June 22, 1999


Dear Fellow Shareholder:

The Board of  Directors,  Officers,  and Staff of Hardin  Bancorp,  Inc. and its
wholly owned subsidiary, Hardin Federal Savings Bank, are pleased to provide you
with our fourth annual report.

Fiscal  year 1999 was our fourth  year as a stock  company  after  serving  area
communities for more than 108 years as a mutual savings  institution.  In fiscal
1999 we achieved  record  earnings of $1,073,000,  an increase from $869,000 for
fiscal  1998.   The  increase  was  primarily  the  result  of  an  increase  in
non-interest  income,  partially offset by an increase in non-interest  expense.
Diluted earnings per share were $1.42 in fiscal 1999 compared to $1.08 in fiscal
1998.

The  Bank's  net loans  receivable  increased  by $8.2  million,  as a result of
increases in residential,  commercial and consumer loans. Assets increased $16.0
million to $137.1 million at March 31, 1999 and  stockholders'  equity decreased
to $12.6  million  from  $13.5  million  on March  31,  1998.  The  decrease  in
stockholders'  equity was the result of the Company's stock repurchase  program,
under which the Company repurchased 88,807 shares of its stock in fiscal 1999.

A  highlight  of fiscal  1999 was the huge  success of our new bank  facility in
Richmond,  which opened in March 1998. This ultra-modern office has provided the
much-needed space to accommodate the equipment and personnel necessary to manage
the growth we have  experienced.  In view of the favorable  results  achieved in
fiscal 1999, the Board of Directors  increased the Company's quarterly dividends
four separate times to $.18 per share in the fourth quarter of the year.

While fiscal 1999 was a very successful year for the Company, we look forward to
continuing  our record of  achievement  in fiscal  2000.  Our goal is to enhance
shareholder  value while  fulfilling our mission as an  independently  owned and
managed financial  institution committed to our customers and the communities we
serve.

Thank  you  for  your  confidence  in our  company,  and we  look  forward  to a
prosperous future.

Sincerely,


/s/ Robert W. King
------------------
Robert W. King
President
<PAGE>
GENERAL INFORMATION
-------------------

Hardin  Bancorp,  Inc. (the "Company") is a Delaware  Corporation,  which is the
holding  company for Hardin Federal  Savings Bank (the "Bank").  The Company was
organized by the Bank for the purpose of acquiring  all of the capital  stock of
the Bank in  connection  with the  conversion  of the Bank from  mutual to stock
form,  which was  completed on September 28, 1995 (the  "Conversion").  The only
significant  assets  of the  Company  are the  capital  stock of the  Bank,  the
Company's loan to the Company's Employee Stock Ownership Plan (the "ESOP"),  and
the  remaining  net  proceeds  of the  Conversion  retained  by the  Company  of
approximately  $495,000. The business of the Company consists of the business of
the Bank.

The Bank, which was originally chartered in 1888 as a Missouri-chartered  mutual
savings and loan  association,  is headquartered in Hardin,  Missouri.  The Bank
amended its mutual  charter to become a federal mutual savings bank in 1995. The
Federal Deposit  Insurance  Corporation (the "FDIC") insures the Bank's deposits
up to the maximum allowable  amount.  The Bank serves the financial needs of its
customers  throughout  Ray and Clay  counties  through  its  offices  in Hardin,
Richmond,  and Excelsior Springs,  Missouri.  On March 31, 1999, the Company had
total  assets of $137.1  million,  deposits of $83.3  million and  stockholders'
equity of $12.6 million.

The Bank has been, and intends to continue to be, a community-oriented financial
institution  offering financial services to meet the needs of the market area it
serves.  The Bank attracts deposits from the general public and uses such funds,
together  with  Federal  Home Loan Bank of Des  Moines  (the  "FHLB")  advances,
primarily  to  originate  and  purchase  loans  secured  by first  mortgages  on
owner-occupied   one-to-four  family   residences.   The  Bank  also  originates
construction  and  consumer  loans  and,  to a lesser  extent,  land  loans  and
commercial  real  estate  loans.  The  Bank  also  invests  in   mortgage-backed
securities,  which are  insured or  guaranteed  by federal  agencies,  and other
investment securities.

                                       2
<PAGE>
                             HARDIN BANCORP, INC.
                             --------------------
                 SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
                 ----------------------------------------------
Set forth  below  are  selected  consolidated  financial  and other  data of the
Company.  The  financial  data is derived  in part  from,  and should be read in
conjunction  with,  the  Consolidated  Financial  Statements  and Notes  thereto
presented elsewhere in this Annual Report.
<TABLE>
<CAPTION>
                                                                       At or for the years ended March 31,
                                               -------------------------------------------------------------------------------------
                                                    1999             1998              1997              1996           1995 (1)
                                                    ----             ----              ----              ----           --------
                                                                   (Dollars in Thousands except per share data)
<S>                                                 <C>              <C>               <C>                <C>              <C>
Selected Financial Data:
Total assets                                        $ 137,056        $ 121,092         $ 103,354          $ 83,387         $ 75,993
Loan receivable, net                                   69,505           61,274            54,568            45,031           33,230
Mortgage-backed securities:
      Held to maturity                                      -           10,995            13,457            16,299           28,473
      Available for sale                               12,584            8,020             5,757             7,907                -
Investment securities:
      Held to maturity                                      -           10,000                 -                 -                -
      Available for sale                               44,519           22,656            22,340             6,363            7,760
FHLB stock                                              2,000            1,475               950               742              727
Other interest-bearing deposits                         4,157            3,225             4,007             5,430            4,306
Deposits                                               83,327           76,884            70,201            66,605           67,449
FHLB advances                                          40,000           29,500            19,000                 -            1,500
Total stockholders' equity                             12,560           13,478            13,210            16,035            6,393
Selected Operating Data:
Total interest income                                   9,013            8,234             6,684             5,552            4,694
Total interest expense                                  5,920            5,184             3,915             3,454            2,816
                                               ---------------   --------------    --------------    --------------   --------------
      Net interest income                               3,093            3,050             2,769             2,098            1,878
Provision for loan losses                                  66               94                34                14                -
                                               ---------------   --------------    --------------    --------------   --------------
Net interest income after
      provision for loan losses                         3,027            2,957             2,735             2,084            1,878
                                               ---------------   --------------    --------------    --------------   --------------
Loan fees and service charges                             451              176               117               110              116
Gain/(loss) on sales of loans,
      investments and mortgage-
      backed securities                                   569              182                (2)                2              (39)
Other non-interest income                                 172              134               158               167              110
                                               ---------------   --------------    --------------    --------------   --------------
      Total non-interest income                         1,192              492               273               279              187
                                               ---------------   --------------    --------------    --------------   --------------
Total non-interest expense                              2,545            2,081             2,270 (2)         1,576            1,427
                                               ---------------   --------------    --------------    --------------   --------------
      Earnings before income
      taxes                                             1,674            1,368               738               787              638
Income tax expense                                        601              499               274               277              221
                                               ===============   ==============    ==============    ==============   ==============
      Net earnings                                    $ 1,073            $ 869             $ 464             $ 511            $ 417
                                               ===============   ==============    ==============    ==============   ==============
Diluted earnings per share                             $ 1.42           $ 1.08            $ 0.51            $ 0.52         n/a
                                               ===============   ==============    ==============    ==============   ==============
Weighted average common &
      common equivalent shares
      outstanding                                     756,526          803,554           906,334           973,383         n/a
                                               ===============   ==============    ==============    ==============   ==============
</TABLE>
                                        3
<PAGE>

<TABLE>
<CAPTION>
                                                                                 At or for the years ended March 31,
                                                                       ---------------------------------------------------------
                                                                         1999        1998        1997        1996       1995(1)
                                                                       ---------   ---------   ---------   ---------   ---------
<S>                                                                       <C>         <C>         <C>         <C>         <C>
Selected Financial
     Ratios and Other Data:
Performance Ratios:
     Return on assets (ratio of net earnings to average
          total assets)                                                     0.%1        0.%6        0.%0        0.%4        0.%6
     Return on equity (ratio of net earnings to average equity)             8.23        6.52        3.18        4.25        6.68
     Interest rate spread (3):
          Average during period                                             1.93        2.16        2.27        2.00        2.25
          End of period                                                     2.07        1.97        2.61        2.37        1.85
          Net interest margin (4)                                           2.42        2.73        3.04        2.70        2.56
     Ratio of non-interest expense to average total assets                  1.93        1.82        2.43        1.98        1.91
     Ratio of average interest earning assets to average
          interest-bearing liabilities                                    110.49      112.23      117.85      115.76      107.95

Quality Ratios:
     Non-performing assets to total assets at end of period                 0.20        0.19        0.37        0.15        0.22
     Allowance for loan losses to non-performing loans                    112.48      106.97       41.58      107.38       70.83
     Allowance for loan losses to loans receivable, net                     0.45        0.40        0.29        0.29        0.36

Capital Ratios (5):
     Equity to total assets at end of period                                9.16       11.12       12.78       19.23        8.41
     Average equity to average assets                                       9.88       11.65       15.70       15.05        8.33

Other Data:
     Number of full service offices                                         3           3           3           3           3
</TABLE>
(1)  Information  for periods  prior to 1996 relates to Hardin  Federal  Savings
     Bank and subsidiary.

(2)  Total  non-interest  expense for the year ended March 31, 1997 includes the
     one time SAIF assessment of $441,000.

(3)  Interest rate spread represents the difference between the weighted average
     yield  on  interest-earning   assets  and  the  weighted  average  rate  on
     interest-bearing liabilities.

(4)  Net  interest  margin  represents  net interest  income as a percentage  of
     average interest-earning assets.

(5)  For a discussion of the Bank's regulatory capital ratios, see "Management's
     Discussion   and   Analysis   of   Financial   Condition   and  Results  of
     Operations-Liquidity and Capital Resources."

                                       4
<PAGE>
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                      ------------------------------------
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                ------------------------------------------------
General
-------

The Company was formed in June 1995 by the Bank to become the holding company of
the  Bank.  The  acquisition  of the  Bank by the  Company  was  consummated  on
September 28, 1995, in connection with the Bank's conversion.  All references to
the Company prior to September 28, 1995, except where otherwise  indicated,  are
to the Bank and its subsidiary on a consolidated basis.

The  Company's  results  of  operations  depend  primarily  on its  level of net
interest   income,   which  is  the  difference   between   interest  earned  on
interest-earning  assets,  consisting  primarily  of  mortgage  loans  and other
investments, and the interest paid on interest-bearing  liabilities,  consisting
primarily of deposits and FHLB advances.  The net interest margin is affected by
regulatory, economic and competitive factors that influence interest rates, loan
demand, and deposit flows. The Company,  like other financial  institutions,  is
subject to  interest  rate risk to the degree that its  interest-earning  assets
mature  or  reprice  at  different  times  or  on a  different  basis  than  its
interest-bearing  liabilities. The Company's operating results are also affected
by the amount of its non-interest  income,  including loan fees, service charges
and other  income,  which  includes  commissions  from sales of insurance by the
Bank's  service  corporation.   Non-interest  expense  consists  principally  of
employee  compensation,  occupancy expense,  data processing,  federal insurance
premiums,  advertising and other  operating  expenses.  The Company's  operating
results  are   significantly   affected  by  general  economic  and  competitive
conditions,  in particular,  the changes in market  interest  rates,  government
policies and actions by regulatory authorities.

Forward-Looking Statements
--------------------------

In  addition  to   historical   information,   this   Annual   Report   contains
forward-looking  statements.  The  forward-looking  statements  contained in the
following  sections are subject to certain  risks and  uncertainties  that could
cause  actual  results  to  differ   materially  from  those  projected  in  the
forward-looking statements. Important factors that might cause such a difference
include,  but are not  limited  to,  those  discussed  in the  section  entitled
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations."  Readers should not place undue  reliance on these  forward-looking
statements, as they reflect management's analysis as of the date of this report.
The  Company  has no  obligation  to  update  or  revise  these  forward-looking
statements to reflect events or circumstances  that occur after the date of this
report.  Readers  should  carefully  review the risk factors  described in other
documents the Company files from time to time with the  Securities  and Exchange
Commission, including Quarterly 10-Q reports and reports filed on Form 8-K

Financial Condition
-------------------

Total Assets.  Total assets increased $16.0 million, or 13.2%, to $137.1 million
at March 31,  1999 from  $121.1  million at March 31,  1998.  The  increase  was
primarily  funded  by an  increase  in FHLB  advances  of $10.5  million  and an
increase in deposits of $6.4 million. These funds together with other cash flows
from the Bank,  were used to finance an $8.2  million  increase  in loans and an
$11.8 million increase in investment securities.

Loans  Receivable,  Net.  Loans  receivable,  net increased by $8.2 million,  or
13.4%,  to $69.5 million at March 31, 1999 from $61.3 million at March 31, 1998.
The  increase is  primarily  due to  increased  loan demand in the market  areas
served by the  Bank's  three  full-service  offices  and the  purchase  of loans
totaling $1.7 million during the year.

                                       5
<PAGE>
Mortgage-Backed  Securities.   Mortgage-backed  securities  decreased  to  $12.6
million at March 31, 1999 from $19.0 million at March 31, 1998.  The decrease of
$6.4 million is in  accordance  with the  Company's  plan to reduce  holdings of
mortgage-backed securities.

Investment Securities.  Investment securities increased $11.8 million, or 36.1%,
to $44.5  million at March 31, 1999 from $32.7  million at March 31,  1998.  The
increase was funded by FHLB advances in  conjunction  with the Company's  growth
objectives to enhance return on stockholders'  equity. The investment securities
acquired are Federal agency obligations and municipal obligations.

Deposits.  Deposits  increased $6.4 million,  or 8.4%, to $83.3 million at March
31, 1999 from $76.9 million at March 31, 1998.  Special  certificates of deposit
and more  aggressive  pricing  of  deposits  and  marketing  contributed  to the
increase.

Federal Home Loan Bank  Advances.  FHLB  advances  increased to $40.0 million at
March 31, 1999 from $29.5 million at March 31, 1998. These advances were used to
fund growth in loans and investment securities.

Equity.  Total stockholders' equity decreased to $12.6 million at March 31, 1999
from $13.5  million at March 31, 1998.  The $.9 million  reduction was primarily
due to the  purchase  of  88,807  shares  of the  Company's  common  stock at an
aggregate purchase price of $1.5 million.

The schedule on the following  page  presents,  for the periods  indicated,  the
total dollar amount of interest income from average  interest-earning assets and
the resultant  yields, as well as the total dollar amount of interest expense on
average  interest-bearing  liabilities  and the  resultant  rates.  All  average
balances are monthly average balances.  Management does not believe that the use
of monthly balances  instead of daily balances has caused a material  difference
in the information presented.

                                       6
<PAGE>
<TABLE>
<CAPTION>
                                                                   Year Ended March 31,
                                         -----------------------------------    -----------------------------------
                                                       1999                                     1998
                                         -----------------------------------    -----------------------------------
                                           Average    Interest                   Average      Interest
                                         Outstanding   Earned /     Yield /    Outstanding    Earned /     Yield /
                                           Balance      Paid         Rate        Balance       Paid         Rate
                                         ---------    ---------    ---------    ---------    ---------    ---------
Interest-earning assets:
<S>                 <C>                  <C>          <C>               <C>     <C>          <C>               <C>
    Loan receivable (1)                  $  66,515    $   5,394         8.11%   $  57,819    $   4,781         8.27%
    Mortgage-backed securities              16,864        1,016         6.02%      19,703        1,216         6.17%
    Investment securities                   36,233        2,238         6.18%      25,950        1,803         6.95%
    FHLB stock                               1,919          124         6.46%       1,290           87         6.74%
    Other interest-bearing deposits          6,531          241         3.69%       6,961          347         4.98%
                                         ---------    ---------    ---------    ---------    ---------    ---------
Total interest-earning assets            $ 128,062    $   9,013         7.04%   $ 111,723    $   8,234         7.37
                                         =========    =========    =========    =========    =========    =========

Interest-bearing liabilities:
    Savings accounts                     $   3,386    $      67         1.98%   $   3,363    $      82         2.44%
    Demand and NOW accounts                 11,951          358         3.00%       8,520          248         2.91%
    Certificate accounts                    63,112        3,453         5.47%      63,205        3,488         5.52%
    FHLB advances                           37,458        2,042         5.45%      24,458        1,366         5.59%
                                         ---------    ---------    ---------    ---------    ---------    ---------
Total interest-bearing liabilities       $ 115,907    $   5,920         5.11%   $  99,546    $   5,184         5.21%
                                         =========    =========    =========    =========    =========    =========

Net interest income                                   $   3,093                              $   3,050
                                                      =========                              =========
Net interest rate spread (2)                                            1.93%                                  2.16%
                                                                   =========                              =========
Net interest-earning assets              $  12,155                              $  12,177
                                         =========                              =========
Net interest margin (3)                                                 2.42%                                  2.73%
                                                                   =========                              =========
Average interest-earning assets to
    average interest-bearing liabilities                 110.49%                                112.23%
                                                      =========                              =========
</TABLE>
<PAGE>
(continued)
<TABLE>
<CAPTION>
                                                    Year Ended March 31,
                                            -----------------------------------
                                                           1997
                                            -----------------------------------
                                             Average      Interest
                                           Outstanding    Earned /     Yield /
                                             Balance       Paid         Rate
                                            ---------    ---------    ---------
Interest-earning assets:
<S>                 <C>                     <C>          <C>               <C>
    Loan receivable (1)                     $  50,433    $   4,117         8.16%
    Mortgage-backed securities                 21,127        1,347         6.38%
    Investment securities                      14,927          986         6.61%
    FHLB stock                                    794           55         6.93%
    Other interest-bearing deposits             3,758          179         4.76%
                                            ---------    ---------    ---------
Total interest-earning assets               $  91,039    $   6,684         7.34%
                                            =========    =========    =========

Interest-bearing liabilities:
    Savings accounts                        $   3,567    $      87         2.44%
    Demand and NOW accounts                     6,439          199         3.09%
    Certificate accounts                       57,241        3,094         5.41%
    FHLB advances                              10,000          535         5.35%
                                            ---------    ---------    ---------
Total interest-bearing liabilities          $  77,247    $   3,915         5.07%
                                            =========    =========    =========

Net interest income                                      $   2,769
                                                         =========
Net interest rate spread (2)                                               2.27%
                                                                      =========
Net interest-earning assets                 $  13,792
                                            =========
Net interest margin (3)                                                    3.04%
                                                                      =========
Average interest-earning assets to
    average interest-bearing liabilities                    117.85%
                                                         =========
</TABLE>
(1)  Calculated  net of deferred loan fees and  discounts,  loans in process and
     loss reserves.
(2)  Net interest  rate spread  represents  the  difference  between the average
     yield on  interest-earning  assets and the average rate on interest-bearing
     liabilities.
(3)  Net  interest  margin  represents  net interest  income  divided by average
     interest-earning assets.
                                       7

<PAGE>
The  following  table  presents the  weighted  average  yields  earned on loans,
mortgage-backed  securities,  investment, and other interest-earning assets, and
the weighted  average  rates paid on deposits and  borrowings  and the resultant
interest rate spreads at the dates indicated.


<TABLE>
<CAPTION>
                                                                    March 31,
                                                  --------------------------------------------
                                                     1999             1998             1997
                                                  ----------       ----------       ----------
Weighted average yield on:
<S>                                                     <C>              <C>              <C>
      Loans receivable                                  7.76 %            8.04 %            8.38 %
      Mortgage-backed securities                        5.89              6.19              7.40
      Investment securities                             6.32              6.83              6.93
      FHLB stock                                        6.25              6.50              7.00
      Other interest-earning assets                     4.55              5.45              5.33
      Combined weighted average yield on
           interest-earning assets                      6.92 %            7.25 %            7.78 %
                                                  ----------        ----------        ----------
Weighted average rate paid on:
      Savings accounts                                  2.00 %            2.50 %            2.50 %
      Demand and NOW accounts                           2.28              2.91              3.50
      Certificate accounts                              5.29              5.59              5.48
      FHLB advances                                     5.18              5.68              5.64
      Combined weighted average rate paid on
           interest-bearing liabilities                 4.85 %            5.28 %            5.17 %
                                                  ----------        ----------        ----------

Interest Rate Spread                                    2.07 %            1.97 %            2.61 %
                                                  ==========        ==========        ==========
</TABLE>
                                       8
<PAGE>
Rate/Volume Analysis

The following  schedule presents the dollar amount of changes in interest income
and  interest  expense  for major  components  of  interest-earning  assets  and
interest-bearing  liabilities.  It  distinguishes  between  the  changes  due to
changes in outstanding  balances and those due to changes in interest rates. For
each  category  of  interest-earning  assets and  interest-bearing  liabilities,
information is provided on changes  attributable to (i) changes in volume (i.e.,
changes in volume  multiplied by prior  interest rate) and (ii) changes in rates
(i.e.,  changes in rate multiplied by prior volume). For purposes of this table,
changes attributable to both rate and volume,  which cannot be segregated,  have
been allocated  proportionately to the changes due to volume and the changes due
to rate.
<TABLE>
<CAPTION>
                                                                            Year Ended March 31,
                                               ---------------------------------------------------------------------------------
                                                            1999 vs 1998                                    1998 vs 1997
                                               ---------------------------------------------------------------------------------
                                                     Increase                                     Increase
                                                    (Decrease)              Total                (Decrease)              Total
                                                      Due to               Increase                Due to               Increase
                                               ----------------------     (Decrease)        ----------------------     (Decrease
                                                Volume           Rate     ----------         Volume           Rate     ---------
                                                                             (Dollars in Thousands)
<S>                                          <C>                 <C>     <C>             <C>           <C>           <C>
Interest-earning assets:
       Loans receivable                      $     704     $     (91)    $    613        $     608     $     56      $     664
       Mortgage-backed securities                 (171)          (29)        (200)             (88)         (43)          (131)
       Investment securities                       448           (13)         435              764           53            817
       FHLB stock                                   41            (4)          37               34           (2)            32
       Other interest-earning assets               (20)          (86)        (106)             160            8            168
                                               --------      --------      -------         --------      -------       --------
Total interest-earning assets                $   1,002     $    (223)    $    779        $   1,478     $     72      $   1,550
                                               --------      --------      -------         --------      -------       --------
Interest-bearing liabilities:
       Savings accounts                      $       1     $     (16)    $    (15)       $      (5)    $      0      $      (5)
       Demand and NOW accounts                     102             8          110               60          (11)            49
       Certificate accounts                         (5)          (30)         (35)             330           64            394
       FHLB advances                               709           (33)         676              806           25            831
                                               --------      --------      -------         --------      -------       --------
Total interest-bearing liabilities           $     807     $     (71)    $    736        $   1,191     $     78      $   1,269
                                               --------      --------      -------         --------      -------       --------

       Net interest income                   $     195     $    (294)    $     43        $     287     $     (6)     $     281
                                               ========      ========      =======         ========      =======       ========
</TABLE>
                                       9
<PAGE>
Comparison of operating results for the years ended March 31, 1999 and
--------------------------------------------------------------------------------
March 31,1998.
-------------
Performance Summary. Net earnings for the year ended March 31, 1999 increased by
$204,000,  or 23.5%,  to  $1,073,000  from $869,000 for the year ended March 31,
1998.  Diluted  earnings per share were $1.42 for the year ended March 31, 1999,
and $1.08 for the year ended  March 31,  1998.  Improved  annual  earnings  were
primarily the result of an increase in non-interest  income, which was partially
offset by an increase  in  non-interest  expense.  For the years ended March 31,
1999 and 1998,  the  return on average  assets was .81% and .76%,  respectively,
while the return on average equity was 8.23% and 6.52%, respectively.

Net Interest  Income.  Net interest income  remained  basically the same at $3.1
million for the fiscal years ended March 31, 1999 and 1998.

For the year ended March 31, 1999, the average yield on interest-earning  assets
was  7.04%   compared  to  7.37%  for  fiscal   1998.   The   average   cost  of
interest-bearing  liabilities  was 5.11% for the year ended  March 31,  1999,  a
decrease from 5.21% for fiscal 1998.

The  average  interest  rate  spread was 1.93% for the year ended March 31, 1999
compared to 2.16% for fiscal 1998. The average net interest margin  decreased to
2.42% for the year ended  March 31,  1999  compared  to 2.73% for the year ended
March 31, 1998.

Provision  for Loan Losses.  During the year ended March 31,  1999,  the Company
recorded   $66,000  in  provision  for  loan  losses  in  accordance   with  its
classification of assets policy. The Company's loan portfolio consists primarily
of one-to-four family mortgage loans, and has experienced minimal charge-offs in
the past two years.  The  allowance for loan losses of $311,000 or .45% of loans
receivable,  net at  March  31,  1999,  compares  to  $248,000  or .40% of loans
receivable, net at March 31, 1998. The allowance for loan losses as a percentage
of non-performing  assets was 112.48% at March 31, 1999,  compared to 106.97% at
March 31, 1998.

Management  will  continue  to monitor  its  allowance  for loan losses and make
additions to the  allowance  through the  provision  for loan losses as economic
conditions dictate. Although the Company maintains its allowance for loan losses
at a level  considered  to be adequate,  there can be no  assurance  that future
losses will not exceed estimated amounts or that additional  provisions for loan
losses will not be required in the future.

Non-Interest  Income.  For the year ended March 31,  1999,  non-interest  income
increased by $700,000 or 142% due primarily to increased  service charge income,
and gains  recognized  on the sale of  loans,  investments  and  mortgage-backed
securities.

Non-Interest  Expense.  Non-interest  expense increased $464,000 to $2.5 million
for the year ended March 31, 1999 from $2.1 million for the year ended March 31,
1998.  The increase  was due to added staff in both the  Richmond and  Excelsior
Springs office,  as well as expenses related to  technological  enhancements and
year 2000 issues.

Income  Taxes.  Income taxes  increased  $102,000 to $601,000 for the year ended
March 31, 1999 from $499,000 for the year ended March 31, 1998.  The increase is
due to the increase in pre-tax income. The Company's  effective tax rate was 36%
for fiscal 1999 and 1998.
                                       10

<PAGE>
Comparison of operating results for the years ended March 31, 1998 and
----------------------------------------------------------------------
March 31,1997.
--------------
Performance Summary. Net earnings for the year ended March 31, 1998 increased by
$405,000,  or 87%, to $869,000  from $464,000 for the year ended March 31, 1997.
Diluted  earnings  per share were $1.08 for the year ended March 31,  1998,  and
$.51 for the year ended March 31, 1997. Improved annual earnings were the result
of an increase in net interest income and non-interest  income and a decrease in
non-interest  expense  primarily due to the Savings  Association  Insurance Fund
(SAIF) special assessment incurred in fiscal 1997. For the years ended March 31,
1998 and 1997,  the  return on average  assets was .76% and .50%,  respectively,
while the return on average equity was 6.52% and 3.18%, respectively.

Net Interest  Income.  Net interest  income  increased from $2.8 million for the
fiscal year ended March 31, 1997 to $3.1 million for the fiscal year ended March
31, 1998, an increase of $300,000.  This reflects an increase of $1.5 million in
interest  income to $8.2  million  from $6.7  million  and an  increase  of $1.3
million in interest expense to $5.2 million from $3.9 million.  The net increase
was primarily due to an increase in average  interest-earning  assets from $91.0
million to $111.7 million.

For the year ended March 31, 1998 the average yield on  interest-earning  assets
was  7.37%   compared  to  7.34%  for  fiscal   1997.   The   average   cost  of
interest-bearing  liabilities  was 5.21% for the year ended March 31,  1998,  an
increase from 5.07% for fiscal 1997.

The  average  interest  rate  spread was 2.16% for the year ended March 31, 1998
compared to 2.27% for fiscal 1997. The average net interest margin  decreased to
2.73% for the year ended  March 31,  1998  compared  to 3.04% for the year ended
March 31, 1997.

Provision  for Loan Losses.  During the year ended March 31,  1998,  the Company
recorded  a  $94,000   provision  for  loan  losses  in   accordance   with  its
classification of assets policy. The Company's loan portfolio consists primarily
of one-to-four family mortgage loans, and has experienced minimal charge-offs in
the past two years.  The  allowance for loan losses of $248,000 or .40% of loans
receivable,  net at  March  31,  1998,  compares  to  $158,000  or .29% of loans
receivable, net at March 31, 1997. The allowance for loan losses as a percentage
of  non-performing  assets was 106.97% at March 31, 1998,  compared to 41.58% at
March 31, 1997.

Non-Interest  Income.  For the year ended March 31,  1998,  non-interest  income
increased by $220,000 or 81% due primarily to increased  service  charge income,
and gains  recognized on the sale of loans,  real estate owned,  investments and
mortgage-backed securities.

Non-Interest  Expense.  Non-interest  expense decreased $189,000 to $2.1 million
for the year ended March 31, 1998 from $2.3 million for the year ended March 31,
1997. The decrease was due to a decrease in federal  insurance  premiums and the
SAIF special assessment, which was partially offset by increases in compensation
expense, occupancy expense, data processing and other non-interest expense.

Additional  staff and  expenses  related  to the new branch  office in  Richmond
contributed  to  increases  in  compensation,  occupancy,  and  data  processing
expenses,  while the increase in other  expenses were  primarily  related to ATM
charges, debit card expense, and costs related to the Company's high performance
checking account program.

Income  Taxes.  Income taxes  increased  $225,000 to $499,000 for the year ended
March 31, 1998 from $274,000 for the year ended March 31, 1997.  The increase is
due to the increase in pre-tax income. The Company's  effective tax rate was 36%
for fiscal 1998 and 37% for fiscal 1997.

Asset Liability Management and Market Risk
------------------------------------------

As with other savings  institutions,  the  Company's  most  significant  form of
market risk is interest  rate risk.  One of the  Company's  principal  financial
objectives is to achieve long-term  profitability while reducing its exposure to
fluctuations in interest rates. The Company has sought to reduce exposure of its
earnings to changes in market  interest  rates by managing the mismatch  between
asset and liability  maturities  and interest  rates.  The principal  element in
achieving this objective has been to increase the  interest-rate  sensitivity of
the  Company's  assets by  originating  loans  with  interest  rates  subject to
periodic  adjustment  to  market  conditions.   Accordingly,  the  Company  also
generally  sold its  long-term  fixed-rate  loans in the secondary  market.  The
Company currently retains longer-term  fixed-rate loans in the portfolio as part
of its effort to increase the size and yield of its loan portfolio and to reduce
its mortgage-backed  securities  portfolio.  The Company has adopted an informal
policy,  which is subject to change from time to time,  to  increase  the longer
term fixed-rate  loans in its portfolio so that such loans comprise up to 60% of
total loans  receivable.  In  addition,  the  Company  has  invested in short to
intermediate  term investments and adjustable rate  mortgage-backed  securities,
which although long-term in nature,  adjust  periodically in response to changes
in general levels of interest rates.

The Company has historically  relied upon retail deposit accounts as its primary
source of funds.  Management  believes  that the retail  deposit  accounts  as a
source of funds, compared to brokered deposits and long-term borrowings, reduces
the effects of interest  rate  fluctuations  because  these  deposits  generally
represent a more stable source of funds. In addition, the Company has emphasized
longer-term  certificate  accounts  in an effort to extend the  maturity  of its
liabilities.  In order to meet the Company's growth objectives more reliance has
been placed on FHLB advances to fund loans and investments. During 1999 the Bank
obtained FHLB advances in the aggregate amount of $10.5 million.

The Company's  Board of Directors has formulated an Asset  Liability  Management
Policy designed to promote long-term  profitability while managing interest-rate
risk.  The Company  recognizes the inherent risk in its  interest-sensitive  gap
position,  particularly in periods of fluctuating  interest  rates.  The current
negative one-year gap position is within the board-prescribed limits.

The following table sets forth at March 31, 1999, the amount of interest-earning
assets and interest-bearing  liabilities maturing,  repricing or callable within
the time periods  indicated.  The table assumes a 12% annual prepayment rate for
fixed-rate real estate loans, adjustable-rate real estate loans, mortgage-backed
securities and consumer  loans.  The Bank's deposits are classified as repricing
in the "six months or less" category,  except for certificate accounts which are
classified based upon their actual maturity.
<PAGE>
<TABLE>
<CAPTION>
                                                                           Maturing or Repricing
                                         -----------------------------------------------------------------------
                                                           Over 6      Over         Over
                                            6 Months     Months to      1-3         3-5       Over
                                             or Less     One Year      Years       Years     5 Years     Total
                                         -----------------------------------------------------------------------
                                                                  (Dollars in Thousands)
<S>                                          <C>         <C>         <C>         <C>         <C>        <C>
Interest-earning assets:
     Fixed rate real estate loans            $  3,575    $  2,509    $  8,408    $  6,077    $ 18,868   $ 39,437
     Adjustable rate real estate loans          8,678       8,524       5,943          --          --     23,145
     Commercial business loans                    781          --          --          --          --        781
     Consumer loans                             4,259         922       1,939       1,449          --      8,569
     Mortgage-backed securities
        available for sale                      9,995       2,589          --          --          --     12,584
     Investment securities                     18,971       5,081       6,143       1,423      12,901     44,519
     FHLB Stock                                 2,000          --          --          --          --      2,000
     Other                                      4,157          --          --          --          --      4,157
                                             --------    --------    --------    --------    --------   --------
        Total interest-earning assets        $ 52,416    $ 19,625    $ 22,433    $  8,949    $ 31,769   $135,192
                                             ========    ========    ========    ========    ========   ========
Interest-bearing liabilities:
     Savings accounts                        $  3,805    $     --    $     --    $     --    $     --      3,805
     Demand and NOW accounts                   13,436          --      13,436
     Certificate accounts                      22,654      22,890      12,180       3,260       3,183     64,167
     FHLB advances                             18,000       7,000       5,000      10,000          --     40,000
                                             ========    ========    ========    ========    ========   ========
        Total interest-bearing liabilities   $ 57,895    $ 29,890    $ 17,180    $ 13,260    $  3,183   $121,408
                                             ========    ========    ========    ========    ========   ========

Interest-earning assets
     less interest-bearing liabilities       $ (5,479)   $(10,265)   $  5,253    $ (4,311)   $ 28,586   $ 13,784

Cumulative interest-rate
     sensitivity gap                         $ (5,479)   $(15,744)   $(10,491)   $(14,802)   $ 13,784   $ 13,784

Cumulative interest-rate gap as a
     percentage of assets
     at March 31, 1999                         (4.00)%    (11.49)%      (7.65)%    (10.80)%     10.06%     10.06%

Cumulative interest-rate gap as a
     percentage of interest-earning
     assets at March 31, 1999                  (4.05)%     (11.65)%      (7.76)%   (10.95)%     10.20%     10.20%
</TABLE>
                                       13
<PAGE>
Net Portfolio Value

In order to encourage  institutions  to reduce  their  interest  rate risk,  the
Office  of Thrift  Supervision  (the  "OTS")  adopted  a rule  incorporating  an
interest rate risk ("IRR")  component into the risk based capital rules. The IRR
component is a dollar  amount that will be deducted  from total  capital for the
purpose of calculating an institution's  risk-based  capital  requirement and is
measured  in terms of the  sensitivity  of its net  portfolio  value  ("NPV") to
changes in interest rates.  NPV is the difference  between incoming and outgoing
discounted cash flows from assets, liabilities, and off-balance sheet contracts.
An  institution's  IRR is  measured  as the  change  to its NPV as a result of a
hypothetical  200 basis point (bp) change in market  interest rates. A resulting
change in NPV of more than 2% of the  estimated  market value of its assets will
require the  institution  to deduct from its capital 50% of that excess  change.
The Rules provide that the OTS will  calculate  the IRR component  quarterly for
each institution. The Bank, based on asset size and risk-based capital, has been
informed  by the  OTS  that it is  exempt  from  this  rule.  Nevertheless,  the
following  table  presents the Bank's NPV at March 31, 1999,  as  calculated  by
Farin and Associates,  based on information  provided to Farin and Associates by
the Bank.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>              <C>              <C>              <C>             <C>
                                               -400 bp          -200 bp      Flat                 +200 bp         +400 bp
Market Value Assets (MVA)                 $ 144,697        $ 141,295        $ 139,129        $ 131,152       $ 125,157
Market Value Liabilities (MVL)            $ 131,520        $ 126,928        $ 124,012        $ 123,066       $ 122,035
Net Portfolio Value (NPV)                  $ 13,178         $ 14,367         $ 15,117          $ 8,086         $ 3,122
Net Portfolio Value Ratio                      9.11%           10.17%           10.87%            6.17%           2.50%
Interest Rate Risk Sensitivity               -175.8 bp         -69.7 bp                         -470.0 bp       -837.1 bp
Equity Exposure                              -12.82%           -4.96%                           -46.51%         -79.35%
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

The Board of  Directors  reviews and  evaluates  the Bank's  interest  rate risk
exposure  on a  quarterly  basis.  Based upon its recent  analysis of the Bank's
interest rate risk, as measured by the net portfolio value methodology set forth
above,  the Board of Directors has determined to take steps to reduce the Bank's
interest rate risk  sensitivity as measured by that  methodology.  Management of
the  Bank  is  evaluating   several   alternatives  to  accomplish  the  Board's
objectives, which are expected to be implemented in fiscal 2000.

Certain  shortcomings  are inherent in the method of analysis  presented in both
the  computation  of NPV and in the analysis  presented in prior tables  setting
forth the maturing and repricing of interest-earning assets and interest-bearing
liabilities. Although certain assets and liabilities may have similar maturities
or periods within which they will reprice, they may react differently to changes
in  market  interest  rates.  The  interest  on  certain  types  of  assets  and
liabilities may fluctuate in advance of changes in market interest rates,  while
interest  rates  on  other  types  may  lag  behind  changes  in  market  rates.
Additionally, adjustable-rate mortgages have features, which restrict changes in
interest  rates on a  short-term  basis  and over  the  life of the  asset.  The
proportion of adjustable-rate loans could be reduced in future periods if market
interest rates would decrease and remain at lower levels for a sustained period,
due to  increased  refinance  activity.  Further,  in the  event of a change  in
interest  rates,  prepayment  and early  withdrawal  levels would likely deviate
significantly  from those  assumed in the table.  Finally,  the  ability of many
borrowers to service their  adjustable-rate  debt may decrease in the event of a
sustained interest rate increase.

Liquidity and Capital Resources

The Company's primary sources of funds are deposits,  FHLB advances,  repayments
and  prepayments  of loans  and  mortgage-backed  securities,  the  maturity  of
investment  securities  and interest  income.  Although  maturity and  scheduled
amortization of loans are relatively predictable sources of funds, deposit flows
and prepayments on loans are influenced significantly by general interest rates,
economic  conditions  and  competition.

                                       14
<PAGE>
The primary  investing  activity of the Company is originating  adjustable  rate
mortgages  and fixed rate  mortgages  to be held to  maturity.  The Company will
purchase loans from other Missouri  originators if loans are  unavailable in its
market  area.  For the fiscal  years  ended  March 31,  1999 and 1998,  the Bank
originated  loans for its  portfolio  in the amount of $29.5  million  and $27.7
million,  respectively.  The Bank purchased loans totaling $1.7 million and $1.2
million during the fiscal years ended March 31, 1999 and 1998.

The Bank is required to maintain  minimum  levels of liquid assets under the OTS
regulations.  Savings  institutions  are  required to maintain an average  daily
balance of liquid assets (including cash,  certain time deposits,  and specified
U.S.  Government,  State or Federal Agency obligations) of not less than 5.0% of
its  average  daily  balance  of  net  withdrawable   accounts  plus  short-term
borrowings.

It is the  Bank's  policy  to  maintain  its  liquidity  portfolio  in excess of
regulatory  requirements.  The Bank's eligible  liquidity  ratios were 61.2% and
46.5%,  respectively,  at March 31,  1999 and 1998.  The  Company's  most liquid
assets are cash and cash equivalents,  which include short-term investments.  At
March 31, 1999 and 1998,  cash and cash  equivalents  were $5.0 million and $3.8
million, respectively.

Liquidity  management for the Company is both an ongoing and long-term component
of the Company's asset liability management strategy. Excess funds generally are
invested in overnight  deposits at the FHLB.  Should the Company  require  funds
beyond its ability to generate them internally  additional  sources of funds are
available  through  advances  from the FHLB.  The Company  would pledge its FHLB
stock or certain other assets as collateral for such advances.

At March 31, 1999, the Bank had outstanding loan commitments of $1.9 million and
undisbursed loans in process of $2.2 million.  It is anticipated that sufficient
funds  will be  available  to  meet  current  loan  commitments  including  loan
applications received and in process.

Certificates  of deposits,  which are scheduled to mature in one year or less at
March 31,  1999 were  $45.5  million.  Management  believes  that a  significant
portion of such deposits will remain with the Bank.

At March 31,  1999 the Bank had  tangible  equity of $12.3  million,  or 9.0% of
total adjusted assets,  which is  approximately  $10.2 million above the minimum
requirement  of 1.5% of adjusted  total  assets on that date.  The Bank had core
capital  of $12.3  million,  or 9.0% of  adjusted  total  assets,  which is $8.2
million above the minimum  leverage  ratio  requirement  of 3% in effect on that
date.  The Bank  had  total  risk  based  capital  of $12.6  million  and  total
risk-weighted  assets of $61.6 million,  or total risk based capital of 20.5% of
risk-weighted assets. This was $7.7 million above the 8.0% requirement in effect
on that date.

Recent Accounting Developments

The  Financial  Accounting  Standards  Board (the  "FASB")  issued SFAS No. 130,
Reporting  Comprehensive Income, and SFAS No. 131, Disclosures about Segments of
an Enterprise and Related  Information,  in June 1997. SFAS No. 130 requires the
Company to classify items of other  comprehensive  income by their nature in the
consolidated financial statements. The Company has adopted the provision of SFAS
No. 130 in the year ended March 31,  1999,  and has  displayed  the  accumulated
balance of other  comprehensive  income  separately  from retained  earnings and
additional   paid-in   capital  in  the  equity  section  of  the  statement  of
stockholders' equity.

SFAS No. 131 requires  public  enterprises to report  financial and  descriptive
information about their reportable  operating  segments.  Operating segments are
components  of an  enterprise  about which  separate  financial  information  is
available  that is evaluated  regularly by management.  The Company  adopted the
provisions of

                                       15
<PAGE>
SFAS No. 131 in the year ended March 31,  1999.  The Company has one  reportable
operating segment.

The FASB issued SFAS No. 133, Accounting for Derivative  Instruments and Hedging
Activities  in June 1998.  SFAS No. 133  establishes  accounting  and  reporting
standards for derivative  instruments,  including certain derivative instruments
embedded in other contracts,  and for hedging  activities.  Its requires that an
entity  recognize  all  derivatives  as  either  assets  or  liabilities  in the
statement of financial  position and measure  those  instruments  at fair value.
This  statement is effective for all fiscal  quarters of fiscal years  beginning
after June 15, 2000; however, the Company adopted the provisions of SFAS No. 133
at July 1,  1998  and  utilized  an  option  to  transfer  its  held-to-maturity
investment security portfolio to available-for-sale. Accordingly, all unrealized
gains and losses were recorded at the date.  Management believes adoption of the
remaining  provisions  of SFAS No.  133 did not have a  material  effect  on the
Company's financial position or results of operations,  nor did adoption require
additional capital resources.

Year 2000 Compliance

The Company utilizes and is dependent upon data processing  systems and software
to conduct its business.  The data processing systems and software include those
developed and maintained by the Company's data processing provider and purchased
software  which is run on  in-house  computer  networks.  In 1997,  the  Company
initiated a review and  assessment  of all hardware and software to confirm that
it will  function  properly  in the Year 2000.  The  Company  has  replaced  its
computer  hardware with Year 2000 compliant  equipment and updated software with
Year 2000 compliant  versions.  The primary service  provider for the company is
Fiserv,  Inc., Des Moines, Iowa. Fiserv has provided the Company with proxy test
results indicating Year 2000 compliance. A specific connectivity was tested with
Fiserv in March 1999.  Third party vendors have  identified Year 2000 issues and
are completing revisions to systems and software to become Year 2000 compliant.

Security  systems,  heating and cooling systems and other mechanical  devices on
which the Company relies have been evaluated.

The approximate cost incurred by the Company to date for Year 2000 compliance is
$83,000. Other expenses, if incurred, are expected to be minimal.

The Company is substantially  dependent on its computer systems and the computer
system of its data  processor.  Failure of the data center  would have a serious
impact on the  operation of the Company and could result in an  interruption  of
service to customers, as well as an adverse financial impact on the Company. The
worse case scenario  might be, (1) loss of customers due to decreased  levels of
customer service or loss of utilities,  (2) large withdrawal  requests  creating
deposit  outflows,  (3) increased  employee  expense if extra staff is needed to
perform data processing.

The  Company  has  prepared a  contingency/business  resumption  plan to provide
contingencies for possible serious failures of the Company's hardware,  software
or vendor's  systems.  The plan  addresses  recovery  procedures  for  potential
failures  in the event of a Year 2000  disruption.  The  Company  is taking  the
necessary steps to validate and test its contingency/business resumption plan in
order to minimize the impact on operations should there be system failures.

                                       16
<PAGE>
Impact of Inflation and Changing Prices

The Consolidated  Financial  Statements and Notes thereto  presented herein have
been prepared in accordance with generally accepted accounting principles, which
generally  requires the measurement of financial  position and operating results
in terms of historical  dollars  without  considering the change in the relative
purchasing power of money over time due to inflation. The impact of inflation is
reflected in the  increased  cost of the  Company's  operations.  Nearly all the
assets and  liabilities  of the Company are  financial,  unlike most  industrial
companies.  As a result,  the  Company's  performance  is  directly  impacted by
changes in interest  rates,  which are  indirectly  influenced  by  inflationary
expectations.  The Company's  ability to match the interest  sensitivity  of its
financial assets to the interest sensitivity of its financial liabilities in its
asset/liability  management  may tend to  minimize  the  effect  of  changes  in
interest  rates on the Company's  performance.  Changes in interest rates do not
necessarily  move to the same  extent  as  changes  in the  price  of goods  and
services. In the current increasing interest rate environment, liquidity and the
maturity  structure of the Company's  assets and liabilities are critical to the
maintenance of acceptable performance levels.

                                       17
<PAGE>
                          Independent Auditors' Report



     The Board of Directors
     Hardin Bancorp, Inc.:


     We have  audited the  accompanying  consolidated  balance  sheets of Hardin
     Bancorp,  Inc. and subsidiaries (the Company) as of March 31, 1999 and 1998
     and the related consolidated statements of earnings,  stockholders' equity,
     and cash flows for each of the years in the  three-year  period ended March
     31, 1999. These consolidated financial statements are the responsibility of
     the Company's  management.  Our  responsibility is to express an opinion on
     these consolidated financial statements based on our audits.

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

     In our opinion,  the consolidated  financial  statements  referred to above
     present fairly,  in all material  respects,  the financial  position of the
     Company as of March 31, 1999 and 1998 and the results of its operations and
     its cash flows for each of the years in the  three-year  period ended March
     31, 1999, in conformity with generally accepted accounting principles.


                                                /s/ KPMG LLP
                                                ------------------------
                                                KPMG LLP

     May 21, 1999
     Kansas City, Missouri
<PAGE>
                      HARDIN BANCORP, INC. AND SUBSIDIARIES
                                Hardin, Missouri

                           Consolidated Balance Sheets

                             March 31, 1999 and 1998
<TABLE>
<CAPTION>
                Assets                                                                       1999             1998
                                                                                        --------------     -----------
<S>                                                                                     <C>                  <C>
Cash                                                                                    $    838,044         556,927
Interest-bearing deposits in other financial institutions                                  4,156,648       3,224,874
Investment securities (note 2):
   Held-to-maturity                                                                               --      10,000,000
   Available-for-sale                                                                     44,519,193      22,656,010
Mortgage-backed securities (note 3):
   Held-to-maturity                                                                               --      10,995,511
   Available-for-sale                                                                     12,584,419       8,019,725
Loans receivable, net (note 4)                                                            69,504,900      61,273,984
Accrued interest receivable on:
   Investment securities                                                                     501,114         359,601
   Mortgage-backed securities                                                                 91,008         133,459
   Loans receivable                                                                          456,003         395,138
Premises and equipment (note 5)                                                            1,832,311       1,725,383
Stock in Federal Home Loan Bank (FHLB) of Des Moines, at cost                              2,000,000       1,475,000
Deferred income taxes (note 8)                                                               188,000              --
Prepaid expenses and other assets                                                            384,481         276,492
                                                                                        ------------     -----------
           Total assets                                                                 $137,056,121     121,092,104
                                                                                        ============     ===========
                         Liabilities and Stockholders' Equity
Liabilities:
   Deposits (note 6)                                                                    $ 83,326,871      76,884,462
   Advances from borrowers for property taxes and insurance                                  294,424         264,317
   Advances from FHLB (note 7)                                                            40,000,000      29,500,000
   Accrued interest payable                                                                   40,949          56,149
   Income taxes payable (note 8):
     Current                                                                                 159,367         323,520
     Deferred                                                                                     --          15,000
                                                                                        ------------     -----------
   Accrued expenses and other liabilities                                                    674,969         571,084
                                                                                        ------------     -----------
           Total liabilities                                                             124,496,580     107,614,532
                                                                                        ------------     -----------
Stockholders' equity:
   Common stock, $.01 par value; 3,500,000 shares authorized, 1,058,000 shares issued         10,580          10,580
   Serial preferred stock, $.01 par value; 500,000 shares authorized, none issued                 --              --
   Additional paid-in capital                                                             10,252,604      10,165,436
   Retained earnings                                                                       8,097,420       7,482,320
   Accumulated other comprehensive income                                                   (394,038)        (98,326)
   Unearned employee benefits (note 9)                                                      (643,395)       (845,291)
   Treasury stock of 323,247 and 234,440 shares in 1999 and 1998, respectively, at cost   (4,763,630)     (3,237,147)
                                                                                        ------------     -----------
           Total stockholders' equity                                                     12,559,541      13,477,572
Commitments and contingencies (notes 4 and 11)
                                                                                        ------------     -----------
           Total liabilities and stockholders' equity                                   $137,056,121     121,092,104
                                                                                        ============     ===========
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>

                      HARDIN BANCORP, INC. AND SUBSIDIARIES
                                Hardin, Missouri

                       Consolidated Statements of Earnings

                   Years ended March 31, 1999, 1998, and 1997
<TABLE>
<CAPTION>
                                                                      1999          1998         1997
                                                                  -----------   -----------  -----------
<S>                                                             <C>              <C>          <C>
Interest income:
   Loans receivable                                             $  5,394,023     4,780,918    4,117,141
   Mortgage-backed securities                                      1,015,679     1,216,181    1,347,251
   Investment securities                                           2,238,362     1,803,383      985,940
   Other                                                             365,046       433,660      234,042
                                                                  -----------   -----------  -----------

           Total interest income                                   9,013,110     8,234,142    6,684,374
                                                                  -----------   -----------  -----------
Interest expense:
   Deposits (note 6)                                               3,878,471     3,817,487    3,379,903
   FHLB advances                                                   2,041,955     1,366,316      535,227
                                                                  -----------   -----------  -----------

           Total interest expense                                  5,920,426     5,183,803    3,915,130
                                                                  -----------   -----------  -----------

           Net interest income                                     3,092,684     3,050,339    2,769,244

Provision for losses on loans (note 4)                                65,973        93,671       33,590
                                                                  -----------   -----------  -----------

           Net interest income after provision for losses          3,026,711     2,956,668    2,735,654
                                                                  -----------   -----------  -----------
Noninterest income:
   Service charges                                                   421,299       141,531       80,491
   Loan servicing fees                                                29,586        34,260       36,102
   Gain on sale of loans                                              90,061        70,433           --
   Gain (loss) on sale of investments and mortgage-backed
     securities (notes 2 and 3)                                      478,940       111,484       (2,218)
   Other                                                             172,570       134,472      158,175
                                                                  -----------   -----------  -----------

           Total noninterest income                                1,192,456       492,180      272,550
                                                                  -----------   -----------  -----------
Noninterest expense:
   Compensation and benefits (note 9)                              1,374,315     1,138,519    1,018,635
   Occupancy and equipment                                           242,363       149,465      115,842
   Federal insurance premiums                                         47,180        45,742      557,351
   Data processing                                                   171,375       109,836       94,725
   Real estate owned                                                      --         1,439        2,202
   Other                                                             709,931       636,426      481,394
                                                                  -----------   -----------  -----------

           Total noninterest expense                               2,545,164     2,081,427    2,270,149
                                                                  -----------   -----------  -----------

           Earnings before income taxes                            1,674,003     1,367,421      738,055

Income tax expense (note 8)                                          600,651       498,847      273,804
                                                                  -----------   -----------  -----------

           Net earnings                                         $  1,073,352       868,574      464,251
                                                                  ===========   ===========  ===========
Earnings per share:
   Basic                                                        $       1.48          1.12          .52
   Diluted                                                              1.42          1.08          .51
                                                                  ===========   ===========  ===========
</TABLE>
          See accompanying notes to consolidated financial statements.
<PAGE>
                      Hardin Bancorp, Inc. and Subsidiaries
                                Hardin, Missouri

                 Consolidated Statements of Stockholders' Equity
                   Years ended March 31, 1999, 1998, and 1997
<TABLE>
<CAPTION>
                                                                            Accumulated
                                                          Additional           other       Unearned
                                            Common    paid-in   Retained   comprehensive  employee        Treasury
                                             stock     capital   earnings     income       benefits    stock      Total
                                           --------  ---------- ------------------------  -------------------- ----------
<S>                <C>                    <C>          <C>          <C>             <C>          <C>         <C>          <C>
Balance, March 31, 1996                   $  10,580    10,055,448   6,885,230       (154,597)    (761,720)          --    16,034,941

Comprehensive income:
   Net earnings                                  --           --     464,251              --           --           --      464,251
   Other comprehensive income (loss) -
    unrealized holding losses on debt and
    equity securities available-for-sale,
    net of reclassification adjustments for
    amounts included in net income, net of
    taxes of $4,500                              --           --          --         (80,000)          --           --      (80,000)
                                            --------   ----------   ---------       --------   ----------    ---------     --------

         Total comprehensive income              --           --     464,251         (80,000)          --           --      384,251
                                            --------   ----------   ---------       --------   ----------    ---------     --------

Allocation of ESOP shares                        --       29,281          --              --      124,920           --      154,201
Repurchase of common stock                       --           --          --              --           --   (3,093,552)  (3,093,552)
Adoption of recognition and retention plan       --           --          --              --     (498,150)     498,150           --
Amortization of recognition and retention plan   --           --          --              --       84,686           --       84,686
Dividends declared ($.40 per share)              --           --    (354,801)             --           --           --     (354,801)
                                           --------   ----------   ---------        --------   ----------    ---------     --------

Balance, March 31, 1997                      10,580   10,084,729   6,994,680        (234,597)   (1,050,264  (2,595,402)  13,209,726
                                           --------   ----------   ---------        --------   ----------    ---------     --------
Comprehensive income:
   Net earnings                                  --           --     868,574              --           --           --      868,574
   Other comprehensive income - unrealized
    holding gains on debt and equity
    securities available-for-sale, net of
    reclassification adjustments for amounts
    included in net income, net of taxes of
    $70,000                                      --           --          --         136,271           --           --      136,271
                                            --------   ----------   ---------       --------   ----------    ---------   ----------

         Total comprehensive income              --           --     868,574         136,271           --           --    1,004,845
                                            --------   ----------   ---------       --------   ----------    ---------   ----------

Allocation of ESOP shares                        --       80,707          --              --      118,520           --      199,227
Repurchase of common stock                       --           --          --              --           --     (641,745)    (641,745)
Amortization of recognition and retention plan   --           --          --              --       86,453           --       86,453
Dividends declared ($.49 per share)              --           --    (380,934)             --           --           --     (380,934)
                                            --------   ----------   ---------       --------   ----------    ---------   ----------
Balance, March 31, 1998                      10,580   10,165,436   7,482,320         (98,326)    (845,291)  (3,237,147)  13,477,572
                                            --------   ----------   ---------       --------   ----------    ---------   ----------
Comprehensive income:
   Net earnings                                  --          --    1,073,352              --           --           --    1,073,352
   Other comprehensive income (loss) -
    unrealized holding losses on debt and
    equity securities available-for-sale,
    net of reclassification adjustments for
    amounts included in net income, net of
    taxes of $283,000                            --          --          --        (295,712)          --           --     (295,712)
                                           --------   ----------   ---------       --------   ----------    ---------    ----------

         Total comprehensive income              --          --    1,073,352       (295,712)          --           --      777,640
                                           --------   ----------   ---------       --------   ----------    ---------    ----------

Allocation of ESOP shares                        --       87,168         --               --     113,090           --      200,258
Repurchase of common stock                       --           --         --               --          --   (1,526,483)(  1,526,483)
Amortization of recognition and retention plan   --           --         --               --      88,806           --       88,806
Dividends declared ($.63 per share)              --           --    (458,252)             --          --           --     (458,252)
                                           --------   ----------   ---------       --------   ----------    ---------    ----------

Balance, March 31, 1999                   $  10,580   10,252,604   8,097,420       (394,038)    (643,395)  (4,763,630)   12,559,541
                                            ========   ==========   =========       =========  ==========    =========   ==========
</TABLE>
See accompanying notes to consolidated financial statements.

                                     21
<PAGE>
                      HARDIN BANCORP, INC. AND SUBSIDIARIES
                                Hardin, Missouri

                      Consolidated Statements of Cash Flows

                   Years ended March 31, 1999, 1998, and 1997
<TABLE>
<CAPTION>
                                                                             1999             1998            1997
                                                                         -------------    -----------------------------
Operating activities:
<S>                                                                    <C>                     <C>             <C>
   Net earnings                                                        $    1,073,352          868,574         464,251
   Adjustments to reconcile net earnings to net cash provided
     by operating activities:
       Provision for losses on loans                                           65,973           93,671          33,590
       Depreciation and amortization                                          131,524           80,494          54,352
       Premium amortization and accretion of discounts and
         deferred loan fees, net                                             (154,421)        (328,422)         83,123
       Loss (gain) on sales of loans and securities, net                     (569,001)        (181,917)          2,218
       Gain on sales of real estate owned                                          --           (5,657)         (6,684)
       Proceeds from sales of loans held for sale                           1,913,636          428,016              --
       Origination of loans held for sale                                  (2,066,821)        (423,619)             --
       Allocation of ESOP shares                                              200,258          199,227         154,201
       Amortization of deferred recognition and retention plan                 88,806           86,453          84,686
       Provision for deferred income taxes                                    (30,000)         (22,000)        (44,086)
       Changes in other assets and liabilities:
         Accrued interest receivable                                         (159,927)        (105,504)       (180,825)
         Prepaid expenses and other assets                                   (107,989)         (43,373)         12,213
         Accrued interest payable                                             (15,200)             898          24,866
         Accrued expenses and other liabilities                                78,692           74,647         100,752
         Income taxes payable                                                (163,481)         186,295          80,589
                                                                         -------------    -------------   -------------

           Net cash provided by operating activities                          285,401          907,783         863,246
                                                                         -------------    -------------   -------------
Investing activities:
   Net increase in loans receivable                                        (7,982,133)      (8,811,940)     (5,295,352)
   Purchase of loans                                                       (1,662,300)      (1,232,050)     (4,397,569)
   Proceeds from sales of loans                                             1,571,964        3,309,109              --
   Purchase of mortgage-backed securities available-for-sale                       --      (10,786,034)             --
   Purchase of investment securities held-to-maturity                              --      (10,000,000)             --
   Purchase of investment securities available-for-sale                   (43,235,114)     (27,556,342)    (21,607,082)
   Principal payments on mortgage-backed securities held-to-maturity               --        2,081,172       2,786,969
   Principal payments on mortgage-backed securities available-for-sale      7,875,715          805,804       1,098,488
   Principal payments on investment securities available-for-sale                  --           76,872              --
   Proceeds from maturities of investment securities available-for-sale     9,000,000       23,650,000       3,500,000
   Proceeds from sales of mortgage-backed securities held-to-maturity              --          337,776              --
   Proceeds from sales of mortgage-backed securities available-for-sale     2,768,669        7,838,077       1,016,675
   Proceeds from sales of investment securities available-for-sale         18,341,167        4,084,772       2,004,844
   Purchase of stock in FHLB of Des Moines                                   (525,000)        (525,000)       (208,000)
   Proceeds from sales of real estate owned                                        --          117,339          35,000
   Purchase of office property and equipment                                 (238,452)        (952,376)       (394,344)
                                                                         -------------    -------------   -------------

           Net cash used in investing activities                       $  (14,085,484)     (17,562,821)    (21,460,371)
                                                                         -------------    -------------   -------------
</TABLE>
                                                                     (Continued)
                                       22
<PAGE>
                      HARDIN BANCORP, INC. AND SUBSIDIARIES
                                Hardin, Missouri

                Consolidated Statements of Cash Flows, Continued

                   Years ended March 31, 1999, 1998, and 1997
<TABLE>
<CAPTION>
                                                                             1999             1998            1997
                                                                         -------------    -------------   -------------
Financing activities:
<S>                                                                    <C>                   <C>             <C>
   Net increase in deposits                                            $    6,442,409        6,683,605       3,595,610
   Net increase (decrease) in advances from borrowers for taxes
     and insurance                                                             30,107          (11,123)         51,688
   Proceeds from FHLB advances                                             26,000,000       30,500,000      19,000,000
   Repayments of FHLB advances                                            (15,500,000)     (20,000,000)             --
   Payment of dividends                                                      (433,059)        (359,807)       (374,665)
   Purchase of treasury stock                                              (1,526,483)        (641,745)     (3,093,552)
                                                                         -------------    -------------   -------------
           Net cash provided by financing activities                       15,012,974       16,170,930      19,179,081
                                                                         -------------    -------------   -------------

           Increase (decrease) in cash and cash equivalents                 1,212,891         (484,108)     (1,418,044)

Cash and cash equivalents at beginning of year                              3,781,801        4,265,909       5,683,953
                                                                         -------------    -------------   -------------
Cash and cash equivalents at end of year                               $    4,994,692        3,781,801       4,265,909
                                                                         =============    =============   =============

Supplemental disclosure of cash flow information: Cash paid for:
     Interest                                                          $    5,935,626        5,182,905       3,890,264
                                                                         =============    =============   =============

     Income taxes, net of refunds                                      $      779,804          310,100         193,215
                                                                         =============    =============   =============
Noncash investing and financing activities:
   Loans transferred to real estate owned                              $           --            8,272         143,726
                                                                         =============    =============   =============
   Loans to facilitate sales of real estate owned                      $           --               --          18,500
                                                                         =============    =============   =============
   Allocation of recognition and retention plan shares                 $           --               --         498,150
                                                                         =============    =============   =============
   Dividend declared and payable                                       $      132,256          107,063          85,936
                                                                         =============    =============   =============
</TABLE>
See accompanying notes to consolidated financial statements.

                                     23
<PAGE>
  (1)   Summary of Significant Accounting Policies

        (a)   Principles of Consolidation and Basis of Presentation

              The accompanying  consolidated  financial  statements  include the
              accounts of Hardin Bancorp,  Inc. (the Company) and Hardin Federal
              Savings Bank (the Bank) and its  wholly-owned  subsidiary,  Hardin
              Savings Service Corporation. Significant intercompany balances and
              transactions have been eliminated in consolidation.

        (b)   Investment and Mortgage-backed Securities

              The  Company   classifies  its   investment  and   mortgage-backed
              securities  portfolio as  held-to-maturity,  which are recorded at
              amortized cost, or available-for-sale,  which are recorded at fair
              value. Unrealized holding gains and losses, net of the related tax
              effect,  on   available-for-sale   securities  are  excluded  from
              earnings and are reported as a separate component of stockholders'
              equity   until    realized.    Transfers   of   securities    from
              available-for-sale  to held-to-maturity are recorded at fair value
              at the date of transfer and unrealized holding gains or losses are
              amortized over the remaining life of the security.

              A decline in the market value of any  security  below cost that is
              deemed other than temporary is charged to income, resulting in the
              establishment of a new cost basis for the security.

              Premiums and  discounts are amortized or accreted over the life of
              the related security as an adjustment to interest income using the
              interest method.  Realized gains and losses are included in income
              using the specific  identification method for determining the cost
              of the securities sold.

        (c)   Loans

              The Company determines at the time of origination whether mortgage
              loans  will be held  for the  Company's  portfolio  or sold in the
              secondary  market.  Loans  originated and intended for sale in the
              secondary  market are recorded at the lower of  aggregate  cost or
              estimated fair value. Fees received on such loans are deferred and
              recognized  in  income  as part of the gain or loss on  sale.  The
              Company  had no loans  classified  as loans held for sale at March
              31, 1999 or 1998.

              The Company defers all loan origination,  commitment,  and related
              fees  and  certain  direct  origination  costs  related  to  loans
              generated  for the Bank's  portfolio.  The Bank  amortizes the net
              fees over the  expected  life of the  individual  loans  using the
              interest method.

        (d)   Allowance for Loan Losses

              The  provision  for  losses  on loans is based  upon  management's
              estimate of the amount required to maintain an adequate  allowance
              for  losses,  relative  to the risks in the loan  portfolio.  This
              estimate  is based on  reviews  of the loan  portfolio,  including
              assessment of the estimated  net  realizable  value of the related
              underlying  collateral,   and  consideration  of  historical  loss
              experience,  current economic  conditions,  and such other factors
              which, in the opinion of management,  deserve current recognition.
              Loans are also  subject  to  periodic  examination  by  regulatory
              agencies.  Such agencies may require  charge-offs  or additions to
              the  allowance  based  upon  their  judgments  about   information
              available at the time of their examination.

                                       24
<PAGE>
              Additionally,  accrual of interest on potential  problem  loans is
              excluded  from  income by an  offsetting  increase  in a  specific
              allowance  for loss  where,  in the  opinion of  management,  such
              exclusion is warranted.

        (e)   Mortgage Banking Activities

              The  Company  accounts  for  its  mortgage   servicing  rights  in
              accordance with Statement of Financial Accounting Standards (SFAS)
              No. 122,  Accounting for Mortgage  Servicing Rights, as amended by
              SFAS No. 125,  Accounting for Transfers and Servicing of Financial
              Assets and Extinguishments of Liabilities. This statement requires
              that the value of retained  mortgage  servicing  rights related to
              loans  originated and sold after January 1, 1996 be capitalized as
              an asset,  thereby  increasing the gain on sale of the loan by the
              amount of the asset. Such mortgage  servicing rights are amortized
              in  proportion  to  and  over  the  period  of the  estimated  net
              servicing income.  Any remaining  unamortized amount is charged to
              expense  if  the  related   loan  is  repaid  prior  to  maturity.
              Management monitors the capitalized  mortgage servicing rights for
              impairment based on the fair value of those rights. Any impairment
              is recognized through a valuation allowance.

              Included in gains on sales of loans  during  1999 are  capitalized
              mortgage  servicing  rights  aggregating   $35,000.   Amortization
              expense related to the capitalized  servicing rights,  included in
              other  expenses in the  accompanying  consolidated  statements  of
              earnings, aggregated $10,000 during 1999.

              At March  31,  1999 and  1998,  the Bank was  servicing  loans for
              others amounting to $10,154,000 and $9,759,000, respectively. Loan
              servicing  fees include  servicing fees from investors and certain
              charges collected from borrowers, such as late payment fees, which
              are recorded when received. The amount of escrow balances held for
              borrowers at March 31, 1999 and 1998 was insignificant.

        (f)   Real Estate Owned

              Real estate properties  acquired through foreclosure are initially
              recorded at estimated fair value,  less selling costs, at the date
              of  foreclosure.  Costs relating to development and improvement of
              property are capitalized,  whereas holding costs are expensed when
              incurred.

              Valuations are  periodically  reviewed and an allowance for losses
              is  established by a charge to operations if the carrying value of
              a property exceeds its estimated fair value, less selling costs.

        (g)   Stock in Federal Home Loan Bank of Des Moines

              The Bank is a member of the Federal Home Loan Bank (FHLB)  system.
              As a member,  the Bank is required  to purchase  and hold stock in
              the FHLB of Des Moines in an amount equal to the greater of (a) 1%
              of unpaid  residential loans, (b) 5% of outstanding FHLB advances,
              or (c) .3% of total  assets.  FHLB stock is carried at cost in the
              accompanying consolidated balance sheets.

                                     25
<PAGE>
        (h)   Premises and Equipment

              Premises  and  equipment  are  stated  at  cost  less  accumulated
              depreciation.  Depreciation  is provided using both  straight-line
              and  accelerated  methods over the  estimated  useful lives of the
              assets,  which range from three to forty years. Major replacements
              and  betterments  are  capitalized  while normal  maintenance  and
              repairs are charged to expense when  incurred.  Gains or losses on
              dispositions are reflected in current operations.

        (i)   Income Taxes

              The Company  records  deferred tax assets and  liabilities for the
              future tax  consequences  attributable to differences  between the
              consolidated  financial  statement  carrying  amounts of  existing
              assets and liabilities and their respective  income tax bases. The
              effect on deferred tax assets and  liabilities  of a change in tax
              rate is  recognized  in income in the  period  that  includes  the
              enactment date.

        (j)   Cash and Cash Equivalents

              For purposes of the cash flows, all short-term  investments with a
              maturity  of  three  months  or  less  at  date  of  purchase  are
              considered cash equivalents.

        (k)   Use of Estimates

              Management  of the  Company  has made a number  of  estimates  and
              assumptions  relating to the  reporting of assets and  liabilities
              and the disclosure of contingent assets and liabilities to prepare
              these  consolidated   financial   statements  in  conformity  with
              generally  accepted  accounting  principles.  Actual results could
              differ from those estimates.

        (l)   Earnings Per Share

              Earnings per share are computed in  accordance  with SFAS No. 128,
              Earnings  per Share.  Basic  earnings  per share is based upon the
              weighted  average number of common shares  outstanding  during the
              periods presented.  Diluted earnings per share include the effects
              of all dilutive  potential common shares  outstanding  during each
              period.

The shares used in the  calculation of basic and diluted  earnings per share are
shown below:
<TABLE>
<CAPTION>
                                                               For the years ended
                                                                      March 31,
                                                          1999         1998         1997
<S>                                                       <C>          <C>          <C>
Weighted average common shares outstanding                724,615      775,293      900,351
Stock options                                              31,911       28,261        5,983

                                                          756,526      803,554      906,334
                                                          =======      =======      =======

                                       26
<PAGE>
</TABLE>
        (m)   Recently Issued Accounting Pronouncements

              The Financial  Accounting  Standards  Board (FASB) issued SFAS No.
              130, Reporting Comprehensive Income, and SFAS No. 131, Disclosures
              About Segments of an Enterprise and Related  Information,  in June
              1997. SFAS No. 130 requires the Company to classify items of other
              comprehensive income by their nature in the consolidated financial
              statements. The Company has adopted the provisions of SFAS No. 130
              for  the  year  ended  March  31,  1999  and  has   displayed  the
              accumulated balance of other comprehensive  income separately from
              retained  earnings and  additional  paid-in  capital in the equity
              section of the  consolidated  statement of  stockholders'  equity.
              SFAS No. 131 requires public  enterprises to report  financial and
              descriptive information about their reportable operating segments.
              Operating  segments are  components of an  enterprise  about which
              separate  financial  information  is  available  that is evaluated
              regularly by  management.  The Company  adopted the  provisions of
              SFAS No. 131 for the year ended  March 31,  1999.  The Company has
              one reportable operating segment.

              The  FASB  issued  SFAS  No.  133,   Accounting   for   Derivative
              Instruments  and Hedging  Activities,  in June 1998.  SFAS No. 133
              establishes  accounting  and reporting  standards  for  derivative
              instruments,  including certain derivative instruments embedded in
              other contracts,  and for hedging activities.  It requires that an
              entity  recognize all  derivatives as either assets or liabilities
              in  the   statement  of  financial   position  and  measure  those
              instruments  at fair value.  This  statement is effective  for all
              fiscal  quarters of fiscal  years  beginning  after June 15, 2000,
              however,  the Company  adopted the  provisions  of SFAS No. 133 at
              July  1,   1998  and   utilized   an  option   to   transfer   its
              held-to-maturity      investment     security     portfolio     to
              available-for-sale.  Accordingly,  all unrealized gains and losses
              were recorded at that date.  Management  believes  adoption of the
              remaining  provisions of SFAS No. 133 did not have material effect
              on the Company's financial position or results of operations,  nor
              will adoption require additional capital resources.

                                       27
<PAGE>
  (2)   Investment Securities

A summary of investment securities information is as follows:
<TABLE>
<CAPTION>
                                                                     March 31, 1999
                                                 -------------------------------------------------------
                                                                  Gross         Gross        Estimated
                                                  Amortized     unrealized    unrealized        fair
                                                    cost          gains        losses          value
                                                 -----------   -----------   -----------     -----------
<S>                                              <C>                 <C>         <C>           <C>
Available-for-sale:
   United States government and agency
      obligations maturing:
        Within one year                          $ 22,990,625        11,577      (290,936)     22,711,266
        After one year but within five years        5,000,000            --            --       5,000,000
        After five years but within ten years              --            --            --              --
        After ten years                            10,584,257            --       (89,771)     10,494,486
                                                  -----------   -----------   -----------     -----------
             Total United States government
               and agency obligations              38,574,882        11,577      (380,707)     38,205,752
                                                  -----------   -----------   -----------     -----------

State and municipal obligations maturing:
   Within one year                                    340,000           930            --         340,930
   After one year but within five years               630,000        12,590            --         642,590
   After five years but within ten years              500,000            --       (10,510)        489,490
                                                  -----------   -----------   -----------     -----------

             Total state and municipal
               obligations                          1,470,000        13,520       (10,510)      1,473,010
                                                  -----------   -----------   -----------     -----------

Equity securities                                   4,965,269            --      (124,838)      4,840,431
                                                  -----------   -----------   -----------     -----------

                                                 $ 45,010,151        25,097      (516,055)     44,519,193
</TABLE>

                                       28
<PAGE>
<TABLE>
<CAPTION>
                                                                         March 31, 1998
                                                  -------------------------------------------------------
                                                                  Gross          Gross        Estimated
                                                   Amortized     unrealized    unrealized        fair
                                                     cost          gains        losses           value
                                                  -----------   -----------   -----------     -----------
<S>                                              <C>                 <C>           <C>          <C>
Available-for-sale:
   United States government and agency
      obligations maturing:
        Within one year                          $  8,994,336        20,860        (3,942)      9,011,254


        After one year but within five years        6,695,104            --       (51,303)      6,643,801
        After five years but within ten years         622,653           185            --         622,838
        After ten years                             5,333,207        40,799        (1,018)      5,372,988
                                                  -----------   -----------   -----------     -----------
             Total United States government
               and agency obligations              21,645,300        61,844       (56,263)     21,650,881
                                                  -----------   -----------   -----------     -----------
   State and municipal obligations maturing:
      Within one year                                 205,000            23            --         205,023
      After one year but within five years            505,000         2,000            --         507,000
      After five years but within ten years           290,000         3,106            --         293,106
                                                  -----------   -----------   -----------     -----------
             Total state and municipal
               obligations                          1,000,000         5,129            --       1,005,129
                                                  -----------   -----------   -----------     -----------

                                                 $ 22,645,300        66,973       (56,263)     22,656,010
                                                  -----------   -----------   -----------     -----------
Held-to-maturity:
   United States government and agency
      obligations maturing after one year
      but within five years                      $ 10,000,000         9,352            --      10,009,352
                                                  ===========   ===========   ===========     ===========
</TABLE>
        Proceeds  from the sales of  investment  securities  for the years ended
        March 31, 1999,  1998,  and 1997 totaled  $18,341,167,  $4,084,772,  and
        $2,004,844,  respectively,  and  resulted  in  gross  realized  gains of
        $449,795, $31,433, and $5,286 in 1999, 1998, and 1997, respectively.

        At March 31, 1999 and 1998,  investment  securities with a fair value of
        approximately $3,328,000 and $1,467,000,  respectively,  were pledged to
        secure public funds on deposit.

                                       29
<PAGE>
  (3)   Mortgage-backed Securities

Mortgage-backed securities at March 31, 1999 and 1998 are summarized as follows:
<TABLE>
<CAPTION>
                                                                    March 31, 1999
                                                ------------------------------------------------------
                                                                  Gross         Gross       Estimated
                                                  Amortized     unrealized    unrealized      fair
                                                    cost          gains        losses         value
                                                -----------   -----------   -----------    -----------
<S>                                            <C>                 <C>           <C>         <C>
Available-for-sale:
   Pass-through certificates guaranteed
      by Government National
      Mortgage Association (GNMA)              $  1,109,675        11,120        (2,214)     1,118,581
   Federal Home Loan Mortgage
      Corporation (FHLMC) participation
      certificates                                4,220,822         5,878       (68,620)     4,158,080
   Federal National Mortgage Association
      (FNMA) participation certificates           7,388,420         5,195       (85,857)     7,307,758
                                                -----------   -----------   -----------    -----------
                                               $ 12,718,917        22,193      (156,691)    12,584,419
                                                ===========   ===========   ===========    ===========
</TABLE>
<TABLE>
<CAPTION>
                                                                   March 31, 1999
                                                ------------------------------------------------------
                                                                  Gross         Gross       Estimated
                                                  Amortized     unrealized    unrealized      fair
                                                    cost          gains        losses         value
                                                -----------   -----------   -----------    -----------
<S>                                            <C>                 <C>           <C>         <C>
Available-for-sale:
   Pass-through certificates guaranteed
      by GNMA                                  $  2,967,254            --            --      2,967,254
   FHLMC participation certificates               1,744,724            --       (57,019)     1,687,705
   FNMA participation certificates                3,474,530            --      (109,764)     3,364,766
                                                -----------   -----------   -----------    -----------
                                               $  8,186,508            --      (166,783)     8,019,725
                                                ===========   ===========   ===========    ===========
Held-to-maturity:
   Pass-through certificates guaranteed
      by GNMA                                  $  1,478,909        25,490          (416)     1,503,983
   FHLMC participation certificates               3,736,755         7,350       (56,130)     3,687,975
   FNMA participation certificates                5,779,847        15,273       (68,916)     5,726,204
                                                -----------   -----------   -----------    -----------
                                               $ 10,995,511        48,113      (125,462)    10,918,162
                                                ===========   ===========   ===========    ===========
</TABLE>
        Proceeds  from the  sales of  mortgage-backed  securities  for the years
        ended  March  31,  1999  and 1998  totaled  $2,768,669  and  $8,175,853,
        respectively,  and  resulted  in gross  realized  gains of  $29,145  and
        $81,147 in 1999 and 1998,  respectively,  and gross  realized  losses of
        $1,096 in 1998.
                                       30
<PAGE>
  (4)   Loans Receivable

Loans receivable at March 31, 1999 and 1998 are summarized as follows:
<TABLE>
<CAPTION>
                                             1999             1998
                                         --------------  ---------------
Real estate:
<S>                                    <C>                   <C>
   One to four family                  $    54,122,490       50,645,667
   Five or more                                479,473          543,197
   Nonresidential                            1,432,875          477,263
   Land                                      3,048,016          810,581
   Commercial                                1,118,098        1,335,685
   Construction                              2,380,400        3,966,929
Consumer                                     8,569,463        6,704,534
Commercial                                     781,000               --
                                         --------------  ---------------
                                            71,931,815       64,483,856

Loans in process                            (2,194,823)      (3,021,980)
Discounts and deferred loan
   origination fees, net of cost                79,104           59,818
Allowance for loan losses                     (311,196)        (247,710)
                                         --------------  ---------------
             Net loans receivable      $    69,504,900       61,273,984
                                         ==============  ===============
</TABLE>
        The Bank evaluates each  customer's  creditworthiness  on a case-by-case
        basis.  Residential  loans with a loan-to-value  ratio exceeding 80% are
        required to have private mortgage insurance or to pledge savings account
        balances or additional  collateral.  The Bank's principal  lending areas
        are  agricultural-based  rural  communities  northeast  of Kansas  City,
        Missouri.

        The Bank  makes  contractual  commitments  to  extend  credit  which are
        subject to the Bank's credit  monitoring  procedures.  At March 31, 1999
        and  1998,  the  Bank  was  committed  to  originate  loans  aggregating
        approximately  $2,241,000  and  $1,264,000,  respectively.  At March 31,
        1999, all loan  commitments  were fixed with interest rates ranging from
        6.75% to 8.0%. There were no commitments to buy loans at March 31, 1999.

        The Company had loans to  directors  and  officers at March 31, 1999 and
        1998 which carry terms  similar to those for other  loans.  A summary of
        such loans is as follows:
<TABLE>
<CAPTION>
                                        1999          1998
                                     ------------  -----------
<S>                                <C>                <C>
Balance at beginning of year       $     291,000      194,000
New loans                                259,000      105,000
Payments                                (255,000)      (8,000)
                                     ------------  -----------

Balance at end of year             $     295,000      291,000
                                     ============  ===========
</TABLE>
                                       31
<PAGE>
Activity in the  allowance  for loan losses for the years ended March 31,  1999,
1998, and 1997 is as follows:
<TABLE>
<CAPTION>
                                        1999         1998        1997
                                     -----------  -----------  ----------
<S>                                <C>               <C>         <C>
Balance at beginning of year       $    247,710      158,276     131,040
Provision for loan losses                65,973       93,671      33,590
Charge-offs                              (2,487)      (4,237)     (6,354)
                                     -----------  -----------  ----------

Balance at end of year             $    311,196      247,710     158,276
                                     ===========  ===========  ==========
</TABLE>
        Nonaccrual  loans at March 31,  1999 and 1998  aggregated  approximately
        $231,000 and $232,000, respectively.

  (5)   Premises and Equipment

Premises and equipment consist of the following at March 31, 1999 and 1998:
<TABLE>
<CAPTION>
                                            1999            1998
                                         -----------     -----------
<S>                                      <C>               <C>
Land                                     $   159,779         157,779
Building                                   1,503,251       1,465,840
Leasehold improvements                        34,170          34,170
Furniture and fixtures                       921,737         734,497
Automobile                                    11,800              --
                                         -----------     -----------

                                           2,630,737       2,392,286

Less accumulated depreciation                798,426         666,903
                                         -----------     -----------

             Office properties and
               equipment, net            $ 1,832,311       1,725,383
                                         ===========     ===========
</TABLE>
                                                                     (continued)
                                       32
<PAGE>
(6)Deposits

Deposits at March 31, 1999 and 1998 are summarized as follows:

<TABLE>
<CAPTION>
                                                               1999                     1998
                                          Stated       --------------------      --------------------
                                           rate          Amount    Percent        Amount     Percent
                                         ---------     ---------  ---------      ---------  ---------
<S>                                      <C>           <C>              <C>    <C>                <C>
Balance by interest rate:
   Commercial                                  0.0     1,918,980          2%   $ 1,081,647          1%
   NOW accounts                          1.75-2.25     6,852,307          8      4,258,114          6
   Money market demand
      accounts                           2.75-3.50     6,583,405          8      5,901,404          8
   Savings accounts                      2.00%         3,804,878          5      3,265,591          4
                                                      ----------  ---------      ---------  ---------
                                                      19,159,570         23     14,506,756         19
                                                      ----------  ---------      ---------  ---------
   Certificate accounts                  0.00-2.99%           --         --        105,875         --
                                         3.00-3.99%       49,133         --         23,030         --
                                         4.00-4.99%   12,805,257         15      3,978,376          5
                                         5.00-5.99%   40,780,548         49     44,438,448         58
                                         6.00-6.99%    9,631,651         12     12,358,458         16
                                         7.00-7.99%      895,707          1      1,466,506          2
                                         8.00% and up      5,005         --          7,013         --
                                                      ----------  ---------      ---------  ---------

                                                      64,167,301         77     62,377,706         81
                                                      ----------  ---------      ---------  ---------

                                                    $ 83,326,871        100%   $76,884,462        100%
                                                      ==========  =========      =========  =========
Weighted average interest rate
   on deposits at March 31                                  4.56%                     5.07%
                                                            ====                      ====
</TABLE>

        A summary of  contractual  maturity  dates for  certificate  accounts at
March 31, 1999 is as follows:
<TABLE>
<CAPTION>
                                    Amount        Percent
                                ---------------  -----------
Contractual maturity of certificate accounts:
<S>                           <C>                        <C>
      Under 12 months         $     45,543,965           71 %
      12 to 24 months               12,180,401           19
      24 to 36 months                3,259,719            5
      36 to 48 months                2,353,946            4
      48 to 60 months                  809,515            1
      Over 60 months                    19,755           --
                                ---------------  -----------
                              $     64,167,301          100 %
                                ===============  ===========
</TABLE>
                                       33
<PAGE>
The  components  of interest  expense on deposits  for the years ended March 31,
1999, 1998, and 1997 are as follows:
<TABLE>
<CAPTION>
                                          1999           1998           1997
                                      -------------  -------------  -------------
<S>                                 <C>                   <C>            <C>
NOW, savings, Super NOW,
   and money market demand          $      425,006        329,197        285,575
Certificates of deposit                  3,453,465      3,488,290      3,094,328
                                      -------------  -------------  -------------
                                    $    3,878,471      3,817,487      3,379,903
                                      =============  =============  =============
</TABLE>
        At March 31, 1999 and 1998,  certificate accounts of $100,000 or greater
        totaled $8,381,000 and $6,749,000, respectively.

        During  1997,  the  Federal  Deposit  Insurance  Corporation  imposed  a
        one-time special assessment on Savings Association Insurance Fund (SAIF)
        assessable  deposits.  The assessment on the Company's SAIF deposits was
        $441,000  and  is  included  in  federal   insurance   premiums  in  the
        accompanying 1997 consolidated statement of earnings.

  (7)   FHLB Advances

The Company had the following  debt  outstanding  from the FHLB of Des Moines at
March 31, 1999 and 1998:
<TABLE>
<CAPTION>
                                                                              1999            1998
                                                                         --------------  --------------
<S>                                                                     <C>               <C>
$3,000,000 advance, interest at one-month LIBOR,
   (5.69% at March 31, 1998), due August 1998                           $        --       3,000,000
$2,500,000 advance, interest at 5.83%, due September 1998                        --       2,500,000
$2,000,000 advance, interest at 5.74%, due November 1998                         --       2,000,000
$5,000,000 advance, interest at one-month LIBOR less
   .05%, due December 1998                                                       --       5,000,000
$5,000,000 advance, interest at 4.86%, due April 1999                     5,000,000              --
$3,000,000 advance, interest at 4.95%, due June 1999                      3,000,000              --
$2,500,000 advance, interest at 6.14%, due July 1999                      2,500,000       2,500,000
$2,500,000 advance, interest at 6.15%, due September 1999                 2,500,000       2,500,000
$2,000,000 advance, interest at 5.87%, due November 1999                  2,000,000       2,000,000
$10,000,000 advance, callable beginning on January 23, 2003,
   interest at 5.42%, due January 2008                                   10,000,000      10,000,000
$5,000,000 advance, interest at 5.03%, due June 2008                      5,000,000              --
$5,000,000 advance, interest at 4.99%, due September 2008                 5,000,000              --
$5,000,000 advance, interest at 4.27%, due January 2009                   5,000,000              --
                                                                         -----------  --------------
                                                                        $40,000,000      29,500,000
                                                                         ===========  ==============
</TABLE>
The  advances  from the FHLB are  collateralized  by first  mortgage  loans  and
investment securities.
                                       34
<PAGE>
Scheduled maturities of FHLB advances are as follows:

                               Year ending
                                March 31,           Amount
                            ------------------  ---------------

                                  1999        $     15,000,000
                                  2008              10,000,000
                                  2009              15,000,000
                                                ---------------

                                              $     40,000,000
                                                ===============
(8)Income Taxes

The components of income tax expense from operations are as follows:

<TABLE>
<CAPTION>
                                      Federal       State       Total
                                     -----------  ----------  -----------
<S>                                <C>               <C>         <C>
Year ended March 31, 1999:
   Current                         $    545,881      84,770      630,651
   Deferred                             (26,000)     (4,000)     (30,000)
                                     -----------  ----------  -----------

                                   $    519,881      80,770      600,651
                                     ===========  ==========  ===========

Year ended March 31, 1998:
   Current                         $    452,847      68,000      520,847
   Deferred                             (19,000)     (3,000)     (22,000)
                                     -----------  ----------  -----------

                                   $    433,847      65,000      498,847
                                     ===========  ==========  ===========

Year ended March 31, 1997:
   Current                         $    290,804      27,086      317,890
   Deferred                             (40,000)     (4,086)     (44,086)
                                     -----------  ----------  -----------

                                   $    250,804      23,000      273,804
                                     ===========  ==========  ===========
</TABLE>


In  addition,  during  the years  ended  March 31,  1999 and 1998,  the  Company
recorded  deferred income tax expense  (benefits) of approximately  $231,000 and
$58,000,  respectively,  related to unrealized  losses on investment  securities
available-for-sale.
                                       35
<PAGE>
The reasons for the difference  between the effective tax rates and the expected
federal income tax rate of 34% are as follows:
<TABLE>
<CAPTION>
                                                       Percent of earnings
                                                        before income tax
                                                             expense
                                                 -------------------------------
                                                  1999        1998        1997
                                                 --------    --------    -------
<S>                                                <C>         <C>         <C>
Expected federal income tax rate                   34.0%       34.0        34.0
Items affecting income tax rate:
   Municipal interest                              (1.0)         --          --
   State taxes, net of federal tax benefit          3.0         2.0         2.6
   Other                                           (0.1)         .5          .5
                                                 --------    --------    -------
             Effective tax rate                    35.9%        36.5        37.1
                                                 ========    ========    =======
</TABLE>
The tax  effects  of  temporary  differences  which  give rise to a  significant
portion of deferred tax assets and liabilities at March 31, 1999 and 1998 are as
follows:
<TABLE>
<CAPTION>
                                                           1999           1998
                                                        -----------    -----------
<S>                                                   <C>                  <C>
Unrealized loss on available-for-sale securities      $    231,000         58,000
Allowance for loan losses                                  131,000        100,000
Accrued compensation                                       150,000        144,000
Other                                                       29,000         22,000
                                                        -----------    -----------

             Deferred tax assets                           541,000        324,000
                                                        -----------    -----------

FHLB dividends                                              33,000         33,000
Tax bad debt reserve in excess of base year                108,000        145,000
Fixed asset basis difference                                93,000         48,000
Core deposit premium                                        15,000         15,000
Accrued interest on loans originated prior to
   September 25, 1985                                        4,000          6,000
Loan origination fees                                       75,000         74,000
Other                                                       25,000         18,000
                                                        -----------    -----------

             Deferred tax liabilities                      353,000        339,000
                                                        -----------    -----------

             Net deferred tax assets (liabilities)    $    188,000        (15,000)
                                                        ===========    ===========
</TABLE>
        There was no  valuation  allowance  for deferred tax assets at March 31,
        1999 or 1998.  Management  believes that it is more likely than not that
        the results of future operations will generate sufficient taxable income
        to realize the deferred tax assets.
                                                                     (continued)
                                       36
<PAGE>
        Prior to 1996, savings  institutions that met certain definitional tests
        and  other  conditions  prescribed  by the  Internal  Revenue  Code were
        allowed to deduct, within limitations, a bad debt deduction under either
        of two  alternative  methods:  (i) a deduction  based on a percentage of
        taxable income (most recently 8%), or (ii) a deduction based upon actual
        loan loss  experience (the  Experience  Method).  The Small Business Job
        Protection  Act (the Act)  repealed  the bad debt  deduction  based on a
        percentage of taxable income effective for taxable years beginning after
        December 31, 1995. The Company, therefore, will be limited to the use of
        the bad debt deduction computed under the Experience Method for its year
        ended  March 31,  1997.  The  Company's  base year tax bad debt  reserve
        balance of  approximately  $1.6  million  as of March 31,  1999 and 1998
        will, in future years,  be subject to recapture in whole or in part upon
        the occurrence of certain events, such as a distribution to stockholders
        in excess of the Company's current and accumulated earnings and profits,
        a redemption of shares or upon a partial or complete  liquidation of the
        Company.   The  Company  does  not  intend  to  make   distributions  to
        stockholders  that would  result in recapture of any portion of its base
        year bad debt reserve.  Since management intends to use the reserve only
        for the purpose for which it was  intended,  a deferred tax liability of
        approximately $550,000 has not been recorded.

  (9)   Benefit Plans

        Qualified  employees of the Company and Bank  participate in an Employee
        Stock  Ownership Plan (the ESOP). In connection with the conversion to a
        federally  chartered  stock savings bank in 1995,  the ESOP has borrowed
        from the  Company,  the  proceeds  of which were used to acquire  84,640
        shares of the Company's common stock. Contributions from the Company and
        the Bank,  along with dividends on  unallocated  shares of common stock,
        are used by the ESOP to make  payments of principal  and interest on the
        loan.  Under the  terms of the  ESOP,  contributions  are  allocated  to
        participants using a formula based upon  compensation.  Participants are
        fully  vested  after five years.  Because the Company has  provided  the
        ESOP's borrowing,  the unearned compensation is presented as a reduction
        of stockholders' equity in the accompanying consolidated balance sheets.
        On March 31, 1999 and 1998,  the  Company  allocated  11,309  shares and
        11,852 shares, respectively, to participants.  ESOP contributions to the
        Bank,  representing the fair value of allocated  shares,  are charged to
        compensation   and   benefits   expense   in  1999  and  1998  and  were
        approximately $200,000 and $199,000, respectively. The fair value of the
        remaining  unallocated  shares of 40,519  at March 31,  1999  aggregated
        approximately $666,000.

        The  Bank's   employees   participate  in  the  Financial   Institutions
        Retirement  Fund,  a  noncontributory,  multiemployer,  defined  benefit
        pension plan which covers all eligible  employees with one or more years
        of  continuous  service.  The Bank's  policy is to fund pension costs as
        necessary.  Since April 1, 1997, the Bank's defined benefit pension plan
        has been fully funded.  Pension  expense of $32,000 was recorded for the
        year ended March 31, 1997.

        The Bank has  supplemental  retirement plans for officers and directors.
        Under the  Directors'  Plan,  members  forfeit their first five years of
        directors' fees to enter into the plan and will receive monthly payments
        for a ten-year period beginning at the time the member turns sixty-five.
        Under the Officers' Plan, two officers, after completing a predetermined
        service  period,   will  receive  benefit  payments   beginning  at  age
        sixty-five  for a term of ten  years.  Expense  under  the plans for the
        years ended March 31, 1999,  1998,  and 1997  amounted to  approximately
        $104,000, $111,000, and $106,000,  respectively.  The Bank has purchased
        life insurance policies to fund its obligations under the plans.
<PAGE>
        The Board of Directors  has approved the adoption of a  recognition  and
        retention plan (RRP).  Under the RRP,  common stock  aggregating  42,320
        shares may be awarded to certain  officers and  directors of the Company
        and the Bank.  The awards will not require any payment by the recipients
        and will vest over  five  years  beginning  one year  after  shareholder
        approval of the RRP (April 16,  1996).  On April 16, 1996 and January 1,
        1998,  the Company  awarded  35,972 and 3,000 shares,  respectively,  to
        participants.  During  fiscal year 1999,  1,000 of the 3,000 shares were
        forfeited  and  remain   unallocated.   The   corresponding   charge  to
        compensation and benefits expense was $88,806,  $86,453,  and $84,686 in
        1999, 1998, and 1997, respectively.

(10)    Stock Options

        The Company has  authorized  the adoption of a stock option plan.  Under
        the  stock  option  plan,  options  to  acquire  105,800  shares  of the
        Company's  common stock may be granted to certain  officers,  directors,
        and  employees  of the Company or the Bank.  The options will enable the
        recipient  to  purchase  stock at an  exercise  price  equal to the fair
        market  value of the stock at the date of the grant.  On April 16, 1996,
        the Company  granted  options for 89,930 shares for $11.50 per share. On
        January 1, 1998, the Company granted options for 8,500 shares for $17.50
        per share.  Options to purchase  1,500  shares were  forfeited in fiscal
        year 1999. The options will vest over the five years  following the date
        of grant and are exercisable for up to ten years.

        On January 1, 1996,  the Company  adopted SFAS No. 123,  Accounting  for
        Stock-Based  Compensation,  which  permits  entities  to  recognize,  as
        expense  over the  vesting  period,  the fair  value of all  stock-based
        awards on the date of grant. Alternatively, SFAS No. 123 allows entities
        to  disclose  pro forma net  income  and income per share as if the fair
        value-based  method  defined  in SFAS No.  123 had been  applied,  while
        continuing to apply the provisions of Accounting  Principles Board (APB)
        Opinion No. 25,  Accounting  for Stock Issued to Employees,  under which
        compensation  expense  is  recorded  on the  date of  grant  only if the
        current market price of the underlying stock exceeds the exercise price.

        The  Company  has  elected to apply the  recognition  provisions  of APB
        Opinion No. 25 and provide the pro forma  disclosure  provisions of SFAS
        No. 123.  Had  compensation  expense  for the  Company's  incentive  and
        nonstatutory  stock options been determined based upon the fair value at
        the grant date consistent with the methodology prescribed under SFAS No.
        123, the  Company's  net  earnings and diluted  earnings per share would
        have been reduced by approximately  $41,000,  or $.05 per share, in 1999
        and $56,000, or $.07 per share, in 1998.

Following  is a summary of the fair  values of options  granted in 1998 and 1997
using the Black-Scholes option-pricing model:

                                    1998           1997
                                 -----------    -----------
Fair value at grant date        $   4.82           3.49
Assumptions:
   Dividend yield                   2.44%          2.35
   Volatility                      14.33%          12.49
   Risk-free interest rate          6.20%           7.00
   Expected life                  10 years       10 years
                                 ===========    ===========

                                       38
<PAGE>
        Pro forma net earnings reflect only options granted and vested in fiscal
        1999 and 1998.  Therefore,  the full impact of calculating  compensation
        expense for stock  options  under SFAS is not reflected in the pro forma
        net earnings  amount  presented  above because  compensation  expense is
        reflected over the options' vesting period.

(11)    Financial Instruments With  Off-balance Sheet Risk and Concentrations of
        Credit Risk

        The Bank is a party to financial instruments with off-balance sheet risk
        in the normal course of business to meet customer financing needs. These
        financial  instruments  consist  principally  of  commitments  to extend
        credit. The Bank uses the same credit policies in making commitments and
        conditional obligations as it does for on-balance sheet instruments. The
        Bank's  exposure  to credit loss in the event of  nonperformance  by the
        other  party  is  represented  by  the   contractual   amount  of  those
        instruments.  The Bank does not  generally  require  collateral or other
        security on  unfunded  loan  commitments  until such time that loans are
        funded.

        In addition to financial  instruments with  off-balance  sheet risk, the
        Bank is exposed to  varying  risks  associated  with  concentrations  of
        credit relating primarily to lending  activities in specific  geographic
        areas.   The   Bank's   principal   lending   area   consists   of   the
        agricultural-based  rural  communities  northeast of Kansas City and the
        Bank's loans are  primarily  to  residents  of or secured by  properties
        located  in  its  principal  lending  area.  Accordingly,  the  ultimate
        collectibility  of the Bank's loan  portfolio is  dependent  upon market
        conditions in that area. This geographic  concentration is considered in
        management's establishment of the allowance for loan losses.

(12)    Regulatory Capital Requirements

        The  Bank  is  subject  to  various  regulatory   capital   requirements
        administered  by the federal banking  agencies.  Failure to meet minimum
        capital  requirements  can  initiate  certain  mandatory,  and  possibly
        additional  discretionary,  actions by regulators  that, if  undertaken,
        could have a direct material effect on the Bank's consolidated financial
        statements.   Under  capital  adequacy  guidelines  and  the  regulatory
        framework  for prompt  corrective  action,  the Bank must meet  specific
        capital  guidelines  that  involve  quantitative  measures of the Bank's
        assets,  liabilities,  and certain off-balance sheet items as calculated
        under regulatory  accounting  practices.  The Bank's capital amounts and
        classification  are  also  subject  to  qualitative   judgments  by  the
        regulators about components, risk weightings, and other factors.

                                       39
<PAGE>
Quantitative  measures  established  by  regulation to ensure  capital  adequacy
require the Bank to maintain  minimum amounts and ratios (set forth in the table
below) of risk-based  capital,  as defined in the regulations,  to risk-weighted
assets,  as defined,  and of tangible  and core  capital,  as defined,  to total
assets,  as defined.  Management  believes,  as of March 31, 1999, that the Bank
meets  all  capital  adequacy  requirements  to  which  it  is  subject.  To  be
categorized  as  well-capitalized  under the  regulatory  framework  for  prompt
corrective  action,  the Bank must maintain minimum total  risk-based,  leverage
risk-based, tangible, and core capital ratios as set forth in the table:

<TABLE>
<CAPTION>
                                                                                 Total         Leverage
                                                                                 risk-          risk-
                                               Tangible          Core            based          based
                                                capital         capital         capital        capital
                                              ------------    ------------    ------------   -------------
<S>                                         <C>                <C>             <C>             <C>
Equity                                      $  11,905,000      11,905,000      11,905,000      11,905,000
Adjustments to capital:
   Allowance for loan losses                           --              --         311,000              --
   Unrealized loss on available-for-sale
      securities, net                             394,000         394,000         394,000         394,000
   Other                                           (1,000)         (1,000)         (1,000)         (1,000)
                                              ------------    ------------    ------------   -------------
             Regulatory capital - computed     12,298,000      12,298,000      12,609,000      12,298,000

Minimum capital requirement for capital
   adequacy purposes                            2,054,000       4,099,000       4,927,000              --
                                              ------------    ------------    ------------   -------------
             Regulatory minimum capital -
               excess                       $  10,244,000       8,199,000       7,682,000              --
                                              ============    ============    ============   =============

To be well capitalized for prompt corrective
   action provisions                        $          --       6,846,000       6,159,000       8,215,000
                                              ============    ============    ============   =============

To be well capitalized capital - excess     $          --       5,452,000       6,450,000       4,083,000
                                              ============    ============    ============   =============

Minimum capital requirement - percent                  1.5%           3.0             8.0              --
                                              ============    ============    ============   =============

To be well capitalized for prompt corrective
   action provisions capital requirement -
   percent                                                            5.0%            10.0             6.0
                                                              ============    ============   =============

Bank capital                                           9.0%            9.0            20.5            20.0
                                              ============    ============    ============   =============
</TABLE>
                                       40
<PAGE>
(13)    Fair Value of Financial Instruments

SFAS No. 107,  Disclosures About Fair Value of Financial  Instruments,  requires
disclosure  of  estimated  fair  value  for  financial  instruments  held by the
Company. Fair value estimates of the Company's financial instruments as of March
31, 1999 and 1998,  including  methods and assumptions  utilized,  are set forth
below:
<TABLE>
<CAPTION>
                                                    1999                            1998
                                         ----------------------------     ---------------------------
                                          Carrying         Estimated       Carrying        Estimated
                                           amount          fair value        amount        fair value
                                         -----------       ----------     ----------       ----------
<S>                                      <C>               <C>            <C>              <C>
Investment securities                    $44,519,193       44,519,000     32,656,010       32,665,000
                                         ===========       ==========     ==========       ==========

Mortgage-backed securities               $12,584,419       12,584,000     19,015,236       18,938,000
                                         ===========       ==========     ==========       ==========

Loans, net of unearned fees and
   allowance for loan losses             $69,504,900       71,968,000     61,273,984       60,898,000
                                         ===========       ==========     ==========       ==========

Noninterest bearing demand deposit       $ 1,918,980        1,919,000      1,081,647        1,082,000
Money market and NOW deposits             13,435,712       13,436,000     10,159,518       10,160,000
Savings accounts                           3,804,878        3,805,000      3,265,591        3,266,000
Certificate accounts                      64,167,301       64,515,000     62,377,706       62,795,000
                                         -----------       ----------     ----------       ----------

             Total deposits              $83,326,871       83,675,000     76,884,462       77,303,000
                                         ===========       ==========     ==========       ==========
</TABLE>
Methods and Assumptions Utilized

The carrying amount of cash and cash equivalents and accrued interest receivable
and payable are considered to be approximate  fair value based on the short-term
nature of these  items.  The advances on FHLB line of credit are  considered  to
approximate fair value based on the contractual  rates  approximating  the rates
currently available to the Company.

The estimated fair value of mortgage-backed  and investment  securities,  except
certain obligations of states and political subdivisions, is based on bid prices
published in financial  newspapers or bid  quotations  received from  securities
dealers.  The  fair  value  of  certain  obligations  of  states  and  political
subdivisions is not readily  available  through market sources other than dealer
quotations,  so fair value  estimates  are based upon  quoted  market  prices of
similar instruments, adjusted for differences between the quoted instruments and
the instruments being valued.

                                       41
<PAGE>
        The estimated fair value of the Company's loan portfolio is based on the
        segregation of loans by collateral type, interest terms, and maturities.
        In  estimating  the fair value of each  category of loans,  the carrying
        amount of the loan is reduced by an allocation of the allowance for loan
        losses.  Such  allocation is based on management's  loan  classification
        system  which is designed  to measure  the credit risk  inherent in each
        classification category. The estimated fair value of performing variable
        rate loans is the carrying value of such loans, reduced by an allocation
        of the allowance for loan losses. The estimated fair value of performing
        fixed rate  loans is  calculated  by  discounting  scheduled  cash flows
        through the estimated  maturity using  estimated  market  discount rates
        that reflect the interest rate risk inherent in the loan,  reduced by an
        allocation of the allowance for loan losses. The estimate of maturity is
        based on the Company's  historical  experience  with repayments for each
        loan classification, modified, as required, by an estimate of the effect
        of  current  economic  and  lending  conditions.   The  fair  value  for
        significant  nonperforming loans, if any, is the estimated fair value of
        the underlying  collateral based on recent external  appraisals or other
        available  information,  which  generally  approximates  carrying value,
        reduced by an allocation of the allowance for loan losses.

        The estimated  fair value of deposits with no stated  maturity,  such as
        noninterest bearing deposits,  savings,  money market accounts,  savings
        accounts,  and NOW accounts,  is equal to the amount  payable on demand.
        The  fair  value  of  interest-bearing  time  deposits  is  based on the
        discounted  value  of  contractual  cash  flows  of such  deposits.  The
        discount  rate is  estimated  using  the  rates  currently  offered  for
        deposits of similar remaining maturities.

        Limitations

        Fair  value  estimates  are made at a specific  point in time,  based on
        relevant  market   information  and  information   about  the  financial
        instruments. These estimates do not reflect any premium or discount that
        could  result from  offering for sale at one time the  Company's  entire
        holdings of a particular financial instrument.  Because no market exists
        for a significant portion of the Company's financial  instruments,  fair
        value estimates are based on judgments regarding future loss experience,
        current economic  conditions,  risk characteristics of various financial
        instruments, and other factors. These estimates are subjective in nature
        and  involve  uncertainties  and  matters of  significant  judgment  and
        therefore  cannot be determined with  precision.  Changes in assumptions
        could significantly affect the estimates. Fair value estimates are based
        on existing balance sheet financial  instruments  without  attempting to
        estimate  the  value of  anticipated  future  business  and the value of
        assets and liabilities that are not considered financial instruments.

                                       42
<PAGE>
(14)    Parent Company Condensed Financial Statements
<TABLE>
<CAPTION>
                            Condensed Balance Sheets
                            March 31, 1999 and 1998

 Assets                                                                  1999             1998
                                                                     ------------       ----------
<S>                                                                  <C>                   <C>
Interest-bearing deposits                                            $    495,489          848,243
Loans receivable                                                          416,140          531,632
Investment in subsidiary                                               11,905,108       12,198,944
Other                                                                      39,305           60,199
                                                                     ------------       ----------

             Total assets                                            $ 12,856,042       13,639,018
                                                                     ============       ==========

               Liabilities and Stockholders' Equity

Accrued expenses and other liabilities                               $    296,501          161,446
Stockholders' equity                                                   12,559,541       13,477,572
                                                                     ------------       ----------

             Total liabilities and stockholders' equity              $ 12,856,042       13,639,018
                                                                     ============       ==========

</TABLE>

<TABLE>
<CAPTION>
                        Condensed Statements of Earnings
                       Years ended March 31, 1999 and 1998
                                                                        1999             1998
                                                                     ------------       ----------
<S>                                                                  <C>                   <C>
Interest income                                                      $     76,706          105,290
Other expense, net                                                       (233,480)        (212,127)
                                                                     ------------       ----------

             Loss before equity in undistributed earnings
               of subsidiary                                             (156,774)        (106,837)

Increase in undistributed equity of subsidiary                          1,170,192          934,535
                                                                     ------------       ----------
             Earnings before income taxes                               1,013,418          827,698

Income tax expense (benefit)                                              (59,934)         (40,876)
                                                                     ------------       ----------
             Net earnings                                            $  1,073,352          868,574
                                                                     ============       ==========
</TABLE>

                                                                     (continued)
                                       43
<PAGE>
<TABLE>
<CAPTION>
                                                                         1999             1998
                                                                     -----------      -----------
<S>                                                                  <C>                  <C>
Cash flows from operating activities:
   Net earnings                                                      $ 1,073,352          868,574
   Increase in undistributed equity of subsidiary                     (1,170,192)        (934,535)
   Amortization of deferred RRP                                           88,806           86,453
   Other                                                                 130,756          (37,613)
                                                                     -----------      -----------

             Net cash provided (used) by operating activities            122,722          (17,121)
                                                                     -----------      -----------
Cash flows from investing activities:
   Net decrease in loans receivable                                      115,492          114,783
   Principal payments on investment and mortgage-backed
      securities available-for-sale                                           --          500,000
   Sales of investment and mortgage-backed securities
      available-for-sale                                                      --          486,959
                                                                     -----------      -----------

             Net cash provided by investing activities                   115,492        1,101,742
                                                                     -----------      -----------
Cash flows from financing activities:
   Dividends from subsidiary                                           1,368,574          404,170
   Payment of dividends                                                 (433,059)        (359,807)
   Purchase of treasury stock                                         (1,526,483)        (641,745)
                                                                     -----------      -----------

             Net cash used in financing activities                      (590,968)        (597,382)
                                                                     -----------      -----------

             Net increase (decrease) in cash                            (352,754)         487,239

Cash at beginning of year                                                848,243          361,004
                                                                     -----------      -----------

Cash at end of year                                                  $   495,489          848,243
                                                                     -----------      -----------
Noncash investing and financing activities:
   Dividend declared and payable                                     $   132,256          107,063
                                                                     -----------      -----------
</TABLE>
                                       44
<PAGE>
                              HARDIN BANCORP, INC.
                             STOCKHOLDER INFORMATION

Annual Meeting

The Annual Meeting of Stockholders will be held at 1:00 p.m.,  Hardin,  Missouri
time on July 22, 1999, at the Hardin United  Methodist  Church  Fellowship Hall,
located at 101 Northeast First Street, Hardin, Missouri, 64035.

Stock Listing

Hardin  Bancorp,  Inc.  common  stock is traded on the National  Association  of
Securities Dealers, Inc., Small Cap Market under the symbol"HFSA."

Price Range of Common Stock

The per share price range of the common  stock and the  dividends  declared  for
each  quarter  during  the  past two  fiscal  years is set  forth  below.  These
quotations  reflect  inter-dealer  prices,  without retail  markup,  markdown or
commissions and may not necessarily represent actual transactions.


FISCAL 1998               HIGH              LOW               DIVIDENDS
-----------               ----              ---               ---------
First Quarter             $15.75            $13.50            $.12
Second Quarter            $18.25            $15.00            $.12
Third Quarter             $18.88            $17.38            $.12
Fourth Quarter            $19.50            $18.25            $.13

FISCAL 1999               HIGH              LOW               DIVIDENDS
-----------               ----              ---               ---------
First Quarter             $19.63            $18.75            $.14
Second Quarter            $19.25            $16.13            $.15
Third Quarter             $20.50            $14.25            $.16
Fourth Quarter            $18.13            $16.38            $.18

An $.18 per share  dividend  was declared by the Board of Directors on March 18,
1999,  payable April 16, 1999, to  stockholders  of record on April 2, 1999. The
stock  price  information  set forth in the  table  above  was  provided  by the
National Association of Securities Dealers, Inc. Automated Quotation System.

At March 31,  1999,  there  were  1,058,000  shares  issued and  734,753  shares
outstanding of Hardin Bancorp,  Inc. (HFSA) common stock (including  unallocated
ESOP shares) and there were approximately 600 registered holders of record.

                                       45
<PAGE>
Shareholders and General Inquiries          Transfer Agent
----------------------------------          --------------

Robert W. King                              Registrar and Transfer
President                                   10 Commerce Drive
Hardin Bancorp, Inc.                        Cranford, New Jersey 07016
201 Northeast Elm Street
Hardin, Missouri 64035
(660) 398-4312

Annual and Other Reports

A copy of Hardin  Bancorp,  Inc.'s Annual Report on Form 10-K for the year ended
March 31, 1999, as filed with the  Securities  and Exchange  Commission,  may be
obtained  without  charge by  contacting  Robert W.  King,  President  and Chief
Executive  Officer,  Hardin  Bancorp,  Inc.,  201 Northeast Elm Street,  Hardin,
Missouri 64035

                              HARDIN BANCORP, INC.
                              CORPORATE INFORMATION

Company and Bank Addresses

201 Northeast Elm Street                 Telephone:       (660) 398-4312
Hardin, Missouri 64035                   Fax:             (660) 398-4317

200 North Spartan Drive                  Telephone:       (816) 470-6400
Richmond, Missouri 64085                 Fax:             (816) 470-2022

201 North Jesse James Road               Telephone:       (816) 630-2179
Excelsior Springs, Missouri 64024        Fax:             (816) 637-4521

Board of Directors

Ivan Hogan
         Chairman of Hardin Bancorp, Inc. and     David D. Lodwick
         Hardin Federal Savings Bank              Attorney at Law
         and Retired CEO of
         Hardin Federal Savings Bank              W. Levan Thurman
                                                  Retired Funeral Director
Robert W. King
         President of Hardin Bancorp, Inc., and   David Hatfield
         Hardin Federal Savings Bank              Farmer and Part-time Broker

Karen Blankenship                                 William L. Homan  Senior Vice
President and Secretary                           Vice President and Treasurer

                                       46
<PAGE>



Hardin Bancorp, Inc. Executive Officers

Robert W. King                                     William L. Homan
President and Chief Executive Officer              Vice President and Treasurer

Karen K. Blankenship
Senior Vice President and Secretary



Hardin Federal Savings Bank Executive Officers

Robert W. King                                     William L. Homan
President and Chief Executive Officer              Vice President and Treasurer

Karen K. Blankenship                               Lyndon M. Goodwin
Senior Vice President and Secretary                Vice President of Lending

Mike Schwarz
Vice President




Independent Accountants                            Special Counsel
-----------------------                            ---------------

KPMG LLP                                           Luse, Lehman, Gorman,
1000 Walnut, Suite 1600                            Pomerenk, & Schick, P.C.
Post Office Box 13127                              5335 Wisconsin Ave. N.W.,
Kansas City, Missouri 64199                                 Suite 400
                                                            Washington, DC 20015

                                       47