<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549
                                   FORM 10-KSB
                  [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR
                  15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

                   For the fiscal year ended December 31, 2002

                                       OR

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

                  For the transition period from ____ to______

                        Commission File Number: 333-34254

                           LAFAYETTE COMMUNITY BANCORP
             (Exact name of registrant as specified in its charter)

                Indiana                                   35-2082918
   (State or Other Jurisdiction                     (IRS Employer Id. No.)
 of Incorporation or Organization)

               2 North 4th Street, Lafayette, Indiana       47901
               (Address of principal executive offices)   (Zip Code)

       Registrant's telephone number, including area code: (765) 429-7200

        Securities registered pursuant to Section 12(b) of the Act: None

        Securities registered pursuant to Section 12(g) of the Act: None

Check whether the issuer (1) has filed all reports required to be filed by
Sections 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 by check mark if disclosure of delinquent filers pursuant to Rule 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in part III of this FORM 10-KSB or any amendment to
this FORM 10-KSB. [X]

Issuer's revenues for its most recent fiscal year were $4,705,000.

The aggregate market value of voting and non-voting common equity, consisting
solely of common stock, held by non-affiliates of the issuer computed by
reference to the sale price of such stock was $5.8 million as of March 27, 2003.

Shares of common stock outstanding as of March 27, 2003: 899,150.

DOCUMENTS INCORPORATED BY REFERENCE: None

<PAGE>

FORM 10-KSB TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                              Page
<S>                                                                                                           <C>
PART I

Item 1. Description of Business                                                                                 3
Item 2. Description of Property                                                                                 7
Item 3. Legal Proceedings                                                                                       7
Item 4. Submission of Matters to a Vote of Security Holders                                                     7

PART II

Item 5. Market for Registrant's Common Equity and Related Shareholder Matters                                   7
Item 6. Management's Discussion and Analysis of Financial Condition and Results of Operations                   8
Item 7. Financial Statements and Supplementary Data                                                            16
Item 8. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                   36

PART III

Item 9.  Directors Executive Officers Promoters and Control Persons of Lafayette                               36
Item 10. Executive Compensation                                                                                37
Item 11. Security Ownership of Certain Beneficial Owners and Management                                        38
Item 12. Certain Relationships and Related Transactions                                                        38
Item 13. Exhibits and Reports on Form 8-K                                                                      39
Item 14. Controls and Procedures                                                                               40

Signatures                                                                                                     41
Certification of Chief Executive Officer                                                                       42
Certification of Principal Accounting Officer                                                                  43
Exhibits                                                                                                       44
CEO certification pursuant to 18 U.S.C. Section 1350                                                           45
CFO certification pursuant to 18 U.S.C. Section 1350                                                           46
</TABLE>

                                                                              2.

<PAGE>

PART I

FORWARD-LOOKING STATEMENTS. This Form 10-KSB and future filings made by
Lafayette Community Bancorp ("Lafayette") with the Securities and Exchange
Commission, as well as other filings, reports and press releases made or issued
by Lafayette or the Bank (the "Bank"), and oral statements made by executive
officers of Lafayette and the Bank, include forward-looking statements relating
to such matters as (a) assumptions concerning future economic and business
conditions and their effect on the economy in general and on the markets in
which the Bank do business, (b) expectations regarding revenues, expenses, and
earnings for Lafayette and the Bank, (c) the impact of future or pending
acquisitions, (d) deposit and loan volume, and (e) new products or services.
Such forward-looking statements are based on assumptions rather than historical
or current facts and, therefore, are inherently uncertain and subject to risk.

To comply with the terms of a "safe harbor" provided by the Private Securities
Litigation Reform Act of 1995 that protects the making of such forward-looking
statements from liability under certain circumstances, Lafayette notes that a
variety of factors could cause the actual results or experience to differ
materially from the anticipated results or other expectations described or
implied by such forward-looking statements. These risks and uncertainties that
may affect the operations, performance, development and results of Lafayette's
business include, but are not limited to, the following: (a) the risk of adverse
changes in business and economic conditions generally and in the specific
markets in which the Bank operate which might adversely affect credit quality
and deposit and loan activity; (b) the risk of rapid increases or decreases in
interest rates, which could adversely affect Lafayette's net interest margin if
changes in its cost of funds do not correspond to the changes in income yields;
(c) possible changes in the legislative and regulatory environment that might
negatively impact Lafayette and the Bank through increased operating expenses or
restrictions on authorized activities; (d) the possibility of increased
competition from other financial and non-financial institutions; (e) the risk
that borrowers may misrepresent information to management of the Bank, leading
to loan losses, which is an inherent risk of the activity of lending money; (f)
the risk that banks that Lafayette may acquire in the future may be subject to
undisclosed asset quality problems, contingent liabilities or other
unanticipated problems; and (g) other risks detailed from time to time in
Lafayette's filings with the Securities and Exchange Commission. Lafayette and
the Bank do not undertake any obligation to update or revise any forward-looking
statements subsequent to the date on which they are made.

ITEM 1.  DESCRIPTION OF BUSINESS

GENERAL

Lafayette is a one-bank holding company incorporated in January of 1999.
Lafayette's primary asset is the Bank, a wholly-owned banking subsidiary, which
is an Indiana-chartered commercial bank. The Bank received regulatory approval
to open in the fall of 2000 and commenced banking operations on November 1,
2000.

At December 31, 2002, Lafayette had $76,710,000 of assets, loans of $60,794,000,
deposits of $62,545,000 and shareholders' equity of $8,427,000. The Bank
operates from two (2) offices located in Lafayette, Indiana. As of December 31,
2002, the Bank had seventeen (17) full time employees. Lafayette has no full
time employees. Lafayette is subject to regulation by the Federal Reserve Board.

The Bank's deposits are insured to the maximum extent permitted by law by the
Federal Deposit Insurance Corporation ("FDIC"). The Bank is subject to
comprehensive regulation, examination and supervision by the Indiana Department
of Financial Institutions ("DFI") and the FDIC.

The business of the Bank consists primarily of attracting deposits from the
general public and originating commercial, residential real estate, and consumer
loans. Consumer loans include, among others, new and used automobile and other
secured and unsecured personal loans. The Bank originates adjustable rate first
mortgage loans, second mortgage loans and home equity lines of credit secured by
single-family homes. The Bank offers commercial loans to area businesses, in
addition to new home construction loans and business lines of credit.

The principal sources of funds for the Bank's lending activities include
deposits received from the general public, amortization and repayment of loans,
and maturity of investment securities.

The Bank's primary source of income is interest on loans. Its principal expenses
are interest paid on deposit accounts and borrowings, salaries and employee
benefits, premises and equipment expenses, data processing expenses and other
overhead expenses incurred in operation.

SOURCES OF FUNDS

Deposits are the primary source of the Bank's funds for use in lending and for
other general business purposes. Proceeds from issuance of common stock in 2000
were also used as a source of funding for loan growth. However, the additional
issuance of common stock is not in the short-term plans for Lafayette.

DEPOSIT ACTIVITIES

The Bank offers several types of deposit programs designed to attract both
short-term and long-term savings by providing a wide assortment of accounts and
rates. Interest earned on statement savings accounts is paid from the date of
deposit to the date of withdrawal, compounded and credited quarterly.

                                                                              3.

<PAGE>

Interest earned on money market demand deposits is compounded and credited
monthly. The interest rates on these accounts are reviewed by the management of
the Bank daily and adjusted as frequently as deemed necessary based on market
conditions and other factors.

SERVICE AREA

The primary service area served by Lafayette and the Bank is Tippecanoe County,
Indiana, within which the cities of Lafayette and West Lafayette are located.
The combined population of Lafayette and West Lafayette is approximately 73,000.
This primary service area represents the geographic areas from which the Bank
generates the majority of its business. The primary employers in the service
area include Purdue University, Wabash National, Subaru-Isuzu Automotive, Inc.,
Caterpillar Inc., Home Hospital, Fairfield Manufacturing, Alcoa and Eli Lilly &
Co. Business is also sought in Benton County, White County, Carroll County,
Clinton County, Montgomery County, Warren County and Fountain County, Indiana.

There are no unusual customer groups in the Tippecanoe County market area.
Purdue University is within our service area and its presence is evident in the
demographic characteristics; however, Tippecanoe County has a diversified
economic base that we believe is not overly dependent on any single industry.

COMPETITION

The Bank faces strong competition for deposits, loans and other financial
services from numerous Indiana and out-of-state banks, thrifts, credit unions
and other financial institutions as well as other entities which provide
financial services, including consumer finance companies, securities brokerage
firms, mortgage brokers, insurance companies, mutual funds and other lending
sources and investment alternatives. Some of the financial institutions and
financial services organizations with which the Bank competes are not subject to
the same degree of regulation as Lafayette and the Bank. Many of the financial
institutions aggressively compete for business in Lafayette's market areas. Many
of these competitors have been in business for many years, have established
customer bases, have substantially higher lending limits than Lafayette, are
larger and will be able to offer certain services that Lafayette does not
currently offer, including international banking services. In addition, most of
these entities have greater capital resources than Lafayette, which, among other
things, may allow them to price their services at levels more favorable to the
customer and to provide larger credit facilities than could Lafayette.

REGULATION AND SUPERVISION OF LAFAYETTE AND THE BANK

Both Lafayette and the Bank operate in highly regulated environments and are
subject to supervision and regulation by several state and federal government
regulatory agencies, including the Federal Reserve Board, the FDIC, and the
Indiana Department of Financial Institutions. The laws and regulations
established by these agencies are generally intended to protect depositors, not
shareholders. Changes in applicable laws, regulations, government policies,
income tax laws and accounting principles may have a material effect on our
business and prospects. The following summary is qualified by reference to the
statutory and regulatory provisions discussed.

LAFAYETTE COMMUNITY BANCORP

THE BANK HOLDING COMPANY ACT. Because Lafayette owns all of the outstanding
capital stock of the Bank, it is registered as a bank holding company under the
federal Bank Holding Company Act of 1956 and is subject to periodic examination
by the Federal Reserve and required to file periodic reports of its operations
and any additional information that the Federal Reserve may require.

INVESTMENTS, CONTROL, AND ACTIVITIES. With some limited exceptions, the Bank
Holding Company Act requires every bank holding company to obtain the prior
approval of the Federal Reserve before acquiring another bank holding company or
acquiring more than 5% of the voting shares of a bank (unless it already owns or
controls the majority of such shares).

Bank holding companies are prohibited, with certain limited exceptions, from
engaging in activities other than those of banking or of managing or controlling
banks. They are also prohibited from acquiring or retaining direct or indirect
ownership or control of voting shares or assets of any company which is not a
bank or bank holding company, other than subsidiary companies furnishing
services to or performing services for their subsidiaries, and other
subsidiaries engaged in activities which the Federal Reserve Board determines to
be so closely related to banking or managing or controlling banks as to be
incidental to these operations. The Bank Holding Company Act does not place
territorial restrictions on the activities of such nonbanking-related
activities.

Effective as of March 11, 2000, the Gramm-Leach-Bliley Act allows bank holding
companies meeting management, capital and CRA standards to engage in a
substantially broader range of nonbanking activities then was previously
permissible, including insurance underwriting and agency, and underwriting and
making merchant banking investments in commercial and financial companies. This
act also removes various restrictions that previously applied to bank holding
company ownership of securities firms and mutual fund advisory companies.
Lafayette does not currently plan to engage in any activity other than owning
the stock of the Bank.

                                                                              4.

<PAGE>

DIVIDENDS. The Federal Reserve's policy is that a bank holding company
experiencing earnings weaknesses should not pay cash dividends exceeding its net
income or which could only be funded in ways that weakened the bank holding
company's financial health, such as by borrowing. Additionally, the Federal
Reserve possesses enforcement powers of bank holding companies and non-bank
subsidiaries to prevent or remedy actions that represent unsafe or unsound
practices or violations of applicable statutes and regulations. Among these
powers is the ability to proscribe the payment of dividends by banks and bank
holding companies.

SOURCE OF STRENGTH. In accordance with Federal Reserve Board policy, Lafayette
is expected to act as a source of financial strength to the Bank and to commit
resources to support the Bank in circumstances in which Lafayette might not
otherwise do so.

LAFAYETTE COMMUNITY BANK

GENERAL REGULATORY SUPERVISION. The Bank is an Indiana-chartered banking
corporation subject to examination by the Indiana Department of Financial
Institutions. The Indiana Department of Financial Institutions and FDIC regulate
or monitor virtually all areas of the Bank's operations. The Bank must undergo
regular on site examinations by the FDIC and the Indiana Department of Financial
Institutions and must submit annual reports to the FDIC and the Indiana
Department of Financial Institutions.

LENDING LIMITS. Under Indiana law, the total loans and extensions of credit by
an Indiana-chartered bank to a borrower outstanding at one time and not fully
secured may not exceed 15% of the bank's capital and unimpaired surplus.

DEPOSIT INSURANCE. Deposits in the Bank are insured by the FDIC up to a maximum
amount, which is generally $100,000 per depositor subject to aggregation rules.
The Bank is subject to deposit insurance assessment by the FDIC pursuant to its
regulations establishing a risk-related deposit insurance assessment system,
based upon the institution's capital levels and risk profile. The Bank is also
subject to assessment for the Financial Corporation ("FICO") to service the
interest on its bond obligations. The amount assessed on individual
institutions, including the Bank, by FICO is in addition to the amount paid for
deposit insurance according to the risk-related assessment rate schedule.
Increases in deposit insurance premiums or changes in risk classification will
increase the Bank's cost of funds, and we may not be able to pass those costs on
to our customers.

TRANSACTIONS WITH AFFILIATES AND INSIDERS. The Bank is subject to limitations on
the amount of loans or extensions of credit to, or investments in, or certain
other transactions with, affiliates and on the amount of advances to third
parties collateralized by the securities or obligations of affiliates.
Furthermore, within the foregoing limitations as to amount, each covered
transaction must meet specified collateral requirements. Compliance is also
required with certain provisions designed to avoid the taking of low quality
assets. The Bank is also prohibited from engaging in certain transactions with
certain affiliates unless the transactions are on terms substantially the same,
or at least as favorable to such institution or its subsidiaries, as those
prevailing at the time for comparable transactions with nonaffiliated companies.

Extensions of credit by the Bank to its executive officers, directors, certain
principal shareholders, and their related interests must:

                  -        be made on substantially the same terms, including
                           interest rates and collateral, as those prevailing at
                           the time for comparable transactions with third
                           parties; and

                  -        not involve more than the normal risk of repayment or
                           present other unfavorable features.

DIVIDENDS. Under Indiana law, the Bank may pay dividends from its undivided
profits in an amount declared by its board of directors, subject to prior
approval of the Indiana Department of Financial Institutions if the proposed
dividend, when added to all prior dividends declared during the calendar year,
would be greater than the current year's "net profits" and retained "net
profits" for the previous two calendar years.

Federal law generally prohibits the Bank from paying a dividend to its holding
company if the depository institution would thereafter be undercapitalized. The
FDIC may prevent an insured bank from paying dividends if the bank is in default
of payment of any assessment due to the FDIC. In addition, payment of dividends
by a bank may be prevented by the applicable federal regulatory authority if
such payment is determined, by reason of the financial condition of such bank,
to be an unsafe and unsound banking practice.

BRANCHING AND ACQUISITIONS. Branching by the Bank requires the prior approval of
the FDIC and the Indiana Department of Financial Institutions. Under current
law, Indiana chartered banks may establish branches throughout the state and in
other states. Congress authorized interstate branching, with certain
limitations, beginning in 1997. Indiana law authorizes an Indiana bank to
establish one or more branches in states other than Indiana through interstate
merger transactions and to establish one or more interstate branches through de
novo branching or the acquisition of a branch.

                                                                              5.

<PAGE>

COMMUNITY REINVESTMENT ACT. The Community Reinvestment Act requires that the
FDIC evaluate the record of the Bank in meeting the credit needs of its local
community, including low and moderate income neighborhoods. These factors are
also considered in evaluating mergers, acquisitions, and applications to open a
branch or facility. Failure to adequately meet these criteria could result in
the imposition of additional requirements and limitations on the Bank.

CAPITAL REGULATIONS. The federal bank regulatory authorities have adopted
risk-based capital guidelines for banks and bank holding companies that are
designed to make regulatory capital requirements more sensitive to differences
in risk profiles among banks and bank holding companies and account for
off-balance sheet items. Risk-based capital ratios are determined by allocating
assets and specified off-balance sheet commitments to four risk weighted
categories of 0%, 20%, 50%, or 100%, with higher levels of capital being
required for the categories perceived as representing greater risk. The
guidelines are minimums, and the federal regulators have noted that banks and
bank holding companies contemplating significant expansion programs should not
allow expansion to diminish their capital ratios and should maintain ratios in
excess of the minimums. Neither Lafayette nor the Bank has received any notice
indicating that either is subject to higher capital requirements.

The federal bank regulatory authorities have also implemented a leverage ratio
to supplement to the risk-based guidelines. The principal objective of the
leverage ratio is to place a constraint on the maximum degree to which a bank
holding company may leverage its equity capital base.

The Bank is also subject to the FDIC's "prompt corrective action" regulations,
which implement a capital-based regulatory scheme to promote early intervention
for troubled banks. This framework contains five categories of compliance with
regulatory capital requirements, including "well capitalized," "adequately
capitalized," "undercapitalized," "significantly undercapitalized," and
"critically undercapitalized." As of December 31, 2002, the Bank was qualified
as "well capitalized." It should be noted that a bank's capital category is
determined solely for the purpose of applying the FDIC's "prompt corrective
action" regulations and that the capital category may not constitute an accurate
representations of a bank's overall financial condition or prospects. The degree
of regulatory scrutiny of a financial institution increases, and the permissible
activities of the institution decreases, as it moves downward through the
capital categories. Bank holding companies controlling financial institutions
can be required to boost the institutions' capital and to partially guarantee
the institutions' performance.

OTHER REGULATIONS. Interest and other charges collected or contracted for by the
Bank are subject to state usury laws and federal laws concerning interest rates.
The Bank's loan operations are also subject to federal laws applicable to credit
transactions, such as the:

                  -        Truth-In-Lending Act, governing disclosures of credit
                           terms to consumer borrowers;

                  -        Home Mortgage Disclosure Act of 1975, requiring
                           financial institutions to provided information to
                           enable the public and public officials to determine
                           whether a financial institution is fulfilling its
                           obligation to help meet the housing needs of the
                           community it serves;

                  -        Equal Credit Opportunity Act, prohibiting
                           discrimination on the basis of race, creed or other
                           prohibited factors in extending credit;

                  -        Fair Credit Reporting Act of 1978, governing the use
                           and provision of information to credit reporting
                           agencies;

                  -        Fair Debt Collection Act, governing the manner in
                           which consumer debts may be collected by collection
                           agencies; and

                  -        rules and regulations of the various federal agencies
                           charged with the responsibility of implementing such
                           federal laws.

The deposit operations of the Bank also are subject to the:

                  -        Customer information security guidelines, adopted by
                           the federal bank regulatory agencies (the
                           "Guidelines") for safeguarding confidential customer
                           information. The Guidelines require each financial
                           institution, under the supervision and ongoing
                           oversight of its Board of Directors, to create a
                           comprehensive written information security program
                           designed to ensure the security and confidentiality
                           of customer information, protect against any
                           anticipated threats or hazards to the security or
                           integrity of such information; and protect against
                           unauthorized access to or use of such information
                           that could result in substantial harm or
                           inconvenience to any customer.

                  -        Electronic Funds Transfer Act, and Regulation E
                           issued by the Federal Reserve Board to implement that
                           Act, which governs automatic deposits to and
                           withdrawals from deposit accounts and customers'
                           rights and liabilities arising from the use of
                           automated teller machines and other electronic
                           banking services.

                                                                              6.

<PAGE>

ENFORCEMENT POWERS. Federal regulatory agencies may assess civil and criminal
penalties against depository institutions and certain "institution-affiliated
parties," including management, employees, and agents of a financial
institution, as well as independent contractors and consultants such as
attorneys and accountants and others who participate in the conduct of the
financial institution's affairs. In addition, regulators may commence
enforcement actions against institutions and institution-affiliated parties.
Possible enforcement actions include the termination of deposit insurance.
Furthermore, regulators may issue cease-and-desist orders to, among other
things, require affirmative action to correct any harm resulting from a
violation or practice, including restitution, reimbursement, indemnifications or
guarantees against loss. A financial institution may also be ordered to restrict
its growth, dispose of certain assets, rescind agreements or contracts, or take
other actions as determined by the regulator to be appropriate.

EFFECT OF GOVERNMENTAL MONETARY POLICIES. Our earnings are affected by domestic
economic conditions and the monetary and fiscal policies of the United States
government and its agencies. The Federal Reserve Bank's monetary policies have
had, and are likely to continue to have, an important impact on the operating
results of commercial banks through its power to implement national monetary
policy in order, among other things, to curb inflation or combat a recession.
The monetary policies of the Federal Reserve Board have major effects upon the
levels of bank loans, investments and deposits through its open market
operations in United States government securities and through its regulation of
the discount rate on borrowings of member banks and the reserve requirements
against member bank deposits. It is not possible to predict the nature or impact
of future changes in monetary and fiscal policies.

ITEM 2.  DESCRIPTION OF PROPERTY

Lafayette's home office is located at 2 North 4th Street, Lafayette, Indiana.
The facility is leased by Lafayette and is used as the main banking office. The
8,000 square foot building was constructed over 25 years ago and underwent an
extensive renovation in 2000 prior to the opening of Lafayette. The term of the
lease is five (5) years with two five-year options to renew.

In 2000, Lafayette entered into a lease agreement for the branch office located
at 2136 Greenbush Street, Lafayette, Indiana. The lease is for 2,500 square feet
of space. The term of the lease is five (5) years.

Lafayette and the Bank presently do not invest in real estate other than real
estate acquired for purposes of operations and mortgage interests in real estate
securing loans made by the Bank in the ordinary course of business. The Board of
Directors of the Bank from time to time specifies its policies as to the amounts
and types of mortgage loans that the Bank may originate or acquire, and these
policies may be changed without action by Lafayette shareholders. Mortgage loans
are made for interest income purposes, not for capital gain.

ITEM 3.  LEGAL PROCEEDINGS

Lafayette and the Bank are not involved in any pending legal proceedings, other
than routine litigation incidental to the business.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matter was submitted to a vote of security holders through the solicitation
of proxies or otherwise, during the quarter ended December 31, 2002.

PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED SHAREHOLDER MATTERS

Lafayette's common stock is traded in the over-the-counter market and quotations
are reported on the OTC Bulletin Board under the symbol "LFYC." As of December
31, 2002, there were approximately three hundred (300) holders of record.
Included among the holders of record are investment firms with an undetermined
number of clients owning Lafayette's common stock. Lafayette paid no cash
dividends on the common stock during 2002, 2001 or 2000 and has paid no dividend
during the first quarter of 2003. For additional information see Item 1.
"Description of Business--Regulation and Supervision of Lafayette and the Bank."

The following sets forth the quarterly high and low bid price per share during
2002. These quotations reflect inter-dealer prices without retailer mark-up,
mark-down or commission, and may not represent actual transactions:

<TABLE>
<CAPTION>
                                 PERIOD LOW         PERIOD HIGH
<S>                              <C>                <C>
2002 - Fourth Quarter              $10.75             $12.50
2002 - Third Quarter               $10.75             $12.50
2002 - Second Quarter              $12.00             $15.00
2002 - First Quarter               $12.00             $15.00
2001 - Fourth Quarter              $ 7.00             $12.50
2001 - Third Quarter               $ 7.00             $10.00
</TABLE>

                                                                              7.

<PAGE>

<TABLE>
<S>                              <C>                <C>
2001 - Second Quarter              $ 8.00             $ 9.50
2001 - First Quarter               $ 9.50             $10.00
</TABLE>

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

FORWARD-LOOKING STATEMENTS. This Form 10-KSB and future filings made by
Lafayette Community Bancorp ("Lafayette") with the Securities and Exchange
Commission, as well as other filings, reports and press releases made or issued
by Lafayette or the Bank (the "Bank"), and oral statements made by executive
officers of Lafayette and the Bank, include forward-looking statements relating
to such matters as (a) assumptions concerning future economic and business
conditions and their effect on the economy in general and on the markets in
which the Bank do business, (b) expectations regarding revenues, expenses, and
earnings for Lafayette and the Bank, (c) the impact of future or pending
acquisitions, (d) deposit and loan volume, and (e) new products or services.
Such forward-looking statements are based on assumptions rather than historical
or current facts and, therefore, are inherently uncertain and subject to risk.

To comply with the terms of a "safe harbor" provided by the Private Securities
Litigation Reform Act of 1995 that protects the making of such forward-looking
statements from liability under certain circumstances, Lafayette notes that a
variety of factors could cause the actual results or experience to differ
materially from the anticipated results or other expectations described or
implied by such forward-looking statements. These risks and uncertainties that
may affect the operations, performance, development and results of Lafayette's
business include, but are not limited to, the following: (a) the risk of adverse
changes in business and economic conditions generally and in the specific
markets in which the Bank operate which might adversely affect credit quality
and deposit and loan activity; (b) the risk of rapid increases or decreases in
interest rates, which could adversely affect Lafayette's net interest margin if
changes in its cost of funds do not correspond to the changes in income yields;
(c) possible changes in the legislative and regulatory environment that might
negatively impact Lafayette and the Bank through increased operating expenses or
restrictions on authorized activities; (d) the possibility of increased
competition from other financial and non-financial institutions; (e) the risk
that borrowers may misrepresent information to management of the Bank, leading
to loan losses, which is an inherent risk of the activity of lending money; (f)
the risk that banks that Lafayette may acquire in the future may be subject to
undisclosed asset quality problems, contingent liabilities or other
unanticipated problems; and (g) other risks detailed from time to time in
Lafayette's filings with the Securities and Exchange Commission. Lafayette and
the Bank do not undertake any obligation to update or revise any forward-looking
statements subsequent to the date on which they are made.

See Note 1 of the Financial Statements, "Summary of Significant Accounting
Policies," for information about accounting policies.

GENERAL

Lafayette Community Bancorp ("Lafayette") was formed in 1999 to become a
registered bank holding company by chartering and capitalizing a wholly owned
Indiana bank subsidiary. Lafayette was initially capitalized in August 1999 and
completed an initial public offering in October 2000. The Bank began operations
on November 1, 2000. The Bank is the only subsidiary of Lafayette and operates
as an Indiana commercial bank serving the Lafayette, Indiana, market area
through the main office and one branch. As a bank holding company, Lafayette
depends upon the operations of its subsidiary for the majority of its revenue
and reports its results of operations on a consolidated basis with its
subsidiary.

Due to the limited length of operations since the bank's inception and the rapid
growth experienced during that period, it is difficult to make meaningful
comparisons between the amounts outstanding at December 31, 2002, and those at
the end of previous periods.

The following table presents year-end operating data for Lafayette only in 1999
and the consolidated entity at December 31, 2000, 2001 and 2002. The transition
from a company in formation to an operating entity makes meaningful comparisons
difficult but, essentially, Lafayette incurred significant non-interest expenses
and generated no revenue prior to November 2000 as it pursued funding and
regulatory approval.

<TABLE>
<CAPTION>
                                                                                          January 29, 1999
                                                                                             (inception)
                                            Year Ended      Year Ended    Year Ended           through
                                           December 31,    December 31,  December 31,       December 31,
Income Statement Data ($'s in
thousands, except per share data)              2002            2001          2000                1999
                                               ----            ----          ----                ----
<S>                                        <C>             <C>           <C>              <C>
Total interest income                       $   3,982      $   1,972      $    148            $      --
Total interest expense                          1,735            819            34                    1
Net interest income                             2,247          1,153           114                   (1)
Provision for loan losses                        (321)           360            --                   --
Noninterest income                                724            313             3                   --
</TABLE>

                                                                              8.

<PAGE>

<TABLE>
<S>                                        <C>             <C>           <C>              <C>
Noninterest expense                             2,032           1462           664                   80
Provision for income taxes                       (132)            --            --                   --
Net income/ (loss)                          $     750      $    (356)     $   (547)           $     (81)
Net income/(loss) per share                       .83      $    (.40)     $  (3.35)           $ (191.59)
Average shares                                899,524        901,922       163,295                  424
</TABLE>

<TABLE>
<CAPTION>
                                               At              At            At                At
                                           December 31,    December 31,  December 31,     December 31,
                                              2002            2001          2000              1999
<S>                                        <C>             <C>           <C>              <C>
Balance Sheet Data ($'s in thousands,
except per share data)
Total Assets                                $  76,710       $  43,914      $ 10,257         $     35
Loans                                          60,795          35,387         6,328               --
Demand & Savings Deposits                      28,130          10,587         1,861               --
Time Deposits                                  34,415          24,628           317               --
Shareholders' Equity                            8,427           7,536         7,966              (71)
Book Value per Share                             9.37       $    8.35      $   8.83         $ (71.24)
Equity to Asset Ratio                           10.99%          17.16%        77.66%        $(204.19%)
</TABLE>

At December 31, 2002, Lafayette had $76,710,000 in total assets. Loans were
$60,795 and $35,387 at December 31, 2002 and 2001 as the Bank experienced
continued strong demand for loan products. Demand and Savings Deposits were
$28,130 and $10,587 and Time Deposits were $34,415 and $24,628 at December 31,
2002 and 2001. The Bank has continued to solicit deposit accounts with
competitive rates and advertising.

Bank profitability depends primarily upon the difference between income on its
loans and investments and the cost of its deposits and borrowings. The
difference between the amount of interest earned on loans and investments and
the interest incurred on deposits and borrowings is referred to as net interest
income. Interest income from loans and investments is a function of the amount
of loans and investments outstanding during the period and the interest rates
earned. Interest expense related to deposits and borrowings is a function of the
amount of deposits and borrowings outstanding during the period and the interest
rates paid. During the initial operating period from inception to the opening of
the Bank in November 2000, Lafayette incurred a small amount of interest expense
related to borrowings used to fund pre-operating costs. The following table
presents information about the average balance of interest earning assets and
interest bearing liabilities, and the related yield or cost, for the years ended
December 31, 2002 and December 31, 2001.

<TABLE>
<CAPTION>
                                                                         Year Ended                  Year Ended
                                                                      December 31, 2002           December 31, 2001
                                                                   Average/        Yield/         Average/     Yield/
                                                                   Balance          Rate          Balance       Rate
<S>                                                               <C>              <C>           <C>           <C>
Interest earning assets
   Federal funds sold and other interest earning assets           $   2,094        2.24%         $  2,700      4.74%
   Available-for-sale securities                                      9,243        4.50             1,564      5.05
   Loans                                                             47,291        7.44            21,132      8.35
                                                                  ---------        ----          --------      ----
Total interest earning assets                                     $  58,628                      $ 25,396
                                                                  =========                      ========

Interest bearing liabilities
   Interest-bearing demand, money market and savings deposits     $  17,734        2.46          $  5,024      3.18
      Time deposits                                                  30,179        4.11            12,978      5.06
      Borrowings                                                      2,350        2.46               112      1.94
                                                                  ---------                      --------
Total interest bearing liabilities                                $  50,263                      $ 18,114
                                                                  =========                      ========
</TABLE>

<TABLE>
<CAPTION>
                                                                                        2002                    2001
                                                                                        ----                    ----
<S>                                                                                     <C>                    <C>
Average yield on interest-earning assets                                                6.79%                   7.76%
Average rate paid on interest-bearing liabilities                                       3.45                    4.52
Net interest spread                                                                     3.34                    3.24
Net interest margin (net interest earnings divided by average
 total interest-earning assets)                                                         3.84                    4.53
Return on average assets                                                                1.23                   (1.28)
Return on average equity                                                                9.40                   (4.60)
</TABLE>

                                                                              9.

<PAGE>

The table below describes the extent to which changes in interest rates and
changes in volume of interest-earning assets and interest-bearing liabilities
have affected Lafayette's interest income and expense during the periods
indicated. For each category of interest-earning assets and interest-earning
liabilities, information is provided on changes attributable to (i) changes in
volume (change in volume multiplied by prior year rate), (ii) changes in rate
(change in rate multiplied by prior year volume) and (iii) total changes in rate
and volume. The combined effects of changes in both volume and rate, which
cannot be separately identified, have been allocated proportionately to the
change due to volume and change due to rate.

<TABLE>
<CAPTION>
                                                                   Year ended December 31,             Year ended December 31,
                                                                        2002 vs. 2001                       2001 vs. 2000
                                                               -----------------------------------------------------------------
                                                               Increase   (Decrease)   due to       Increase  (Decrease)  due to
                                                                Volume       Rate       Total        Volume      Rate      Total
<S>                                                            <C>        <C>          <C>          <C>       <C>         <C>
Interest income attributable to:
   Loans                                                         1,966       (212)      1,754         1,714       (14)     1,700
   Securities                                                      347        (10)        337            79        --         79
   Other interest-earning assets                                   (24)       (57)        (81)          100       (54)        46
                                                               -----------------------------------------------------------------

   Total interest-earning assets                                 2,289       (279)      2,010         1,893       (68)     1,825
                                                               -----------------------------------------------------------------

Interest expense attributable to:
   Interest-bearing demand, money market and
   savings deposits                                                321        (44)        277           156        (4)       152
   Time deposits                                                   727       (144)        583           656        --        656
   Borrowings                                                       55          1          56            (9)      (14)       (23)
                                                               -----------------------------------------------------------------

   Total interest-bearing liabilities                            1,103       (187)        916           803       (18)       785
                                                               -----------------------------------------------------------------
Increase (decrease) in net interest                              1,186        (92)      1,094         1,090       (50)     1,040
                                                               =================================================================
</TABLE>

Lafayette has experienced rapid growth in loans and deposits since inception.
The effect of declining interest rates on decreasing net interest income is less
than the effect of growth in volume on increasing net interest income.

Lafayette has incurred an accumulated deficit of $235,000 since inception. The
net income/(loss) for the years ending December 31, 2002 and 2001 were $750,000
and ($356,000), respectively. Lafayette's operating results during the period
from inception to December 31, 2000, were driven by various non-interest
expenses related to completing the public offering and gaining regulatory
approval during the development stage and two calendar months of banking
operations at the close of the period. Losses in 2001 were primarily associated
with the operating expenses of the Bank during the period in which it was
growing it loan and deposit bases.

Comprehensive income/(loss) consists of net income and other comprehensive
income such as unrealized gains and losses on available-for-sale securities,
which are also recognized as separate components of equity. Comprehensive
income/(loss) for the year ended December 31, 2002, was $900,000 compared to
($404,000) for the year ended December 31, 2001.

Interest income of $3,982,000 and $1,972,000 was recorded in 2002 and 2001,
respectively. Interest income in 2002 and 2001 was primarily generated from
loans, marketable securities and federal funds sold. The increase in interest
income is primarily associated with the growth of the loan and marketable
securities portfolios. Interest expense of $1,735,000 and $819,000 was recorded
during 2002 and 2001, respectively. Interest expense is comprised of interest on
deposits and borrowings from the Federal Home Loan Bank. Deposit interest
expenses of $1,677,000 and $816,000 were recorded during 2002 and 2001. Interest
expenses are primarily associated with the growth of interest-bearing deposit
accounts as the Bank has actively solicited these deposits through competitive
rates and advertising.

Non-interest income totaled $724,000 during the year ended December 31, 2002,
compared to $313,000 for the year ended December 31, 2001. For the years ended
December 31, 2002 and 2001, service charges earned were $63,000 and $32,000.
This is related to the growth in deposits during 2002. A net realized gain of
$5,000 was recorded during 2002 on the sale of available-for-sale securities.
Brokerage fees on mortgage loans originated for sale were $621,000 and $246,000
for the years ended December 31, 2002 and 2001. The fees are earned when fixed
rate mortgages are originated by the Bank and sold, service released, to third
parties. The increase in brokerage fees is associated with continued strong
demand in the real estate refinancing market throughout 2002 and the Bank also
had three full-time mortgage originators throughout 2002. Other non-interest
income was $34,000 and $18,000 for the years ended December 31, 2002 and 2001.
Non-interest income consists primarily of automated teller machine, debit card
and point-of-sale fees. The increase is primarily associated with an increase in
the size of the customer base.

                                                                             10.

<PAGE>

Non-interest expense totaled $2,032,000 for 2002 compared to $1,462,000 for
2001. The majority of this expense was for salaries and benefits that were
$1,154,000 and $784,000 for 2002 and 2001, respectively. This increase reflects
an increase in staffing and payments to commissioned employees as the Bank grew.
Occupancy and equipment expenses were $268,000 in 2002 and $275,000 in 2001 and
consisted primarily of rent, utility and operating equipment expenses. Legal and
accounting fees were $98,000 in 2002 and $55,000 in 2001. These expenses consist
primarily of audit and legal advisory services. The increase is primarily
associated with additional costs for consulting and compliance review as the
Bank has grown larger. Data processing expense of $124,000 in 2002 and 101,000
in 2001 was paid for the Bank's data processing services. Advertising expenses
were 95,000 in 2002 and 61,000 in 2001. Directors' fees were $47,000 in 2002 and
$45,000 in 2001. Remaining expenses of $246,000 in 2002 and $142,000 in 2001
relate to various other items such as postage, supplies and other operating
expenses. The increase is primarily associated with volume-driven expenses that
have increased as the Bank has grown and has more customers.

LENDING ACTIVITIES

The following table sets forth information concerning the composition of
Lafayette's loan portfolio in dollar amounts and percentages as of December 31,
2002 and 2001: ($'s in thousands)

<TABLE>
<CAPTION>
                                                    2002                       2001
                                                      Percent of                 Percent of
                                             Amount      Loans       Amount         Loans
                                            -----------------------------------------------
<S>                                         <C>       <C>           <C>          <C>
TYPE OF LOAN
Real Estate                                 $ 15,482      25.5%     $  7,869          22.2%
Commercial                                    39,432      64.9        25,631          72.4
Consumer                                       5,881       9.6         1,887           5.4
                                            ----------------------------------------------

Gross loans                                 $ 60,795       100%     $ 35,387           100%
                                            ==============================================
</TABLE>

The following table gives information about the Bank's loan portfolio at
December 31, 2002: ($'s in thousands)

<TABLE>
<CAPTION>
                                            One year     Over one to          Over
                                             or less     five years        five years       Total
<S>                                         <C>          <C>               <C>            <C>
MATURITY DISTRIBUTION
Real Estate                                 $  6,566      $   8,055         $   861       $ 15,482
Commercial                                    28,132         10,678             622         39,432
Consumer                                         134          5,084             663          5,881
                                            ------------------------------------------------------
     Total                                  $ 34,832      $  23,817         $ 2,146       $ 60,795
                                            ======================================================
</TABLE>

<TABLE>
<S>                                                 <C>            <C>
Loans maturing after one year with:
  Fixed interest rates                              $  2,213       $   1,416
  Variable interest rates                             21,604             730
                                                    ------------------------
     Total                                          $ 23,817       $   2,146
                                                    ========================
</TABLE>

Commercial loans and leases with remaining maturities over one year consist of
$2,213 with fixed interest rates and $9,515 with variable interest rates at
December 31, 2002. Real estate construction loans with remaining maturities over
one year consist of $0 with fixed interest rates and $0 with variable interest
rates.

A loan officer's approval is required for loans up to specified amounts, and
either the President, Loan Committee or the Board must approve all other loans.
The Bank has established policies regarding financial statement requirements,
credit verification procedures and other matters intended to minimize
underwriting risk.

COMMERCIAL LENDING. Commercial loans include loans secured by commercial real
estate; construction loans; and loans for business purchases, operations,
inventory and lines of credit. At December 31, 2002, commercial loans totaled
$22,719 or 37.4% of the Bank's total loan portfolio.

REAL ESTATE CONSTRUCTION. Real estate construction loans include loans for
construction secured by real estate. These include loans for commercial,
multi-family and residential construction. At December 31, 2002, real estate
construction loans totaled $9,650 or 15.9% of the Bank's total loan portfolio.

                                                                             11.

<PAGE>

RESIDENTIAL MORTGAGE LOANS. Residential mortgage loans are predominantly secured
by single-family homes. To reduce its exposure to changes in interest rates, the
Bank originates adjustable rate first mortgage loans ("ARMs"), second mortgage
loans and home equity lines of credit, also with adjustable rates. At December
31, 2002, the Bank's residential mortgage loans totaled $21,894 or 36.0% of the
Bank's total portfolio.

The Bank offers residential construction mortgage loans with maturities of
twelve months or less at interest rates that vary with current market rates. The
application process includes the same items that are required for other
residential mortgage loans and include a submission of accurate plans,
specifications and costs of the home to be constructed. These items are used as
a basis to determine the appraised value of the subject property. Appraisal
reports are completed by designated fee appraisers, and loans are based on the
current appraised value. Loans of up to 80% of such amount may be offered for a
maximum period of twelve months for the construction of the properties securing
the loans. Extensions are permitted, when circumstances warrant, if construction
has continued satisfactorily and the loan is current.

CONSUMER LENDING. The Bank makes various types of consumer loans including loans
to depositors secured by pledges of their deposit accounts, new and used
automobile loans, and secured and unsecured personal loans. At December 31,
2002, the Bank's consumer loans totaled $6,532 or 10.7% of the Bank's total loan
portfolio.

ALLOWANCE FOR LOAN LOSSES. The provision for loan losses represents charges made
to earnings to maintain an adequate allowance for loan losses. The allowance is
maintained at a level management believes to be sufficient to absorb probable
incurred losses in the loan portfolio. Monitoring loan quality and maintaining
an adequate allowance is an ongoing process overseen by senior management. On at
least a quarterly basis, a formal analysis of the adequacy of the allowance is
prepared and reviewed by management and the board of directors. This analysis
serves as a point in time assessment of the level of the allowance and serves as
a basis for provisions for loan losses.

Our loan quality monitoring process includes assigning loan grades to commercial
loans and the use of a watch list to identify loans of concern. The analysis of
the allowance for loan losses includes the allocation, when needed, of specific
amounts of the allowance to individual problem loans, generally based on our
analysis of the collateral securing those loans. Portions of the allowance are
allocated to pools of loans, based upon a variety of factors including industry
loss averages for similarly sized institutions and our analysis of the
portfolio, considering the fact that our focus on growth as a denovo institution
makes these factors less relevant, trends in delinquent and non-performing
loans, and economic trends affecting our market. These components are added
together and compared to the balance of our allowance at the evaluation date.
The allowance at December 31, 2002 was $681,000, 1.12% of total loans. Since
inception, there were no charge offs and only limited delinquent loans and no
loans were placed on nonaccrual or nonperforming status.

                     Allocation of Allowance for Loan Losses
                            (in thousands of dollars)

<TABLE>
<CAPTION>
                                                                        2002
                                                                                    Loans as
                                                      Allowance for Loan         Percentage of
                                                            Losses                Gross Loans
                                                      ------------------         -------------
<S>                                                   <C>                        <C>
Allocated allowance for loan losses

   Commercial                                             $      427                  64.9%
   Real Estate                                                    78                  25.5
   Consumer                                                       23                   9.6
                                                          ----------                ------

   Total allocated allowance for loan losses                     528                100.00%
                                                                                    ======
   Unallocated allowance for loan losses                         153
                                                          ----------

   Total allowance for loan losses                        $      681
                                                          ==========
</TABLE>

Total allowance for loan losses at December 31, 2001, was $360,000. As the bank
had completed only full year of operation, sufficient information was not
available to allocate the allowance to particular categories.

SECURITIES. The bank maintains a securities portfolio consisting of high-quality
U.S. government agency and mortgage-backed securities. All securities are held
as available-for-sale. The bank uses its portfolio as a source of interest
income and liquidity. The fair value of securities was $12,313,000 and
$4,842,000 at December 31, 2002 and 2001. Further details of securities by type
are provided in Note 2 of the Financial Statements. Securities may be pledged as
collateral for borrowing from the Federal Home Loan Bank, or for other purposes.

                                                                             12.

<PAGE>

The weighted average yields and maturity distribution (1) for debt securities
portfolio (in thousands of dollars) at December 31, 2002, were as follows:

<TABLE>
<CAPTION>

                                                                     After One Year    After Five Year
Securities available for sale:                                         Within Five     Within Ten Years      Over Ten
                                                 Within One Year          Years                               Years
                                                 ---------------     --------------    ----------------       -----
<S>                                              <C>                 <C>               <C>                   <C>
Government agencies and corporations
   Market value                                    $    2,391          $      965           $    0            $    0
   Yield                                                 4.39%               4.13%               0                 0

Mortgage-backed securities
   Market value                                             0               4,141            3,371             1,445
   Yield                                                    0                4.66%            5.51%             4.97%
                                                   ----------          ----------           ------            ------

Total debt securities available for sale:
   Market value                                    $    2,391          $    5,106            3,371             1,445
   Yield                                                 4.39%               4.56%            5.51%             4.97%
                                                   ==========          ==========           ======            ======
</TABLE>

(1) The maturity distribution of mortgage-backed securities was based on the
average life at the projected speed.

DEPOSIT ACTIVITIES

The Bank offers several types of deposit programs designed to attract both
short-term and long-term savings by providing a wide assortment of accounts and
rates. Interest earned on savings accounts is paid from the date of deposit to
the date of withdrawal, compounded and credited quarterly. Interest earned on
money market demand deposit accounts is compounded and credited monthly. The
interest rates on these accounts are reviewed by management of the Bank daily
and adjusted as often as deemed necessary.

Certificates of deposit were a significant source of funds during 2002. The Bank
was able to attract deposits in the local market during 2002 by offering
competitive rates and special products. Depository institution certificates of
deposit typically are for amounts not exceeding $100,000. At December 31, 2002,
total certificates of deposit were $34,326,000, of which $4,200,000, or 12%,
were obtained from third-party brokers, and $6,828,000, or 20%, were obtained
from depository institutions.

At December 31, 2002, the Bank had certificates of deposit of $100,000 or more
totaling $7,200,000.

The average daily deposits (in thousands) for the years ended December 31, 2002
and 2001, and the average rates paid on those deposits are summarized in the
following table:

<TABLE>
<CAPTION>
                                                                        2002                              2001
                                                                        ----                              ----
                                                                                               Average
                                                           Average Daily     Average Rate       Daily       Average Rate
                                                              Balance           Paid           Balance          Paid
                                                           -------------     ------------      -------      ------------
<S>                                                        <C>               <C>               <C>          <C>
Non-interest bearing demand deposits                         $   2,570           0.00%         $ 1,338          0.00%

Interest-bearing demand deposits                                 4,461           1.66%           3,973          3.14%

Savings accounts                                                13,273           2.74%           1,051          3.33%

Time deposits                                                   30,179           4.11%          12,978          5.07%

Total deposits                                               $  50,483           3.32%         $19,340          4.23%
</TABLE>

                                                                             13.

<PAGE>

BORROWING ACTIVITIES

The Bank also uses borrowing from the Federal Home Loan Bank as a source of
liquidity and to meet temporary funding needs. Borrowings are collateralized by
securities of the Bank pledged to the Federal Home Loan Bank. As discussed in
Note 6 of Notes to the Financial Statements, borrowings may be fixed or variable
rate, and interest is paid monthly. The following presents information about
FHLB borrowings (in thousands of dollars):

<TABLE>
<CAPTION>
                                                                         2002                2001
                                                                         ----                ----
<S>                                                                  <C>                 <C>
Outstanding at year end                                              $ 5,550,000         $  1,000,000

Approximate average interest rate at year end                               1.94%                1.93%

Highest amount outstanding as of any month end during the
year                                                                   5,550,000            1,000,000

Approximate average interest rate during the year                           2.16%                1.93%
</TABLE>

ASSET/LIABILITY MANAGEMENT

The management of the Bank has adopted asset/liability management policies in an
attempt to reduce the susceptibility of the Bank's net interest spread to the
adverse impact of volatile interest by attempting to match maturities (or
time-to-repricing) of assets with maturities or repricing of liabilities and
then actively managing any mismatch. Accomplishing this objective requires
attention to both the asset and liability sides of the balance sheet. The
balance between maturity of assets and maturity of liabilities is measured by
the interest-rate gap and evaluated through the use of projections under various
interest rate change scenarios. The Bank has employed an outside consultant to
assist in asset/liability measurement and management. At December 31, 2002, the
Bank's interest sensitive assets ($74.2 million) exceed its interest bearing
liabilities ($64.6 million) as the assets on the balance sheet are supported by
equity.

The following table sets forth the amounts of Lafayette's interest-earning
assets and interest-earning liabilities outstanding at December 31, 2002, which
are scheduled to reprice or mature in each of the time periods shown. The amount
of assets and liabilities shown which reprice or mature in a given period were
determined in accordance with the contractual terms for fixed-rate assets or
liabilities, including securities, and in accordance with the earliest repricing
dates for variable-rate assets or liabilities. This table does not necessarily
indicate the impact of general interest rate movements on Lafayette's net
interest income because the repricing of certain categories or assets and
liabilities is subject to the interest rate environment, competition and other
factors beyond Lafayette's control. As a result, certain assets and liabilities
may in fact mature, be called, or reprice at different times and in different
volumes than indicated: ($'s in thousands)

<TABLE>
<CAPTION>
                                  0 to 90 days      91 to 365 days     1 to 3 years      Over 3 years        Total
                                  ----------------------------------------------------------------------------------
<S>                               <C>               <C>                <C>               <C>              <C>
Interest earning assets:
  Loans                            $   23,410         $   11,571        $   20,135        $   5,679        $  60,795
  Federal funds sold                      800                 --                --               --              800
  Securities, including Federal
  Home Loan Bank Stock                    278                492                --           11,820           12,590
                                   ---------------------------------------------------------------------------------
Total                                  24,488             12,063            20,135           17,499           74,185

Interest-bearing liabilities:
  Interest-bearing demand and
  savings deposits                     24,690                 --                --               --           24,690
  Time deposits                         6,194             14,753            10,158            3,221           34,326
  Other borrowing                       1,750              3,050               750               --            5,550
                                   --------------------------------------------------------------------------------
Total                              $   32,634         $   17,803        $   10,908        $   3,221        $  64,566
                                   =================================================================================
Interest-earning assets less
Interest-bearing liabilities       $   (8,146)        $   (5,740)       $    9,227        $  14,278
                                   =================================================================================
Cumulative interest-rate
sensitivity gap                    $   (8,146)        $  (13,886)       $   (4,659)       $   9,619
                                   =================================================================================
Cumulative interest-rate gap
as a percentage of total
interest-earning assets                (10.98)%           (18.72)%           (6.28)%          12.97%
                                   =================================================================================
</TABLE>

This table illustrates the difference in repricing (gap) of interest-earning
assets and interest-bearing liabilities over specified periods and cumulatively.
Generally, a positive gap is associated with an increase in net interest margin
as interest rates rise, and a negative gap is associated with an increase in net
interest margin as interest rates fall, and vice versa. An important measurement
of gap occurs concerning assets or liabilities maturing or repricing in one year
or less. The cumulative gap through

                                                                             14.

<PAGE>

one year indicates a falling net interest margin should rates increase.
Interest-bearing demand and savings deposits are shown as part of the earliest
maturities, but while these accounts may be repriced at any time, the Bank does
not expect that most of the funds will be withdrawn, thus lessening the impact
of an interest rate change.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity refers to the ability of a financial institution to generate
sufficient cash to fund current loan demand, meet savings deposit withdrawals
and pay operating expenses. The primary sources of liquidity are cash,
interest-bearing deposits in other financial institutions, marketable
securities, loan repayments, increased deposits and total institutional
borrowing capacity.

Cash and interest-bearing deposits have decreased as a percentage of total
assets primarily due to a shift to higher yielding loans and marketable
securities to improve margins. Management's goal is to maintain cash,
interest-bearing deposits and investments at a level sufficient to satisfy needs
for liquidity and other short-term obligations.

As shown in the Consolidated Statements of Cash Flows, cash of $1,004,000 was
received from operating activities and derived primarily from net cash income.
Cash flows from investing activities of $33,107,000 is comprised of the uses of
cash received from operating and financing activities, of which the primary uses
have been lending and purchase of securities. Cash flows from financing
activities of $31,871,000 is comprised of the sources of funding, of which the
primary sources are customer deposits and borrowing from the Federal Home Loan
Bank to meet liquidity needs and to fund loan demand.

At December 31, 2002, commitments to fund loans were $1,428,000 and available
balances on lines of credit totaled 8,425,000. Letters of credit totaled
$52,000. In the opinion of management, the Bank has sufficient cash flow and
borrowing capacity to meet funding commitments and to maintain proper liquidity
levels based upon the ability to borrow funds from the FHLB and the Bank's
favorable liquidity ratio.

CAPITAL ADEQUACY

The Bank is subject to regulatory capital requirements administered by federal
banking agencies. Capital adequacy guidelines and prompt corrective action
regulations involve quantitative and qualitative measures of assets, liabilities
and certain off-balance-sheet items calculated under regulatory accounting
practices.

The most restrictive capital adequacy requirement in place during 2002 was from
the agreement with the FDIC in conjunction with the approval for deposit
insurance. It required that a minimum total capital to risk weighted assets
ratio of 8% be maintained for the first three years of operation. The Bank's
corresponding capital ratio at December 31, 2002, was 15.5%.

                                                                             15.

<PAGE>

ITEM 7. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

                                    CONTENTS

REPORT OF INDEPENDENT AUDITORS

FINANCIAL STATEMENTS

     CONSOLIDATED BALANCE SHEETS

     CONSOLIDATED STATEMENTS OF OPERATIONS

     CONSOLIDATED STATEMENTS OF CHANGES IN
     SHAREHOLDERS' EQUITY

     CONSOLIDATED STATEMENTS OF CASH FLOWS

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                                                             16.

<PAGE>

                         REPORT OF INDEPENDENT AUDITORS

Board of Directors and Shareholders
Lafayette Community Bancorp
Lafayette, Indiana

We have audited the accompanying consolidated balance sheets of Lafayette
Community Bancorp as of December 31, 2002 and 2001 and the related consolidated
statements of operations, changes in shareholders' equity and cash flows for the
years then ended. These financial statements are the responsibility of the
Corporation's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Lafayette Community Bancorp as
of December 31, 2002 and 2001, and the results of its operations and its cash
flows for the years then ended in conformity with accounting principles
generally accepted in the United States of America.

                                             Crowe, Chizek and Company LLP

Indianapolis, Indiana
January 22, 2003

                                                                             17.

<PAGE>

                           LAFAYETTE COMMUNITY BANCORP
                           CONSOLIDATED BALANCE SHEETS
                           December 31, 2002 and 2001

<TABLE>
<CAPTION>
                                                                                      2002                 2001
                                                                                      ----                 ----
<S>                                                                              <C>                   <C>
ASSETS
Cash and due from banks                                                          $    2,023,715        $  1,596,528
Federal funds sold                                                                      800,000           1,460,000
                                                                                 --------------        ------------
     Cash and cash equivalents                                                        2,823,715           3,056,528
Securities available for sale                                                        12,313,479           4,842,295
Loans, net of allowance ($681,000 and $360,000)                                      60,113,628          35,026,693
Federal Home Loan Bank stock, at cost                                                   277,500              50,000
Premises and equipment, net                                                             540,093             577,235
Accrued interest receivable and other assets                                            641,866             361,078
                                                                                 --------------        ------------

                                                                                 $   76,710,281        $ 43,913,829
                                                                                 ==============        ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
     Non-interest bearing deposits                                               $    3,529,410        $  2,378,936
     Interest bearing deposits                                                       59,015,898          32,835,870
                                                                                 --------------        ------------
         Total deposits                                                              62,545,308          35,214,806
     Federal Home Loan Bank advances                                                  5,550,000           1,000,000
     Accrued expenses payable and other liabilities                                     188,273             163,250
                                                                                 --------------        ------------
         Total liabilities                                                           68,283,581          36,378,056

Shareholders' equity
     Common stock, no par value:  10,000,000 shares authorized;
       2002 - 899,900 and 2001 - 902,000 shares issued;
       2002 - 899,150 and 2001 - 899,900 shares outstanding                           8,568,428           8,594,628
     Accumulated deficit                                                               (235,342)           (985,080)
     Accumulated other comprehensive income/(loss)                                      103,139             (47,575)
     Treasury stock, at cost; 2002 - 750 and 2001 - 2,100  shares                        (9,525)            (26,200)
                                                                                 --------------        ------------
         Total shareholders' equity                                                   8,426,700           7,535,773
                                                                                 --------------        ------------

                                                                                 $   76,710,281        $ 43,913,829
                                                                                 ==============        ============
</TABLE>

                             See accompanying notes.

                                                                             18.

<PAGE>

                           LAFAYETTE COMMUNITY BANCORP
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 For the years ended December 31, 2002 and 2001

<TABLE>
<CAPTION>
                                                                                      2002                 2001
                                                                                      ----                 ----
<S>                                                                              <C>                   <C>
                                 INTEREST INCOME
     Loans, including related fees                                               $    3,519,202        $  1,764,575
     Taxable securities                                                                 416,225              78,943
     Other                                                                               46,446             128,055
                                                                                 --------------        ------------
                                                                                      3,981,873           1,971,573

INTEREST EXPENSE
     Deposits                                                                         1,677,000             816,409
     Other                                                                               57,717               2,178
                                                                                 --------------        ------------
                                                                                      1,734,717             818,587

NET INTEREST INCOME                                                                   2,247,156           1,152,986

Provision for loan losses                                                               321,000             360,000
                                                                                 --------------        ------------

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES                                   1,926,156             792,986

Non-interest income
     Service charges on deposit accounts                                                 63,459              31,740
     Net realized gains on securities                                                     5,409              17,468
     Brokerage fees on mortgage loans
       originated for sale                                                              621,023             245,568
     Other                                                                               33,655              17,756
                                                                                 -------------         ------------
                                                                                        723,546             312,532
Non-interest expenses
     Salaries and employee benefits                                                   1,154,418             784,141
     Occupancy and equipment                                                            268,041             244,173
     Legal and professional fees                                                         98,019              54,998
     Data processing                                                                    123,660             100,725
     Advertising                                                                         95,029              61,000
     Directors fees                                                                      47,000              45,000
     Other                                                                              245,797             171,873
                                                                                 --------------        ------------
         Total operating expenses                                                     2,031,964           1,461,910
                                                                                 --------------        ------------
INCOME/(LOSS) BEFORE INCOME TAXES                                                       617,738            (356,392)

Income tax benefit                                                                     (132,000)                  -
                                                                                 --------------        ------------

NET INCOME/(LOSS)                                                                $      749,738        $   (356,392)
                                                                                 ==============        ============

Basic earnings/(loss) per share                                                  $          .83        $       (.40)
                                                                                 ==============        ============

Diluted earnings/(loss) per share                                                $          .82        $       (.40)
                                                                                 ==============        ============
</TABLE>

                             See accompanying notes.

                                                                             19.

<PAGE>

                           LAFAYETTE COMMUNITY BANCORP
           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                 For the years ended December 31, 2002 and 2001

<TABLE>
<CAPTION>
                                                                           Accumulated
                                                                              Other
                                           Common        Accumulated      Comprehensive     Treasury
                                           Stock           Deficit        Income/(Loss)       Stock          Total
                                           ------        -----------      -------------     --------         -----
<S>                                     <C>              <C>              <C>               <C>           <C>
BALANCE JANUARY 1, 2001                 $  8,594,628     $ (628,688)        $       -       $       -     $ 7,965,940

Purchase of 2,100 shares of
  treasury stock                                                                              (26,200)        (26,200)
Comprehensive loss
     Net loss                                              (356,392)                                         (356,392)
     Change in net unrealized
       gain/(loss) on securities
       available for sale, net                                                (47,575)                        (47,575)
                                                                                                          -----------
Total comprehensive loss                                                                                     (403,967)
                                        ------------     ----------         ---------       ---------     -----------

BALANCE DECEMBER 31, 2001                  8,594,628       (985,080)          (47,575)        (26,200)      7,535,773

Retirement of treasury stock                 (26,200)                                          26,200               -
Purchase of 750 shares of
  treasury stock                                                                               (9,525)         (9,525)
Comprehensive income
     Net income                                             749,738                                           749,738
     Change in net unrealized
       gain/(loss) on securities
       available for sale, net                                                150,714                         150,714
                                                                                                          -----------
Total comprehensive income                                                                                    900,453
                                        ------------     ----------         ---------       ---------     -----------

BALANCE DECEMBER 31, 2002               $  8,568,428     $ (235,342)        $ 103,139       $  (9,525)    $ 8,426,700
                                        ============     ==========         =========       =========     ===========
</TABLE>

                             See accompanying notes.

                                                                             20.

<PAGE>

                           LAFAYETTE COMMUNITY BANCORP
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                 For the years ended December 31, 2002 and 2001

<TABLE>
<CAPTION>
                                                                                      2002              2001
                                                                                      ----              ----
<S>                                                                               <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income/(loss)                                                             $    749,738      $   (356,392)
    Adjustments to reconcile net income/(loss) to net
      cash from operating activities
       Depreciation and amortization                                                    94,550            83,383
       Provision for loan losses                                                       321,000           360,000
       Net amortization of securities                                                  167,201            17,407
       Net realized (gain)/loss on sale of securities                                   (5,409)          (17,468)
       Change in assets and liabilities:
          Accrued interest receivable and other assets                                (348,438)         (276,810)
          Accrued interest payable and other liabilities                                25,023            50,497
                                                                                  ------------      ------------
              Net cash from operating activities                                     1,003,665          (139,383)

CASH FLOWS FROM INVESTING ACTIVITIES
    Purchases of securities                                                        (11,179,277)       (6,487,846)
    Proceeds from securities sold                                                      513,750         1,022,788
    Proceeds from securities matured/called/repaid                                   3,250,915           575,249
    Purchase of FHLB stock                                                            (227,500)          (50,000)
    Loans made to customers, net of payments collected                             (25,407,935)      (29,059,010)
    Purchase of premises and equipment                                                 (57,408)         (153,588)
                                                                                  ------------      ------------
              Net cash from investing activities                                   (33,107,455)      (34,152,407)

CASH FLOWS FROM FINANCING ACTIVITIES
    Net change in deposit accounts                                                  27,330,502        33,036,537
    Proceeds from FHLB advances                                                      5,550,000         1,000,000
    Repayment of FHLB advances                                                      (1,000,000)                -
    Repurchase of common stock                                                          (9,525)          (26,200)
                                                                                  ------------      ------------
       Net cash from financing activities                                           31,870,977        34,010,337
                                                                                  ------------      ------------

Net change in cash and cash equivalents                                               (232,813)         (281,453)

Cash and cash equivalents at beginning of period                                     3,056,528         3,337,981
                                                                                  ------------      ------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                        $  2,823,715      $  3,056,528
                                                                                  ============      ============
Supplemental disclosures of cash flow information
    Cash paid during the period for:
       Interest                                                                   $  1,730,554      $    681,667
       Income taxes                                                                          -                 -
</TABLE>

                             See accompanying notes.

                                                                             21.

<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation and Description of Business: The consolidated
financial statements include the accounts of Lafayette Community Bancorp
(Corporation) and its wholly-owned subsidiary, Lafayette Community Bank (Bank),
after elimination of significant intercompany transactions and accounts.

The Bank commenced operations on November 1, 2000. The Bank is engaged in the
business of commercial and retail banking, with operations conducted through its
main office and branch located in Lafayette, Indiana. The majority of the Bank's
income is derived from commercial and retail business lending activities and
investments. The majority of the Bank's loans are secured by specific items of
collateral including business assets, real property and consumer assets.

Use of Estimates: To prepare financial statements in conformity with accounting
principles generally accepted in the United States of America, management makes
estimates and assumptions based on available information. These estimates and
assumptions effect the amounts reported in the financial statement and the
disclosures provided and future results could differ. The allowance for loan
losses and the fair values of financial instruments are particularly subject to
change.

Securities: Securities are classified as available for sale when they might be
sold before maturity. Securities available for sale are carried at fair value,
with unrealized holding gains and losses reported in other comprehensive income.
Other securities such as Federal Home Loan Bank stock are carried at cost.

Interest income includes amortization of purchase premium or discount. Gains and
losses on sales are based on the amortized cost of the security sold. Securities
are written down to fair value when a decline in fair value is not temporary.

Loans: Loans are reported at the principal balance outstanding, net of unearned
interest, deferred loan fees and costs, and an allowance for loan losses.
Interest income is reported on the interest method and includes amortization of
net deferred loan fees and costs over the loan term. Interest income on mortgage
and commercial loans is discontinued at the time the loan is 90 days delinquent
unless the credit is well-secured and in process of collection. In all cases,
loans are placed on nonaccrual or charged-off at an earlier date if collection
of principal or interest is considered doubtful.

All interest accrued but not received for loans placed on nonaccrual is reversed
against interest income. Interest received on such loans is accounted for on the
cash-basis or cost-recovery method, until qualifying for return to accrual.
Loans are returned to accrual status when all the principal and interest amounts
contractually due are brought current and future payments are reasonably
assured.

Allowance for Loan Losses: The allowance for loan losses is a valuation
allowance for probable incurred credit losses, increased by the provision for
loan losses and decreased by charge-offs less recoveries. Management estimates
the allowance balance required using past loan loss experience, the nature and
volume of the portfolio, information about specific borrower situations and
estimated collateral values, economic conditions, and other factors. Allocations
of the allowance may be made for specific loans, but the entire allowance is
available for any loan that, in management's judgment, should be charged-off.
Loan losses are charged against the allowance when management believes the
uncollectibility of a loan balance is confirmed.

A loan is impaired when full payment under the loan terms is not expected.
Impairment is evaluated in total for smaller-balance loans of similar nature
such as residential mortgage, consumer, and credit card loans, and on an
individual loan basis for other loans. If a loan is impaired, a portion of the
allowance is allocated so that the loan is reported, net, at the present value
of estimated future cash flows using the loan's existing rate or at the fair
value of collateral if repayment is expected solely from the collateral.

Premises and Equipment: Premises and equipment are stated at cost less
accumulated depreciation. Depreciation expense is recognized over the estimated
useful lives of the assets, principally on the straight-line method. These
assets are reviewed for impairment when events indicate the carrying amount may
not be recoverable. Maintenance and repairs are expensed and major improvements
are capitalized.

Income Taxes: Income tax expense is the sum of the current year income tax due
or refundable and the change in deferred tax assets and liabilities. Deferred
tax assets and liabilities are the expected future tax consequences of temporary
differences between the carrying amounts and tax bases of assets and
liabilities, computed using enacted tax rates. A valuation allowance, if needed,
reduces deferred tax assets to the amount expected to be realized.

Financial Instruments: Financial instruments include credit instruments, such as
commitments to make loans and standby letters of credit, issued to meet customer
financing needs. The face amount for these items represents the exposure to
loss, before considering customer collateral or ability to repay.

                                  (Continued)

                                                                             22.

<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Stock Compensation: Employee compensation expense under stock options is
reported using the intrinsic value method. No stock-based compensation cost is
reflected in net income, as all options granted had an exercise price equal to
or greater than the market price of the underlying common stock at date of
grant. The following table illustrates the effect on net income and earnings per
share if expense was measured using the fair value recognition provisions of
FASB Statement No. 123, Accounting for Stock-Based Compensation.

<TABLE>
<CAPTION>
                                                                                   2002               2001
                                                                                   ----               ----
<S>                                                                             <C>               <C>
Net income/(loss) as reported                                                   $  749,738        $  (356,392)
Deduct: Stock-based compensation expense
  determined under fair value based method                                          16,523            136,800
                                                                                ----------        -----------
Pro forma net income                                                               733,215           (493,192)

Basic earnings/(loss) per share as reported                                            .83               (.40)
Pro forma basic earnings/(loss) per share                                              .82               (.55)

Diluted earnings/(loss) per share as reported                                          .82               (.40)
Pro forma diluted earnings/(loss) per share                                            .81               (.55)
</TABLE>

The pro forma effects are computed using option pricing models, using the
following weighted-average assumptions as of grant date (no options were granted
in 2002).

<TABLE>
<CAPTION>
                                                                                  2002                 2001
                                                                                  ----                 ----
<S>                                                                               <C>               <C>
Risk-free interest rate                                                             -%              4.88%
Expected option life                                                                -                  7 years
Expected stock price volatility                                                     -                  -
Dividend yield                                                                      -%                 -%
</TABLE>

Comprehensive Income (Loss): Comprehensive income (loss) consists of net income
and other comprehensive income. Other comprehensive income includes unrealized
gains and losses on securities available for sale and is recognized as a
separate component of equity.

                                  (Continued)

                                                                             23.

<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Earnings (Loss) Per Share: Basic earnings (loss) per share is net income divided
by the weighted average number of common shares outstanding during the period.
Diluted earnings per share includes the dilutive effect of additional potential
common shares issuable under stock options. Earning (loss) and dividends per
share are restated for all stock splits and dividends through the date of issue
of the financial statements.

Dividend Restriction: Banking regulations require maintaining certain capital
levels and may limit the dividends paid by the bank to the holding company or by
the holding company to shareholders.

Fair Values of Financial Instruments: Fair values of financial instruments are
estimated using relevant market information and other assumptions, as more fully
disclosed separately. Fair value estimates involve uncertainties and matters of
significant judgment regarding interest rates, credit risk, prepayments, and
other factors, especially in the absence of broad markets for particular items.
Changes in assumptions or in market conditions could significantly affect the
estimates. The fair value estimates of existing on- and off-balance sheet
financial instruments does not include the value of anticipated future business
or the values of assets and liabilities not considered financial instruments.

Industry Segment: Internal financial information is primarily reported and
aggregated in one line of business, banking.

Loss Contingencies: Loss contingencies, including claims and legal actions
arising in the ordinary course of business, are recorded as liabilities when the
likelihood of loss is probable and an amount or range of loss can be reasonably
estimated. Management does not believe there now are such matters that will have
a material effect on the financial statements.

Newly Issued But Not Yet Effective Accounting Standards: New accounting
standards on asset retirement obligations, restructuring activities and exit
costs, operating leases, and early extinguishment of debt were issued in 2002.
Management determined that when the new accounting standards are adopted in 2003
they will not have a material impact on the Company's financial condition or
results of operations.

                                  (Continued)

                                                                             24.

<PAGE>

NOTE 2 - SECURITIES

The fair value of securities available for sale and the related gains and losses
recognized in other comprehensive income (loss) at year end were as follows:

<TABLE>
<CAPTION>
                                                                                        Gross         Gross
                                                                       Fair          Unrealized    Unrealized
                                                                       Value            Gains        Losses
                                                                       -----         ----------    ----------
<S>                                                                <C>               <C>           <C>
2002
     U.S. Government agencies                                      $   3,356,021     $   63,193    $        -
     Mortgage-backed                                                   8,957,458        109,003        (1,407)
                                                                   -------------     ----------    ----------

                                                                   $  12,313,479     $  172,196    $   (1,407)
                                                                   =============     ==========    ==========
2001
     U.S. Government agencies                                      $   1,360,248     $   14,842    $  (11,569)
     Mortgage-backed                                                   3,482,047              -       (50,848)
                                                                   -------------     ----------    ----------

                                                                   $   4,842,295     $   14,842    $  (62,417)
                                                                   =============     ==========    ==========
</TABLE>

The fair value of securities available for sale, by contractual maturity, at
December 31, 2002 were as follows. Expected maturities will differ from
contractual maturities because issuers may have the right to call or prepay
obligations with or without penalty.

<TABLE>
<S>                                                                                        <C>
Due in one year or less                                                                    $    2,391,151
Due after one year through five years                                                             964,870
Mortgage-backed                                                                                 8,957,458
                                                                                           --------------
                                                                                           $   12,313,479
                                                                                           ==============
</TABLE>

At December 31, 2002 and 2001 securities carried at $12,313,479 and $4,842,295,
were pledged to secure FHLB advances and for other purposes.

Gross gains realized on sales of securities during 2002 and 2001 were $5,409 and
$17,468.

                                  (Continued)

                                                                             25.

<PAGE>

NOTE 3 - LOANS

Total loans are comprised of the following:

<TABLE>
<CAPTION>
                                                                          2002             2001
                                                                          ----             ----
<S>                                                                   <C>              <C>
Real estate                                                           $ 15,481,806     $   7,869,036
Commercial                                                              39,431,705        25,631,177
Consumer                                                                 5,881,117         1,886,480
                                                                      ------------     -------------
                                                                        60,794,628        35,386,693
Less: allowance for loan losses                                           (681,000)         (360,000)
                                                                      ------------     -------------

                                                                      $ 60,113,628     $  35,026,693
                                                                      ============     =============
</TABLE>

Certain directors, executive officers and shareholders of the Company and the
Bank, including their families and companies in which they are the principal
owners, were customers of and had transactions with the Bank. Total loans to
these persons were $1,866,219 and $3,511,408 at December 31, 2002 and 2001.
During 2002, new loans and advances on lines of credit to these individuals
totaled $2,630,567, repayments totaled $3,208,215 and balances sold as
participations totaled $1,067,541.

An analysis of the allowance for loan losses is as follows:

<TABLE>
<CAPTION>
                                                                                2002          2001
                                                                                ----          ----
<S>                                                                          <C>           <C>
Balance at beginning of year                                                 $  360,000    $        -
Provision for loan losses                                                       321,000       360,000
Loans charged-off                                                                     -             -
Recoveries                                                                            -             -
                                                                             ----------    ----------

Balance at end of year                                                       $  681,000    $  360,000
                                                                             ==========    ==========
</TABLE>

No loans were designated as impaired at December 31, 2002 and 2001, nor were any
loans so designated during the years then ended. No loans were considered
non-performing, either on non-accrual or delinquent greater than 90 days, at
December 31, 2002 and 2001.

NOTE 4 - PREMISES AND EQUIPMENT

Premises and equipment consist of the following:

<TABLE>
<CAPTION>
                                                                                2002          2001
                                                                                ----          ----
<S>                                                                          <C>           <C>
Furniture and equipment                                                      $  530,403    $  481,036
Leasehold improvements                                                          199,808       191,767
                                                                             ----------    ----------
    Total                                                                       730,211       672,803
Accumulated depreciation                                                        190,118)      (95,568)
                                                                             ----------    ----------

                                                                             $  540,093    $  577,235
                                                                             ==========    ==========
</TABLE>

                                  (Continued)

                                                                             26.

<PAGE>

NOTE 5 - DEPOSITS

Certificates of deposit in denominations of $100,000 or more totaled $7,199,130
and $6,874,403 at December 31, 2002 and 2001.

At year-end 2002, scheduled maturities of time deposits were as follows:

<TABLE>
<S>                                           <C>
2003                                          $    19,871,698
2004                                                7,535,154
2005                                                2,640,570
2006                                                  581,907
2007                                                3,697,137
                                              ---------------
                                              $    34,326,466
                                              ===============

</TABLE>

Time deposits originated from outside the geographic area, generally through
brokers or internet based deposit gathering services, totaled $11,028,000 and
$11,675,000 at December 31, 2002 and 2001.

Deposits from principal officers, directors and their affiliates at year-end
2002 and 2001 were $3,381,000 and $2,102,000.

NOTE 6 - BORROWINGS

FHLB advances are due at maturity and generally cannot be prepaid without
penalty. They are secured by a pledge of securities held at the Federal Home
Loan Bank. Interest is payable monthly. At December 31, 2002, variable rate
advances totaled $4,550,000 with an interest rate of 1.33% at December 31, 2002
and maturity dates ranging from March 5, 2003 through June 30, 2003; and fixed
rate advances totaled $1,000,000 with interest rates ranging from 2.64% to
4.22%, averaging 3.48%, and maturity dates ranging from February 25, 2003 to
February 28, 2005.

Maturities over the next five years are:

<TABLE>
<S>                                               <C>
2003                                              $     4,800,000
2004                                                      500,000
2005                                                      250,000
                                                  ---------------
                                                  $     5,550,000
                                                  ===============
</TABLE>

                                  (Continued)

                                                                             27.

<PAGE>

NOTE 7 - INCOME TAXES

Income tax expense (benefit) was as follows.

<TABLE>
<CAPTION>
                                                                                2002          2001
                                                                                ----          ----
<S>                                                                          <C>           <C>
Current                                                                      $   29,965    $        -
Deferred                                                                        192,296      (104,000)
Change in valuation allowance                                                   354,261)      104,000
                                                                             ----------    ----------

    Total                                                                    $ (132,000)   $        -
                                                                             ==========    ==========
</TABLE>

Effective tax rates differ from federal statutory rates applied to pre-tax
income due to the following.

<TABLE>
<CAPTION>
                                                                                2002          2001
                                                                                ----          ----
<S>                                                                          <C>           <C>
Federal statutory rate (34%) times pre-tax
  income                                                                     $  210,031    $ (121,173)
Effect of:
    Change in valuation allowance                                               354,261)      104,000
    State taxes, net of federal benefit                                          33,191       (11,004)
    Other, net                                                                  (20,961)       28,177
                                                                             ----------    ----------

    Total                                                                    $ (132,000)   $        -
                                                                             ==========    ==========
</TABLE>

Year-end deferred tax assets and liabilities were due to the following.

<TABLE>
<CAPTION>
                                                                                2002          2001
                                                                                ----          ----
<S>                                                                          <C>           <C>
   Deferred tax assets:
   Allowance for loan losses                                                 $  237,465    $  122,653
   Net operating loss carryforward                                                    -       178,523
   Deferred loan fees                                                            18,592        11,496
   Start-up expenses                                                            113,992       159,156
   Other                                                                         10,253         1,267
                                                                             ----------    ----------
                                                                                380,302       473,095
Deferred tax liabilities:
   Accumulated depreciation                                                      63,704        40,526
   Net unrealized appreciation on
     securities available for sale                                               67,650             -
   Cash basis tax accounting                                                    154,633        78,308
                                                                             ----------    ----------
                                                                                285,987       118,834

Valuation allowance on deferred tax assets                                            -      (354,261)
                                                                             ----------    ----------
Net deferred tax asset                                                       $   94,315    $        -
                                                                             ==========    ==========
</TABLE>

                                  (Continued)

                                                                             28.

<PAGE>

NOTE 7 - INCOME TAXES (continued)

At December 31, 2001, the Corporation had a net deferred tax asset of $354,261,
which was reduced to $0 by a valuation allowance. During 2002, the Corporation
generated sufficient income to fully utilize all existing net operating loss
carryforwards and eliminate the need for a valuation allowance.

NOTE 8 - BENEFIT PLANS

The Corporation sponsors a 401-k retirement plan for all of its employees. The
matching of a portion of employee contributions to the plan is determined
annually, by the Board of Directors. The match for 2002 and 2001 was 50% of the
first 6%. Contributions accrued and charged to operations in 2002 and 2001 were
$25,155 and $8,425.

NOTE 9 - EARNINGS PER SHARE

The following illustrates the computation of basic and diluted earnings per
share.

<TABLE>
<CAPTION>
                                                                                2002          2001
                                                                                ----          ----
<S>                                                                          <C>           <C>
BASIC EARNINGS/(LOSS) PER SHARE
     Net income/(loss)                                                       $  749,738    $ (356,392)
     Weighted average shares outstanding                                        899,524       901,922
                                                                             ----------    ----------

         Basic earnings/(loss) per share                                     $      .83    $     (.40)
                                                                             ==========    ==========
DILUTED EARNINGS/(LOSS) PER SHARE
     Net income/(loss)                                                       $  749,738    $ (365,392)

     Weighted average shares outstanding                                        899,524       901,922
     Dilutive effects of assumed exercises of stock options                      10,345             -
                                                                             ----------    ----------
     Diluted average shares outstanding                                         909,869       901,922
                                                                             ----------    ----------

         Diluted earnings/(loss) per share                                   $      .82    $     (.40)
                                                                             ==========    ==========
</TABLE>

                                  (Continued)

                                                                             29.

<PAGE>

NOTE 10 - CAPITAL REQUIREMENTS

The Bank is subject to regulatory capital requirements administered by federal
banking agencies. Capital adequacy guidelines and prompt corrective action
regulations involve quantitative and qualitative measures of assets, liabilities
and certain off-balance-sheet items calculated under regulatory accounting
practices.

The prompt corrective action regulations provide five classifications, including
well capitalized, adequately capitalized, undercapitalized, significantly
undercapitalized and critically undercapitalized, although these terms are not
used to represent overall financial condition. If only adequately capitalized,
regulatory approval is required to accept brokered deposits. If
undercapitalized, capital distributions are limited, as is asset growth and
expansion, and plans for capital restoration are required.

At year end 2002 and 2001, the Bank was well-capitalized. Actual capital levels
and minimum required levels were (in 000's):

<TABLE>
<CAPTION>
                                                                                                Minimum Required
                                                                                                   To Be Well
                                                                       Minimum Required         Capitalized Under
                                                                         For Capital            Prompt Corrective
                                                  Actual              Adequacy Purposes         Action Regulations
                                                  ------              -----------------         ------------------
                                            Amount       Ratio        Amount      Ratio         Amount       Ratio
                                            ------       -----        ------      -----         ------       -----
<S>                                        <C>           <C>         <C>          <C>           <C>          <C>
2002
Total capital (to risk weighted assets)    $  8,436       16%        $  4,351       8%          $ 5,439       10%
Tier 1 capital (to risk weighted assets)      7,756       14            2,176       4             3,263        6
Tier 1 capital (to average assets)            7,756       11            2,913       4             3,641        5

2001
Total capital (to risk weighted assets)    $  7,545       23%        $  2,603       8%          $ 3,254       10%
Tier 1 capital (to risk weighted assets)      7,185       22            1,302       4             1,953        6
Tier 1 capital (to average assets)            7,185       18            1,640       4             2,050        5
</TABLE>

Additionally, the Bank is to maintain a minimum Tier 1 capital to total assets
ratio of eight percent during the Bank's first three years of operations, under
an agreement entered into with regulators prior to the Bank's opening.

NOTE 11 - COMMITMENTS AND CONTINGENT LIABILITIES

The Bank leases its branch facilities under operating leases, which expire in
2005. Lease expense was $103,120 and $103,410 for 2002 and 2001. Future minimum
lease payments are as follows:

<TABLE>
<S>                                          <C>
2003                                         $     99,250
2004                                               99,250
2005                                               70,312
                                             ------------

  Total minimum lease payments               $    268,812
                                             ============
</TABLE>

The main office is leased from a company owned by members of the Company's Board
of Directors. Annual lease expense relative to this lease is $75,000 and the
lease expires in 2005.

                                  (Continued)

                                                                             30.

<PAGE>

NOTE 11 - COMMITMENTS AND CONTINGENT LIABILITIES (Continued)

In the ordinary course of business, the Bank has loans, commitments and
contingent liabilities, such as guarantees and commitments to extend credit,
which are not reflected in the consolidated balance sheet. The Bank's exposure
to credit loss in the event of nonperformance by the other party to the
financial instrument for commitments to make loans and standby letters of credit
is represented by the contractual amount of those instruments. The Bank uses the
same credit policy to make such commitments as it uses for on-balance sheet
items.

Off-balance sheet financial instruments whose contract amount represents credit
risk are summarized as follows:

<TABLE>
<CAPTION>
                                                                                2002               2001
                                                                                ----               ----
<S>                                                                     <C>                 <C>
Unused lines of credit                                                  $      8,625,469    $    5,565,094
Commitments to make loans                                                      1,428,400           750,000
Letters of credit                                                                 52,000            51,700
</TABLE>

Since many commitments to make loans expire without being used, the amount does
not necessarily represent future cash commitments. Collateral obtained upon
exercise of the commitment is determined using management's credit evaluation of
the borrower, and may include accounts receivable, inventory, property, land and
other items. These commitments are generally variable rate or carry a term of
one year or less.

The cash balance required to be maintained on hand or on deposit with the
Federal Reserve was $75,000 at December 31, 2002 and 2001. These reserves do not
earn interest.

                                  (Continued)

                                                                             31.

<PAGE>

NOTE 12 - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying value and estimated fair values of the Corporation's financial
instruments were as follows at December 31 (in thousands):

<TABLE>
<CAPTION>
                                                       2 0 0 2                            2 0 0 1
                                                       -------                            -------
                                              Carrying          Fair            Carrying         Fair
                                                Value           Value             Value          Value
                                              --------          -----           --------         -----
<S>                                       <C>             <C>              <C>              <C>
Financial assets:
    Cash and cash equivalents             $      2,824    $      2,824     $       3,057    $       3,057
    Securities                                  12,313          12,313             4,842            4,842
    Loans, net                                  60,114          60,469            35,027           35,573
    Accrued interest receivable                    488             488               283              283

Financial liabilities:
    Deposits                              $    (62,545)   $    (62,625)    $     (35,215)   $     (35,559)
    Borrowings                                  (5,550)         (5,553)           (1,000)          (1,000)
    Accrued interest payable                      (144)           (144)             (140)            (140)
</TABLE>

Fair value approximates carrying amount for all items except those described
below. Fair value for loans is based on the rates charged at year end for new
loans with similar maturities, applied until the loan is assumed to reprice or
be paid. Fair value for IRAs and time certificates of deposit are based on the
rates paid at year end for new deposits, applied until maturity. Fair value of
borrowings are based on the rates paid at year-end for new borrowings, applied
until maturity. Fair value for off-balance-sheet loan commitments are considered
nominal.

NOTE 13 - STOCK OPTIONS

Options to buy stock are granted to directors, officers and employees under the
Employee Stock Option Plan, which provides for issue of up to 180,000 options.
Exercise price is the greater of market price at date of grant or $10. The
maximum option term is ten years. Options granted to directors generally vest
immediately while options granted to employees will generally vest over five
years.

                                                                             32.

<PAGE>

NOTE 13 - STOCK OPTIONS (Continued)

A summary of the Corporation's stock option activity, and related information
follows:

<TABLE>
<CAPTION>

                                                   2 0 0 2                               2 0 0 1
                                                   -------                               -------
                                                           Weighted-                             Weighted-
                                                            Average                               Average
                                                           Exercise                              Exercise
                                           Options           Price                Options          Price
                                           -------         ---------              -------        ---------
<S>                                    <C>               <C>                  <C>              <C>
Outstanding - beginning
   of period                                  95,000     $       10.50                    -    $           -
Granted                                            -                 -               95,000            10.50
Exercised                                          -                 -                    -                -
Forfeited                                       (350)            10.50                    -                -
                                       -------------     -------------        -------------    -------------

Outstanding-end of period                     94,650     $       10.50               95,000    $       10.50
                                       =============     =============        =============    =============

Exercisable at end of period                  58,930     $       10.50               50,000    $       10.50
                                       =============     =============        =============    =============
Weighted-average fair value
  per option granted during
  the period                           $           -                          $        3.04
                                       =============                          =============
</TABLE>

NOTE 14 - PARENT COMPANY STATEMENTS

Presented below are condensed balance sheets and statements of operations and
cash flows for the parent company:

                            CONDENSED BALANCE SHEETS
                           December 31, 2002 and 2001

<TABLE>
<CAPTION>
                                                                                       2002              2001
                                                                                       ----              ----
<S>                                                                               <C>               <C>
ASSETS
Cash                                                                              $      340,326    $       398,592
Investment in bank                                                                     7,858,965          7,137,181
Income tax asset                                                                         244,700                  -
                                                                                  --------------    ---------------

                                                                                  $    8,443,991    $     7,535,773
                                                                                  ==============    ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities                                                                       $       17,291    $             -
Shareholders' equity                                                                   8,426,700          7,535,773
                                                                                  --------------    ---------------

                                                                                  $    8,443,991    $     7,535,773
                                                                                  ==============    ===============
</TABLE>

                                                                             33.

<PAGE>

NOTE 14 - PARENT COMPANY STATEMENTS (Continued)

                       CONDENSED STATEMENTS OF OPERATIONS
                     Years ended December 31, 2002 and 2001

<TABLE>
<CAPTION>
                                                                                          2002             2001
                                                                                          ----             ----
<S>                                                                                 <C>                <C>
Dividends received from subsidiary bank                                             $            -     $          -
Interest income                                                                              9,541           20,808
Operating expenses                                                                         (75,573)         (67,680)
Income tax     benefit                                                                     244,700                -
Equity in undistributed income/(loss) of bank                                              571,070         (309,520)
                                                                                    --------------     ------------

NET INCOME/(LOSS)                                                                   $      749,738     $   (356,392)
                                                                                    ==============     ============
</TABLE>

                       CONDENSED STATEMENTS OF CASH FLOWS
                 For the years ended December 31, 2002 and 2001

<TABLE>
<CAPTION>

                                                                                         2002             2001
                                                                                         ----             ----
<S>                                                                                 <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     Net income/(loss)                                                              $    749,738    $      (356,392)
     Adjustments to reconcile net income/(loss) to net cash
       from operating activities
         Equity in undistributed (income)/loss of bank                                  (571,070)           309,520
         Net change in other assets                                                     (244,700)                 -
         Net change in other liabilities                                                  17,291                  -
                                                                                    ------------    ---------------
              Net cash from operating activities                                         (48,741)           (46,872)

CASH FLOWS FROM FINANCING ACTIVITIES
     Purchase of treasury stock                                                           (9,525)           (26,200)
                                                                                    ------------    ---------------
         Net cash from financing activities                                               (9,525)           (26,200)
                                                                                    ------------    ---------------

Net change in cash and cash equivalents                                                  (58,266)           (73,072)

Beginning cash and cash equivalents                                                      398,592            471,664
                                                                                    ------------    ---------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                          $    340,326    $       398,592
                                                                                    ============    ===============
</TABLE>

                                                                             34.

<PAGE>

NOTE 15 - OTHER COMPREHENSIVE INCOME

<TABLE>
<CAPTION>
                                                                                     2002              2001
                                                                                     ----              ----
<S>                                                                            <C>                <C>
Unrealized holding gains (losses) on
  available-for-sale securities                                                $      223,773     $    (30,107)
Reclassification adjustments for (gains) losses later
  recognized in income                                                                 (5,409)         (17,468)
                                                                               --------------     ------------
Net unrealized gains (losses)                                                         218,364          (47,575)
Tax effect                                                                            (67,650)               -
                                                                               --------------     ------------

    Other comprehensive income/(loss)                                          $      150,714     $    (47,575)
                                                                               ==============     ============
</TABLE>

                                                                             35.

<PAGE>

ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.

         None

PART III

ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTORS AND CONTROL PERSONS OF
LAFAYETTE; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

         David R. Zimmerman, age 44, Director of Lafayette since its
organization, is President and Chief Executive Officer of Lafayette Community
Bancorp and President and Chief Executive Officer of the Bank. Mr. Zimmerman was
the Vice-President, Commercial Lending, when he left Lafayette Bank & Trust in
1999 to form Lafayette. Mr. Zimmerman's present term of office as director of
Lafayette expires this year and he is a nominee for re-election to Lafayette's
Board of Directors, the term of which would expire in 2006.

         Edward Chosnek, age 56, Director of Lafayette since its organization,
is senior attorney and majority owner of the Lafayette, Indiana, law firm of
Pearlman & Chosnek, P.C. He currently serves as Chairman of the Board of
Directors of Lafayette. Mr. Chosnek's term of office as director expires in
2005.

         John R. Basham, II, age 56, Director of Lafayette since its
organization, is owner and operator of Basham Rentals, Lafayette, Indiana, and
lifelong resident of Lafayette. Mr. Basham worked at Eli Lilly & Co. from
1969-97 during which time he served as Senior Environmental Control Operator.
Mr. Basham's term of office as director expires in 2004.

         Donald J. Ehrlich, age 65, Director of Lafayette since its
organization, is a Director of Danaher Corporation and Indiana Secondary Market
Corporation. Mr. Ehrlich's present term of office as director of Lafayette
expires this year and he is a nominee for re-election to Lafayette's Board of
Directors, the term of which would expire in 2006.

         Steven Hogwood, age 46, Director of Lafayette since its organization,
also owns and operates as a franchisee numerous fast-food restaurants in the
Lafayette area. Mr. Hogwood served as Executive Director of Operations of the
McDonald Corporation, Oakbrook, Illinois, from 1976-1995. Currently, Mr. Hogwood
serves as a director for the Indiana Business College and Junior Achievement of
White County, Indiana, and is the Chairman for Public Relations for the
Indianapolis, Indiana, area. Mr. Hogwood's term of office as director expires in
2004.

         Connie L. Ehrlich, age 44, Director of Lafayette since its
organization, worked at Wabash National Corporation from 1985-2001. She is
retired. Ms. Ehrlich's term of office as director expires in 2005.

         Thomas A. McDonald, age 37, Director of Lafayette since its
organization, is self-employed in the residential and commercial real estate
business in and around the Lafayette area. Mr. McDonald is a lifelong resident
of Lafayette. Mr. McDonald's term of office as director expires in 2004.

         Steven W. Norfleet, age 53, Director of Lafayette since its
organization, is a consultant and an owner of Norfleet Builders, a residential
and commercial building and development company located in Lafayette, Indiana.
Mr. Norfleet has been a lifelong resident of Lafayette. Mr. Norfleet is a
director of the Lafayette Greater Progress. Mr. Norfleet's present term of
office as director expires in 2005.

         Richard D. Murray, age 48, is the Vice-President, Administration, of
the Bank. Prior to his employment with the Bank, Mr. Murray was with Cincinnati
Insurance Company from 1981 to 1999, retiring as a supervisor.

         Dennis R. Hardwick, age 49, is the Vice-President, Controller of the
Bank. He currently serves as Secretary to the Board of Directors of Lafayette.
Prior to his employment with Bank, Mr. Hardwick was the Assistant Vice
President, Accounting Officer at Peoples Bank & Trust Company.

         J. Michael Pechin, age 36, is the Senior Vice-President, Senior Loan
Officer of the Bank. Prior to his employment with the Bank, Mr. Pechin was the
Vice-President, Commercial Loan Officer at Lafayette Bank & Trust.

Donald J. Ehrlich and Connie L. Ehrlich are husband and wife.

                                                                             36.

<PAGE>

Section 16(a) Compliance:

Lafayette has no class of equity securities registered with the Commission under
Section 12 of the Securities Exchange Act of 1934, as amended, and Section 16(a)
is therefore inapplicable to its securities.

ITEM 10. EXECUTIVE COMPENSATION

Compensation of Directors. Directors receive $250 for each meeting attended,
except for Mr. Zimmerman who receives $200 for each meeting attended. Mr.
Chosnek, as the Chairman of the Board, receives as an additional payment an
annual retainer of $10,000. Directors also received options for the purchase of
5,000 shares pursuant to Lafayette's 2000 Directors Stock Option Plan.

Compensation of Executive Officers. The following table sets forth information
regarding compensation paid to Lafayette's Chief Executive Officer for 2001, who
was the only executive officer whose cash compensation for 2002 exceeded
$100,000.

                               COMPENSATION TABLE

<TABLE>
<CAPTION>
NAME AND PRINCIPAL                                                             OTHER ANNUAL        SECURITIES         ALL OTHER
                                                                               COMPENSATION        UNDERLYING        COMPENSATION
   POSITION                       YEAR           SALARY            BONUS           (1)              OPTIONS              (2)
------------------                ----           ------            -----      --------------    -----------------  --------------
<S>                               <C>           <C>              <C>          <C>               <C>                <C>
David R. Zimmerman,
Chief Executive Officer           2002          $ 115,000        $ 30,000          $2,400              30,000              $3,306
---------------------------------------------------------------------------------------------------------------------------------
                                  2001          $ 105,000        $ 20,000          $2,400              30,000              $1,619
---------------------------------------------------------------------------------------------------------------------------------
                                  2000          $ 105,000        $      0          $    0                 -0-              $  918
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(1) Consists of directors' fees paid to Mr. Zimmerman for the fiscal years
indicated.

(2) Consists of matching contributions by Lafayette under its 401(k) plan. Mr.
Zimmerman also received other perquisites which did not exceed $12,500.

OPTION GRANTS IN LAST FISCAL YEAR

None

Employment Agreement. Lafayette entered into an Employment Agreement with David
R. Zimmerman, its president and chief executive officer, effective January 1,
2000. The Employment Agreement is a three-year agreement which may be extended
each year for an additional one-year term. Its current expiration date is
December 31, 2004.

         The Employment Agreement provides that if Mr. Zimmerman is terminated
for other than "cause" or he elects to terminate his employment for "cause", and
such termination does not occur within two years after a "change in control" (as
such terms are defined in the Employment Agreement), he is entitled to receive
an amount equal to the compensation set forth in the Employment Agreement
through the end of its then-current term.

         If Mr. Zimmerman is terminated within two years following a change in
control for other than cause or he elects to terminate his employment for cause,
he is entitled to receive an amount equal to the product of 2.99 times the sum
of his base salary in effect as of the end of the year prior to the change in
control and an amount equal to the bonuses received by him for the year prior to
the change in control.

         The Employment Agreement also provides that if Mr. Zimmerman is
terminated for other than cause or he elects to terminate his employment for
cause, during the greater of 18 months or the period of time equal to the
remaining term of the Employment Agreement, Lafayette will maintain for the his
benefit each employee welfare benefit plan in which he was entitled to
participate immediately prior to the date of his termination, unless an
essentially equivalent and no less favorable benefit is provided by a successor
to Lafayette. In the event that the terms of any employee welfare benefit plan
do not permit continued participation, Lafayette will provide a benefit
substantially similar to the benefit he was entitled to receive under such plan
at the end of the period of coverage. This arrangement is in lieu of the COBRA
coverage otherwise available to Mr. Zimmerman.

                                                                             37.

<PAGE>

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table gives information about the beneficial ownership of
Lafayette capital stock by:

      -  each person owning more than 5% of Lafayette's common shares;

      -  each of Lafayette's executive officers and directors; and

      -  all of Lafayette's executive officers and directors as a group.

The principal occupation, as indicated in Item 9 hereof, of each Director has
been the same for the last five (5) years and such Director possesses sole
voting and investment powers with respect to the shares indicated as
beneficially owned by such Director. Unless specified otherwise, a Director is
deemed to share voting and investment powers over shares indicated as held by a
spouse, child, or family member residing with the Director. The following is
based on information provided by the directors or executive officers.

<TABLE>
<CAPTION>
          Director/Executive Officer                   Shares Beneficially Owned        % Of Class
-------------------------------------------------------------------------------------------------------
<S>                                                    <C>                              <C>
            David R. Zimmerman (1)                               66,500                    7.4%
-------------------------------------------------------------------------------------------------------
              Edward Chosnek (2)                                 80,920                    8.9%
-------------------------------------------------------------------------------------------------------
             John R. Basham II (2)                               45,000                    5.0%
-------------------------------------------------------------------------------------------------------
             Donald J. Ehrlich (2)                               63,500                    7.1%
-------------------------------------------------------------------------------------------------------
              Steven Hogwood (2)                                 56,000                    6.2%
-------------------------------------------------------------------------------------------------------
             Connie L. Ehrlich (2)                                8,000                    0.9%
-------------------------------------------------------------------------------------------------------
            Thomas A. McDonald (2)                               80,200                    8.9%
-------------------------------------------------------------------------------------------------------
            Steven W. Norfleet (2)                               56,000                    6.2%
-------------------------------------------------------------------------------------------------------
             Richard D. Murray (2)                               41,000                    4.6%
-------------------------------------------------------------------------------------------------------
Directors and executive officers as a group (11
                 individuals)                                   504,820                   56.1%
-------------------------------------------------------------------------------------------------------
</TABLE>

(1)      Includes 5,000 shares which may be acquired upon the exercise of stock
         options granted under the 2000 Directors' Stock Option Plan and 5,000
         shares which may be acquired upon the exercise of stock options under
         the 2000 Employees' Stock Option Plan.

(2)      Includes 5,000 shares which may be acquired upon the exercise of stock
         options granted under the 2000 Directors' Stock Option Plan.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

During 2002, the Bank had, and the Bank expects to continue to have in the
future, banking transactions in the ordinary course of business with Directors,
officers and principal shareholders of Lafayette and their associates. These
transactions have been made on substantially the same terms, including interest
rates, collateral and repayment terms on extensions of credit, as those
prevailing at the time for comparable transactions with others and did not
involve more than the normal risk of collectibility or present other unfavorable
features.

The members of the Board of Directors of Lafayette formed a separate limited
liability company (unrelated to Lafayette Community Bancorp) which acquired the
Bank main office property and which leases the property to Lafayette Community
Bank at or below market rate. At the inception of the lease, Lafayette Community
Bancorp received a report from an independent property consultant that the terms
and conditions of the lease fall within a reasonable range of market terms.

                                                                             38.

<PAGE>

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K.

<TABLE>
<CAPTION>
Exhibit No.                                Description
<S>               <C>
3.1               Amended and Restated Articles of Incorporation of Lafayette
                  Community Bancorp, which are incorporated by reference to
                  Exhibit 3.1 in the Registration Statement on Form SB-2, filed
                  April 7, 2000, as amended, ("Form SB-2")

3.2               By-Laws of Lafayette Community Bancorp, which are incorporated
                  by reference to Exhibit 3.2 in the Form SB-2

10.1              2000 Directors' Stock Option Plan, which is incorporated by
                  reference to Exhibit 10.1 in the Form SB-2

10.2              2000 Key Employees' Stock Option Plan, which is incorporated
                  by reference to Exhibit 10.2 in the Form SB-2

10.3              Lease (main office property), which is incorporated by
                  reference to Exhibit 10.3 in the Form SB-2

10.4              Lease (branch office property), which is incorporated by
                  reference to Exhibit 10.4 in the Form SB-2

21                Subsidiaries of the Registrant and names under which the
                  Registrant is doing business

99.1              CEO Certification pursuant to 18 U.S.C. Section 1350.

99.1              CFO Certification pursuant o 18 U.S.C. Section 1350.
</TABLE>

Reports on Form 8-K

No reports on Form 8-K were filed during the three months ended December 31,
2002.

                                                                             39.

<PAGE>

ITEM 14. Controls and Procedures

     (a) Within the 90-day period prior to the filing date of this report, an
         evaluation was carried out under the supervision and with the
         participation of Lafayette Community Bancorp's management, including
         our Chief Executive Officer and Principal Accounting Officer, of the
         effectiveness of our disclosure controls and procedures (as defined in
         Exchange Act Rules 13a-14(c) and 15d-14(c) under the Securities Act of
         1934). Based on their evaluation, our Chief Executive Officer and
         Principal Accounting Officer have concluded that the Company's
         disclosure controls and procedures are, to the best of their knowledge,
         effective.

     (b) Subsequent to the date of their evaluation, our Chief Executive Officer
         and Principal Accounting Officer have concluded that there were no
         significant changes in Lafayette Community Bancorp's internal controls
         or in other factors that could significantly affect its internal
         controls, including any corrective actions with regard to significant
         deficiencies and material weaknesses.

                                                                             40.

<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of
1934, Lafayette Community Bancorp has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized, this 27th day of March
2003.

LAFAYETTE COMMUNITY BANCORP

By: /s/ David R. Zimmerman
    ----------------------
    David R. Zimmerman
    President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and on this 27th day of March 2003:

<TABLE>
<CAPTION>
                      Signatures                                              Title
<S>                                                  <C>
/s/ David R. Zimmerman                                  President (Chief Executive Officer) and Director
------------------------------------
David R. Zimmerman

/s/ Dennis R. Hardwick                                Vice President and Controller (principal accounting
------------------------------------                                        officer)
Dennis R. Hardwick

/s/ John R. Basham, II                                                      Director
------------------------------------
John R. Basham, II

/s/ Edward Chosnek                                                          Director
------------------------------------
Edward Chosnek

                                                                            Director
____________________________________
Donald J. Ehrlich

/s/ Steven Hogwood                                                          Director
------------------------------------
Steven Hogwood

                                                                            Director
____________________________________
Connie L. Ehrlich

/s/ Thomas A. McDonald                                                      Director
------------------------------------
Thomas A. McDonald

                                                                            Director
____________________________________
Steven W. Norfleet
</TABLE>

                                                                             41.

<PAGE>

CERTIFICATION FOR ANNUAL REPORT ON FORM 10-KSB

I, David R. Zimmerman, certify that:

1)   I have reviewed this annual report on Form 10-KSB of Lafayette Community
     Bancorp;

2)   Based on my knowledge, this annual report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this annual report;

3)   Based on my knowledge, the financial statements, and other financial
     information included in this annual report, fairly present in all material
     respects the financial condition, results of operations and cash flows of
     the registrant as of, and for, the periods presented in this annual report;

4)   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)  designed such disclosure controls and procedures to ensure that
         material information relating to the registrant, including its
         consolidated subsidiaries, is made known to us by others within those
         entities, particularly during the period in which this annual report is
         being prepared;

     b)  evaluated the effectiveness of the registrant's disclosure controls and
         procedures as of a date within 90 days prior to the filing date of this
         annual report (the "Evaluation Date"); and

     c)  presented in this annual report our conclusions about the effectiveness
         of the disclosure controls and procedures based on our evaluation as of
         the Evaluation Date;

5)   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent functions):

     a)  all significant deficiencies in the design or operation of internal
         controls which could adversely affect the registrant's ability to
         record, process, summarize and report financial data and have
         identified for the registrant's auditors any material weaknesses in
         internal controls; and

     b)  any fraud, whether or not material, that involves management or other
         employees who have a significant role in the registrant's internal
         controls; and

6)   The registrant's other certifying officers and I have indicated in this
     annual report whether there were significant changes in internal controls
     or in other factors that could significantly affect internal controls
     subsequent to the date of our most recent evaluation, including any
     corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: March 27, 2003

/s/ David R. Zimmerman
----------------------
David R. Zimmerman
President and Chief Executive Officer

                                                                             42.

<PAGE>

CERTIFICATION FOR ANNUAL REPORT ON FORM 10-KSB

I, Dennis R. Hardwick, certify that:

1)   I have reviewed this annual report on Form 10-KSB of Lafayette Community
     Bancorp;

2)   Based on my knowledge, this annual report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this annual report;

3)   Based on my knowledge, the financial statements, and other financial
     information included in this annual report, fairly present in all material
     respects the financial condition, results of operations and cash flows of
     the registrant as of, and for, the periods presented in this annual report;

4)   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)  designed such disclosure controls and procedures to ensure that
         material information relating to the registrant, including its
         consolidated subsidiaries, is made known to us by others within those
         entities, particularly during the period in which this annual report is
         being prepared;

     b)  evaluated the effectiveness of the registrant's disclosure controls and
         procedures as of a date within 90 days prior to the filing date of this
         annual report (the "Evaluation Date"); and

     c)  presented in this annual report our conclusions about the effectiveness
         of the disclosure controls and procedures based on our evaluation as of
         the Evaluation Date;

5)   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent functions):

     a)  all significant deficiencies in the design or operation of internal
         controls which could adversely affect the registrant's ability to
         record, process, summarize and report financial data and have
         identified for the registrant's auditors any material weaknesses in
         internal controls; and

     b)  any fraud, whether or not material, that involves management or other
         employees who have a significant role in the registrant's internal
         controls; and

6)   The registrant's other certifying officers and I have indicated in this
     annual report whether there were significant changes in internal controls
     or in other factors that could significantly affect internal controls
     subsequent to the date of our most recent evaluation, including any
     corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: March 27, 2003

/s/ Dennis R. Hardwick
----------------------
Dennis R. Hardwick
Vice President and Controller, Principal Accounting Officer

                                                                             43.