HARDIN BANCORP, INC.
                                AND SUBSIDIARIES




                               1998 ANNUAL REPORT






<PAGE>




                               TABLE OF CONTENTS

                                                                            Page
                                                                            ----
President's Message........................................................   1
General Information........................................................   2
Selected Consolidated Financial and Other Data of the Company..............   3
Management's Discussion and Analysis of Financial Condition
  and Results of Operations................................................   5
Consolidated Financial Statements..........................................  18
Stockholder Information....................................................  44
Corporate Information......................................................  45

<PAGE>

[HARDIN BANCORP, INC. LOGO]
(Holding Company for Hardin Federal Savings Bank)



June 25, 1998


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 third annual report.

Fiscal  year 1998 was our  third  year as a stock  company  after  serving  area
communities  for more  than  108  years as a  mutual  savings  institution.  Net
earnings for the year were  $869,000 an increase  from $464,000 for fiscal 1997.
The  increase was the result of an increase in both  interest  and  non-interest
income and a decrease  in  non-interest  expense.  Earnings  per share more than
doubled from $.51 in fiscal 1997 to $1.08 in the current year.

Loans  increased by $6.7 million with increases in  residential,  commercial and
consumer   loans.   Assets   increased  $17.7  million  to  $121.1  million  and
stockholders'  equity increased to $13.5 million from $13.2 million on March 31,
1997.

We are excited to announce the  completion of our new bank facility in Richmond,
with a total of almost 7,000 square feet, three drive-up lanes, 24-hour ATM, and
ease of access.  This  ultra-modern  office will provide the much needed  space,
equipment and personnel to accommodate our current and future growth.

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



               P.O. BOX 608  o  HARDIN, MO 64035  o  816-398-4312

<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 (ESOP),  and the
remaining   net  proceeds  of  the   Conversion   retained  by  the  Company  of
approximately  $750,000. 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. Its
deposits are insured up to the maximum  allowable  amount by the Federal Deposit
Insurance  Corporation  the (FDIC).  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, 1998, the Company had
total  assets of $121.1  million,  deposits of $76.9  million and  stockholders'
equity of $13.5 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 (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.

                                       At or for the years ended March 31,
                                  ----------------------------------------------
                                    1998      1997      1996    1995(1)  1994(1)
                                    ----      ----      ----    -------  -------
                                   (Dollars in Thousands except per share data)
Selected Financial Data:
Total assets .................... $121,092  $103,354  $ 83,387  $75,993  $73,495
Loans receivable, net ...........   61,274    54,568    45,031   33,230   29,105
Mortgage-backed securities:
  Held to maturity ..............   10,995    13,457    16,299   28,473   32,743
  Available for sale ............    8,020     5,757     7,907        0        0
Investment securities:
  Held to maturity ..............   10,000         0         0        0        0
  Available for sale ............   22,656    22,340     6,363    7,760    6,598
FHLB stock ......................    1,475       950       742      727      727
Other interest-bearing deposits .    3,225     4,007     5,430    4,306    2,820
Deposits ........................   76,884    70,201    66,605   67,449   66,722
FHLB advances ...................   29,500    19,000         0    1,500        0
Total stockholders' equity ......   13,478    13,210    16,035    6,393    6,064

Selected Operating Data:
Total interest income ...........    8,234     6,684     5,552    4,694    4,587
Total interest expense ..........    5,184     3,915     3,454    2,816    2,653
                                  --------  --------  --------  -------  -------
  Net interest income ...........    3,050     2,769     2,098    1,878    1,934

Provision for loan losses .......       94        34        14        0       26
                                  --------  --------  --------  -------  -------
Net interest income after
  provision for loan losses .....    2,957     2,735     2,084    1,878    1,908
                                  --------  --------  --------  -------  -------
Loan fees and service charges ...      176       117       110      116      123
Gain/(loss) on sales of loans,
  investments and mortgage-
  backed securities .............      182        (2)        2      (39)     126
Other non-interest income .......      134       158       167      110       59
                                  --------  --------  --------  -------  -------
  Total non-interest income .....      492       273       279      187      308
                                  --------  --------  --------  -------  -------
Total non-interest expense(2) ...    2,081     2,270     1,576    1,427    1,250
                                  --------  --------  --------  -------  -------
  Earnings before income taxes ..    1,368       738       787      638      966
Income tax expense ..............      499       274       277      221      325
                                  --------  --------  --------  -------  -------
  Net earnings .................. $    869  $    464  $    511  $   417  $   641
                                  ========  ========  ========  =======  =======

Diluted earnings per share(3) ... $   1.08  $   0.51  $   0.52  $   n/a  $   n/a
                                  ========  ========  ========  =======  =======
Weighted average common &
  common equivalent shares
  outstanding ...................  803,554   906,334   973,383      n/a      n/a
                                  ========  ========  ========  =======  =======


                                       3

<PAGE>

                                       At or for the years ended March 31,
                                  ----------------------------------------------
                                    1998      1997      1996    1995(1)  1994(1)
                                    ----      ----      ----    -------  -------
Selected Financial Ratios
  and Other Data:
Performance Ratios:
  Return on assets (ratio of net
    earnings to average total
    assets) ......................   0.76%     0.50%     0.64%    0.56%    0.87%
  Return on equity (ratio of net
    earnings to average equity) ..   6.52      3.18      4.25     6.68    11.18
  Interest rate spread(4):
    Average during period ........   2.16      2.27      2.00     2.25     2.40
    End of period ................   1.97      2.61      2.37     1.85     2.52
    Net interest margin(5) .......   2.73      3.04      2.70     2.56     2.68
  Ratio of non-interest expense
    to average total assets ......   1.82      2.43      1.98     1.91     1.70
  Ratio of average interest
    earning assets to average
    interest-bearing liabilities . 112.23    117.85    115.76   107.95   107.59

Quality Ratios:
  Non-performing assets to total
    assets at end of period ......   0.19      0.37      0.15     0.22     0.24
  Allowance for loan losses to
    non-performing loans ......... 106.97     41.58    107.38    70.83    64.29
  Allowance for loan losses to
    loans receivable, net ........   0.40      0.29      0.29     0.36     0.40

Capital Ratios(6):
  Equity to total assets at end
    of period ....................  11.12     12.78     19.23     8.41     8.25
  Average equity to average assets  11.65     15.70     15.05     8.33     7.80

Other Data:
  Number of full service offices .      3         3         3        3        3


(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)  All per share  amounts have been  restated for the adoption of Statement of
     Financial Accounting Standard (SFAS) No. 128.

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

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

(6)  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
-------

Hardin  Bancorp,  Inc. (the "Company") was formed in June 1995 by Hardin Federal
Savings  Bank (the  "Bank")  to become  the  holding  company  of the Bank.  The
acquisition of the Bank by Hardin Bancorp, Inc. was consummated on September 28,
1995, in connection with the Bank's  conversion from a mutual company to a stock
company (the "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 operation 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.

FINANCIAL CONDITION
-------------------

Total Assets. Total assets increased $17.7 million or 17.2% to $121.1 million at
March 31, 1998 from $103.4 million at March 31, 1997. The increase was primarily
funded by an  increase  in FHLB  advances  of $10.5  million  and an increase in
deposits  of $6.7  million.  These  funds,  were used to finance a $6.7  million
increase in loans and a $10.3 million increase in investment securities.

Loans Receivable,  Net. Loans receivable, net increased by $6.7 million or 12.3%
to $61.3  million at March 31, 1998 from $54.6  million at March 31,  1997.  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 $1.2
million during the year.

Mortgage-Backed  Securities.   Mortgage-backed  securities  decreased  to  $19.0
million at March 31, 1998 from $19.2 million at March 31, 1997.

Investment Securities. Investment securities increased $10.3 million or 46.2% to
$32.7  million at March 31,  1998 from  $22.3  million  at March 31,  1997.  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 $6.7 million or 9.5% to $76.9 million at March 31,
1998 from $70.2 million at March 31, 1997.  Special  certificates of deposit and
more aggressive pricing of deposits and marketing contributed to the increase.

                                       5

<PAGE>

Federal Home Loan Bank  Advances.  FHLB  advances  increased to $29.5 million at
March 31, 1998.  These advances were used to fund growth in loans and investment
securities. It is anticipated that FHLB advances will continue to be utilized to
meet the Company's growth objectives.

Equity.  Total stockholders' equity increased to $13.5 million at March 31, 1998
from $13.2  million  at March 31,  1997.  Earnings  for the year  combined  with
decreases in unrealized  loss on available for sale  securities,  net,  unearned
employee stock  ownership  plan,  deferred  recognition and retention plan added
approximately  $86,000  which  was  partially  offset  by stock  repurchases  of
approximately $642,000.

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 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,
                                      ----------------------------------------------------------------------------------------------
                                                   1998                            1997                            1996             
                                      ------------------------------  ------------------------------  ------------------------------
                                        Average    Interest             Average    Interest             Average    Interest         
                                      Outstanding   Earned/   Yield/  Outstanding   Earned/   Yield/  Outstanding   Earned/   Yield/
                                        Balance      Paid      Rate     Balance      Paid      Rate     Balance      Paid      Rate 
                                      -----------  --------   ------  -----------  --------   ------  -----------  --------   ------
                                                                          (Dollars in Thousands)
<S>                                     <C>         <C>        <C>      <C>         <C>        <C>      <C>         <C>        <C>  
Interest-earning assets:
  Loans receivable (1) ...............  $ 57,819    $4,781     8.27%    $50,433     $4,117     8.16%    $39,203     $3,194     8.15%
  Mortgage-backed securities .........    19,703     1,216     6.17      21,127      1,347     6.38      26,232      1,619     6.17
  Investment securities ..............    25,950     1,803     6.95      14,927        986     6.61       6,922        376     5.43
  FHLB stock .........................     1,290        87     6.74         794         55     6.93         732         53     7.24
  Other interest-bearing deposits ....     6,961       347     4.98       3,758        179     4.76       4,639        310     6.68
                                        --------    ------     ----     -------     ------     ----     -------     ------     ----
Total interest-earning assets ........  $111,723    $8,234     7.37%    $91,039     $6,684     7.34%    $77,728     $5,552     7.14%
                                        ========    ======     ====     =======     ======     ====     =======     ======     ====
                                                                                  
                                                                                  
Interest-bearing liabilities:                                                     
  Savings accounts ...................  $  3,363    $   82     2.44%    $ 3,567     $   87     2.44%    $ 4,225     $   91     2.15%
  Demand and NOW accounts ............     8,520       248     2.91       6,439        199     3.09       5,958        185     3.11
  Certificate accounts ...............    63,205     3,488     5.52      57,241      3,094     5.41      56,754      3,165     5.58
  FHLB advances ......................    24,458     1,366     5.59%     10,000        535     5.35         208         13     6.25
                                        --------    ------     ----     -------     ------     ----     -------     ------     ----
Total interest-bearing liabilities ...  $ 99,546    $5,184     5.21%    $77,247     $3,915     5.07%    $67,145     $3,454     5.14%
                                        ========    ======     ====     =======     ======     ====     =======     ======     ====
Net interest income ..................              $3,050                          $2,769                          $2,098
                                                    ======                          ======                          ======
Net interest rate spread (2) .........                         2.16%                           2.27%                           2.00%
                                                               ====                            ====                            ====
Net interest-earning assets ..........  $ 12,177                        $13,792                         $10,583
                                        ========                        =======                         =======
Net interest margin (3) ..............                         2.73%                           3.04%                           2.70%
                                                               ====                            ====                            ====
Average interest-earning assets to                                                
  average interest-bearing liabilities              112.23%                         117.85%                         115.76%
                                                    ======                          ======                          ======
</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.

                                                          March 31,
                                                  ------------------------
                                                  1998      1997      1996
                                                  ----      ----      ----
     Weighted average yield on:
       Loans receivable ........................  8.04%     8.38%     8.51%
       Mortgage-backed securities ..............  6.19      7.40      6.65
       Investment securities ...................  6.83      6.93      6.05
       FHLB stock ..............................  6.50      7.00      6.75
       Other interest-earning assets ...........  5.45      5.33      5.15
       Combined weighted average yield
         on interest-earning assets ............  7.25%     7.78%     7.53%
                                                  ----      ----      ----
     Weighted average rate paid on:
       Savings accounts ........................  2.50%     2.50%     2.50%
       Demand and NOW accounts .................  2.91      3.05      3.06
       Certificate accounts ....................  5.59      5.48      5.56
       FHLB advances ...........................  5.68      5.64      0.00
       Combined weighted average rate paid
         on interest-bearing liabilities .......  5.28%     5.17%     5.16%
                                                  ----      ----      ----
     Interest Rate Spread ......................  1.97%     2.61%     2.37%
                                                  ====      ====      ====


                                       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.

                                              Year Ended March 31,
                                ------------------------------------------------
                                      1998 vs 1997            1997 vs 1996
                                ----------------------- ------------------------
                                  Increase                Increase
                                 (Decrease)              (Decrease)
                                   Due to       Total      Due to        Total
                                ------------  Increase  -------------  Increase
                                Volume  Rate (Decrease) Volume   Rate (Decrease)
                                ------  ---- ---------- ------   ---- ----------
                                             (Dollars in Thousands)
Interest-earning assets:
  Loans receivable ............ $  608  $ 56   $  664   $  919  $   4   $  923
  Mortgage-backed securities ..    (88)  (43)    (131)    (325)    53     (272)
  Investment securities .......    764    53      817      513     97      610
  FHLB stock ..................     34    (2)      32        4     (2)       2
  Other interest-earning assets    160     8      168      (52)   (79)    (131)
                                ------  ----   ------   ------  -----   ------
Total interest-earning assets . $1,478  $ 72   $1,550   $1,059  $  73   $1,132
                                ------  ----   ------   ------  -----   ------
Interest-bearing liabilities:
  Savings accounts ............ $   (5) $  0   $   (5)  $   (2) $  (2)  $   (4)
  Demand and NOW accounts .....     60   (11)      49       15     (1)      14
  Certificate accounts ........    330    64      394       27    (98)     (71)
  FHLB advances ...............    806    25      831      524     (2)     522
                                ------  ----   ------   ------  -----   ------
Total interest bearing
  liabilities ................. $1,191  $ 78   $1,269   $  564  $(103)  $  461
                                ------  ----   ------   ------  -----   ------
  Net interest income ......... $  287  $ (6)  $  281   $  495  $ (30)  $  671
                                ======  ====   ======   ======  =====   ======


                                       9

<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 current fiscal year, 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.

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,  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 off-set 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.

                                       10

<PAGE>

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.

Comparison of operating results for the years ended March 31, 1997 and March 31,
1996
--------------------------------------------------------------------------------

Performance Summary. Net earnings for the year ended March 31, 1997 decreased by
$47,000 or 9.1% to $464,000  from  $511,000  for the year ended March 31,  1996.
Earnings per share were $.51 for the year ended March 31, 1997, and $.52 for the
year ended March 31, 1996.  The results were impacted by an increase of $671,000
in net interest income and a $3,000 decrease in income taxes offset by a $20,000
increase in the  provision  for loan loss,  a $6,000  decrease  in  non-interest
income and a $694,000  increase  in  non-interest  expense.  For the years ended
March  31,  1997 and  1996,  the  return on  average  assets  was .50% and .64%,
respectively,   while  the  return  on  average  equity  was  3.18%  and  4.25%,
respectively.

A provision in the Omnibus  Appropriation  Bill passed by Congress and signed by
President  Clinton on  September  30,  1996,  included a special  assessment  to
recapitalize  the SAIF.  The  assessment  of 65.7  cents per $100 of  qualifying
accounts as of March 31, 1995 created a pretax  expense of $441,000 to the Bank.
Without the SAIF  assessment,  net income  would have been  $743,000,  return on
average  assets would have been .80%,  return on average  equity would have been
5.04% and  earnings  per share  would have been $.82 for the  fiscal  year ended
March 31, 1997.

The  recapitalization  of SAIF is anticipated to reduce premiums for the deposit
insurance  from 23 cents per $100 of deposits to 6.4 cents per $100 of deposits.
The 6.4 cents is anticipated  for the years 1997 through 1999,  then  decreasing
further to 2.4 cents  from year 2000 to 2017,  assuming a merger of SAIF and the
Bank Insurance Fund (BIF).

Net Interest  Income.  Net interest  income  increased from $2.1 million for the
fiscal year ended March 31, 1996 to $2.8 million for the current fiscal year, an
increase of  $700,000.  This  reflects  an increase of $1.1  million in interest
income to $6.7 million from $5.6 million and an increase in interest  expense of
$461,000 to $3.9 million from $3.5  million.  The net increase was primarily due
to an  increase  in the ratio of  average  interest-earning  assets  to  average
interest-bearing liabilities to 117.85% in 1997 from 115.76% in 1996.

For the year ended March 31, 1997, the average yield on interest-earning  assets
was 7.34%  compared  to 7.14% for 1996.  The  average  cost of  interest-bearing
liabilities  was 5.07% for the year ended March 31, 1997, a decrease  from 5.14%
for 1996. The average balance of interest-earning assets increased $13.3 million
to $91.0 million for the year ended March 31, 1997 compared to $77.7 million for
fiscal 1996.  During the same period,  the average  balance of  interest-bearing
liabilities increased by $10.1 million to $77.2 million for the year ended March
31, 1997 from $67.1 million in fiscal 1996.

The  average  interest  rate  spread was 2.27% for the year ended March 31, 1997
compared to 2.00% for fiscal 1996. The average net interest margin  increased to
3.04% for the year ended  March 31,  1997  compared  to 2.70% for the year ended
March 31, 1996.

                                       11

<PAGE>

Provision  for Loan Losses.  During the year ended March 31,  1997,  the Company
recorded  a  $34,000  provision  for the  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 $158,000 or .29% of loans
receivable,  net at  March  31,  1997,  compares  to  $131,000  or .29% of loans
receivable, net at March 31, 1996. The allowance for loan losses as a percentage
of  non-performing  assets was 41.58% at March 31, 1997,  compared to 107.38% at
March 31, 1996, due to an increase in the Company's non-performing assets during
fiscal 1997.

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 lossess will not be required in the future.

Non-Interest  Income.  For the year ended March 31,  1997,  non-interest  income
decreased by $6,000 or 2.2% due primarily to lower loan  servicing  fees, a loss
in the amount of $2,000 on the sale of investments and reduced earnings from the
Company's investment in its data processing center.

Non-Interest Expense. Non-interest expense increased by $694,000 to $2.3 million
for the year ended March 31, 1997 from $1.6 million for the year ended March 31,
1996.  The  increase  was due to an  increase  in the amount of $51,000  for the
Hardin  Bancorp  Inc.,  ESOP,  $85,000  related  to  the  Hardin  Bancorp  Inc.,
Recognition  and  Retention  Plan  (RRP),  a special  assessment  of $441,000 to
recapitalize  the  SAIF,  and  additional  legal,  accounting  and  tax  expense
associated with being a public company.

Income Taxes. Income taxes decreased $3,000 to $274,000 for the year ended March
31, 1997 from $277,000 for the year ended March 31, 1996. The decrease is due to
the decrease in pre-tax  income.  The  Company's  effective tax rate was 37% for
fiscal 1997 and 35% for fiscal 1996.

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 50% 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 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 1998 the Bank
obtained FHLB advances in the aggregate amount of $10.5 million.

                                       12

<PAGE>

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, 1998, the amount of interest-earning
assets and interest-bearing  liabilities maturing,  repricing or callable within
the time periods  indicated.  The table assumes an 8% 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.

<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 ......... $ 3,842   $ 2,702   $ 4,561  $ 4,800  $18,971  $ 34,876
  Adjustable rate real estate loans ....   7,708     8,468     6,727        0        0    22,903
  Consumer loans .......................   1,077       606     1,709    1,902    1,411     6,705
  Mortgage-backed securities:
    Held to maturity ...................   7,017     3,978         0        0        0    10,995
    Available for sale .................   7,577       443         0        0        0     8,020
  Investment securities:
    Held to maturity ...................       0         0         0   10,000        0    10,000
    Available for sale .................  14,009     1,203     6,809      342      293    32,656
  FHLB stock ...........................   1,475         0         0        0        0     1,475
  Other ................................   3,225         0         0        0        0     3,225
                                         -------   -------   -------  -------  -------  --------
    Total interest-earning assets ...... $45,930   $17,400   $19,806  $17,044  $20,675  $130,855
                                         =======   =======   =======  =======  =======  ========
Interest-bearing liabilities:
  Savings accounts ..................... $ 3,265   $     0   $     0  $     0  $     0  $  3,262
  Demand and NOW accounts ..............  10,159         0         0        0        0    10,162
  Certificate accounts .................  22,819    18,590    16,614    4,310       45    62,378
  FHLB advances ........................  10,500     2,000     7,000   10,000        0    29,500
                                         -------   -------   -------  -------  -------  --------
    Total interest-bearing liabilities . $46,743   $20,590   $23,614  $14,310  $    45  $105,302
                                         =======   =======   =======  =======  =======  ========
Interest-earning assets less
  interest-bearing liabilities ......... $  (813)  $(3,190)  $(3,808) $ 2,734  $20,630  $ 15,553

Cumulative interest-rate 
  sensitivity gap ...................... $  (813)  $(4,003)  $(7,811) $(5,077) $15,553  $ 15,553

Cumulative interest-rate gap as a
  percentage of assets at 3/31/98 ......   (0.67)%   (3.31)%   (6.45)%  (4.19)%  12.84%    12.84%

Cumulative interest-rate gap as a
  percentage of interest-earning
  assets at 3/31/98 ....................   (0.67)%   (3.31)%   (6.46)%  (4.20)%  12.87%    12.87%
</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,  1998,  as  calculated  by  Farin  and  Associates,  based on
information provided to Farin and Associates by the Bank.

             INTEREST RATE SENSITIVITY OF NET PORTFOLIO VALUE (NPV)

                   Net Portfolio Value               NPV as % of PV Assets
       Change     --------------------               ---------------------
      in Rates    $ Amount    $ Change    % Change    NPV Ratio     Change
      --------    --------    --------    --------    ---------     ------
       +400 bp      7,749      (5,729)      -49%         6.92%     -421 bp
       +300 bp      9,601      (3,877)      -37%         8.39%     -274 bp
       +200 bp     11,594      (1,884)      -24%         9.90%     -123 bp
       +100 bp     13,555          77         1%        11.31%     +186 bp
          0 bp     13,478                               11.13%
       -100 bp     16,642       3,164         9%        13.36%     +223 bp
       -200 bp     17,764       4,286        16%        14.02%     +289 bp
       -300 bp     19,265       5,787        26%        14.91%     +378 bp
       -400 bp     21,394       7,916        40%        16.15%     +502 bp


                                                    March 31,    March 31,
                                                      1998         1997
                                                    ---------    ---------
     ***RISK MEASURES: 200 BP RATE SHOCK***
     Pre-Shock NPV Ratio: NPV as % of PV of Assets    11.13%       13.19%
     Exposure Measure: Post-Shock NPV Ratio            9.90%        9.53%
     Sensitivity Measure: Change in NPV Ratio        -123 bp      -366 bp


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.


                                       14

<PAGE>

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.

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,  1998 and 1997,  the Bank
originated  loans for its  portfolio  in the amount of $27.7  million  and $16.2
million,  respectively.  The Bank purchased loans totaling $1.2 million and $4.4
million during the fiscal years ended March 31, 1998 and 1997.

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 4.0% 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 46.5% and
8.81%,  respectively,  at March 31,  1998 and 1997.  The  Company's  most liquid
assets are cash and cash equivalents,  which include short-term investments.  At
March 31, 1998 and 1997,  cash and cash  equivalents  were $3.8 million and $4.3
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, 1998, the Bank had outstanding loan commitments of $1.3 million and
undisbursed loans in process of $3.0 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,  1998 were  $41.4  million.  Management  believes  that a  significant
portion of such deposits will remain with the Bank.

At March 31, 1998 the Bank had tangible  capital of $12.3  million,  or 10.2% of
total adjusted assets,  which is  approximately  $10.5 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 10.2% of  adjusted  total  assets,  which is $8.7
million above the minimum  leverage ratio  requirement of 3.0% in effect on that
date.  The Bank  had  total  risk  based  capital  of $12.5  million  and  total
risk-weighted  assets of $46.6 million,  or total risk based capital of 26.9% of
risk-weighted assets. This was $8.8 million above the 8.0% requirement in effect
on that date.

                                       15

<PAGE>

Recent Accounting Developments
------------------------------

The  Financial  and  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 will require
the Company to classify items of other  comprehensive  income by their nature in
the  financial   statements  and  display  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  that  public   enterprises   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.  Both SFAS No. 130 and No.
131 are  effective  for fiscal years  beginning  after  December  15, 1997.  The
adoption of the  standards is not expected to have a  significant  impact on the
financial statements of the Company.

The Company adopted SFAS Nos. 125 and 127 relating to transfers and servicing of
financial  assets  and  extinguishments  of  liabilities  during  1997 and 1998,
according to the required implementation dates. The adoption of these statements
is not expected to have a material  effect on the financial  position or results
of operations.

During  February  1998,  the FASB issued SFAS No. 132 which  revises  employer's
disclosure  requirements about pension and other  postretirement  benefit plans.
This statement does not change the measurement or recognition of those plans and
supersedes Statements No. 87, 88 and 106. This statement is effective for fiscal
years  beginning  after  December 15, 1997. The adoption of this standard is not
expected to require any additional disclosure by the Company.

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's  data  processing
provider and those vendors which have been  contacted  have indicated that their
hardware  and/or  software will be Year 2000 compliant by the end of 1998.  This
will  allow time for  compliance  testing.  Additionally,  alarms,  heating  and
cooling systems, and other  computer-controlled  mechanical devices on which the
Company relies are being evaluated.  Those found not to be in compliance will be
modified or  replaced  with a  compliant  product.  While there will be expenses
incurred  during  the  next  two  years,  the  Company  has not  identified  any
situations at this time that will require  material cost  expenditures to become
fully compliant.

                                       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 change 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,  1998 and 1997 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,  1998.  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, 1998 and 1997 and the results of its operations and its cash flows for
each of the years in the  three-year  period ended March 31, 1998, in conformity
with generally accepted accounting principles.



/s/ KPMG Peat Marwick LLP
-------------------------

May 13, 1998
Kansas City, Missouri


                                       18
<PAGE>


HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Consolidated Balance Sheets

March 31, 1998 and 1997

================================================================================
          Assets                                         1998            1997
--------------------------------------------------------------------------------
Cash ...........................................    $    556,927         258,745
Interest-bearing deposits in other financial
 institutions ..................................       3,224,874       4,007,164
Investment securities (note 3):
   Held-to-maturity ............................      10,000,000              --
   Available-for-sale ..........................      22,656,010      22,340,420
Mortgage-backed securities (note 4):
   Held-to-maturity ............................      10,995,511      13,456,912
   Available-for-sale ..........................       8,019,725       5,757,213
Loans receivable, net (note 5) .................      61,273,984      54,567,570
Accrued interest receivable on:
   Investment securities .......................         359,601         309,223
   Mortgage-backed securities ..................         133,459         144,271
   Loans receivable ............................         395,138         329,200
Real estate owned ..............................              --         103,410
Premises and equipment (note 6) ................       1,725,383         850,210
Stock in Federal Home Loan Bank (FHLB) of
 Des Moines, at cost ...........................       1,475,000         950,000
Deferred income taxes receivable (note 9) ......              --          43,000
Prepaid expenses and other assets ..............         276,492         236,410
                                                    ------------    ------------
Total assets ...................................    $121,092,104     103,353,748
                                                    ============    ============

================================================================================
   Liabilities and Stockholders' Equity                  1998            1997
--------------------------------------------------------------------------------
Liabilities:
   Deposits (note 7) .........................   $  76,884,462       70,200,857
   Advances from borrowers for property
 taxes and insurance .........................         264,317          275,440
   Advances on FHLB line of credit (note 8) ..      29,500,000       19,000,000
   Accrued interest payable ..................          56,149           55,251
   Income taxes payable (note 9):
      Current ................................         323,520          137,164
      Deferred ...............................          15,000               --
   Accrued expenses and other liabilities ....         571,084          475,310
                                                 -------------     -------------
Total liabilities ............................     107,614,532       90,144,022
                                                 -------------     -------------
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 ................      10,165,436       10,084,729
   Retained earnings .........................       7,482,320        6,994,680
   Net unrealized loss on available-for-sale
    securities, net ..........................         (98,326)        (234,597)
   Unearned employee benefits (note 10) ......        (518,280)        (636,800)
   Deferred recognition and retention
    plan (note 10) ...........................        (327,011)        (413,464)
   Treasury stock of 234,440 shares in 1998
    and 198,640 shares in 1997, at cost ......      (3,237,147)      (2,595,402)
                                                 -------------     -------------

Total stockholders' equity ...................      13,477,572       13,209,726
Commitments and contingencies (notes 5 and 12)
                                                 -------------     -------------
Total liabilities and stockholders' equity ...   $ 121,092,104      103,353,748
                                                 =============     =============

See accompanying notes to consolidated financial statements.

                                       19

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Consolidated Statements of Earnings

Years ended March 31, 1998, 1997 and 1996

================================================================================
                                             1998         1997          1996
--------------------------------------------------------------------------------
Interest income:
   Loans receivable ...................   $4,780,918    4,117,141     3,193,688
   Mortgage-backed securities .........    1,216,181    1,347,251     1,619,048
   Investment securities ..............    1,803,383      985,940       376,379
   Other ..............................      433,660      234,042       363,164
                                          ----------   ----------    ----------
Total interest income .................    8,234,142    6,684,374     5,552,279
                                          ----------   ----------    ----------
Interest expense:
   Deposits (note 7) ..................    3,817,487    3,379,903     3,441,049
   FHLB advances ......................    1,366,316      535,227        12,876
                                          ----------   ----------    ----------
Total interest expense ................    5,183,803    3,915,130     3,453,925
                                          ----------   ----------    ----------
Net interest income ...................    3,050,339    2,769,244     2,098,354

Provision for losses on loans
  (note 5) ............................       93,671       33,590        13,902
                                          ----------   ----------    ----------
Net interest income after
  provision for losses ................    2,956,668    2,735,654     2,084,452
                                          ----------   ----------    ----------
Noninterest income:
   Service charges ....................      141,531       80,491        67,032
   Loan servicing fees ................       34,260       36,102        42,675
   Gain on sale of loans ..............       70,433           --            --
   Gain (loss) on sale of investments
     and mortgage-backed securities
    (notes 3 and 4) ...................      111,484       (2,218)        1,878
   Other ..............................      134,472      158,175       167,290
                                          ----------   ----------    ----------
Total noninterest income ..............      492,180      272,550       278,875
                                          ----------   ----------    ----------
Noninterest expense:
   Compensation and benefits (note 10)     1,138,519    1,018,635       854,732
   Occupancy and equipment ............      149,465      115,842       106,008
   Federal insurance premiums .........       45,742      557,351       153,649
   Data processing ....................      109,836       94,725        90,897
   Real estate owned ..................        1,439        2,202        (3,050)
   Other ..............................      636,426      481,394       373,826
                                          ----------   ----------    ----------
Total noninterest expense .............    2,081,427    2,270,149     1,576,062
                                          ----------   ----------    ----------
Earnings before income taxes ..........    1,367,421      738,055       787,265

Income tax expense (note 9) ...........      498,847      273,804       276,742
                                          ----------   ----------    ----------

Net earnings ..........................   $  868,574      464,251       510,523
                                          ==========   ==========    ==========
Earnings per share:
   Basic ..............................   $     1.12          .52           .52
   Diluted ............................         1.08          .51           .52
                                          ==========   ==========    ==========

See accompanying notes to consolidated financial statements.

                                       20

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI                     

Consolidated Statements of Stockholders' Equity

Years ended March 31, 1998, 1997 and 1996      

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                   Net unrealized                Deferred
                                        Additional                    loss on        Unearned   recognition
                             Common       paid-in     Retained   available-for-sale  employee  and retention  Treasury
                              stock       capital     earnings     securities, net   benefits      plan         stock     Total
                              -----       -------     --------     ---------------   --------      ----         -----     -----
<S>                          <C>        <C>       <C>              <C>              <C>         <C>           <C>       <C>
Balance at March 31, 1995    $   --            --   6,480,507        (87,993)          --           --             --     6,392,514

Net earnings .............       --            --     510,523             --           --           --             --       510,523
Sale of common stock, net
  of issuance costs ......   10,580    10,036,820          --             --           --           --             --    10,047,400
Change in net unrealized
  loss on securities
  available-for-sale, net
  of tax .................       --            --          --        (66,604)          --           --             --       (66,604)
Unearned Employee Stock
  Ownership
   Plan (ESOP) benefit ...       --            --          --             --     (846,400)          --             --      (846,400)
Allocation of ESOP shares        --        18,628          --             --       84,680           --             --       103,308
Dividends declared
  ($.10 per share) .......       --            --    (105,800)            --           --           --             --      (105,800)
                            -------   -----------  ----------    -----------   ----------    ---------    -----------   -----------
Balance at March 31, 1996    10,580    10,055,448   6,885,230       (154,597)    (761,720)          --             --    16,034,941

Net earnings .............       --            --     464,251             --           --           --             --       464,251
Change in net unrealized
  loss on securities
  available-for-sale,
  net of tax .............       --            --          --        (80,000)          --           --             --       (80,000)
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 at March 31, 1997    10,580    10,084,729   6,994,680       (234,597)    (636,800)    (413,464)    (2,595,402)   13,209,726

Net earnings .............       --            --     868,574             --           --           --             --       868,574
Change in net unrealized
  loss on securities
  available-for-sale,
  net of tax .............       --            --          --        136,271           --           --             --       136,271
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 at March 31, 1998   $10,580    10,165,436   7,482,320        (98,326)    (518,280)    (327,011)    (3,237,147)   13,477,572
                            =======   ===========  ==========    ===========   ==========    =========    ===========   ===========
</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, 1998, 1997 and 1996

<TABLE>
<CAPTION>

===============================================================================================
                                                        1998             1997            1996
-----------------------------------------------------------------------------------------------
<S>                                               <C>                  <C>            <C>
Operating activities:
   Net earnings ................................   $    868,574         464,251         510,523
   Adjustments to reconcile net earnings
    to net cash provided by operating
    activities:
        Provision for losses on loans ..........         93,671          33,590          13,902
        Depreciation and amortization ..........         80,494          54,352          44,360
        Premium amortization and accretion
         of discounts and deferred loan
         fees, net .............................       (328,422)         83,123          91,248
        FHLB stock dividends ...................             --              --         (14,600)
        Loss (gain) on sales of loans and
         securities, net .......................       (181,917)          2,218          (1,878)
        Gain on sales of premises
         and equipment .........................             --              --          (4,877)
        Gain on sales of real estate owned .....         (5,657)         (6,684)             --
        Proceeds from sales of loans held
         for sale ..............................        428,016              --              --
        Origination of loans held for sale .....       (423,619)             --              --
        Allocation of ESOP shares ..............        199,227         154,201         103,308
        Amortization of deferred recognition
         and retention plan ....................         86,453          84,686              --
        Provision for deferred income taxes ....        (22,000)        (44,086)          4,565
        Changes in other assets and liabilities:
          Accrued interest receivable ..........       (105,504)       (180,825)       (111,762)
          Prepaid expenses and other assets ....        (43,373)         12,213           9,103
          Accrued interest payable .............            898          24,866          (1,584)
          Accrued expenses and other liabilities         74,647         100,752         (38,731)
          Income taxes payable .................        186,295          80,589          52,443
                                                   ------------    ------------    ------------
Net cash provided by operating activities ......        907,783         863,246         656,020
                                                   ------------    ------------    ------------
Investing activities:
   Net increase in loans receivable ............     (8,811,940)     (5,295,352)     (4,871,370)
   Proceeds from maturities of
    certificates of deposit in other
    financial institutions .....................             --              --         100,000
   Purchase of loans ...........................     (1,232,050)     (4,397,569)     (6,941,351)
   Proceeds from sales of loans ................      3,309,109              --              --
   Purchase of mortgage-backed
    securities available-for-sale ..............    (10,786,034)             --        (522,781)
   Purchase of investment securities
    held-to-maturity ...........................    (10,000,000)             --              --
   Purchase of investment securities
    available-for-sale .........................    (27,556,342)    (21,607,082)     (6,657,843)
   Principal payments on mortgage-backed
    securities held-to-maturity ................      2,081,172       2,786,969       4,011,982
   Principal payments on mortgage-backed
    securities available-for-sale ..............        805,804       1,098,488         463,185
   Principal payments on investment
    securities available-for-sale ..............         76,872              --              --
   Proceeds from maturities of investment
    securities available-for-sale ..............     23,650,000       3,500,000       4,901,696
   Proceeds from sales of mortgage-backed
    securities held-to-maturity ................        337,776              --              --
   Proceeds from sales of mortgage-backed
    securities available-for-sale ..............      7,838,077       1,016,675              --
   Proceeds from sales of investment
    securities available-for-sale ..............      4,084,772       2,004,844       3,264,197
   Purchase of stock in FHLB of Des Moines .....       (525,000)       (208,000)             --
   Proceeds from sales of real estate owned ....        117,339          35,000              --
   Purchase of office property and equipment ...       (952,376)       (394,344)        (50,810)
   Proceeds from sale of office properties
    and equipment ..............................             --              --          13,500
                                                   ------------    ------------    ------------
Net cash used in investing activities ..........   $(17,562,821)    (21,460,371)     (6,289,595)
                                                   ============    ============    ============
</TABLE>

                                                                     (Continued)

                                       22
<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Consolidated Statements of Cash Flows, Continued

<TABLE>
<CAPTION>
======================================================================================
                                               1998            1997            1996
--------------------------------------------------------------------------------------
<S>                                     <C>               <C>               <C>
Financing activities:
   Net increase (decrease) in deposits   $  6,683,605       3,595,610        (844,034)
   Net increase in advances from
    borrowers for taxes and insurance         (11,123)         51,688          18,446
   Proceeds from FHLB advances .......     30,500,000      19,000,000       1,000,000
   Repayments of FHLB advances .......    (20,000,000)             --      (2,500,000)
   Proceeds from issuance of stock,
    net of issuance costs ............             --              --       9,201,000
   Payment of dividends ..............       (359,807)       (374,665)             --
   Purchase of treasury stock ........       (641,745)     (3,093,552)             --
                                         ------------    ------------    ------------
Net cash provided by financing
  activities .........................     16,170,930      19,179,081       6,875,412
                                         ------------    ------------    ------------
Increase (decrease) in cash and
  cash equivalents ...................       (484,108)     (1,418,044)      1,241,837

Cash and cash equivalents at
  beginning of year ..................      4,265,909       5,683,953       4,442,116
                                         ------------    ------------    ------------
Cash and cash equivalents at
 end of year .........................   $  3,781,801       4,265,909       5,683,953
                                         ============    ============    ============
Supplemental disclosure of cash
 flow information:
      Cash paid for:
      Interest .......................   $  5,182,905       3,890,264       3,455,509
                                         ============    ============    ============
      Income taxes, net of refunds ...   $    310,100         193,215         224,299
                                         ============    ============    ============
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 .....   $    107,063          85,936         105,800
                                         ============    ============    ============
</TABLE>

See accompanying notes to consolidated financial statements.

                                       23

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

March 31, 1998, 1997 and 1996

--------------------------------------------------------------------------------

(1)  Conversion and Acquisition of the Bank by the Company

     On September 28, 1995,  Hardin  Federal  Savings Bank (the Bank)  converted
     from a federally  chartered  mutual  savings bank to a federally  chartered
     stock savings bank, at which time all of the capital stock of the converted
     bank was acquired by Hardin  Bancorp,  Inc. (the Company).  The Company was
     organized to acquire all of the stock issued by the Bank upon  consummation
     of the stock  conversion.  Prior to September 28, 1995,  the Company had no
     assets or  liabilities  and had not engaged in any  business  other than as
     necessary to complete its organization and the conversion. On September 28,
     1995, in connection with the stock conversion,  the Company issued and sold
     1,058,000  shares of its common  stock,  par value  $0.01 per  share,  in a
     subscription  and  community  offering  to  the  Company's  Employee  Stock
     Ownership  Plan,  the Bank's  members  and the  general  public.  Total net
     proceeds of the  subscription  and  community  offering,  after  conversion
     expenses of approximately  $532,600,  were approximately  $10,047,400.  The
     Company  utilized  $5,023,700  of the net  proceeds  to acquire  all of the
     common stock issued by the Bank in  connection  with the stock  conversion.
     The remaining  $5,023,700 was retained for investment.  The transaction was
     accounted  for  in  a  manner  similar  to a  pooling-of-interests  method.
     Accordingly,  the  accounting  basis for  assets,  liabilities  and  equity
     accounts remained the same as prior to the conversion.


(2)  Summary of Significant Accounting Policies

     (a) Principles of Consolidation and Basis of Presentation

     The accompanying  consolidated financial statements include the accounts of
     the Company and 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.

                                       24

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

     (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. There were no such loans at March 31, 1998 or 1997.

     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.

     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 1998 are  capitalized  mortgage
     servicing rights aggregating  $36,000.  Amortization expense related to the
     capitalized   servicing   rights,   included  in  other   expenses  in  the
     accompanying consolidated statements of earnings,  aggregated $3,000 during
     1998.

     At March  31,  1998 and  1997,  the Bank was  servicing  loans  for  others
     amounting to $9,759,000 and $8,413,000,  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, 1998 and 1997 was
     insignificant.

                                       25
<PAGE>


HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

     (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.

     (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.  Earnings per share for all periods
     presented have been restated to conform to SFAS No. 128.

                                       26

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

     The shares used in the calculation of basic and diluted  earnings per share
     are shown below:

================================================================================
                                                 For the years ended March 31,
                                              ----------------------------------
                                                1998        1997          1996
--------------------------------------------------------------------------------

     Weighted average common shares
       outstanding.........................    775,293      900,351      973,383
     Stock options.........................     28,261        5,983           --
--------------------------------------------------------------------------------

                                               803,554      906,334      973,383
================================================================================

     (m) Future 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 will  require  the  Company to  classify  items of other  comprehensive
     income by their nature in the consolidated financial statements and display
     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 that public
     enterprises  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.  Both SFAS No. 130 and SFAS No. 131 are
     effective for the Company's year ending March 31, 1999. The adoption of the
     standards is not expected to have a significant  impact on the consolidated
     financial statements of the Company.

                                       27

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

(3)  Investment Securities

     A summary of investment securities information is as follows:
<TABLE>
<CAPTION>

=========================================================================================================================
                                                                                  Gross          Gross         Estimated
                                                                 Amortized     unrealized     unrealized         fair
                        March 31, 1998                             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 U. S. 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
                                                             ==============        =====                       ==========


=========================================================================================================================
                                                                                  Gross          Gross         Estimated
                                                                 Amortized     unrealized     unrealized         fair
                        March 31, 1997                             cost           gains         losses           value
---------------------------------------------------------------------------------------------------------------------------
        Available-for-sale:
           United States government and agency
               obligations maturing after one year
               but within five years                         $   22,485,287        9,077        (153,944)      22,340,420
                                                             ==============        =====        ========       ==========
</TABLE>

     Proceeds from the sales of investment  securities for the years ended March
     31, 1998,  1997 and 1996 totaled  $4,084,772,  $2,004,844  and  $3,264,197,
     respectively,  and resulted in gross realized gains of $31,433,  $5,286 and
     $5,671 in 1998, 1997 and 1996,  respectively,  and gross realized losses of
     $3,793 in 1996.

                                       28

<PAGE>


HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

     At March 31,  1998 and 1997,  investment  securities  with a fair  value of
     approximately  $1,467,000  and  $1,790,000,  respectively,  were pledged to
     secure public funds on deposit.


(4)  Mortgage-backed Securities

     Mortgage-backed  securities  at March 31, 1998 and 1997 are  summarized  as
     follows:

<TABLE>
<CAPTION>
=========================================================================================================================
                                                                                    Gross        Gross          Estimated
                                                                   Amortized     unrealized   unrealized          fair
                                                                     cost           gains       losses            value
-------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                <C>           <C>            <C>
        March 31, 1998:
              Available-for-sale:
                  Pass-through certificates guaranteed
                      by Government National
                      Mortgage Association (GNMA)              $    2,967,254           -             -         2,967,254
                  Federal Home Loan Mortgage
                      Corporation (FHLMC)
                      participation certificates                    1,744,724           -        (57,019)       1,687,705
                  Federal National Mortgage
                      Association (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>

                                       29

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
=========================================================================================================================
                                                                                    Gross        Gross          Estimated
                                                                    Amortized    unrealized   unrealized          fair
                                                                      cost          gains       losses            value
-------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                 <C>           <C>           <C>
        March 31, 1997:
              Available-for-sale:
                  FHLMC participation certificates              $   2,029,460           -        (74,100)       1,955,360
                  FNMA participation certificates                   3,955,292           -       (153,439)       3,801,853
                                                                    ---------      ------       --------        ---------
                                                                $   5,984,752           -       (227,539)       5,757,213
                                                                =============      ======       ========        =========
              Held-to-maturity:
                  Pass-through certificates guaranteed
                      by GNMA                                   $   1,815,581       21,177        (2,391)       1,834,367
                  FHLMC participation certificates                  4,635,361       10,581      (116,929)       4,529,013
                  FNMA participation certificates                   7,005,970        7,817       (98,723)       6,915,064
                                                                    ---------        -----       -------        ---------
                                                                $  13,456,912       39,575      (218,043)      13,278,444
                                                                =============       ======      ========       ==========
</TABLE>

     Proceeds from the sales of  mortgage-backed  securities for the years ended
     March 31, 1998 and 1997 totaled  $8,175,853 and  $1,016,675,  respectively,
     and resulted in gross realized losses of $1,096 and $7,696 in 1998 in 1997,
     respectively,  and gross  realized  gains of  $81,147  and $192 in 1998 and
     1997, respectively.


(5)  Loans Receivable

     Loans receivable at March 31, 1998 and 1997 are summarized as follows:

================================================================================
                                                      1998              1997
--------------------------------------------------------------------------------
Real estate:
      One to four family                         $ 50,645,667        47,473,503
      Five or more                                    543,197                --
      Nonresidential                                  477,263                --
      Land                                            810,581           327,936
      Commercial                                    1,335,685         1,044,996
      Construction                                  3,966,929         1,619,013
Consumer                                            6,704,534         5,570,651
                                                 ------------      ------------
                                                   64,483,856        56,036,099

Loans in process                                   (3,021,980)       (1,352,926)
Discounts and deferred
 loan origination fees, net of cost                    59,818            42,673
Allowance for loan losses                            (247,710)         (158,276)
                                                 ------------      ------------
Net loans receivable                             $ 61,273,984        54,567,570
                                                 ============      ============

                                       30

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

     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, 1998 and 1997, the
     Bank was committed to originate loans aggregating  approximately $1,264,000
     and $708,800,  respectively.  At March 31, 1998, all loan  commitments were
     fixed with  interest  rates  ranging from 7.25% to 8.0%. At March 31, 1997,
     fixed loan  commitments  approximated  $627,800 with interest rates ranging
     from 7.75% to 9.50%.  There were no  commitments  to buy loans at March 31,
     1998 or 1997.

     The Company had loans to directors  and officers at March 31, 1998 and 1997
     which carry terms similar to those for other loans. A summary of such loans
     is as follows:

================================================================================
                                                      1998                1997
--------------------------------------------------------------------------------
Balance at beginning of year                        $ 145,000           146,000
New loans                                             105,000            10,000
Payments                                               (8,000)          (11,000)
                                                    ---------         ---------
Balance at end of year                              $ 242,000           145,000
                                                    =========         =========

     Activity  in the  allowance  for loan  losses for the years ended March 31,
     1998, 1997 and 1996 is as follows:

================================================================================
                                           1998           1997           1996
--------------------------------------------------------------------------------

Balance at beginning of year            $ 158,276        131,040        118,905
Provision for loan losses                  93,671         33,590         13,902
Charge-offs                                (4,237)        (6,354)        (1,767)
                                        ---------      ---------      ---------
Balance at end of year                  $ 247,710        158,276        131,040
                                        =========      =========      =========


     Nonaccrual  loans at March  31,  1998  and  1997  aggregated  approximately
     $232,000 and $274,000, respectively.

                                       31

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

(6)  Premises and Equipment

     Premises and equipment consist of the following at March 31, 1998 and 1997:

================================================================================
                                                        1998              1997
--------------------------------------------------------------------------------

Land                                                 $  150,219          150,219
Building                                              1,473,400          695,882
Leasehold improvements                                   34,170           33,603
Furniture and fixtures                                  734,497          560,205
                                                     ----------       ----------
                                                      2,392,286        1,439,909

Less accumulated depreciation                           666,903          589,699
                                                     ----------       ----------
Office properties and equipment, net                 $1,725,383          850,210
                                                     ==========       ==========

(7)  Deposits

     Deposits at March 31, 1998 and 1997 are summarized as follows:
<TABLE>
<CAPTION>
===========================================================================================================================
                                                                          1998                              1997
                                                                   --------------------           ------------------------
                                           Stated rate             Amount        Percent          Amount           Percent
---------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                <C>                    <C>      <C>                     <C>
        Balance by interest rate:
              Commercial                  0.00%             $      1,081,647         1%      $       140,200         --%
              NOW accounts                0.00-2.50%               4,258,114         6             2,333,601          3
              Money market demand
                  accounts                3.25-4.00%               5,901,404         8             4,096,530          6
              Savings accounts            2.50%                    3,265,591         4             3,591,811          5
                                                                  ----------        --            ----------         --
                                                                  14,506,756        19            10,162,142         14
                                                                  ----------       ---            ----------        ---
              Certificate accounts        0.00-2.99                  105,875        --                    --         --
                                          3.00-3.99                   23,030        --                36,737         --
                                          4.00-4.99                3,978,376         5             5,561,972          8
                                          5.00-5.99               44,438,448        58            43,313,598         62
                                          6.00-6.99               12,358,458        16             9,645,129         14
                                          7.00-7.99                1,466,506         2             1,474,266          2
                                          8.00 and up                  7,013        --                 7,013         --
                                                                  ----------       ---            ----------        ---
                                                                  62,377,706        81            60,038,715         86

                                                            $     76,884,462       100%      $    70,200,857        100%
                                                                  ==========       ===            ==========        ===
        Weighted average interest rate
              on deposits at March 31                                             5.07%                            5.21%
                                                                                  ====                             ====
</TABLE>

                                       32

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

     A summary of contractual  maturity dates for certificate  accounts at March
     31, 1998 is as follows:

================================================================================
                                                   Amount             Percent
--------------------------------------------------------------------------------
        Contractual maturity of
         certificate accounts:
              Under 12 months                    $41,408,495             66%
              12 to 24 months                     14,386,506             23
              24 to 36 months                      2,227,787              4
              36 to 48 months                      2,467,308              4
              48 to 60 months                      1,842,750              3
              Over 60 months                          44,860             --
                                                 -----------            ---
                                                 $62,377,706            100%
                                                 ===========            ===

     The  components  of interest  expense on deposits for the years ended March
     31, 1998, 1997 and 1996 are as follows:

================================================================================
                                           1998            1997          1996
--------------------------------------------------------------------------------
NOW, savings, Super NOW and
      money market demand               $  329,197        285,575        276,250
Certificates of deposit                  3,488,290      3,094,328      3,164,799
                                        ----------     ----------     ----------

                                        $3,817,487      3,379,903      3,441,049
                                        ==========     ==========     ==========

     At March 31,  1998 and 1997,  certificate  accounts  of $100,000 or greater
     totaled $6,748,657 and $5,712,767, 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.

                                       33

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

(8)  FHLB Advances

     The Company had the following debt  outstanding from the FHLB of Des Moines
     at March 31, 1998 and 1997:
<TABLE>
<CAPTION>
========================================================================================
                                                                  1998            1997
----------------------------------------------------------------------------------------
<S>                                                           <C>             <C>      
$5,000,000 advance, interest at 6.07%, due April 1997          $        --     5,000,000
$5,000,000 advance, interest at one-month LIBOR less .05%
      (5.39% at March 31, 1997), due October 1997                       --     5,000,000
$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     2,000,000
$5,000,000 advance, interest at one-month LIBOR less .05%,
      due December 1998                                          5,000,000     5,000,000
$2,500,000 advance, interest at 6.14%, due July 1999             2,500,000            --
$2,500,000 advance, interest at 6.15%, due September 1999        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            --
                                                               -----------   -----------
                                                               $29,500,000    19,000,000
                                                               ===========   ===========
</TABLE>


     The advances from the FHLB are collateralized by first mortgage loans.

     Scheduled maturities of FHLB advances are as follows:

================================================================================
           Year ending
           March 31,                         Amount
--------------------------------------------------------------------------------
              1999                        $12,500,000
              2000                          7,000,000
              2008                         10,000,000
                                          -----------
                                          $29,500,000
                                          ===========

                                       34

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

(9)  Income Taxes

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

================================================================================
                                         Federal          State         Total
--------------------------------------------------------------------------------

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
                                        ---------      ---------      ---------
Year ended March 31, 1996:
      Current                           $ 241,177         31,000        272,177
      Deferred                              4,565             --          4,565
                                        ---------      ---------      ---------
                                        $ 245,742         31,000        276,742
                                        =========      =========      =========


     In  addition,  during the years ended March 31, 1998 and 1997,  the Company
     recorded  deferred income tax expense  (benefits) of approximately  $80,000
     and  $(47,000),  respectively,  related to unrealized  losses on investment
     securities available-for-sale.

     The reasons for the  difference  between  the  effective  tax rates and the
     expected federal income tax rate of 34% are as follows:

================================================================================
                                                     Percent of earnings before
                                                        income tax expense
                                                     --------------------------
                                                     1998      1997     1996
--------------------------------------------------------------------------------
Expected federal income tax rate                     34.0%     34.0     34.0
  Items affecting income tax rate:
    State taxes, net of federal tax benefit           2.0       2.6      2.2
    Other                                              .5        .5     (1.0)
                                                     ----      ----     ----
Effective tax rate                                   36.5%     37.1     35.2
                                                     ====      ====     ====


                                       35

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

     The tax effects of temporary  differences  which give rise to a significant
     portion of deferred tax assets and  liabilities  at March 31, 1998 and 1997
     are as follows:

================================================================================
                                                         1998             1997
--------------------------------------------------------------------------------
Unrealized loss on available-for-sale
  securities                                          $  58,000          138,000
Allowance for loan losses                               100,000           65,000
Accrued compensation                                    144,000          143,000
Other                                                    22,000            8,000
                                                      ---------        ---------
Deferred tax assets                                     324,000          354,000
                                                      ---------        ---------
FHLB dividends                                           33,000           33,000
Tax bad debt reserve in excess of
  base year                                             145,000          145,000
Fixed asset basis difference                             48,000           49,000
Core deposit premium                                     15,000           15,000
Accrued interest on loans originated
  prior to September 25, 1985                             6,000            8,000
Loan origination fees                                    74,000           61,000
Other                                                    18,000               --
                                                      ---------        ---------
Deferred tax liabilities                                339,000          311,000
                                                      ---------        ---------
Net deferred tax assets (liabilities)                 $ (15,000)          43,000
                                                      =========        =========


     There was no valuation  allowance for deferred tax assets at March 31, 1998
     or  1997.  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.

     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, 1998 and 1997, 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.


                                       36

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements


--------------------------------------------------------------------------------

(10) Benefit Plans

     Qualified  employees  of the  Company and Bank  participate  in an Employee
     Stock  Ownership  Plan  (the  ESOP).  In  connection  with  the  conversion
     described in note 1, 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,  1998 and 1997,  the  Company
     allocated 11,852 shares and 12,492 shares,  respectively,  to participants.
     ESOP  contributions  to the Bank,  representing the fair value of allocated
     shares,  charged to compensation and benefits expense in 1998 and 1997 were
     approximately  $199,000 and $154,000,  respectively.  The fair value of the
     remaining  unallocated  shares  of  51,828  at March  31,  1998  aggregated
     approximately $1,004,000.

     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 and $52,000  was  recorded  for the years ended
     March 31, 1997 and 1996, respectively.

     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, 1998, 1997 and 1996 amounted to  approximately  $111,000,  $106,000 and
     $103,000,  respectively.  The Bank has purchased life insurance policies to
     fund its obligations under the plans.

     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 shares and 3,000 shares, respectively, to participants.  The
     corresponding  charge to compensation and benefits expense in 1998 and 1997
     was $86,453 and $84,686, respectively.


(11) 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.  The options will vest over
     the five years  following the date of grant and are  exercisable  for up to
     ten years.

                                       37

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

     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  $56,000,  or $.07 per share, in 1998 and $94,000,
     or $.10 per share, in 1997.

     Following  is a summary  of the fair  values of options  granted  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                              6.2%           7.0%
      Expected life                                    10 years       10 years
                                                       ========       ========


     Pro forma net earnings  reflect  only options  granted and vested in fiscal
     1998 and  1997.  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.


(12) 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.

                                       38

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements


--------------------------------------------------------------------------------

(13) 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.

     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,
     1998, 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
                                                                 Tangible         Core        Risk-based       risk-based
                                                                  capital        capital        capital          capital
-------------------------------------------------------------------------------------------------------------------------
<S>                                                          <C>                <C>             <C>             <C>       
        Equity                                               $   12,199,000     12,199,000      12,199,000      12,199,000
        Adjustments to capital:
              Allowance for loan losses                                 --             --          248,000             --
              Unrealized loss on available-for-sale
                 securities, net                                     98,000         98,000          98,000          98,000
              Other                                                  (1,000)        (1,000)         (1,000)         (1,000)
                                                                     ------         ------          ------          ------ 
        Regulatory capital - computed                            12,296,000     12,296,000      12,544,000      12,296,000
        Minimum capital requirement for
              capital adequacy purposes                           1,816,000      3,633,000       3,730,000             --
                                                                  ---------      ---------       ---------          -----
        Regulatory minimum capital - excess                  $   10,480,000      8,663,000       8,814,000             --
                                                             ==============      =========       =========          =====
        To be well capitalized for prompt
              corrective action provisions                   $          --       6,055,000       4,663,000       2,798,000
                                                             ==============      =========       =========       =========
        To be well capitalized capital - excess              $          --       6,241,000       7,881,000       9,498,000
                                                             ==============      =========       =========       =========
        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                                                   10.2%          10.2            26.9            26.4
                                                             ==============      =========       =========        ========
</TABLE>

                                       39

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

(14) 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, 1998 and 1997, including methods and assumptions  utilized,
     are set forth below:

<TABLE>
<CAPTION>

==========================================================================================
                                               1998                        1997
                                     ------------------------    -------------------------
                                       Carrying    Estimated       Carrying     Estimated
                                        amount     fair value       amount      fair value
------------------------------------------------------------------------------------------
<S>                                  <C>            <C>           <C>           <C>       
Investment securities                $32,656,010    32,665,000    22,340,420    22,340,000
                                     ===========   ===========   ===========   ===========
Mortgage-backed securities           $19,015,236    18,938,000    19,214,125    19,036,000
                                     ===========   ===========   ===========   ===========
Loans, net of unearned fees and
      allowance for loan losses      $61,273,984    60,898,000    54,567,570    54,456,000
                                     ===========   ===========   ===========   ===========
Noninterest bearing demand deposit   $ 1,081,647     1,082,000       140,200       140,000
Money market and NOW deposits         10,159,518    10,160,000     6,430,131     6,430,000
Savings accounts                       3,265,591     3,266,000     3,591,811     3,592,000
Certificate accounts                  62,377,706    62,795,000    60,038,715    60,197,000
                                     -----------   -----------   -----------   -----------
Total deposits                       $76,884,462    77,303,000    70,200,857    70,359,000
                                     ===========   ===========   ===========   ===========
</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.


                                       40

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

     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.

                                       41

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

(15) Parent Company Condensed Financial Statements


                            Condensed Balance Sheets
                             March 31, 1998 and 1997
================================================================================
         Assets                                         1998              1997
--------------------------------------------------------------------------------
Interest-bearing deposits                            $   848,243         361,004
Investment securities available-for-sale                      --         978,516
Loans receivable                                         531,632         646,415
Investment in subsidiary                              12,198,944      11,334,216
Other                                                     60,199          54,000
                                                     -----------     -----------
Total assets                                         $13,639,018      13,374,151
                                                     ===========     ===========


        Liabilities and Stockholders' Equity
Accrued expenses and other liabilities               $   161,446         164,425
Stockholders' equity                                  13,477,572      13,209,726
                                                     -----------     -----------
Total liabilities and stockholders' equity           $13,639,018      13,374,151
                                                     ===========     ===========



                        Condensed Statements of Earnings
                       Years ended March 31, 1998 and 1997
================================================================================
                                                        1998             1997
--------------------------------------------------------------------------------
Interest income                                      $ 105,290          226,786
Other expense, net                                    (212,127)        (228,743)
                                                     ---------        ---------
Loss before equity in undistributed
  earnings of subsidiary                              (106,837)          (1,957)
Increase in undistributed equity
  of subsidiary                                        934,535          466,208
                                                     ---------        ---------
Earnings before income taxes                           827,698          464,251
Income tax expense                                     (40,876)              --
                                                     ---------        ---------
Net earnings                                         $ 868,574          464,251
                                                     =========        =========

                                       42

<PAGE>

HARDIN BANCORP, INC. AND SUBSIDIARIES
HARDIN, MISSOURI

Notes to Consolidated Financial Statements

--------------------------------------------------------------------------------

                       Condensed Statements of Cash Flows
                       Years ended March 31, 1998 and 1997

================================================================================
                                                       1998               1997
--------------------------------------------------------------------------------
Cash flows from operating activities:
      Net earnings                                  $   868,574         464,251
      Increase in undistributed
        equity of subsidiary                           (934,535)       (466,208)
      Amortization of deferred RRP                       86,453          84,686
      Other                                             (37,613)         63,555
                                                    -----------     -----------
Net cash provided (used) by
      operating activities                              (17,121)        146,284
                                                    -----------     -----------
Cash flows from investing activities:
      Net increase in loans receivable                  114,783         115,345
      Purchase of investment securities
        available-for-sale                                   --        (596,677)
      Principal payments on investment
        and mortgage-backed
        securities available-for-sale                   500,000       1,245,811
      Sales of investment and mortgage-
        backed securities
        available-for-sale                              486,959         657,642
                                                    -----------     -----------
Net cash provided by investing activities             1,101,742       1,422,121
                                                    -----------     -----------
Cash flows from financing activities:
      Dividends from subsidiary                         404,170              --
      Payment of dividends                             (359,807)       (374,665)
      Capital contribution to subsidiary                     --         (30,705)
      Purchase of treasury stock                       (641,745)     (3,093,552)
                                                    -----------     -----------
Net cash used by financing activities                  (597,382)     (3,498,922)
                                                    -----------     -----------
Net increase (decrease) in cash                         487,239      (1,930,517)
Cash at beginning of year                               361,004       2,291,521
                                                    -----------     -----------
Cash at end of year                                 $   848,243         361,004
                                                    ===========     ===========
Noncash investing and financing activities:
      Dividend declared and payable                 $   107,063          85,936
                                                    ===========     ===========
      Allocation of RRP                             $        --         498,150
                                                    ===========     ===========

                                       43

<PAGE>

                              HARDIN BANCORP, INC.
                             STOCKHOLDER INFORMATION

Annual Meeting
--------------

The Annual Meeting of Stockholders will be held at 1:00 p.m., Richmond, Missouri
time on July 23, 1998, at the Hardin Federal  Savings Bank office located at 200
North Spartan Drive, Richmond, Missouri 64085.

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 for each quarter  since the common
stock began trading on September 29, 1995 was as follows:

     FISCAL 1996               HIGH              LOW               DIVIDENDS
     -----------               ----              ---               ---------

     Third Quarter             $13.00            $10.00            $ --
     Fourth Quarter            $12.00            $11.25            $.10

     FISCAL 1997               HIGH              LOW               DIVIDENDS
     -----------               ----              ---               ---------

     First Quarter             $12.00            $11.25            $.10
     Second Quarter            $12.50            $11.25            $.10
     Third Quarter             $12.75            $11.875           $.10
     Fourth Quarter            $15.50            $12.25            $.10

     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

A $.13 per share  dividend  was  declared by the Board of Directors on March 19,
1998,  payable April 17, 1998, to  stockholders  of record on April 3, 1998. 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,  1998,  there  were  1,058,000  shares  issued and  823,560  shares
outstanding of Hardin Bancorp,  Inc. (HFSA) common stock (including  unallocated
ESOP shares) and there were approximately 500 registered holders of record.

                                       44

<PAGE>

Shareholders and General Inquiries          Transfer Agent
----------------------------------          --------------

Robert W. King                              Registrar and Transfer
President                                   10 Commerce Drive
Hardin Bancorp, Inc.                        Cranford, New Jersey 07016
2nd and 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, 1998, 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., 2nd and Elm Street,  Hardin,  Missouri
64035

                              HARDIN BANCORP, INC.
                              CORPORATE INFORMATION

Company and Bank Addresses
--------------------------

2nd and Elm Street                            Telephone:  (660) 398-4312
Hardin, Missouri  64035                       Fax:        (660) 398-4317

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

201 North Jesse James Road                    Telephone:  (816) 630-2179
Excelsior Springs, MO 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

                                       45

<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                                     Vickie L. McGinnis
  Vice President                                   Assistant Vice President

David A. Schooling
  Assistant Vice President


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

KPMG Peat Marwick 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


                                       46