CRAZY WOMAN CREEK BANCORP
                                  INCORPORATED




                               2001 ANNUAL REPORT
--------------------------------------------------------------------------------


<PAGE>

                     CRAZY WOMAN CREEK BANCORP INCORPORATED
                               2001 ANNUAL REPORT

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

                                TABLE OF CONTENTS

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Letter to Stockholders .................................................    1

Corporate Profile and Stock Market Information .........................    2

Financial Highlights ...................................................    3

Management's Discussion and Analysis of
  Financial Condition and Results of Operations ........................    4

Independent Auditors' Report ...........................................   12

Consolidated Balance Sheets ............................................   13

Consolidated Statements of Income ......................................   14

Consolidated Statements of Stockholders' Equity and Comprehensive Income   15

Consolidated Statements of Cash Flows ..................................   16

Notes to Consolidated Financial Statements .............................   17


<PAGE>

                     [CRAZY WOMAN CREEK BANCORP LETTERHEAD]






To Our Stockholders:


I am pleased to present our fifth  annual  report  after the  completion  of our
mutual to stock conversion in 1996. This past fiscal year has been one of growth
and change.  With a positive  growth forecast for the Powder River Basin area of
Northeast  Wyoming  and as the  result  of a  strategic  planning  session,  the
Officers  and Board of  Directors  made the  decision to  establish  branches in
Gillette and Sheridan.  The purchase of a start up branch of the Hulett National
Bank in Gillette  occurred in December,  2000. The  construction  of a branch in
Sheridan is currently under way with plans to open in April 2002.

The addition of the branch  office in Gillette,  Wyoming has enabled the bank to
increase  deposits  and loan volume.  Total assets grew from $64.826  million at
September 30, 2000 to $68.773 million at September 30, 2001.  Loans grew by over
six  million  dollars to a balance of $37.058  million  and  deposits  also grew
nearly  nine  million  dollars  to a total of  $40.709  million.  The  Board and
Management  are pleased with the  development  of the Gillette  branch and feels
there is excellent  potential for future growth.  The Powder River Basin area of
Wyoming is currently  seeing  increased  activity in methane well drilling along
with future development of coal fired electrical generating plants.

Sheridan,  Wyoming is also  experiencing  growth and the  addition  of our newly
constructed branch office offers exciting  possibilities.  Sheridan,  along with
Buffalo, is also experiencing growth from methane development.  In addition, the
close   proximity  to  the  Big  Horn  Mountains  and  associated   recreational
opportunities has led to an increase in the retirement community. The future for
growth along the Big Horn Mountain  range and the western  portion of the Powder
River Basis looks very positive.

Along  with  growth and  expansion,  the Bank  expects  costs of  operations  to
increase.  Costs  associated with branching will outweigh income for a period of
time until each  branch's  assets grow to a level where they become  profitable.
The cost of increased  employee  compensation  and the increased  costs of other
operations  will  curtail  income  in the  short  term,  and the  prospects  for
increased  returns will also be curtailed.  The Board and Management  expect the
future  benefits from the branches will outweigh the income  reductions that are
presently occurring.

Fiscal year 2002 will provide exciting  challenges as the officers and directors
formulate goals and future  directions for the company.  Development of products
and services will continue as an ongoing part of the planning process. I wish to
personally  invite all  stockholders to our annual meeting that is scheduled for
January 23, 2002.

Sincerely,


/s/Deane D. Bjerke
------------------
Deane D. Bjerke
President



<PAGE>

                     CRAZY WOMAN CREEK BANCORP INCORPORATED

Corporate Profile

Crazy Woman Creek Bancorp  Incorporated (the "Company") is the parent company of
Buffalo Federal Savings Bank ("Buffalo Federal" or the "Bank"). The Company is a
savings and loan holding  company which,  under existing laws, is not restricted
in the types of  activities  in which it can engage.  At the present  time,  the
Company does not conduct any significant  business and therefore does not employ
any persons other than officers. The Company does, however,  utilize the support
staff and facilities of the Bank from time to time.

Buffalo Federal is a  federally-chartered  stock savings bank  headquartered  in
Buffalo, Wyoming, which was originally chartered in 1932 under the name "Buffalo
Building and Loan Association." Deposits are insured up to the maximum allowable
by federal law. The Bank is a community oriented savings institution  offering a
variety  of  financial  services  to meet the needs of the  communities  that it
serves.  Buffalo  Federal  conducts its business from its offices in Buffalo and
Gillette, Wyoming with an office opening soon in Sheridan, Wyoming.

Buffalo  Federal  attracts  deposits  from the  general  public  and  uses  such
deposits,  together with borrowings and other funds,  primarily to originate and
fund loans  secured by first  mortgages on  owner-occupied,  one-to-four  family
residences  in its market  area.  The Bank also makes  commercial  real  estate,
commercial,  home equity loans, loans secured by deposits,  automobile loans and
personal loans and invests in municipal obligations, mortgage-backed securities,
and other investments.

Stock Market Information

Since its initial public offering in March 1996, the Company's  common stock has
been traded on the Nasdaq SmallCap Market under the symbol "CRZY." The following
table  reflects the stock price highs and lows for each quarter  during the last
two years as reported by Nasdaq as well as cash  dividends  declared  during the
periods.
                                                 HIGH        LOW    DIVIDENDS
                                                 ----        ---    ---------
July 1, 2001 - September 30, 2001             $ 18.50    $ 12.06     $ 0.12
April 1, 2001 - June 30, 2001                   16.45      13.00       0.12
January 1, 2001 - March 31, 2001                16.63      11.25       0.12
October 1, 2000 - December 31, 2000             11.78      10.63       0.12
July 1, 2000 - September 30, 2000               11.88      10.13       0.12
April 1, 2000 - June 30, 2000                   11.00       9.38       0.12
January 1, 2000 - March 31, 2000                11.00       9.88       0.12
October 1, 1999 - December 31, 1999             12.75      10.00       0.12

Quotations  reflect  inter-dealer  prices without retail  mark-up,  mark-down or
commission,   and  may  not  represent  actual   transactions.   The  number  of
shareholders   of  record  of  common  stock  as  of  December  17,  2001,   was
approximately  810.  This does not reflect the number of persons or entities who
held stock in nominee or "street"  name  through  various  brokerage  firms.  At
December 17, 2001, there were 807,208 shares outstanding.

The Company's ability to pay dividends to stockholders is dependent in part upon
the dividends it receives from the Bank.  The Bank may not declare or pay a cash
dividend  on any of its stock if the  effect  thereof  would  cause  the  Bank's
regulatory  capital  to be  reduced  below  (1)  the  amount  required  for  the
liquidation  account  established in connection with the Bank's  conversion from
mutual to stock form, or (2) the regulatory capital  requirements imposed by the
Office of Thrift Supervision ("OTS").


                                      -2-
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Dollars in Thousands except per share date)
At or For the Year Ended September 30,               2001          2000          1999        1998         1997
--------------------------------------------------------------------------------------------------------------------
<S>                                              <C>           <C>           <C>          <C>         <C>
Loan receivable, net                               $37,058       $30,980       $29,727      $29,986     $28,636
Investment and mortgage-backed
     securities, held to maturity (1)                   --            --            --        3,938       9,009
Investment and mortgage-backed
    securities, available for sale (1)              22,003        28,869        29,479       24,635      19,155
Total assets                                        68,773        64,826        63,661       62,153      59,952
Deposits                                            40,709        32,081        34,249       32,913      29,506
FHLB advances                                       13,400        19,300        15,600       14,650      15,700
Total stockholders' equity                          13,558        13,079        13,356       14,036      14,210
Interest income                                      4,404         4,317         4,313        4,420       3,940
Interest expense                                     2,749         2,532         2,358        2,448       1,983
Net interest income                                  1,655         1,785         1,955        1,973       1,957
Provision for loan losses                               --            --             6           18          --
Net income                                             211           559           690          712         691

--------------------------------------------------------------------------------------------------------------------
OTHER SELECTED DATA
At or For the Year Ended September 30,               2001          2000          1999        1998         1997
--------------------------------------------------------------------------------------------------------------------
Performance Ratios:
Return on average assets (net income
  divided by average total assets)                    0.32%         0.88%         1.10%        1.16%       1.28%
Return on average equity (net income
  divided by average equity)                          1.57%         4.28%         4.96%        4.96%       4.74%
Average interest-earning assets to average
  interest-bearing liabilities                      124.35%       126.71%       125.32%      130.65%     136.86%
Net interest income after provision for
  loan losses to average earning assets               2.59%         2.85%         3.16%        3.25%       3.71%
Net interest rate spread                              1.54%         1.77%         2.09%        2.03%       2.32%
Average equity to average assets ratio
  (average equity divided by average
  total assets)                                      20.25%        20.64%        22.20%       23.46%      27.07%
Equity to assets at period end                       19.71%        20.18%        20.98%       22.59%      23.70%
Non-performing assets to total assets                 0.17%         0.10%         0.22%        0.41%       0.38%
Non-performing loans to gross loans                   0.31%         0.20%         0.46%        0.83%       0.77%
Allowance for loan losses, REO and other
  Repossessed assets to non-performing
  Assets                                            258.82%       435.48%       176.60%      110.66%     134.22%
Allowance for loan losses to gross loans              0.80%         0.85%         0.82%        0.93%       1.03%
Net charge-offs (recoveries) to loans, net          (0.10%)       (0.07%)         0.14%        0.12%     (0.09%)
Basic earnings per share                          $   0.27       $  0.70       $  0.81      $  0.79     $  0.73
Diluted earnings per share                        $   0.27       $  0.70       $  0.80      $  0.77     $  0.73
Book value per share                              $  17.16       $ 16.73       $ 15.86      $ 15.81     $ 15.17

</TABLE>
-----------------------
(1)  In  connection  with the  adoption of  Statement  of  Financial  Accounting
     Standards (SFAS) No. 133 "Accounting for Derivative Instruments and Hedging
     Activities" as of October 1, 1998, the Company reclassified all of its held
     to maturity securities as available for sale.

                                      -3-
<PAGE>

                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

         The Private  Securities  Litigation  Reform act of 1995  contains  safe
harbor  provisions  regarding  forward-looking  statements.  When  used  in  the
discussion, the words "believe", "anticipates",  "contemplates",  "expects", and
similar expressions are intended to identify  forward-looking  statements.  Such
statements  are  subject to certain  risks and  uncertainties  which could cause
actual  results to differ  materially  from  those  projected.  Those  risks and
uncertainties  include changes in interest rates,  risks associated with opening
new branches,  the ability to control costs and expenses,  and general  economic
conditions. The Company undertakes no obligation to publicly release the results
of any revision to those forward-looking statements which may be made to reflect
events or  circumstances  after the date hereof or to reflect the occurrences of
unanticipated events.

         The Company was formed in  connection  with the Bank's  mutual-to-stock
conversion  that was  consummated  on March 29, 1996.  The Company's  assets are
comprised of its  investment  in the Bank,  loans to the Bank's  Employee  Stock
Ownership Plan ("ESOP"), and shares held in two indexed mutual funds. The Bank's
net earnings are dependent  primarily on its net interest  income,  which is the
difference  between  interest income earned on its  interest-earning  assets and
interest  expense  paid on  interest-bearing  liabilities.  For the  year  ended
September  30,  2001,  the  Bank's  interest  income  was  $4.404  million,   or
approximately  97.56% of gross earnings (i.e.,  interest income and non-interest
income). The Bank's interest rate spread is affected by regulatory, economic and
competitive  factors  that  influence  interest  rates,  loan demand and deposit
flows.  For the year ended  September  30, 2001,  the Bank's net  interest  rate
spread was 1.54%. To a lesser extent,  the Bank's net earnings also are affected
by the level of non-interest income, which primarily consists of service charges
and other operating income. In addition,  net earnings are affected by the level
of non-interest (general and administrative) expenses.

         The  operations  of  the  Bank  and  the  entire  thrift  industry  are
significantly  affected by prevailing economic  conditions,  competition and the
monetary  and  fiscal  policies  of  the  federal  government  and  governmental
agencies.  Lending  activities  are  influenced  by the demand for and supply of
housing,  competition  among  lenders,  the  level  of  interest  rates  and the
availability  of funds.  Deposit  flows and  costs of funds  are  influenced  by
prevailing market rates of interest, primarily on competing investments, account
maturities,  and the levels of personal  income and savings in the Bank's market
area.

Asset/Liability Management and Interest Rate Risk

         An asset or liability is interest rate sensitive within a specific time
period if it will  mature or  reprice  within  that time  period.  If the Bank's
assets  mature  or  reprice  more  quickly  or  to a  greater  extent  than  its
liabilities,  the Bank's net portfolio  value and net interest income would tend
to increase during periods of rising interest rates, but decrease during periods
of falling interest rates. If the Bank's assets mature or reprice more slowly or
to a lesser extent than its liabilities,  the Bank's net portfolio value and net
interest  income would tend to decrease  during periods of rising interest rates
but increase  during periods of falling  interest  rates.  The Bank's policy has
been to mitigate  the  interest  rate risk  inherent in the  historical  savings
institution  business  of  originating  long-term  loans  funded  by  short-term
deposits by pursuing certain  strategies  designed to decrease the vulnerability
of its earnings to material and prolonged changes in interest rates.

                                      -4-
<PAGE>

         The Bank is subject to  significant  interest  rate risk as a result of
its  historical   emphasis  on  the  origination  for  portfolio  of  fixed-rate
one-to-four  family mortgage loans. In order to improve the Bank's interest rate
sensitivity,  however, management has attempted to shorten the maturities of the
Bank's assets and lengthen the maturities of its liabilities,  while maintaining
asset  quality.  This  strategy  has been  implemented  by (i)  emphasizing  the
origination for portfolio of 3 and 5 year balloon mortgage loans; (ii) brokering
30-year fixed-rate  mortgage loans for a third party and receiving a commission;
(iii) offering  adjustable rate home equity and shorter-term  installment loans;
(iv) emphasizing the solicitation and retention of core deposits and lengthening
the average  maturity of deposits by adopting a tiered  pricing  program for its
certificates of deposit (offering higher rates on longer term  certificates) and
managing   deposit   interest  rates;  (v)  purchasing  for  its  own  portfolio
adjustable-rate   mortgage-backed  securities,  (vi)  investing  in  short-  and
intermediate-term  investment  securities,  (vii) emphasizing the origination of
adjustable-rate  mortgage  loans;  (viii)  utilizing FHLB advances to facilitate
growth and lengthen  liabilities;  (ix)  focusing on short-term  and  adjustable
commercial  and consumer loans through the operations of the branch in Gillette,
Wyoming. These measures, while significant, may only partially offset the Bank's
interest rate risk. Furthermore,  the Bank believes it has sufficient capital to
accept a certain degree of interest rate risk.

         To  monitor  the Bank's  interest  rate  risk,  the Bank also  utilizes
quarterly  reports by the OTS which  measure  the Bank's  interest  rate risk by
modeling the change in the Bank's net portfolio  value ("NPV") over a variety of
interest  rate  scenarios.  NPV is defined as the present value of expected cash
flows from assets,  liabilities and off-balance  sheet  contracts.  Based on the
September  30, 2001 report the Bank had  minimal  interest  rate risk based on a
post-shock NPV ratio in excess of 10%.

         The Bank's Board of Directors  is  responsible  for revising the Bank's
asset  and  liability  policies.   The  Bank's  management  is  responsible  for
administering  the policies and  determinations  of the Board of Directors  with
respect to the Bank's asset and liability goals and strategies.

Analysis of Net Interest Income

         Average Balances,  Interest, Yields and Rates. The following table sets
forth certain  information  relating to the Company's  average balance sheet and
reflects  the average  yield on assets and average cost of  liabilities  for the
periods  indicated and the average yields earned and rates paid. Such yields and
costs are derived by dividing income or expense by the average balance of assets
or liabilities,  respectively,  for the periods presented.  Average balances are
derived from  month-end  balances.  Management  does not believe that the use of
month-end  balances  instead of daily  average  balances has caused any material
differences  in  the  information   presented.   When  interest-earning   assets
approximate or exceed interest-bearing  liabilities,  any positive interest rate
spread will generate net interest income.

                                      -5-
<PAGE>

<TABLE>
<CAPTION>

                                   At September 30,                Twelve Months Ended September 30,
                                   ---------------- ----------------------------------------------------------------
                                        2001                    2001                           2000
                                   ---------------- ----------------------------- ---------------------------------
                                       Actual       Average              Average   Average                Average
                                     Yield/Cost     Balance   Interest Yield/Cost  Balance    Interest   Yield/Cost
                                     ----------    ---------- -------- ---------- --------    --------   ----------
                                                                           (Dollars in Thousands)
<S>                                   <C>        <C>        <C>         <C>     <C>          <C>        <C>
Interest-earning assets:
 Loans receivable (1)                    7.23 %     $33,569    $2,681      7.99 %  $29,956      $2,326     7.76 %
 Securities available for sale
   Mortgage-backed securities            4.86        12,384       767      6.19     11,564         757     6.55
   Investment securities                13.12        13,793       777      5.63     18,761       1,128     6.01
 Other interest-earning assets (2)       2.63         4,196       179      4.27      2,274         106     4.66
                                                    -------    ------              -------      ------
   Total interest-earning assets         6.72        63,942     4,404      6.89     62,555       4,317     6.90
                                                    -------    ------              -------      ------
Non-interest-earning assets                           2,394                            728
                                                    -------                        -------
   Total assets                                     $66,336                        $63,283
                                                    =======                        =======

Interest-bearing liabilities
  Interest checking (3)                  2.70         9,935       322      3.24      9,050         319     3.52
  Time Deposits/Passbook (3)             4.65        24,599     1,338      5.44     24,128       1,265     5.24
                                                    -------    ------              -------      ------
  Total deposit accounts                 4.08        34,534     1,660      4.81     33,178       1,584     4.77
  FHLB advances (4)                      8.13        16,888     1,089      6.45     16,190         948     5.86
                                                    -------    ------              -------      ------
    Total interest-bearing liabilities   5.08        51,422     2,749      5.35     49,368       2,532     5.13
                                                    -------    ------              -------      ------

Non-interest-bearing liabilities                      1,483                            859
                                                    -------                        -------
 Total liabilities                                   52,905                         50,227
                                                    -------                        -------
 Total equity                                        13,431                         13,056
                                                    -------                        -------
 Total liabilities and equity                       $66,336                        $63,283
                                                    =======                        =======
Net interest income                                            $1,655                           $1,785

Interest rate spread                                                       1.54 %                          1.77 %
                                                                         ======                          ======
Net interest margin                                                        2.59 %                          2.85 %
                                                                         ======                          ======
Ratio of average interest-earning assets
  to average interest-bearing
  liabilities                                                            124.35 %                        126.71 %
                                                                         ======                          ======

</TABLE>

----------------
(1)  Average balances include non-accrual loans, and are net of reserve for loan
     losses and deferred loan fees.
(2)  Also includes interest-bearing deposits in other financial institutions.
(3)  Includes amortization of core deposit intangibles of $25,000 in 2001.
(4)  Includes $5,000 of other interest expense in 2001.

         Rate/Volume   Analysis.   The  table   following   sets  forth  certain
information  regarding  changes in interest  income and interest  expense of the
Bank for the periods indicated. For each category of interest-earning assets and
interest-bearing liabilities, information is provided on changes attributable to
(i) changes in volume (changes in average volume  multiplied by old rate);  (ii)
changes in rates  (changes  in rate  multiplied  by old average  volume);  (iii)
changes in  rate-volume  (changes  in rate  multiplied  by the change in average
volume).


                                      -6-
<PAGE>

                                            Year ended September 30,
                                                 2001 vs. 2000
                                           Increase (Decrease) Due to
                                                            Rate/
                                         Volume    Rate    Volume    Net
                                         ------   ------   ------   -----
                                                  (In Thousands)
Interest Income:
     Loans receivable                    $ 279    $  69    $   7    $ 355
     Securities available-for-sale:
       Mortgage-backed securities           55      (42)      (3)      10
       Investment securities              (299)     (71)      19     (351)
     Other interest-earning assets          89       (9)      (7)     (73)
                                         -----    -----    -----    -----
         Total interest-earning assets   $ 124    $ (53)   $  16    $  87
                                         =====    =====    =====    =====

Interest expense
     Deposit accounts                    $  63    $  13    $  --    $  76
     FHLB advances                          41       96        4      141
                                         -----    -----    -----    -----
         Total interest-bearing
         liabilities                    $ 104    $ 109    $   4    $ 217
                                         =====    =====    =====    =====

Net change in net interest income        $  20    $(162)   $  12    $(130)
                                         =====    =====    =====    =====

Financial Condition

         The Company's  assets  increased by $3.947 million from $64.826 million
at  September  30, 2000 to $68.773  million at September  30,  2001.  The mix in
assets  changed  with an  increase  in  cash,  loans  receivable,  premises  and
equipment and a corresponding decrease in investments.

         The Company  experienced strong loan growth. From September 30, 2000 to
September  30,  2001 net loans  receivable  increased  from  $30.980  million to
$37.058  million,  representing  an  increase of $6.078  million or 19.62%.  The
Gillette branch experienced a $5.518 million increase,  while the Buffalo branch
experienced  a $560,000  increase.  Residential  real estate  loans  declined by
$787,000, while commercial mortgages increased $4.327 million,  commercial loans
increased by $ 1.093  million,  consumer  loans  increased by $1.482 million and
loan loss reserves increased by $38,000.

         The  Company's  net  investment  in   mortgage-backed   and  investment
securities  available for sale decreased by $6.866 million from $28.869  million
at September 30, 2000 to $22.003 million at September 30, 2001. The decrease was
primarily used to fund the loan production.

         Deposits  increased by $8.628 million from $32.081 million at September
30, 2000 to $40.709  million at September 30, 2001  primarily as a result of the
branch  operations  in Gillette,  Wyoming which  accounted  for $6.992  million.
Buffalo  interest-bearing  checking  accounts  (NOW and money  market  checking)
increased by $859,000,  business checking accounts decreased $370,000,  passbook
and certificates of deposits increased by $1.147 million.

                                      -7-
<PAGE>

         The Company  decreased its level of borrowings from the FHLB of Seattle
from $19.300  million at September 30, 2000 to $13.400  million at September 30,
2001.  This  represents  an decrease  of $5.900  million.  The  decrease in FHLB
advances was primarily reduced due to the increase in deposits while maintaining
a stable balance sheet.  The Company utilizes FHLB advances to take advantage of
investment  opportunities  with the goal of earning  income on the interest rate
differential  between the yield earned on the  investments  and the rate paid on
the FHLB advances.

         Total  stockholders'  equity increased by $479,000 from $13.079 million
at September 30, 2000 to $13.558  million at September  30, 2001  primarily as a
result of the increase in accumulated other comprehensive  income. Stock Options
exercised for a total of 7,600 shares of common stock  occurred  during the year
ended  September 30, 2001.  The reissue of treasury stock totaled  $96,000.  The
change in the accumulated  other  comprehensive  income increased  stockholders'
equity by $413,000.  Stockholders' equity was reduced by cash dividends declared
during  fiscal  year 2001 in excess  of  current  earnings  of  $211,000.  These
dividends totaled $0.48 per share or $357,000.

Non-performing Assets

         Non-performing  assets totaled  $119,000 at September 30, 2001 or 0.17%
of total  assets  compared  to $62,000 at  September  30, 2000 or 0.10% of total
assets.  Non-performing  assets are primarily comprised of loans secured by real
estate.  Included in  non-performing  assets at September  30, 2001 is a $62,000
loan secured by residential real estate and a $57,000 commercial  mortgage loan.
At  September  30,  2001 and  2000,  the  Company  did not have any  repossessed
properties.

Comparison of Results of Operations  for the Years Ended  September 30, 2001 and
2000

         Net Income.  For the year ended  September 30, 2001 the Company  posted
net income of $211,000  or diluted  earnings  per share of $.27  compared to net
income of  $559,000  or  diluted  earnings  per share of $.70 for the year ended
September  30,  2000.  Net income was lower in 2001 than in 2000  primarily as a
result of declining net interest income and increased non-interest expenses.

         Interest Income. Total interest income increased by $87,000 from $4.317
million for the year ended  September  30,  2000 to $4.404  million for the year
ended September 30, 2001. The increase in interest  income was primarily  caused
by an  increase in the volume of interest  earning  assets from 2000 to 2001.  A
slight decrease in the yield on average earning assets from 6.90% for the twelve
month  period  ended  September  30,  2000 to 6.89% for the same  period in 2001
caused  interest  income to decrease by $53,000.  During the twelve month period
ended September 30, 2000 average interest earning assets totaled $62.555 million
compared to $63.942 million for the same period in 2001. This increase in volume
caused interest income to increase by $124,000 for the periods covered.

         Interest Expense.  Deposit interest expense,  including amortization of
core deposit intangibles,  increased by $76,000 from $1.584 million for the year
ended September 30, 2000 to $1.660 million for the year ended September 30, 2001
primarily as a result of an increase in the average  volume of interest  bearing
deposits,  and by an  increase  in the cost of  these  funds.  Average  interest
bearing  deposits  increased  by  $1.356  million  from  September  30,  2000 to
September 30, 2001  contributing to a $63,000 increase in interest  expense.  An
increase  in the cost of  interest  bearing  deposits  from 4.77% for the twelve
month period ended September 30, 2000 to 4.81% for the twelve month period ended
September 30, 2001 increased interest expense by $13,000.

                                      -8-
<PAGE>

         FHLB  advances and other  interest  expense  increased by $141,000 from
$948,000 for the year ended  September  30, 2000 to $1.084  million for the year
ended  September  30,  2001,  primarily  due to  higher  interest  rates on such
advances.  Average FHLB advances  increased from $16.190  million for the twelve
month period ended  September  30, 2000 to $16.888  million for the twelve month
period ended September 30, 2001. This increase in volume caused interest expense
to increase by $41,000.  An increase in the cost of FHLB  advances from 5.86% in
2000 to 6.45% 2001 accounted for a $96,000 increase in interest expense.

         The total cost of average  interest  bearing  liabilities was 5.35% for
2001 and 5.13% for 2000.

         Net Interest  Income.  Net interest  income  before  provision for loan
losses  decreased by $130,000 from $1.785  million for the year ended  September
30, 2000 to $1.655  million for the year ended  September 30, 2001. The decrease
in net interest  income was  primarily  attributed  to growth in deposits and an
increase  in the rate on  interest  bearing  liabilities.  The ratio of interest
earning assets to interest  bearing  liabilities  decreased from 126.71% for the
twelve month period ended  September  30, 2000 to 124.35% for the same period in
2001.  Also  contributing  to the decrease in net  interest  income was a slight
decrease in the  interest  rate spread  from 1.77% for the twelve  month  period
ended  September  30, 2000 to 1.54% for the twelve month period ended  September
30, 2001.

         Provision  for Loan Losses.  No provision  was made in 2000 or 2001. In
2001,  recoveries  totaled  $49,000  while  charge-offs  totaled  $11,000.  Loan
recoveries were greater than  charge-offs in 2001 resulting in a net increase in
the allowance for loan losses of $38,000.  Management's  periodic  evaluation of
the  adequacy of the  allowance is based on factors such as the Bank's past loan
loss experience,  known and inherent risks in the portfolio,  adverse situations
that  may  affect  the  borrower's  ability  to  repay,  estimated  value of any
underlying  collateral,   current  and  prospective  economic  conditions,   and
independent  appraisals.  Any  increase or decrease  in the  provision  for loan
losses  has a  corresponding  negative  or  positive  effect on net  income.  At
September 30, 2001, the allowance represented 0.80% of gross loans receivable as
compared to 0.85% of gross loans receivable at September 30, 2000.

         Assessment of the adequacy of the  allowance  for loan losses  involves
subjective  judgments  regarding  future  events,  and  thus,  there  can  be no
assurance  that  additional  provisions  for loan losses will not be required in
future periods.

         Non-Interest  Income.  Non-interest  income  increased  by $21,000 from
$89,000 for the year ended  September  30,  2000 to $110,000  for the year ended
September 30, 2001.  Customer service charges  accounted for $15,000 as a result
of a increase in the volume of deposit fees. Other operating income increased by
$6,000 as a result of late fees  associated  with the loan  portfolio  and other
miscellaneous charges.

         Non-Interest  Expense.  The Company  experienced a $382,000 increase in
non-interest  expense from $1.088 million for the year ended  September 30, 2000
to $1.470  million  for the year ended  September  30,  2001.  Compensation  and
benefit  expense was $275,000  higher in 2001 than in 2000 primarily as a result
of general pay  increases in 2001,  the hiring of a  commercial  loan officer in
April 2000, a branch president in December 2000, a loan officer in June 2001 and
five  staff  members,  in the  Gillette  branch,  and an  increase  in the costs
associated  with  the  Management  Stock  Bonus  Plan  ("MSBP").  Occupancy  and
equipment  expenses  increased  by  $54,000  from  $89,000  for the  year  ended
September 30, 2000 to $143,000 for the year ended September 30, 2001, due to the
operation of the Gillette branch.  FDIC/SAIF  Assessment declined by $4,000 as a
result of the aligning of the Bank  Insurance  Fund and the Savings  Association
Insurance Fund. Data processing services increased by $16,000 as a result of the
Gillette branch. Professional fees decreased during 2001 to $83,000 from $99,000
in 2000, due to expenses related to a

                                      -9-
<PAGE>

marketing consultant in 2000.  Amortization of goodwill increased by $9,000 from
the purchase of the  Gillette  branch.  Other  operating  expenses  expense were
$52,000 higher in 2001 than in 2000 from costs  associated from the operation of
the Gillette branch.  In 2001, losses on the disposal of equipment were $11,000.
In 2000, losses on the sale of investment securities totaled $13,000. There were
no other significant changes in operating expenses.

         Income Taxes. The effective tax rates for 2001 and 2000 were 28.47% and
28.88%,  respectively.  There is no state income tax imposed on the Company.  In
2000 and 2001 the Company received a refund for prior year amended tax returns.

Liquidity and Capital Resources

         The  Company's  primary  source of liquidity is derived from  dividends
received from the Bank, which are subject to regulatory provisions.  The Bank is
required  to  maintain  minimum  levels of liquid  assets for its safe and sound
operation.

         The  Bank's  primary  sources  of funds are  deposits,  prepayment  and
amortization of loans and mortgage-backed  securities,  maturities of investment
securities,  earnings  from  operations,  and advances from the FHLB of Seattle.
While scheduled principal  repayments are greatly influenced by general interest
rates, economic conditions,  competition and other factors, the Bank manages the
pricing of its  deposits to maintain  desired  levels and invests in  short-term
interest-earning   assets,   which   provide   liquidity  to  meet  its  lending
requirements.

         During the years ended  September  30,  2001 and 2000,  the Company had
positive net cash flows of $784,000 and $522,000 from  operating  activities and
$1.104 million and $466,000 from financing activities, respectively. The Company
also experienced negative net cash flows of $381,000 during year ended September
30,  2000 and a  $1.213  million  positive  net  cash  flow  for the year  ended
September 30, 2001, from investing activities.

         Net income,  adjusted for the non-cash and non-operating items, was the
primary source of cash flows from  operating  activities in both fiscal 2001 and
2000.

         During  fiscal 2001,  investing  activities  provided  $1.213  million,
primarily from the maturities and calls of investments  securities available for
sale offset somewhat by the origination of loans. During fiscal 2000,  investing
activities used $381,000 primarily from the origination of loans offset from the
purchase of investment securities. The primary investing activity of the Bank is
the  origination of fixed-rate  mortgages with  maturities of less than 20 years
and the purchase of investment securities. During fiscal 2001 and 2000, the Bank
originated  mortgage loans in the amounts of $17.430 million and $8.501 million,
respectively.

         Changes in cash flows from  financing  activities  during these periods
have primarily been related to changes in deposits,  borrowings,  dividends paid
and stock repurchases in 2001 and 2000. The primary financing  activities of the
Bank  are the  attraction  of  deposits  and  borrowing  funds  from the FHLB of
Seattle.  During fiscal year 2001,  deposits increased $7.275 million.  The Bank
also  supplements  its deposits with advances from the FHLB of Seattle to manage
interest rate risk and to take  advantage of investment  opportunities  with the
goal of earning  income on the  interest  rate  differential  between  the yield
earned on the investments and the rate paid on the advances.  During fiscal year
2001,  FHLB  advances  decreased by $5.9  million.  The increase in deposits was
primarily  used to reduce  FHLB  advances.  Generally,  the cost of  advances is
greater than the cost of deposits.

                                      -10-
<PAGE>

         The Bank  anticipates  that it will have sufficient  funds available to
meet its current  commitments and anticipated  commitments  over the next twelve
months.  At September 30, 2001, the Bank had  commitments to originate  loans of
$886,000,   $750,000   for  purchase  of   adjustable   rate   commercial   loan
participation,  $702,000 in  undisbursed  Line of Credits and $1.076  million in
undisbursed  construction  loans.  Certificates  of deposit and State of Wyoming
deposits  which are  scheduled to mature in less than one year at September  30,
2001 totaled $18.785 million.  At September 30, 2001 there was an $8.628 million
increase in deposits and management  believes that a significant portion of such
deposits  will remain with the Bank based on historical  and economic  trends in
the banks primary market area.

Impact of Inflation and Changing Prices

         The financial  statements of the Company and notes  thereto,  presented
elsewhere  herein,  have been prepared in accordance with accounting  principles
generally accepted in the United State of America, which require 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 and due to inflation. The impact of inflation is reflected in the increased
cost of the Company's operations.  Unlike most industrial companies,  nearly all
the assets and liabilities of the Company are monetary.

         As a result,  interest  rates  have a greater  impact on the  Company's
performance  than do the effects of general levels of inflation.  Interest rates
do not necessarily move in the same direction or to the same extent as the price
of goods and services.

         The  Company's  subsidiary,  the Bank,  is a  traditional  thrift  that
primarily  originates and holds long-term home loans.  These loans are primarily
funded with short-term deposits.  Because of this mismatch, the Bank's financial
condition  and results of operations  may be adversely  affected by a sudden and
prolonged increase in interest rates. See also "-Asset/Liability  Management and
Interest Rate Risk."

                                      -11-
<PAGE>

[LOGO]
 KPMG
        P.O. Box 7108
        401 N. 31st Street
        Billings, MT 59103




                          Independent Auditors' Report



The Board of Directors and Stockholders
Crazy Woman Creek Bancorp Incorporated:


We have  audited the  accompanying  consolidated  balance  sheets of Crazy Woman
Creek Bancorp Incorporated and subsidiary as of September 30, 2001 and 2000, and
the  related  consolidated  statements  of  income,   stockholders'  equity  and
comprehensive   income,   and  cash  flows  for  the  years  then  ended.  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 auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly, in all material  respects,  the financial  position of Crazy Woman Creek
Bancorp  Incorporated  and subsidiary as of September 30, 2001 and 2000, and the
results of their  operations  and their cash flows for the years then ended,  in
conformity with accounting principles generally accepted in the United States of
America.

                                        /s/KPMG LLP




Billings, Montana
November 2, 2001


[LOGO]  KPMG LLP KPMG LLp, a U.S. limted liability partnership is
        a member of KPMG International, a Swiss association

                                      -12-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                           Consolidated Balance Sheets
             (Dollars in thousands except share and per share data)

                           September 30, 2001 and 2000

<TABLE>
<CAPTION>
                               Assets                         2001         2000
                               ------                         ----         ----

<S>                                                        <C>         <C>
Cash and cash equivalents                                    $  5,897       2,796
Investment and mortgage-backed securities
      available-for-sale                                       22,003      28,869
Stock in Federal Home Loan Bank of Seattle, at cost             1,128       1,055
Loans receivable, net                                          37,058      30,980
Accrued interest receivable                                       429         534
Premises and equipment, net                                     1,871         525
Income tax receivable                                              --          28
Goodwill and other intangible assets, net of accumulated
     amortization of $34                                          276          --
Other assets                                                      111          39
                                                             --------    --------
                                                             $ 68,773      64,826
                                                             ========    ========

                Liabilities and Stockholders' Equity
                ------------------------------------

Liabilities:
     Deposits                                                $ 40,709      32,081
     Advances from Federal Home Loan Bank                      13,400      19,300
     Advance payments by borrowers for taxes and insurance         67          72
     Deferred income taxes                                        213           1
     Dividends payable                                             97          96
     Accrued expenses and other liabilities                       729         197
                                                             --------    --------

           Total liabilities                                   55,215      51,747

Stockholders' equity:
     Preferred stock, par value $.10 per share, 2,000,000
        shares authorized; none issued and outstanding             --          --
     Common stock, par value $.10 per share, 5,000,000
        shares authorized; 1,058,000 issued                       106         106
     Additional paid-in capital                                10,117      10,100
     Unearned ESOP/MSBP shares                                   (429)       (528)
     Retained earnings                                          7,125       7,271
     Accumulated other comprehensive income (loss), net           195        (218)
     Treasury stock at cost, 267,876 and 275,976 shares
        at September 30, 2001 and 2000, respectively           (3,556)     (3,652)
                                                             --------    --------
           Total stockholders' equity                          13,558      13,079
                                                             --------    --------
                                                             $ 68,773      64,826
                                                             ========    ========
</TABLE>

See accompanying notes to consolidated financial statements.

                                      -13-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                        Consolidated Statements of Income
             (Dollars in thousands except share and per share data)

                     Years ended September 30, 2001 and 2000


                                                                  2001     2000
                                                                 ------   ------

Interest income:
     Loans receivable                                            $2,681    2,326
     Mortgage-backed securities                                     767      757
     Investment securities                                          777    1,128
     Other interest-earning assets                                  179      106
                                                                 ------   ------

           Total interest income                                  4,404    4,317

Interest expense:
     Deposits                                                     1,635    1,584
     Advances from Federal Home Loan Bank                         1,084      948
     Other interest expense                                          30       --
                                                                 ------   ------

           Total interest expense                                 2,749    2,532
                                                                 ------   ------

           Net interest income                                    1,655    1,785

Provision for loan losses                                            --       --
                                                                 ------   ------

           Net interest income after provision for loan losses    1,655    1,785
                                                                 ------   ------

Non-interest income:
     Customer service charges                                        77       62
     Other operating income                                          33       27
                                                                 ------   ------

           Total non-interest income                                110       89
                                                                 ------   ------

Non-interest expense:
     Compensation and benefits                                      823      548
     Occupancy and equipment                                        143       89
     FDIC/SAIF deposit insurance premiums                             6       10
     Advertising                                                     47       49
     Data processing services                                       132      116
     Professional fees                                               83       99
     Other                                                          216      164
     Amortization of goodwill                                         9       --
     Loss on sale of securities, net                                 --       13
     Loss on disposal of equipment                                   11       --
                                                                 ------   ------

           Total non-interest expense                             1,470    1,088
                                                                 ------   ------

           Income before income taxes                               295      786
Income tax expense                                                   84      227
                                                                 ------   ------
           Net income                                            $  211      559
                                                                 ======   ======
Basic earnings per share                                         $ 0.27     0.70
                                                                 ======   ======
Diluted earnings per share                                       $ 0.27     0.70
                                                                 ======   ======


See accompanying notes to consolidated financial statements.

                                      -14-
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY


    Consolidated Statements of Stockholders' Equity and Comprehensive Income
             (Dollars in thousands except share and per share data)
                     Years ended September 30, 2001 and 2000

<TABLE>
<CAPTION>
                                                                   Unearned               Accumulated                   Total
                                                       Additional    ESOP/                  other                       stock-
                                               Common    paid-in     MSBP    Retained    comprehensive    Treasury     holders'
                                               stock     capital    shares   earnings    income (loss)     stock        equity
                                              -------  ---------    ------   --------    -------------    -------     --------

<S>                                         <C>        <C>         <C>       <C>          <C>          <C>           <C>
Balance at September 30, 1999                 $   106    10,096      (577)     7,080          (341)       (3,008)       13,356

Comprehensive income:
     Net income                                    --        --        --        559            --            --           559
     Unrealized gain on securities
        available-for-sale, net of
        reclassification adjustment                --        --        --         --           123            --           123
                                                                                                                       -------
           Total comprehensive income                                                                                      682

Repurchase of 64,190 shares of common stock        --        --        --         --            --          (693)         (693)
MSBP shares awarded (4,000 shares)                 --        --       (49)        --            --            49            --
ESOP shares committed to be released               --         4        46         --            --            --            50
MSBP shares vested                                 --        --        52         --            --            --            52
Cash dividends declared ($.48 per share)           --        --        --       (368)           --            --          (368)
                                              -------   -------   -------    -------       -------       -------       -------

Balance at September 30, 2000                     106    10,100      (528)     7,271          (218)       (3,652)       13,079

Comprehensive income:
     Net income                                    --        --        --        211            --            --           211
     Unrealized gain on securities
       available-for-sale                          --        --        --         --           413            --           413
                                                                                                                       -------
           Total comprehensive income                                                                                      624

Exercise of stock options (7,600 shares)           --        --        --         --            --            90            90
MSBP shares awarded (500 shares)                   --        --        (6)        --            --             6            --
ESOP shares committed to be released               --        17        46         --            --            --            63
MSBP shares vested                                 --        --        59         --            --            --            59
Cash dividends declared ($.48 per share)           --        --        --       (357)           --            --          (357)
                                              -------   -------   -------    -------       -------       -------       -------
Balance at September 30, 2001                 $   106    10,117      (429)     7,125           195        (3,556)       13,558
                                              =======   =======   =======    =======       =======       =======       =======
</TABLE>

See accompanying notes to consolidated financial statements.

                                      -15-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                      Consolidated Statements of Cash Flows
                             (Dollars in Thousands)

                     Years ended September 30, 2001 and 2000

<TABLE>
<CAPTION>
                                                                         2001        2000
                                                                       --------    --------
<S>                                                                  <C>          <C>
Cash flows from operating activities:
     Net income                                                        $    211         559
     Adjustments to reconcile net income to net cash
        provided by operating activities:
           Amortization of premiums and discounts on
              investment securities, net                                     15         (10)
           Amortization of intangibles, net                                  34          --
           Deferred income tax expense (benefit)                             --          (1)
           Federal Home Loan Bank stock dividend                            (73)        (67)
           Depreciation                                                      83          52
           Loss on sale of securities                                        --          13
           Loss (gain) on sale of foreclosed real estate                     --           2
           Dividends reinvested                                             (11)        (33)
           Deferred loan origination fees, net                               12          (7)
           Loss on sale of premises and equipment                            11          --
           ESOP shares committed to be released                              63          50
           MSBP compensation expense                                         59          52
           Change in:
              Accrued interest receivable                                   105         (12)
              Other assets                                                  (72)         38
              Income taxes                                                   28         (35)
              Accrued expenses and other liabilities                        319         (79)
                                                                       --------    --------
                 Net cash provided by operating activities                  784         522
                                                                       --------    --------
Cash flows from investing activities:
     Purchases of securities available-for-sale                          (8,616)     (1,669)
     Proceeds from maturities, calls and prepayments of
        securities available-for-sale                                    16,104       2,009
     Proceeds from sales of securities available-for-sale                    --         487
     Origination of loans receivable                                    (17,430)     (8,501)
     Repayment of principal on loans receivable                          11,435       7,328
     Acquisition of branch office                                           773          --
     Purchases of premises and equipment                                 (1,053)        (33)
     Proceeds from sale of foreclosed real estate                            --          (2)
                                                                       --------    --------
                 Net cash provided by (used in) investing activities      1,213        (381)
                                                                       --------    --------
Cash flows from financing activities:
     Net increase (decrease) in deposits                                  7,275      (2,168)
     Advances from Federal Home Loan Bank                                 4,350      29,700
     Repayment of advances from Federal Home Loan Bank                  (10,250)    (26,000)
     Net change in advances from borrowers for taxes
        and insurance                                                        (5)          3
     Exercise of stock options                                               90          --
     Repurchase of common stock                                              --        (693)
     Dividends paid to stockholders                                        (356)       (376)
                                                                       --------    --------
                 Net cash provided by financing activities                1,104         466
                                                                       --------    --------
Net increase in cash and cash equivalents                                 3,101         607
Cash and cash equivalents at beginning of year                            2,796       2,189
                                                                       --------    --------
Cash and cash equivalents at end of year                               $  5,897       2,796
                                                                       ========    ========
Cash paid during the year for:
     Interest                                                          $  2,619       2,533
     Income taxes                                                            63         263
                                                                       ========    ========
</TABLE>

Noncash investing and financing activities:

     During 2001,  the Company  acquired a branch in Gillette with $95 of loans,
     $387 of equipment and $1,353 of deposits.

     During  2000,  the  Company  transferred  loans of $73 to other real estate
     owned.



See accompanying notes to consolidated financial statements.

                                      -16-
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000


(1)    Summary of Significant Accounting Policies

       The accompanying  consolidated  financial statements include the accounts
       of Crazy Woman Creek Bancorp  Incorporated  (the Holding Company) and its
       wholly-owned subsidiary, Buffalo Federal Savings Bank (BFSB). The Holding
       Company and BFSB are herein  referred to  collectively  as "the Company."
       All  significant   intercompany   balances  and  transactions  have  been
       eliminated in consolidation.

       BFSB provides services to individual and corporate  customers through its
       offices  in  Buffalo  and  Gillette,  Wyoming.  BFSB  offers a variety of
       deposit  products  to  its  customers  while  concentrating  its  lending
       activities on real estate  loans.  These real estate  lending  activities
       focus primarily on the origination of loans secured by one-to-four family
       residential real estate but also include the origination of multi-family,
       commercial  real  estate  and  home  equity  loans.  BFSB is  subject  to
       competition from other financial service providers and is also subject to
       the  regulations  of certain  federal and state  agencies  and  undergoes
       periodic examinations by those regulatory authorities.

       Basis of Presentation

       The  consolidated  financial  statements have been prepared in conformity
       with  accounting  principles  generally  accepted in the United States of
       America  and  prevailing  practices  within  the  banking  industry.   In
       preparing the consolidated  financial statements,  management is required
       to make  estimates and  assumptions  that affect the reported  amounts of
       assets and liabilities as of the date of the balance sheet and income and
       expenses for the period.  Actual results could differ  significantly from
       those estimates.

       Material  estimates  that are  particularly  susceptible  to  significant
       change in the near-term relate to the  determination of the allowance for
       loan losses.  Management  believes  that the allowance for loan losses is
       adequate,  however,  future  additions to the  allowance may be necessary
       based on changes in factors affecting the borrowers' ability to repay. In
       addition,  various  regulatory  agencies,  as an  integral  part of their
       examination  process,  periodically review the allowance for loan losses.
       Such  agencies may require BFSB to recognize  additions to the  allowance
       based on their judgments about information  available to them at the time
       of their examination.

       Cash Equivalents

       For purposes of the statements of cash flows,  the Company  considers all
       cash,  daily  interest  demand  deposits,  amounts  due  from  banks  and
       interest-bearing  deposits with banks with  original  maturities of three
       months or less to be cash equivalents.

       Investment and Mortgage-Backed Securities

       Investment  and  mortgage-backed  securities  available-for-sale  include
       securities  that  management  intends  to use  as  part  of  its  overall
       asset/liability  management  strategy and that may be sold in response to
       changes in interest rates and resultant prepayment risk and other related
       factors.  Securities  available-for-sale  are  carried  at fair value and
       unrealized  gains and losses (net of related tax  effects)  are  excluded
       from  earnings  and  reported as a separate  component  of  stockholders'
       equity.

                                                                     (Continued)

                                      -17-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000


       The carrying value of securities is adjusted for amortization of premiums
       and  accretion  of  discounts  using  the  level-yield  method  over  the
       estimated lives of the  securities.  Upon  realization,  gains and losses
       from the sale of securities  are included in earnings  using the specific
       identification  method.  Declines in the fair value of  securities  below
       carrying  value that are other than  temporary  are charged to expense as
       realized losses and the related carrying value is reduced to fair value.

       Stock in Federal Home Loan Bank

       The Company holds stock in the Federal Home Loan Bank (FHLB).  FHLB stock
       is restricted  because it may only be sold to another member  institution
       or the FHLB at its par value. Due to restrictive terms, and the lack of a
       readily determinable market value, FHLB stock is carried at cost.

       Loans Receivable

       Loans  receivable  are  stated at  unpaid  principal  balances,  less net
       deferred loan  origination  fees.  Loans are placed on nonaccrual  status
       when   collection  of  principal  or  interest  is  considered   doubtful
       (generally  loans past due 90 days or more).  Interest income  previously
       accrued on these loans, but not yet received,  is reversed in the current
       period.  Interest  subsequently  recovered  is  credited to income in the
       period collected.

       Allowance For Loan Losses

       The allowance for loan losses is based on management's  evaluation of the
       adequacy of the allowance,  including an assessment of known and inherent
       risks in the portfolio, review of individual loans for adverse situations
       that may affect the borrower's  ability to repay,  the estimated value of
       any  underlying   collateral,   and  consideration  of  current  economic
       conditions.

       Additions to the allowance  arise from charges to operations  through the
       provision  for loan  losses or from the  recovery  of amounts  previously
       charged off.  The  allowance  is reduced by loan  charge-offs.  Loans are
       charged off when management believes there has been permanent  impairment
       of their carrying values.

       The Company also provides an allowance for losses on specific loans which
       are deemed to be  impaired.  Groups of small  balance  homogeneous  basis
       loans  (generally  the  Company's   consumer  loans)  are  evaluated  for
       impairment  collectively.  A loan is considered impaired when, based upon
       current  information and events,  it is probable that the Company will be
       unable  to  collect,  on a  timely  basis,  all  principal  and  interest
       according to the contractual terms of the loan's original agreement. When
       a specific loan is determined to be impaired,  the allowance for possible
       loan  losses is  increased  through a charge to expense for the amount of
       the impairment.  For all non-consumer loans, impairment is measured based
       on the value of the  underlying  collateral.  The value of the underlying
       collateral is determined by reducing the collateral's  estimated  current
       value by  anticipated  selling  costs.  The Company  recognizes  interest
       income on  impaired  loans  only to the  extent  that cash  payments  are
       received.

                                                                     (Continued)

                                      -18-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       Loan Origination Fees and Related Costs

       Loan  origination  fees and  certain  direct loan  origination  costs are
       deferred,  and the net fee or cost is recognized as interest income using
       the level-yield  method over the contractual life of the loans,  adjusted
       for prepayments  based on actual prepayment  experience.  Amortization of
       deferred loan  origination fees and costs are suspended during periods in
       which the related loan is on nonaccrual status.

       Other Real Estate Owned

       Other  real  estate  owned is  recorded  at the fair value at the date of
       acquisition,  with a charge  to the  allowance  for loan  losses  for any
       excess  of cost over  fair  value.  Subsequently,  real  estate  owned is
       carried at the lower of cost or fair value, less estimated selling costs.
       Certain costs incurred in preparing  properties for sale are capitalized,
       and expenses of holding  foreclosed  properties are charged to operations
       as incurred. No other real estate owned was held at September 30, 2001 or
       2000.

       Premises and Equipment

       Premises and equipment are stated at cost less accumulated  depreciation.
       Depreciation is provided using straight-line and accelerated methods over
       the estimated  useful lives of 39 years for the building and 5 to 7 years
       for furniture, fixtures and equipment.

       Goodwill and Other Intangibles

       The excess of  purchase  price over the fair value of net assets from the
       acquisition  of the  Gillette,  Wyoming  branch of Hulett  National  Bank
       ("Goodwill")  is being amortized  using the  straight-line  method over a
       period of 15 years. The Company assesses the  recoverability  of Goodwill
       by determining whether the unamortized balance related to the acquisition
       can  be  recovered  through  undiscounted  future  cash  flows  over  the
       remaining  amortization  period.  As of September 30, 2001,  the carrying
       value of goodwill was $179.

       Core deposit  intangibles  represent  the  intangible  value of depositor
       relationships   resulting  from  deposit   liabilities   assumed  in  the
       acquisition and is being  amortized using an accelerated  method based on
       an  estimated   runoff  of  the  related   deposits  over  7  years.  The
       amortization  is included in other interest  expense in the  consolidated
       statements  of  income.   Core  deposit   intangibles  are  reviewed  for
       impairment whenever events or circumstances  indicate the carrying amount
       of  the  intangible  may  not  be  recoverable.  An  impairment  loss  is
       recognized if the sum of the expected  future cash flows is less than the
       carrying  amount of the  intangible.  If impaired,  an impairment loss is
       recognized  to reduce the carrying  value of the  intangible  to its fair
       value.  As of  September  30, 2001,  the  carrying  value of core deposit
       intangibles was $97.

       Long-Lived Assets

       Long-lived  assets  are  reviewed  for  impairment   whenever  events  or
       circumstances  indicate  the  carrying  amount  of the  asset  may not be
       recoverable.  An impairment loss is recognized if the sum of the expected
       future  cash  flows is less than the  carrying  amount of the  asset.  If
       impaired,  an impairment  loss is recognized to reduce the carrying value
       of the asset to its fair value.  No long-lived  assets were identified as
       impaired as of September 30, 2001 or 2000.

                                                                     (Continued)

                                      -19-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       Income Taxes

       The Holding Company and BFSB have elected to file separate Federal income
       tax returns.

       Deferred tax assets and  liabilities  are  recognized  for the  estimated
       future  consequences  attributable  to differences  between the financial
       statement carrying amounts of assets and liabilities and their respective
       tax bases.  The effect on deferred tax assets and liabilities of a change
       in tax rates is recognized in tax expense in the period that includes the
       enactment date.

       Stock-Based Compensation

       Compensation  cost for stock-based  compensation to employees is measured
       at the grant date using the intrinsic  value method.  Under the intrinsic
       value method,  compensation cost is the excess of the market price of the
       stock  at the  grant  date  over  the  amount  an  employee  must  pay to
       ultimately  acquire the stock and is recognized as  compensation  expense
       over any  related  service  period.  Statement  of  Financial  Accounting
       Standards  ("SFAS") No. 123,  "Accounting for Stock-Based  Compensation,"
       established   accounting  and  disclosure   requirements   using  a  fair
       value-based  method of accounting  for  stock-based  compensation  plans.
       Compensation  expense for nonemployee  stock option grants is measured at
       the grant date based on the fair value of the award as  required  by SFAS
       No. 123. As allowed by SFAS No. 123,  the Company has elected to continue
       to apply the  intrinsic  value method of  accounting  for employee  stock
       option  grants   described   above,   and  has  adopted  the   disclosure
       requirements of SFAS No. 123.

       Earnings Per Share

       Basic  earnings  per share (EPS) is  calculated  by  dividing  net income
       available to common stockholders by the weighted average number of common
       shares outstanding during the period less unvested management stock bonus
       plan,  treasury stock and unallocated  ESOP shares.  Diluted earnings per
       share is calculated  by dividing such net income by the weighted  average
       number of common  shares used to compute  basic EPS plus the  incremental
       amount of potential common stock determined by the treasury stock method.

       Fiscal Year

       The Company's  fiscal year ends on September 30. Unless  otherwise noted,
       references  to a fiscal year refers to the year in which such fiscal year
       ends.

       Comprehensive Income

       Comprehensive  income  includes net income,  as well as other  changes in
       stockholders'  equity that result from  transactions  and economic events
       other  than those  with  stockholders.  The  Company's  only  significant
       element of other  comprehensive  income is unrealized gains and losses on
       securities available-for-sale.

                                                                     (Continued)

                                      -20-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       Derivative Instruments

       SFAS  No.  133,  "Accounting  for  Derivative   Instruments  and  Hedging
       Activities,"  as  amended by SFAS No.  138,  establishes  accounting  and
       reporting  standards  requiring that  derivative  instruments  (including
       certain derivative  instruments  embedded in other contracts) be recorded
       in the balance sheet as either an asset or liability measured at its fair
       value.  SFAS No. 133 requires that changes in the derivative's fair value
       be recognized  currently in earnings  unless  specific  hedge  accounting
       criteria  are met.  The Company  adopted the  provisions  of SFAS No. 133
       effective October 1, 1998. Under a one-time opportunity provided for upon
       adoption  of  the  statement,   the  Company   reclassified  all  of  its
       held-to-maturity  securities,  with an  amortized  cost of  approximately
       $3,938,000 as available-for-sale. The net effect of this reclassification
       was an increase in total assets of  approximately  $84,000,  deferred tax
       liabilities of approximately  $29,000 and accumulated other comprehensive
       income of approximately $55,000.

       Impact of Recently Issued Accounting Standards

       In July 2001, the Financial  Accounting  Standards  Board issued SFAS No.
       141,  Business  Combinations,  and  SFAS  No.  142,  Goodwill  and  Other
       Intangible  Assets.  SFAS  141  requires  that  the  purchase  method  of
       accounting be used for all business combinations initiated after June 30,
       2001. SFAS 141 also specifies criteria that intangible assets acquired in
       a purchase  method  business  combination  must meet to be recognized and
       reported  apart  form  goodwill.  SFAS 142  requires  that  goodwill  and
       intangible assets with indefinite useful lives no longer be amortized but
       instead tested for  impairment at least  annually in accordance  with the
       provisions of SFAS 142. However, Goodwill recognized in connection with a
       branch  acquisition will continue to be subject to the provisions of SFAS
       No.  72,  Accounting  for  Certain  Acquisitions  of  Banking  or  Thrift
       Institutions. SFAS 142 also requires that intangible assets with definite
       useful lives be amortized over their respective estimated useful lives to
       their  estimated   residual  values,   and  reviewed  for  impairment  in
       accordance with SFAS No. 121, Accounting for the Impairment of Long-Lived
       Assets and for Long-Lived Assets to Be Disposed Of.

       SFAS 141  will  require  upon  adoption  of SFAS  142,  that the  Company
       evaluate its existing  intangible  assets and goodwill that were acquired
       in a prior  purchase  business  combination,  and to make  any  necessary
       reclassifications  in order to confirm  with the new criteria in SFAS 141
       for  recognition  apart from  goodwill.  Upon  adoption of SFAS 142,  the
       Company will be required to reassess the useful lives and residual values
       of all intangible assets acquired in purchase business combinations,  and
       make any  necessary  amortization  period  adjustments  by the end of the
       first  interim  period  after  adoption.  In  addition,  to the extent an
       intangible  asset is identified as having an indefinite  useful life, the
       Company will be required to test the  intangible  asset for impairment in
       accordance  with the  provisions  of SFAS 142  within  the first  interim
       period.  Any impairment  loss will be measured as of the date of adoption
       and  recognized  as the  cumulative  effect  of a  change  in  accounting
       principle in the first interim period.

       The Company  adopted the  provisions of SFAS 141 effective  July 1, 2001,
       and will adopt  SFAS 142  effective  October  1, 2002.  As of the date of
       adoption,  the Company expects to have unamortized goodwill in the amount
       of $166,  which will  continue to be  amortized  in  accordance  with the
       provisions  of SFAS 72. While the effects of adoption have not been fully
       assessed,  the Company does not expect adoption to have a material impact
       on its  consolidated  financial  condition,  results  of  operations,  or
       liquidity of the Company.

                                                                     (Continued)

                                      -21-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       In September 2000, the FASB issued SFAS No. 140, Accounting for Transfers
       and Servicing of Financial Assets and  Extinguishments of Liabilities - a
       replacement  of FASB  SFAS No.  125.  SFAS  No.  140  revises  accounting
       standards  for  securitizations  and  transfers of  financial  assets and
       collateral and requires certain disclosures,  but carries forward most of
       SFAS No. 125's provisions  without change.  SFAS No. 140 is effective for
       recognition and  reclassification of collateral and disclosures  relating
       to  securitization  transactions  and  collateral  for fiscal years ended
       after  December 15,  2000.  Adoption of these  provisions  did not have a
       material  effect on the  consolidated  financial  condition,  results  of
       operations or liquidity of the Company.

       Reclassifications

       Certain reclassifications have been made to the 2000 financial statements
       to conform with the 2001 presentation.

 (2)   Investment and Mortgage-Backed Securities Available-for-Sale

       The amortized  cost,  unrealized  gains and losses,  and  estimated  fair
       values of investment and mortgage-backed securities available-for-sale at
       September 30 are as follows:

                                            Gross         Gross       Estimated
            2001             Amortized    unrealized     unrealized     fair
                               cost         gains         losses        value
                             ------------------------------------------------

U.S. agency obligations      $ 2,500            1            --         2,501
Municipal securities           2,306           47            --         2,353
Mutual funds                   1,116           60           (89)        1,087

Mortgage-backed securities
    GNMA certificates          3,787           77            (1)        3,863
    FHLMC certificates         5,291          109            --         5,400
    REMIC certificates           146            1            --           147
    FNMA certificates          6,561           92            (1)        6,652
                             -------      -------       -------       -------

              Total MBS       15,785          279            (2)       16,062
                             -------      -------       -------       -------

                             $21,707          387           (91)       22,003
                             =======      =======       =======       =======

                                                                     (Continued)

                                      -22-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



                                              Gross        Gross       Estimated
              2000           Amortized      unrealized    unrealized     fair
                               cost           gains        losses        value
                             ---------------------------------------------------

U.S. agency obligations       $15,249           --          (575)       14,674
Municipal securities            1,886            5           (67)        1,824
Mutual funds                    1,106          470            --         1,576

Mortgage-backed securities:
    GNMA certificates           4,389           11           (85)        4,315
    FHLMC certificates          3,606           10           (60)        3,556
    REMIC certificates            604           --           (21)          583
    FNMA certificates           2,359           16           (34)        2,341
                              -------      -------        ------       -------

              Total MBS        10,958           37          (200)       10,795
                              -------      -------        ------       -------

                              $29,199          512          (842)       28,869
                              =======      =======        ======       =======


       The REMICs  consist of two  certificates  at September  30, 2001 and 2000
       which are backed by the FNMA or the FHLMC.

       Maturities of securities  available-for-sale (other than mutual funds) at
       September  30,  2001 are  shown  below.  Mortgage-backed  securities  are
       included in this maturity  schedule  based on current  estimates of their
       expected average lives.

                                                                     Estimated
                                                         Amortized     Fair
                                                           Cost        Value
                                                        ----------   ---------

Due within one year                                    $     2,758     2,762
Due after one year through five years                        9,452     9,661
Due after five years through ten years                       8,381     8,493
                                                        ----------   -------
                                                       $    20,591    20,916
                                                        ==========   =======


       Gross  realized  losses  on the sale of  investment  and  mortgage-backed
       securities  available-for-sale  were $0 and $13  during  the years  ended
       September  30,  2001 and 2000,  respectively.  There were no gross  gains
       during the years ended September 30, 2001 and 2000.

       The Company  has not entered  into any  interest  rate swaps,  options or
       future contracts.  Substantially  all of the U.S. agency  obligations and
       municipal securities at September 30, 2001 have call features.

                                                                     (Continued)

                                      -23-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       At September  30, the Company had  investment  securities  with  carrying
       values of  approximately  $5,827  pledged as security for public funds or
       other funds on deposit.

(3)    Loans Receivable, Net

       Loans receivable, net at September 30 are summarized as follows:

                                                    2001      2000
                                                   -------   -------
Real estate mortgage loans, including commercial
    real estate                                    $29,934    27,199
Real estate construction loans                       2,160       516
Consumer loans                                       2,683     1,699
Home equity loans                                    1,470     1,003
Commercial and agricultural loans                    2,252     1,134
Savings account and other loans                        137       212
                                                   -------   -------
                                                    38,636    31,763
Less:
    Loans in process                                 1,076       331
    Allowance for loan losses                          308       270
    Net deferred loan origination fees                 194       182
                                                   -------   -------

                                                   $37,058    30,980
                                                   =======   =======


       Adjustable  rate  mortgages  included in real estate  mortgage loans were
       $3,176 and $973 at September 30, 2001 and 2000, respectively.

       The weighted  average stated interest rate of loans  receivable was 7.77%
       and 7.64%, respectively at September 30, 2001 and 2000.

       Real estate loans  serviced for others were $61 and $65 at September  30,
       2001 and 2000, respectively.

       First  mortgage loans pledged as collateral for public funds or for other
       funds on deposit with BFSB were  approximately  $6,088 at  September  30,
       2001.

       A summary of activity in the allowance for loan losses is as follows:

                                                2001     2000
                                               -----    -----

Balance at beginning of year                   $ 270      249
Provision                                         --       --
Losses charged against the allowance             (11)     (21)
Recoveries of amounts previously charged off      49       42
                                               -----    -----
Balance at end of year                         $ 308      270
                                               =====    =====


                                                                     (Continued)

                                      -24-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       BFSB is not  committed to lend  additional  funds to debtors  whose loans
       have been  modified.  BFSB's  impaired  loans,  which include those loans
       currently reported as nonaccrual,  amounted to approximately $119 and $62
       at September 30, 2001 and 2000,  respectively,  and were not subject to a
       specific   allowance  for  loan  losses  because  of  the  estimated  net
       realizable  value of loan collateral,  guarantees and other factors.  The
       average  recorded  investment  in  impaired  loans  for the  years  ended
       September 30, 2001 and 2000 was approximately $149 and $66, respectively.
       Interest  income that would have been recorded on impaired  loans if such
       loans  had  been   current  for  the  entire   period   would  have  been
       approximately  $9 and $3 for the years ended September 30, 2001 and 2000,
       respectively.  Interest income  recognized on impaired loans for the year
       ended September 30, 2001 and 2000 was not significant.

(4)    Accrued Interest Receivable

       Accrued interest receivable at September 30 is summarized as follows:

                             2001   2000
                             ----   ----

Investment securities        $ 65    253
Mortgage-backed securities     87     60
Loans receivable              277    221
                             ----   ----
                             $429    534
                             ====   ====


(5)    Premises and Equipment

       Premises and equipment at September 30 is summarized as follows:

                                     2001     2000
                                    ------   ------

Land and building                   $1,833      668
Furniture, fixtures and equipment      576      372
                                    ------   ------
                                     2,409    1,040
Less accumulated depreciation          538      515
                                    ------   ------
                                    $1,871      525
                                    ======   ======


                                                                     (Continued)

                                      -25-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



(6)    Deposits

       Deposits at September 30 are summarized as follows:

<TABLE>
<CAPTION>
                                                               2001                        2000
                                      ------------------------------------------    --------------------
                                            Weighted
                                          average rate       Amount     Percent       Amount    Percent
                                      -----------------   ----------   ---------    --------   ---------
<S>                                     <C>             <C>             <C>        <C>          <C>
      Demand, NOW and MMDA accounts       2.22%           $  12,856       31.6%      10,585       33.0%
      Passbook savings                    2.61                3,986        9.8        3,391       10.6
      Certificates of deposit, by         3.01 to 4.00          800        2.0            -          -
          interest rate                   4.01 to 5.00        7,692       18.9        2,397        7.5
                                          5.01 to 6.00        9,671       23.7        8,930       27.8
                                          6.01 to 7.00        5,403       13.3        5,627       17.5
                                          7.01 to 8.00          301        0.7        1,151        3.6
                                                          ---------     ------       ------     ------
                    Total
                      certificates
                      of deposit                             23,867       58.6       18,105       56.4
                                                          ---------      -----       ------     ------
                    Total deposits                        $  40,709      100.0%      32,081      100.0%
                                                          =========      =====       ======      =====
</TABLE>


       Certificates  of deposit  and savings  accounts  of $100 or greater  were
       approximately  $13,130  and  $5,377  at  September  30,  2001  and  2000,
       respectively.

       Certificates  of deposit at September 30, 2001 are scheduled to mature as
       follows:

                          Year ending September 30      Amount
                                                        ------

                2002                                   $18,785
                2003                                     3,215
                2004                                     1,552
                2005                                       315
                                                        ------
                                                       $23,867
                                                        ======


                                                                     (Continued)

                                      -26-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000




       Interest  expense  on  deposits  for  the  years  ended  September  30 is
       summarized as follows:

                                       2001     2000
                                      ------   ------

NOW accounts and MMDA                 $  315      320
Certificates of deposit and savings    1,320    1,264
                                      ------   ------
                                      $1,635    1,584
                                      ======   ======


       Accrued  interest  payable on deposits  (included in accrued expenses and
       other  liabilities)  was $192 and $130 at  September  30,  2001 and 2000,
       respectively.

(7)    Advances From Federal Home Loan Bank

       Advances  from the  Federal  Home Loan Bank  (FHLB) at  September  30 are
       summarized as follows:

                                                      2001      2000
                                                     -------   -------

4.77% to 6.84% Callable Advances, interest payable
    monthly                                          $12,700    12,700

7.49% Fixed Rate Advance, interest payable monthly       700     6,600
                                                     -------   -------
                                                     $13,400    19,300
                                                     =======   =======


       Contractual  principal  payments on advances  from Federal Home Loan Bank
subsequent to September 30, 2001 are as follows:

                         Year ending September 30      Amount
                                                       ------

               2002                                   $   700
               2003                                     1,000
               2004                                         -
               2005                                     4,300
               Thereafter                               7,400
                                                       ------
                                                      $13,400
                                                       ======


       The  FHLB  holds  callable  options  which  may be  exercisable  after  a
       predetermined  time,  and  quarterly  thereafter.  At September  30, 2001
       advances  totaling  $5,000 were subject to the quarterly call  provisions
       with the balance being callable at various dates between January 2002 and
       April 2005.

                                                                     (Continued)

                                      -27-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       The advances are secured by pledges of FHLB demand  accounts,  FHLB stock
       and a blanket  assignment of  unpledged,  qualifying  mortgage  loans and
       investment  and  mortgage-backed  securities.  At September  30, 2001 the
       total additional amounts available to BFSB for advances was $14,509.

       The weighted  average interest rate on these advances was 6.19% and 6.35%
       at September 30, 2001 and 2000, respectively.

(8)    Comprehensive Income

       A summary of the  reclassification  amounts  and  related tax effects for
       comprehensive income follows:

                                                        Year Ended September 30,
                                                        ------------------------
                                                            2001         2000
                                                            ----         ----
Disclosure of reclassification amount:
Unrealized and realized holding gains arising during the
    period, net of income tax expense of $213 and $60 in
    2001 and 2000, respectively                             $413          114
Reclassification adjustment for losses included in net
    income, net of income tax benefit of $4                   --            9
                                                            ----         ----
              Net change in unrealized gain on securities
                available-for-sale                          $413          123
                                                            ====         ====


 (9)   Income Taxes

       Federal income tax expense  (benefit) for the years ended September 30 is
summarized as follows:

                                2001              2000
                                ----              ----

          Current               $ 85               228
          Deferred                (1)               (1)
                                ----              ----
                        Total   $ 84               227
                                ====              ====


                                                                     (Continued)

                                      -28-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       Income  tax  expense  for the  years  ended  September  30  differs  from
       "expected" income tax expense (computed by applying the Federal corporate
       income tax rate of 34% to income before income taxes) as follows:

                                               2001     2000
                                              -----    -----

Computed "expected" tax expense               $ 100      267
Increase (decrease) resulting from:
   Tax-exempt interest                          (24)     (31)
   Dividends exclusion                           (3)      (8)
   Mark-to-market adjustment on ESOP shares
      committed to be released                    6        1
   Other                                          5       (2)
                                              -----    -----
                                              $  84      227
                                              =====    =====


       Temporary  differences  between the financial  statement carrying amounts
       and the tax bases of assets and liabilities that give rise to significant
       portions of deferred  tax assets and  liabilities  at September 30 are as
       follows:

                                                    2001     2000
                                                   -----    -----
             Deferred Tax Assets
Unrealized loss on securities available-for-sale   $
                                                      --      112
Allowance for loan losses                            105       92
Employee benefits                                     20       18
Deferred loan fees                                     8       10
                                                   -----    -----
          Gross deferred tax assets                  133      232
                                                   -----    -----

          Deferred Tax Liabilities
FHLB stock dividends                                (244)    (219)
Tax bad debt reserve in excess of base year
amount                                                --      (13)
Prepaid deposit insurance premium                     (1)      (1)
Unrealized gain on securities available-for-
  sale, net                                         (101)      --
                                                   -----    -----
          Gross deferred tax liabilities            (346)    (233)
                                                   -----    -----
          Net deferred tax liability               $(213)      (1)
                                                   =====    =====

                                                                     (Continued)

                                      -29-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       In  assessing  the  realizability  of  deferred  tax  assets,  management
       considers  whether it is more likely than not that some portion or all of
       the deferred tax assets will not be realized. The ultimate realization of
       deferred tax assets is dependent upon the existence of, or generation of,
       taxable  income in the periods  which  those  temporary  differences  are
       deductible.  Management  considers the scheduled reversal of deferred tax
       liabilities,  taxes paid in carryback  years,  projected  future  taxable
       income, and tax planning strategies in making this assessment. Based upon
       the level of historical  taxable  income and estimates of future  taxable
       income over the periods which the deferred tax assets are deductible,  at
       September 30, 2001 and 2000,  management  believes it is more likely than
       not that the  Company  will  realize  the  benefits  of these  deductible
       differences.

       Retained earnings at September 30, 2001 includes approximately $398 which
       is essentially  income offset by percentage of income bad debt deductions
       for income tax  purposes  prior to 1988 (the "Base Year  Reserve").  This
       amount  is  treated  as a  permanent  difference  and  deferred  taxes of
       approximately  $135 are not recognized  unless it appears that the amount
       will be reduced and thereby result in taxable  income in the  foreseeable
       future.  Under current tax  regulations,  management does not foresee any
       changes in its business or  operations  which would result in a recapture
       of the Base Year Reserve into taxable income.

(10)   Employee Benefit Plans

       Retirement  Plan.  BFSB  has  a  non-contributory   defined  contribution
       retirement plan for all eligible employees.  The retirement plan provides
       for a discretionary Bank contribution. No contributions to the retirement
       plan were made by BFSB  during the years  ended  September  30,  2001 and
       2000.

       Employee  Stock  Ownership  Plan  (ESOP).  Effective  January 1, 1996 the
       Company's  Board of Directors  approved the adoption of an ESOP  covering
       substantially  all  employees.  The ESOP  purchased  64,000 shares of the
       Holding  Company's  common stock for $10 per share in connection with the
       conversion  to stock  ownership.  The ESOP borrowed $640 from the Holding
       Company to fund the purchase,  evidenced by a note receivable recorded by
       the  Holding  Company and secured by the common  stock  purchased  by the
       ESOP.  The terms of the note  require  quarterly  principal  payments  of
       approximately $11, bearing interest at prime (6.00% and 9.5% at September
       30, 2001 and 2000,  respectively),  maturing February 2010. Contributions
       of cash or common stock are made from BFSB to the ESOP, the form of which
       is at the discretion of the Board of Directors.  For financial  reporting
       purposes,  the unearned ESOP compensation is classified as a reduction of
       consolidated stockholders' equity and amounts paid to the Holding Company
       for interest have been eliminated in consolidation.

                                                                     (Continued)

                                      -30-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000




       BFSB records  compensation  expense  equal to the fair value of shares at
       the date such shares are  committed to be released.  Shares are committed
       to be  released  on a  straight-line  basis  over  the  term of the  note
       receivable  recorded  by the  Holding  Company.  Shares  committed  to be
       released are  allocated  to  participant  accounts  after the end of each
       fiscal  year.  For the years  ended  September  30,  2001 and 2000,  ESOP
       principal   and  interest   payments  of   approximately   $81  and  $86,
       respectively,  were funded by Bank contributions of approximately $52 and
       $57,  respectively,  to the ESOP.  The remainder of the ESOP payments was
       funded by dividends on both allocated and unallocated ESOP shares.  4,571
       shares were committed to be released to participant  accounts during each
       of the years ended  September 30, 2001 and 2000 and the fair value of the
       remaining shares to be released in future years was approximately $471 at
       September 30, 2001. BFSB recognized  compensation expense relating to the
       ESOP of $52 and $41 during the years ended  September  30, 2001 and 2000,
       respectively.  The dividends on the unallocated ESOP shares are allocated
       to  participant  accounts  and  recorded as  compensation  expense in the
       consolidated statements of income.

       Management  Stock Bonus Plan (MSBP).  On October 2, 1996,  the  Company's
       Board of Directors  approved the MSBP.  The terms of the MSBP provide for
       the award of up to 42,320 shares of common stock to certain  officers and
       directors.  Deferred  compensation  is  recorded at the date of the stock
       award based on the fair value of the shares granted. Vesting in the grant
       occurs  in five  equal,  annual  installments  and the  related  deferred
       compensation  is expensed over the same period.  For financial  reporting
       purposes the unearned  deferred  compensation  balance is classified as a
       reduction of consolidated  stockholders' equity. Officers,  directors and
       employees awarded shares retain voting rights and, if dividends are paid,
       dividend privileges during the vesting period.  During 2001 and 2000, 500
       and 4,000 shares,  respectively were granted to officers. BFSB recognized
       compensation  expense  for the  MSBP of $59 and $52 for the  years  ended
       September  30, 2001 and 2000,  respectively.  At  September  30, 2001 and
       2000,  there were 3,292 and 7,845,  respectively  of awarded but unvested
       shares,  and at September 30, 2001 there were 17,584 shares available for
       future awards.

       Stock Option Plan. On October 2, 1996,  the Company's  Board of Directors
       approved the Stock Option Plan ("Stock  Option  Plan").  The terms of the
       Stock Plan  provide for the  granting  of up to 105,800  shares of common
       stock to certain  officers and directors.  The Stock Option Plan provides
       for the granting of both incentive and non-incentive  stock options.  The
       terms of the  options  may not exceed 10 years from the date the  options
       are granted.  Incentive stock options granted to stockholders with 10% or
       less of the total  combined  voting  power of all classes of stock of the
       Company  shall be granted at an option price of not less than 100% of the
       fair market  value at the grant date,  and the term of the option may not
       exceed 10 years from the date of grant.  Incentive  stock options granted
       to stockholders  with more than 10% of the total combined voting power of
       all classes of stock of the Company  shall be granted at an option  price
       of not less than 110% of the fair market value at the grant date, and the
       term of the  option  may not  exceed 5 years  from the date of the grant.
       Non-incentive  stock  options  shall be granted at an option price of not
       less then the fair market value at the grant date.  At September 30, 2001
       and 2000,  total  shares  available  for options  grants  under the Stock
       Option Plan are 28,675 and 29,675 shares, respectively.

                                                                     (Continued)

                                      -31-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       Changes in shares  issuable  under  options  granted  for the years ended
       September 30, 2001 and 2000 are summarized as follows:

                               Options outstanding        Options exercisable
                            ---------------------------  -----------------------
                                              Weighted                 Weighted
                                              average                  average
                            Number of         exercise   Number of     exercise
                             Shares            price      Shares        price
                             -------        -----------  ---------    ---------

Balance September 30, 1999    65,596        $   11.80     38,508      $   11.77

Granted                       10,529        $   10.16         --          --

Canceled                      (2,116)       $   11.75     (1,269)     $   11.75

Became exercisable                --               --     13,224      $   12.67
                              ------                      ------
Balance September 30, 2000    74,009        $   11.24     50,463      $   12.01

Granted                        1,000        $   13.60         --             --

Exercised                     (7,600)       $   11.75     (7,600)     $   11.75

Became exercisable                --            --        14,805      $   11.57

Balance September 30, 2001    67,409        $   11.58     57,668      $   11.71
                              ======                      ======

       The stock  options  outstanding  at  September  30,  2001  consist of the
following:

                                 Weighted                 Weighted
   Number of Shares          Average Exercise              Average
                                   Price               Remaining Life
-----------------------    ----------------------   ----------------------

           1,000                 $ 13.60                 9.63 years

           2,116                 $ 13.25                 6.96 years

          53,764                 $ 11.75                 5.01 years

           2,645                 $ 10.25                 8.21 years

           7,884                 $ 10.13                 8.63 years
-----------------------
          67,409
=======================

                                                                     (Continued)

                                      -32-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       Based on the terms of  options  granted  and using  the  intrinsic  value
       method,  no  compensation  cost has been  recognized for any stock option
       grants in the accompanying  consolidated  financial  statements.  Had the
       Company determined compensation cost based on the estimated fair value at
       the grant date for its stock  options,  the  Company's net income and net
       income per share for the years  ended  September  30, 2001 and 2000 would
       have been as follows:

                                                                 2001    2000
                                                                -----   -----

      Net income:                   As reported                 $ 211     559
                                    Pro forma                     192     536
                                                                 ====   =====

      Basic earnings per share:     As reported                 $ .27     .70
                                    Proforma                      .25     .67
                                                                 ====   =====

      Diluted earnings per share:   As reported                 $ .27     .70
                                    Pro forma                     .24     .67
                                                                 ====   =====


       The per share weighted-average fair value of stock options granted during
       2001and  2000  for  this  pro  forma  disclosure  was  $2.22  and  $2.58,
       determined  on the date of grant using the  Black-Scholes  option-pricing
       model with the  following  assumptions:  expected  dividend  yield of 4%,
       risk-free  interest rates of 2.75% and 6.25%,  volatility  factor of 21%,
       and expected life of 10 years.

       Severance  Agreements.  BFSB  has  five  severance  agreements  with  its
       executive  officers.  Such  agreements  have a term of  three  years  and
       provide for payments  equal to three times average  annual salary for the
       previous five years, in the event BFSB experiences a change in control. A
       change in control is defined as (1) a sale of more than 25% of the assets
       of BFSB  or the  Holding  Company;  (2) any  merger  or  recapitalization
       whereby BFSB or the Holding  Company is not the surviving  entity;  (3) a
       change in control as determined by the OTS; or (4)  acquisition  directly
       or  indirectly  of 25% or more of the voting stock of BFSB or the Holding
       Company by an individual, entity or group.

                                                                     (Continued)

                                      -33-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



(11)   Earnings Per Share

       The  following  table sets  forth the  computation  of basic and  diluted
       earnings per share for the years ended September 30:

<TABLE>
<CAPTION>
                                                                     2001       2000
                                                                   --------   --------
<S>                                                               <C>        <C>
Number of shares on which basic earnings per share is calculated:
    Average outstanding common shares during the fiscal year        780,433    800,818

   Add:      Incremental shares under stock option plans             10,753        675
             Incremental shares related to MSBP                         448         --
                                                                   --------   --------
Number of shares on which diluted earnings per share is calculated  791,634    801,493
                                                                   ========   ========
Net income applicable to common stockholders                       $    211        559
                                                                   ========   ========
Basic earnings per share                                           $    .27        .70
                                                                   ========   ========
Diluted earnings per share                                         $    .27        .70
                                                                   ========   ========

</TABLE>

       Stock  options and MSBP  awards of 7,826 and 72,988  shares for the years
       ended September 30, 2001 and 2000,  respectively,  were outstanding,  but
       were not  included  in the  computation  of  diluted  earnings  per share
       because the options' exercise prices were greater than the average market
       price  of  the  common  shares,  and  therefore,   the  effect  would  be
       antidilutive.

 (12)  Regulatory Capital

       BFSB is required to meet three capital  requirements:  a tangible capital
       requirement equal to not less than 1.5% of tangible assets (as defined in
       the  regulations),  a core  capital  requirement,  comprised  of tangible
       capital  adjusted for  supervisory  goodwill and other  defined  factors,
       equal to not less than 3.0% of tangible assets,  and a risk-based capital
       requirement  equal  to at least  8.0% of all  risk-weighted  assets.  For
       risk-weighting,  selected  assets  are given a risk  assignment  of 0% to
       100%.  BFSB's total  risk-weighted  assets at September 30, 2001 and 2000
       were approximately $33,816 and $25,798, respectively.

                                                                     (Continued)

                                      -34-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       BFSB's  compliance  with capital  requirements  at September 30, 2001 and
2000 follows:

<TABLE>
<CAPTION>
                                                                         Minimum to be
                                                     Actual               adequately        Minimum to be well
                                                                      capitalized under     capitalized under
                                                                      prompt corrective     prompt corrective
                                                                      actions provision     actions provision
                                               ----------------       ----------------    --------------------
                                                Amount    Ratio         Amount   Ratio       Amount    Ratio
                                               -------    -----        -------  ------     --------     -------
<S>                                          <C>        <C>        <C>         <C>       <C>          <C>
      As of September 30, 2001:
          Total capital (to risk-weighted
             assets)                           $11,808    34.92%     $ 2,705     8.00%     $  3,382     10.00%
          Core (Tier 1) capital (to
             risk-weighted assets)              11,500    34.01        1,014     3.00         2,029      6.00
          Core (Tier 1) capital (to adjusted
             assets)                            11,500    17.12        2,015     3.00         3,358      5.00
          Tangible capital (to tangible
             assets)                            11,463    17.07        1,007     1.50         1,007      1.50
                                               =======    =====      =======     ====       =======      ====
      As of September 30, 2000:
          Total capital (to risk-weighted
             assets)                           $11,877    46.04%       2,064     8.00%        2,580     10.00%
          Core (Tier 1) capital (to
             risk-weighted assets)              11,607    44.99          774     3.00         1,548      6.00
          Core (Tier 1) capital (to adjusted
             assets)                            11,607    18.08        1,963     3.00         3,210      5.00
          Tangible capital (to tangible
             assets)                            11,607    18.08          963     1.50           963      1.50
                                               =======    =====      =======     ====       =======      ====
</TABLE>



       Failure to comply with applicable  regulatory  capital  requirements  can
       result in capital  directives  from the  director of the Office of Thrift
       Supervision  (OTS),  restrictions on growth,  and other  limitations on a
       savings bank's operations.

                                                                     (Continued)

                                      -35-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       Consolidated stockholders' equity differs from BFSB's tangible, core, and
       risk-based capital at September 30 as a result of the following:

                                                         2001        2000
                                                       --------    --------

Consolidated stockholders' equity                      $ 13,558      13,079
    Holding Company net assets                           (1,668)     (2,000)
                                                       --------    --------
 BFSB capital                                            11,890      11,079
    Subtract goodwill on acquisition                       (179)         --
    Add back (subtract) unrealized losses (gains) on
      certain available-for-sale securities                (211)        528
                                                       --------    --------
Tangible and core capital                                11,500      11,607
    Allowance for loan losses (limited to 1.25% of
      risk-weighted assets)                                 308         270
                                                       --------    --------
Risk-based capital                                     $ 11,808      11,877
                                                       ========    ========


       In  accordance  with OTS  regulations,  at the time of  conversion,  BFSB
       restricted a portion of retained  earnings by  establishing a liquidation
       account.  The  liquidation  account will be maintained for the benefit of
       eligible  holders who continue to maintain  their  accounts in BFSB after
       the conversion.  The liquidation  account will be reduced annually to the
       extent that  eligible  account  holders  have  reduced  their  qualifying
       deposits.  Subsequent  increases  will not  restore an  eligible  account
       holder's interest in the liquidation  account. In the event of a complete
       liquidation of BFSB, and only in such an event,  each account holder will
       be entitled to receive a distribution from the liquidation  account in an
       amount  proportionate  to the adjusted  qualifying  account balances then
       held.

       In  addition,  savings  banks  that  before and after  proposed  dividend
       distributions meet or exceed their fully phased-in capital  requirements,
       may make  capital  distributions  with prior notice to the OTS during any
       calendar  year up to 100% of  year-to-date  net  income  plus  50% of the
       amount in excess of their fully phased-in capital  requirements as of the
       beginning  of the  calendar  year.  However,  the OTS may impose  greater
       restrictions  if an  institution  is  deemed  to be in need of more  than
       normal  supervision.  BFSB currently  exceeds its fully phased-in capital
       requirements  and has  been  assessed  as  "well-capitalized"  under  the
       regulatory guidelines as of September 30, 2001.

(13)   Financial Instruments With Off-Balance-Sheet Risk

       The Company is a party to financial  instruments  with  off-balance-sheet
       risk in the normal course of business to meet the financing  needs of its
       customers.  These  financial  instruments  include  commitments to extend
       credit and involve, to varying degrees, elements of credit risk in excess
       of amounts recognized in the consolidated balance sheets.

                                                                     (Continued)

                                      -36-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       The Company's  exposure to credit loss in the event of  nonperformance by
       the other party to the financial  instrument  for  commitments  to extend
       credit is represented by the contractual amount of those instruments. The
       Company  uses  the  same  credit  policies  in  making   commitments  and
       conditional obligations as it does for on-balance-sheet instruments.

       Financial  instruments  outstanding  at September 30, 2001 whose contract
       amounts represent credit risk include:


             Unfunded loans in process                                 $ 1,778
             Commitments to extend credit at fixed rates                   698
             Commitments to extend credit at adjustable rates              188
             Commitments for purchase of adjustable rate
               commercial loan participation
                                                                           750



(14)   Commitments

       The Company has purchased land in Sheridan,  Wyoming. The Company entered
       into a contract on May 22,  2001 with  Fletcher  Construction  Company to
       construct a new bank facility in Sheridan. Substantial construction to be
       complete in early 2002.

       The Company is involved in various  claims and legal  actions  arising in
       the  ordinary  course of  business.  In the  opinion of  management,  the
       ultimate  disposition  of these matters will not have a material  adverse
       effect on the  Company's  consolidated  financial  position,  results  of
       operations or liquidity.

(15)   Fair Value of Financial Instruments

       The  Company  is  required  to  disclose  the  fair  value  of  financial
       instruments, whether recognized or not recognized on the balance sheet. A
       financial  instrument  is  defined  as  cash,  evidence  of an  ownership
       interest  in an entity,  or a contract  that both  imposes a  contractual
       obligation on one entity to deliver cash or another financial  instrument
       to a second entity.

       Quoted market prices are used for fair value when  available,  but do not
       exist for some of the Company's financial  instruments,  primarily loans,
       time deposits and FHLB advances.  The fair value of these instruments has
       been derived from the OTS Net Portfolio Value Model (OTS Model).  The OTS
       Model  primarily  employs the static  discounted  cash flow method  which
       estimates  the fair value of loans,  time  deposits and FHLB  advances by
       discounting  the cash flows the  instruments  are expected to generate by
       the yields currently  available to investors on instruments of comparable
       risk and duration.  Therefore,  to calculate present value, the OTS Model
       makes  assumptions  about the size and timing of expected  cash flows and
       appropriate discount rates. Different assumptions could materially change
       these instruments' estimated values.


                                                                     (Continued)

                                      -37-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       The  following  methods  and  assumptions  were  used by the  Company  in
       estimating the fair value of its financial instruments:

       Financial  Assets.  Due to the  liquid  nature  of the  instruments,  the
       carrying value of cash and cash equivalents and interest-bearing deposits
       approximates   fair  value.   For  all  investment  and   mortgage-backed
       securities,  the fair value is based upon quoted market prices.  The fair
       value of loans  receivable was derived from the OTS Model. The fair value
       of accrued  interest  receivable  approximates  book value as the Company
       expects  contractual  receipt in the  short-term.  The fair value of FHLB
       stock approximates its carrying value.

       Financial  Liabilities.  The fair  value of NOW and demand  accounts  and
       non-term savings deposits  approximates book values as these deposits are
       payable on demand.  The fair value of time deposits and FHLB advances was
       derived from the OTS Model.

       Off-Balance  Sheet. No fair value adjustment is necessary for commitments
       made to extend credit which represent  commitments for loan originations.
       These commitments are for loans with terms of less than one year and have
       interest rates which approximate prevailing market rates.

       Limitations.  Fair value  estimates are made at a specific point in time,
       based on relevant market  information and information about the financial
       instrument.  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  instrument.  Because  no market  exists for a
       portion of the Company's financial instruments,  fair value estimates are
       based on judgments  regarding  comparable  market interest rates,  future
       expected   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  on- and  off-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.   Significant  assets  and
       liabilities  that  are  not  considered  financial   instruments  include
       deferred  tax assets and  liabilities  and  premises  and  equipment.  In
       addition,  the tax effect of the  difference  between  the fair value and
       carrying value of financial  instruments can have a significant effect on
       fair  value  estimates  and  have not been  considered  in the  estimates
       presented herein.

                                                                     (Continued)

                                      -38-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       The  approximate  book  value and fair value of the  Company's  financial
instruments as of September 30 are as follows:



                                           2001                 2000
                                     -----------------    -----------------
                                      Book      Fair       Book      Fair
                                      value     value      value     value
                                     -------   -------    -------   -------
Assets:
    Cash and cash equivalents        $ 5,897     5,897     2,796     2,796
    Investment and mortgage-backed
       securities
       available-for-sale             22,003    22,003    28,869    28,869
    Stock in FHLB                      1,128     1,128     1,055     1,055
    Loans receivable, net             37,058    38,192    30,980    30,588
    Accrued interest receivable          429       429       534       534

Liabilities:
    Deposits                          40,709    41,465    32,081    32,037
    Advances from FHLB                13,400    13,807    19,300    19,188
                                     =======   =======   =======   =======


 (16)  Acquisition

       On December 27, 2000, the Bank purchased the building,  equipment,  loans
       and acquired the deposit  liabilities of the Gillette,  Wyoming branch of
       Hulett  National Bank for a purchase price of $675. The  transaction  was
       accounted for as a purchase and accordingly,  the consolidated  financial
       statements for the period ended September 30, 2001 include the results of
       operations  of the  acquired  branch  since  the date of  purchase.  Cash
       received in the branch  acquisition  totaled $773. The purchase consisted
       of $95 of loans,  $387 of premises and  equipment  and the  assumption of
       $1,353 in deposits and $212 of accrued  interest  and other  liabilities.
       The premium paid over historical carrying values was $310, which has been
       allocated to goodwill and deposit premium.


                                                                     (Continued)

                                      -39-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



(17)   Holding Company Information (Condensed)

       The  summarized  financial  information  for Crazy  Woman  Creek  Bancorp
       Incorporated is presented below.  Intercompany  balances and transactions
       are noted parenthetically.

       Condensed Balance Sheets

<TABLE>
<CAPTION>
                                                                       September 30,
                                                                    --------------------
                                                                      2001        2000
                                                                    --------    --------
                           Assets

<S>                                                               <C>          <C>
Cash (demand account with BFSB)                                     $    250          37
Investment in subsidiary                                              11,890      11,078
Loan to ESOP                                                             389         434
Dividend receivable - BFSB                                                --         200
Deferred tax asset                                                        10          --
Investment securities available-for-sale - mutual funds                1,087       1,576
Income taxes receivable                                                   27          11
Other assets                                                               4           1
                                                                    --------    --------

              Total assets                                          $ 13,657      13,337
                                                                    ========    ========

        Liabilities and Stockholders' Equity

Deferred tax liability - investment securities available-for-sale   $     --         160
Dividends payable                                                         97          96
Other liabilities                                                          2           2
Stockholders' equity:
    Common stock                                                         106         106
    Additional paid-in capital                                        10,117      10,100
    Unearned ESOP/MSBP shares                                           (429)       (528)
    Retained earnings                                                  7,125       7,271
    Accumulated other comprehensive income (loss), net                   195        (218)
    Treasury stock                                                    (3,556)     (3,652)
                                                                    --------    --------
              Total stockholders' equity                              13,558      13,079
                                                                    --------    --------
              Total liabilities and stockholders' equity            $ 13,657      13,337
                                                                    ========    ========
</TABLE>


                                                                     (Continued)

                                      -40-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000




       Condensed Statements of Income
<TABLE>
<CAPTION>

                                                                           Year Ended September 30,
                                                                         ----------------------------
                                                                           2001             2000
                                                                          ------           ------
<S>                                                                     <C>             <C>
 Dividends from BFSB                                                      $  330            1,180
 Dividends on mutual funds                                                    11               33
 Interest income (ESOP loan and loan to BFSB)                                 35               41
 Management fee to BFSB                                                      (60)             (28)
 Other operating expenses                                                    (49)             (32)
                                                                          ------           ------
     Income before distribution in excess of earnings of subsidiary and
        income taxes                                                         267            1,194
 Distributions in excess of earnings of subsidiary                           (80)            (652)
                                                                          ------           ------
 Income before income taxes                                                  187              542
 Income tax benefit                                                           24               17
                                                                          ------           ------
               Net income                                                 $  211              559
                                                                          ======           ======
</TABLE>


  Condensed Statements of Cash Flows
<TABLE>
<CAPTION>
                                                                           Year Ended September 30,
                                                                         ----------------------------
                                                                           2001             2000
                                                                          ------           ------

<S>                                                                     <C>              <C>
 Net income                                                               $  211              559
 Adjustments to reconcile net income to net cash provided by operating
     activities:
        Distributions in excess of earnings of subsidiary                     80              652
        Mutual fund dividends reinvested                                     (11)             (33)
        Increase in dividends receivable - BFSB                              200             (110)
        Increase in income taxes receivable                                  (16)              (3)
        Decrease in other liabilities                                         --               (2)
        Increase in other assets                                              (2)              --
                                                                          ------           ------
           Net cash provided by operating activities                         462            1,063
                                                                          ------           ------

 Cash flows from investing activities:
      Principal payments received on ESOP note receivable                     46               46
                                                                          ------           ------
           Net cash provided by investing activities                          46               46
                                                                          ------           ------
</TABLE>
                                                                     (Continued)

                                      -41-
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                  (Dollars in thousands except per share data)

                           September 30, 2001 and 2000



       Condensed Statements of Cash Flows

                                                 Year Ended September 30,
                                                 ------------------------
                                                    2001           2000
                                                  ------         ------

Cash flows from financing activities:
       Repurchase of common stock                 $   --           (693)
       Exercise of stock options                      90             --
       Cash dividends paid                          (384)          (404)
                                                  ------         ------
          Net cash used in financing activities     (294)        (1,097)
                                                  ------         ------

Net increase in cash                                 213             12
Cash at beginning of year                             37             25
                                                  ------         ------

Cash at end of year                               $  250             37
                                                  ======         ======

                                       42
<PAGE>


                                Corporate Office
    Crazy Woman Creek Bancorp, Incorporated and Buffalo Federal Savings Bank

                         106 Fort Street, P.O. Box 1020
                           Buffalo, Wyoming 82834-1020
                                 (307) 684-5591

          Board of Directors of Crazy Woman Creek Bancorp, Incorporated
<TABLE>
<CAPTION>
<S>                                                     <C>
      Richard Reimann                                         Greg L. Goddard
      Chairman of the Board

      Deane D. Bjerke                                         Douglas D. Osborn

      Thomas J. Berry                                         Sandra K. Todd


                               Executive Officers

      Deane D. Bjerke                                         John B. Snyder
      President and Chief Executive Officer                   Vice President and Chief Financial Officer

      Arnold R. Griffith, Jr.                                 Mark A. Gannon
      Senior Vice President                                   Executive Vice President


                              Professional Advisors

      Corporate Counsel                                       Transfer Agent and Registrar
      Kirven and Kirven                                       Computershare Investor Services
      104 Fort Street                                         12039 West Alameda Parkway, Ste. Z-2
      Buffalo, WY  82834                                      Lakewood, CO  80228

      Independent Auditors                                    Special Counsel
      KPMG LLP                                                Mailzia Spidi & Fisch, PC
      1000 First Interstate Center                            1100 New York Avenue, NW
      401 North 31st Street                                   Suite 340 West
      Billings, MT  59101                                     Washington,  D.C. 20005
</TABLE>

                                   Form 10-KSB

Crazy  Woman  Creek  Bancorp  Incorporated's  Annual  Report  for the year ended
September  30, 2001 filed with the  Securities  and Exchange  Commission on Form
10-KSB,  excluding  exhibits,  is available without charge upon written request.
For a copy of the Form 10-KSB or any other investor information, please write or
call the  Corporate  Secretary  at the  Company's  Corporate  Office in Buffalo,
Wyoming.  All public  reports of the Company are available on the SEC's web site
at www.sec.gov.  The Annual Meeting of Stockholders  will be held on January 23,
2002 at 3:00 p.m.  at the  Company's  main  office  located at 106 Fort  Street,
Buffalo, Wyoming.