





November 02, 2000
                                          --------------------------------------
Date                                      Brantly Chappell
                                          Chief Executive Officer






November 02, 2000
                                          --------------------------------------
Date                                      James Schuster
                                          Chief Financial Officer
[{"type": "10-Q", "sequence": "1", "filename": "0001.txt", "description": "10Q FOR THE PERIOD ENDED SEPTEMBER 30, 2000", "secsgml_size_bytes": 39587}]
{"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": "767106"}, "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 September 30, 2000

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  October  31,  2000.  Common  stock,  $1.00 par  value,
1,470,272 shares outstanding.
FIRST BANKING CENTER, INC AND SUBSIDIARY
                                      INDEX
                               September 30, 2000

Part I   Financial Information

         Item 1            Consolidated Financial Statements (Unaudited)

                           Consolidated Balance Sheets,
                           September 30, 2000 and December 31, 1999

                           Consolidated Statements of Income
                           For the nine months ended September 30, 2000 and 1999

                           Consolidated  Statements of Cash Flows,  For the nine
                           months ended September 30, 2000 and 1999

                           Notes to Consolidated Financial Statements

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

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 (Unaudited)

                                        FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                               CONSOLIDATED BALANCE SHEETS
                                        September 30, 2000 and December 31, 1999
                                        (Dollars in thousands except share data)
ASSETS                                                                                       9/30/00         12/31/99
                                                                                           (Unaudited)      (Audited)
Cash and due from banks                                                                        $12,623          $19,123
  Federal funds sold                                                                               2,121            4,242
  Interest bearing deposits in banks                                                                 743               40
  Available for sale securities - stated at fair value                                            62,546           54,952
  Loans, less allowance for loan losses of $3,926 and
    $3,581 in 2000 and 1999 respectively                                                         307,528          295,143
  Office buildings and equipment, net                                                              9,733            9,429
  Other assets                                                                                     9,651            9,160
                                                                                          --------------------------------

      TOTAL ASSETS                                                                              $404,945         $392,089
                                                                                          ================================

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
  Deposits
    Demand                                                                                       $48,925          $51,610
    Savings and NOW accounts                                                                     146,436          140,612
    Time                                                                                         126,101          113,922
                                                                                          --------------------------------
      Total Deposits                                                                             321,462          306,144
  Securities sold under repurchase agreements
      and federal funds purchased                                                                 17,000           21,131
  U S Treasury note account                                                                          100              100
  Other borrowings                                                                                26,062           27,768
  Other liabilities                                                                                3,824            3,529
                                                                                          --------------------------------

      TOTAL LIABILITIES                                                                          368,448          358,672
                                                                                          --------------------------------

STOCKHOLDERS' EQUITY
  Common Stock,  $1.00 par value  3,000,000  shares  authorized;  1,489,380  and
    1,489,380 shares issued as of September 30, 2000
    and December 31, 1999, respectively                                                            1,489            1,489
  Surplus                                                                                          4,226            4,236
  Retained Earnings                                                                               31,708           28,717
                                                                                          --------------------------------
                                                                                                  37,423           34,442
  Common stock in treasury, at cost-19,368 and 9,822 shares
   for September 30, 2000 and December 31, 1999, respectively                                      ($697)           ($342)
  Accumulated other comprehensive loss                                                              (229)            (683)
                                                                                          --------------------------------

      TOTAL STOCKHOLDERS' EQUITY                                                                 $36,497          $33,417
                                                                                          --------------------------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                $404,945         $392,089
                                                                                          ================================

                                    "See accompanying notes to financial statements"
FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                            CONSOLIDATED STATEMENTS OF INCOME
                                      Nine months ended  September  30, 2000 and
                                       1999  (Amounts in  thousands,  except per
                                       share data)
                                                       (Unaudited)
Quarter-to-Date                   Year-to-Date

                                                              9/30/00         9/30/99        9/30/00         9/30/99
INTEREST INCOME
  Interest and fees on loans                                        $7,221         $6,096        $20,436          $17,810
  Interest and dividends on securities
    Taxable                                                            478            531          1,482            1,675
    Tax-exempt                                                         333            303            986              901
  Interest on federal funds sold                                        87             32            143              101
  Interest on deposits in banks                                          2              0              3                3
                                                          ----------------------------------------------------------------
      TOTAL INTEREST INCOME                                          8,121          6,962         23,050           20,490
                                                          ----------------------------------------------------------------

INTEREST EXPENSE
  Interest on deposits                                               3,363          2,508          9,142            7,358
  Interest on federal funds purchased and securities
    sold under repurchase agreements                                   255            361            753              989
  Interest on U.S. Treasury Note Account                                 5              1              5                3
  Interest on other borrowings                                         401            312          1,215              882
                                                          ----------------------------------------------------------------
      TOTAL INTEREST EXPENSE                                         4,024          3,182         11,115            9,232
                                                          ----------------------------------------------------------------
      NET INTEREST INCOME BEFORE PROVISION FOR
         LOAN LOSSES                                                 4,097          3,780         11,935           11,258
  Provision for loan losses                                             90             83            270              248
                                                          ----------------------------------------------------------------
      NET INTEREST INCOME AFTER PROVISION FOR
        LOAN LOSSES                                                  4,007          3,697         11,665           11,010
                                                          ----------------------------------------------------------------

NON-INTEREST INCOME
  Trust                                                                100             90            325              270
  Service charges on deposit accounts                                  341            317            988              893
  Investment securities gains (losses)                                   0              7             (5)               7
  Other income                                                         309            298            963              844
                                                          ----------------------------------------------------------------
      TOTAL NON-INTEREST INCOME                                        750            712          2,271            2,014
                                                          ----------------------------------------------------------------

NON-INTEREST EXPENSE
  Salary and employee benefits                                       1,691          1,568          5,038            4,707
  Occupancy expenses                                                   200            195            640              607
  Equipment expenses                                                   345            367          1,034              965
  Data Processing services                                             212            159            520              453
  Goodwill amortization                                                 26             26             78               78
  Other expenses                                                       577            585          1,823            1,695
                                                          ----------------------------------------------------------------
      TOTAL NON-INTEREST EXPENSE                                     3,051          2,900          9,133            8,505
                                                          ----------------------------------------------------------------

      INCOME BEFORE INCOME TAXES                                     1,706          1,509          4,803            4,519
  Income taxes                                                         491            421          1,338            1,351
                                                          ----------------------------------------------------------------
      NET INCOME                                                    $1,215         $1,088         $3,465           $3,168
                                                          ================================================================

Earnings per Common Share:
        Basic earnings per share                                     $0.83          $0.73          $2.36            $2.14
        Diluted earnings per share                                   $0.82          $0.73          $2.33            $2.12
        Weighted average shares outstanding                          1,470          1,482          1,470            1,482
        Weighted average shares outstanding-Diluted                  1,485          1,495          1,485            1,495

Comprehensive Income                                                $1,658           $899         $3,919           $2,169

                                    "See accompanying notes to financial statements"
FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                      Nine months ended September 30, 2000 and 1999
                                                 (Dollars in thousands)
                                                       (Unaudited)
9/30/00          9/30/99
                                                                                          --------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                                                                    $3,465           $3,168
                                                                                          --------------------------------
Adjustments  to  reconcile   net  income  to  net  cash  provided  by  operating
  activities:
    Depreciation                                                                                     653              697
    Provision for loan losses                                                                        270              248
    Loans originated for sale                                                                    (21,507)         (40,731)
    Proceeds from sale of loans                                                                   23,347           47,081
    Gain on sale of loans                                                                             (9)              (8)
    Amortization and accretion of bond
      premiums and discounts - net                                                                    37              (81)
    Amortization of excess cost over equity in
      underlying net assets of subsidiary                                                             78               78
    Loss/(Gain) on sale of investment securities                                                       5               (7)
    Increase in other assets                                                                        (804)            (585)
    Increase in accrued expenses and other liabilities                                               295               77
                                                                                          --------------------------------
        TOTAL ADJUSTMENTS                                                                          2,365            6,769
                                                                                          --------------------------------
        NET CASH PROVIDED BY OPERATING ACTIVITIES                                                  5,830            9,937
                                                                                          --------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Net (increase)/decrease in interest-bearing deposits                                            (703)              59
    Net decrease in federal funds sold                                                             2,121            6,885
    Activity in available for sale securities
       Proceeds from sales of available for sale securities                                        8,669            5,788
       Proceeds from maturities of available for sale securities                                   9,540           60,044
       Purchase of available for sale securities                                                 (25,156)         (66,025)
    Net increase in loans                                                                        (14,486)         (38,772)
    Purchase of office buildings and equipment                                                    (1,061)            (550)
    Proceeds from disposal of office building and equipment                                          104               16
                                                                                          --------------------------------
        NET CASH USED IN INVESTING ACTIVITIES                                                    (20,972)         (32,556)
                                                                                          --------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Net increase in deposits                                                                      15,318            6,753
    Dividends paid                                                                                  (474)            (432)
    Proceeds from other borrowings                                                                     0           20,918
    Payments on other borrowings                                                                  (1,706)         (12,412)
    Net (decrease)/increase in securities sold under
      repurchase agreements and federal funds purchased                                           (4,131)           3,058
    Proceeds from stock options exercised                                                              0               17
    Purchase of treasury stock                                                                      (403)            (239)
    Proceeds from reissuance of treasury stock under
       stock option plan                                                                              38                0
                                                                                          --------------------------------
        NET CASH PROVIDED BY FINANCING ACTIVITIES                                                  8,642           17,663
                                                                                          --------------------------------

    Net decrease in Cash and Due From Banks                                                       (6,500)          (4,956)

Cash and Due From Banks-Beginning of Period                                                       19,123           18,013
                                                                                          --------------------------------

    Cash and Due From Banks-End of Period                                                        $12,623          $13,057
                                                                                          ================================

Supplemental  disclosures of cash flow information:  Cash paid during the period
for:
    Interest                                                                                     $11,106           $9,241
    Income taxes                                                                                  $1,000           $1,346

Supplemental schedule of non-cash investing and financing activities:
    Net change in unrealized gain (loss) on available for sale securities                           $454            ($999)

                                            "See accompanying notes to financial statements"
FIRST BANKING CENTER, INC AND SUBSIDIARY
                    NOTES TO CONSOLIDATE FINANCIAL STATEMENTS
                               September 30, 2000
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 nine months  ended  September  30, 2000 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, 1999 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 - Principles of Consolidation

The accompanying consolidated financial statements include the accounts of First
Banking Center, Inc. (the "Company"),  a Wisconsin  corporation,  and its wholly
owned   subsidiary,   First  Banking  Center  (the  "Bank").   All   significant
intercompany accounts and transactions have been eliminated in consolidation.

NOTE 3 - Earnings Per Share

The following information was used in the computation of earnings per share on a
basic and diluted basis. Amounts in thousands:

                                                     Nine minths ended
                                                       September 30,
                                                     -----------------
                                                      2000       1999
                                                     -----------------
     Net income, basic and diluted
      Earnings                                       $3,465     $3,168
     Weighted average common shares
      Outstanding                                     1,470      1,482
     Weighted average common shares issuable
      upon exercise of stock options and warrants        15         13
     Weighted average commmon and common
      equivalent shares outstanding                   1,485      1,495
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 September 30, 2000

The following discussion provides additional analysis of the financial condition
and results of operations of the Company for the  year-to-date  ended  September
30, 2000. This discussion  focuses on the significant  factors that affected the
Company's earnings so far in 2000, with comparisons to 1999. As of September 30,
2000,  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  inter-company  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 September 30, 2000,  total Company assets were $404.9  million  increasing
3.3% from $392.1  million as of December  31,  1999.  Total income for the first
nine months of 2000 was $ 3.5 million or $2.36 per share,  increasing  9.1% from
$3.2  million  or $2.14  per  share  for the  first  nine  months  of 1999.  The
significant items resulting in the above-mentioned results are discussed below.

Balance sheet analysis

Loans

As of September 30, 2000, loans  outstanding were $311.5 million for an increase
of $12.7 million or 4.3% from December 31, 1999. During this nine-month  period,
Residential  Real Estate loans  increased  $18.7 million,  and  Commercial  Real
Estate  loans  increased  $766  thousand  or  16.9%  and 0.9%  respectively.  At
September  30,  2000,  Construction  and Land  Development  loans  were at $41.1
million or 13.2% of total  loans.  Residential  Real Estate loans were at $129.5
million or 41.6% of total loans,  Commercial loans were at $27.2 million or 8.7%
of total loans,  and Commercial Real Estate loans were at $84.4 million or 27.1%
of total loans.

Allowance for Loan Losses

The  allowance for possible loan losses was $3.9 million or 1.26% of gross loans
at  September  30, 2000,  compared  with $3.6 million or 1.21% of gross loans at
December 31, 1999. Net recoveries for the nine-month period were $75 thousand or
 .024% of gross loans,  compared to net  charge-offs of $170 thousand or .057% of
gross loans for 1999.  As of September  30, 2000,  loans on  non-accrual  status
totaled $1.4 million or .44% of gross loans  compared to $1.3 million or .44% of
gross loans at December 31, 1999. The non-accrual  loans consisted  primarily of
$512  thousand of nonfarm  nonresidential  properties  and $451  thousand of 1-4
family  residential  real estate  loans.  At September  30,  2000,  the ratio of
non-accrual  loans to the allowance for loan losses was 34.8%  compared to 35.1%
at December 31, 1999.

The Bank  evaluates  the adequacy of the  allowance  for loan losses based on an
analysis of specific problem loans, as well as on an aggregate basis. Management
reviews a calculation of the allowance for loan losses on a quarterly  basis and
believes that the allowance for loan losses is adequate.  The allowance for loan
loss is  maintained  at a level  management  considers  adequate  to provide for
probable  future  losses.  The level of the  allowance is based on  management's
periodic and comprehensive evaluation of the loan portfolio, including past loan
loss experience;  current economic trends;  underlying  collateral  values:  the
volume,  growth  and  composition  of the loan  portfolio,  and  other  relevant
factors.  Management also considers  reports of examinations  furnished by State
and Federal banking authorities in this regard.
Investments securities - Available for Sale

The securities available-for-sale portfolio increased $7.6 million or 13.8% from
December 31, 1999 to September  30, 2000.  This increase was due primarily to an
increased  balance in a money market  mutual fund and the purchase of commercial
paper.

Deposits and Borrowed Funds

As of September  30,  2000,  total  deposits  were $321.5  million,  which is an
increase of $15.4 million or 5% from December 31, 1999. Certificates of deposits
increased $12.2 million or 10.7% to $126.1 million.  Now accounts decreased $3.9
million or 15.3% to $21.4  million.  Money  market  savings and regular  savings
deposits  increased  $9.7  million or 8.4% to $125.1  million.  Demand  Deposits
decreased $2.7 million or 5.2% to $48.9 million. Securities sold under agreement
to  repurchase  decreased  $4.1 million or 19.5%.  Federal Home Loan  Borrowings
decreased $2.9 million or 10.2% since December 31, 1999.

Capital resources

During  the  first  nine  month  of 2000,  the  Company's  stockholders'  equity
increased  $3.1  million or 9.2%.  Net income of $3.5  million  was the  primary
reasons for the  increase in equity.  Accumulated  other  comprehensive  loss on
available  for sale  securities  increased  $454  thousand  to a  negative  $229
thousand.  As of September  30, 2000, a cash  dividend of $474 thousand has been
paid.

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  11.1% at
September  30,  2000,  well  above the 4%  minimum  required.  Total  capital to
risk-adjusted assets was 12.3%, also well above the 8% minimum requirement.  The
leverage ratio was at 8.8% compared to the 4% minimum requirement.  According to
the FDIC capital guidelines, the Bank appears to be "well capitalized."

Liquidity

Liquidity  measures  the  ability  of the  Company to meet  obligations  and its
existing commitments,  to withstand  fluctuations in deposit levels, to fund its
operations, and to provide customers' credit needs. The liquidity of the Company
primarily  depends  upon cash flows from  operating,  investing,  and  financing
activities.  Net cash provided by operating activities,  consisting primarily of
net income and the net proceeds from loans sold,  was $ 5.8 million for the nine
months ended  September 30, 2000 compared to $9.9 million  provided by operating
activities for the same period in 1999.  Net cash used in investing  activities,
consisting  principally  of loan  originations,  was $20.9  million for the nine
months  ended  September  30, 2000 and $32.5  million for the nine months  ended
September  30,  1999.  Net cash  provided by  financing  activities,  consisting
primarily  of  deposit  growth  and net  proceeds  from  Federal  Home Loan Bank
advances,  for the nine months ended September 30, 2000 was $8.6 million and for
the same period in 1999 was $17.6 million.

Quantitative and Qualitative Disclosures About Market Risk

The Company  realizes  income  principally  from the spread between the interest
earned on loans,  investments and other interest-earning assets and the interest
paid on deposits and borrowings.  Loan volumes and yields, as well as the volume
of and rates on  investments,  deposits and  borrowings,  are affected by market
interest rates. Additionally, because of the terms and conditions of many of the
bank's loan and deposit  accounts,  a change in interest rates could also affect
the projected  maturities in the loan portfolio and /or the deposit base,  which
could alter the  company's  sensitivity  of future  changes in  interest  rates.
Accordingly,  management considers interest rate risk to be a significant market
risk.

Interest rate risk management  focuses on maintaining  consistent  growth in net
interest income within policy limits  approved by the board of directors,  while
taking into  consideration,  among other factors,  the Company's overall credit,
operating   income,   operating  cost,  and  capital   profile.   The  Company's
ALM/Investment committee,  which includes senior management  representatives and
members of the board of  directors,  monitors and manages  interest rate risk to
maintain an  acceptable  level of change to net  interest  income as a result of
changes in interest rates.
One  method  used to  quantify  interest  rate risk is the net  portfolio  value
("NPV") analysis.  This analysis  calculates the difference  between the present
value of  liabilities  and the present values of expected cash flows from assets
and off-balance sheet contracts.  The most recent NPV analysis,  as of September
30, 2000,  projects that net  portfolio  value would  decrease by  approximately
21.88% if  interest  rates would rise 200 basis  points  over the next year.  It
projects an increase in net portfolio value of approximately  27.13% if interest
rates would drop 200 basis points. Both simulations are within board-established
policy limits.

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 for the first nine months of 2000 was $11.9 million,
increasing  6% over the 1999 level of $11.3  million.  Net interest  income as a
percentage of average earning assets was 4.59% for the first nine months of 2000
versus 4.55% for the first nine months of 1999.

Total interest income increased $2.6 million as average-earning assets increased
from $344.3 million to $364.4  million or 5.8%.  The yields on interest  earning
asset increased from 8.13% to 8.66%.

The  increase  in  interest  income in 2000 is due  primarily  to an increase in
interest  and fees on  loans.  Interest  and fees on  loans  increased  to $20.5
million or 15.1% from  $17.9.  The  increase  in loan income was the result of a
$26.6 million or 9.6% increase in average balances outstanding.

Total  interest  expense  increased  $1.9  million.  This increase was due to an
increase in average  interest  bearing  deposits of $20.5 million or 8.6% and an
increase in average Federal Home Loan  Borrowings of $6.9 million or 32.8%.  The
cost of all interest bearing liabilities increased from 4.27% to 4.83%.

Provision for loan losses

The Bank has established the allowance for loan losses to reduce the gross level
of loans outstanding by an estimate of uncollectible  loans. As loans are deemed
uncollectible,  they are charged  against the  allowance.  A provision  for loan
losses is expensed  against  current income on a monthly  basis.  This provision
acts to replenish the allowance for loan losses to accommodate  charge-offs  and
growth in the loan portfolio,  thereby  maintaining the allowance at an adequate
level.

During the first nine months of 2000 and 1999,  $270  thousand and $248 thousand
respectively was charged to current earnings and added to the allowance for loan
losses.

Non-interest income

Non-interest  income,  during  the first  nine  months of 2000,  increased  $257
thousand  or 12.8%  from the first nine  months of 1999.  This  increase  is due
primarily to increased  income from service charges on deposit  accounts,  which
increased $95 thousand or 10.6%,  Trust  Department  income which  increased $55
thousand or 20.4%,  and other  income  increased  $119  thousand or 14.9%.  This
increase in other income was the result of a penalty  realized on a contract the
bank had with an equipment vendor.

Non-interest expense

Non-interest expense,  during the first nine months of 2000, increased from $8.5
million to $9.1  million an increase  of $628  thousand  or 7.4%.  Salaries  and
benefits increased $331 thousand or 7%, equipment expense increased $69 thousand
or 7.2%, data  processing  services  increased $67 thousand or 14.8%,  occupancy
expense  increased  $33  thousand or 5.4%,  and postage  expense  increased  $14
thousand or 11.1%.
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

             a.   No exhibits

             b.   Form 8-K, Item 4.  Changes in Registrant's Certifying
                  Accountant, was filed with the SEC on September 29, 2000.
FIRST BANKING CENTER, INC. AND SUBSIDIARIES

                                   SIGNATURES

     Pursuant to the  requirement  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.

November 02, 2000
                                          --------------------------------------
Date                                      Brantly Chappell
                                          Chief Executive Officer

November 02, 2000
                                          --------------------------------------
Date                                      James Schuster
                                          Chief Financial Officer