EXHIBIT 13


<PAGE>
                            CRAZY WOMAN CREEK BANCORP
                                  INCORPORATED


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

                               2000 ANNUAL REPORT




<PAGE>




                     CRAZY WOMAN CREEK BANCORP INCORPORATED
                               2000 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 fourth  annual  report after the  completion  of our
mutual  to stock  conversion  in  1996.  Since  the  conversion,  the  officers,
directors,  and staff have been  dedicated  to  achieving  goals  leading to the
enhancement  of  shareholder  value.  The continued  payment of dividends and an
additional  repurchase  of 6% of the  outstanding  shares  are  examples  of the
Board's and management's efforts to enhance returns.

The goals set by management  for fiscal year 2000 included  increasing  deposits
and the loan  portfolio.  The goal to increase loans was achieved,  but deposits
declined.  An  addition of $1.253  million in loans  represents  a 4%  increase.
Deposits  decreased  by  $2.168  million  primarily  from  the  loss  of  public
certificates  of deposits.  In addition,  net earnings for the fiscal year ended
September  30, 2000 were  $559,000  compared to $690,000 in fiscal  1999.  Total
assets were  $64.826  million  compared to $63.661  million at the end of fiscal
year 1999.  Basic and  diluted  earnings  per share were $0.70 at the end of the
2000 fiscal year.

During fiscal year 2000, the Board and management made a concentrated  effort to
promote growth.  The Board of Directors and management entered into an agreement
to purchase a branch office in Gillette,  Wyoming.  This purchase is expected to
be  completed  in  December  2000.  Management  and the Board of  Directors  are
actively exploring the Sheridan, Wyoming market and other markets for additional
branches.

The officers and directors of Crazy Woman Creek Bancorp Incorporated are looking
forward to the  challenges  that will be presented  during fiscal year 2001. The
industry is  experiencing  the prospects of declining  interest  margins,  lower
income  levels,  and the continued  slowing of the world  economy.  The focus of
management will be to continue  increasing loan  originations,  growing deposits
and expansion  into new markets.  The  development of products and services will
continue to be emphasized to benefit our customers and serve the financial needs
of the community.

I wish to  personally  invite all  stockholders  to our annual  meeting  that is
scheduled for January 24, 2001 at 3:00 p.m. at our office in Buffalo, Wyoming.

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,  since
the Company  does not conduct any  significant  business,  the Company  does not
intend to employ any persons  other than officers but utilizes 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 office in  Buffalo,
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 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, 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
July 1, 1999 - September 30, 1999             12.50       11.56          0.12
April 1, 1999 - June 30, 1999                 13.88       11.88          0.10
January 1, 1999 - March 31, 1999              13.00       11.88          0.10
October 1, 1998 - December 31, 1998           15.50       11.94          0.10

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,  2000,   was
approximately  663.  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, 2000, there were 799,608 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,                     2000         1999          1998         1997          1996
-------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>          <C>           <C>          <C>           <C>
Loan receivable, net                                     $30,980      $29,727       $29,986      $28,636       $25,859
Investment and mortgage-backed
     securities, held to maturity (3)                         --           --         3,938        9,009        10,303
Investment and mortgage-backed
    securities, available for sale (3)                    28,869       29,479        24,635       19,155        13,365
Total assets                                              64,826       63,661        62,153       59,952        51,517
Deposits                                                  32,081       34,249        32,913       29,506        29,371
FHLB advances                                             19,300       15,600        14,650       15,700         6,113
Total stockholders' equity                                13,079       13,356        14,036       14,210        15,508
Interest income                                            4,350        4,313         4,420        3,940         3,274
Interest expense                                           2,532        2,358         2,448        1,983         1,702
Net interest income                                        1,818        1,955         1,973        1,957         1,572
Provision for loan losses                                     --            6            18           --            --
Net income (1)                                               559          690           712          691           355
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
OTHER SELECTED DATA
At or For the Year Ended September 30,                     2000         1999          1998         1997          1996
-------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>          <C>           <C>          <C>           <C>
Performance Ratios:
Return on average assets (net income
  divided by average total assets) (1)                     0.88%        1.10%         1.16%        1.28%         0.80%
Return on average equity (net income
  divided by average equity) (1)                           4.28%        4.96%         4.96%        4.74%         3.07%
Average interest-earning assets to average
  interest-bearing liabilities                           125.21%      128.32%       130.65%      136.86%       133.47%
Net interest income after provision for
  loan losses to average earning assets                    2.94%        3.16%         3.25%        3.71%         3.47%
Net interest rate spread                                   1.91%        2.09%         2.03%        2.32%         2.26%
Average equity to average assets ratio
  (average equity divided by average
  total assets)                                           20.64%       22.20%        23.46%       27.07%        25.50%
Equity to assets at period end                            20.18%       20.98%        22.59%       23.70%        30.10%
Non-performing assets to total assets                      0.10%        0.22%         0.41%        0.38%         0.06%
Non-performing loans to gross loans                        0.20%        0.46%         0.83%        0.77%         0.12%
Allowance for loan losses, REO and other
  repossessed assets to non-performing
  assets                                                 435.48%      176.60%       110.66%      134.22%       862.50%
Allowance for loan losses to gross loans                   0.85%        0.82%         0.93%        1.03%         1.05%
Net charge-offs (recoveries) to loans, net                (0.07%)       0.14%         0.12%       (0.09%)       (0.01%)
Basic earnings per share (2)                            $  0.70      $  0.81       $  0.79      $  0.73       $  0.36
Diluted earnings per share (2)                          $  0.70      $  0.80       $  0.77      $  0.73       $  0.36
Book value per share (2)                                $ 16.73      $ 15.86       $ 15.81      $ 15.17       $ 14.66
</TABLE>

-------------------------------------
(1)  Includes  a one  time  assessment  in  fiscal  year  1996 of $  186,000  to
     recapitalize the SAIF.
(2)  There were no shares outstanding prior to the consummation of the Company's
     initial public offering on March 29, 1996.
(3)  As of October 1, 1998 all securities were classified as available for sale.
     The  Company  elected  early   implementation  of  Statement  of  Financial
     Accounting Standards (SFAS) No. 133 "Accounting for Derivative  Instruments
     and Hedging Activities"

                                      -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,  2000,  the  Bank's  interest  income  was  $4.350  million,   or
approximately  97.9% 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, 2000,  the Bank's net  interest  rate
spread was 1.91%. 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 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); (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) managing
deposit  interest rates;  and (ix) utilizing FHLB advances to facilitate  growth
and lengthen liabilities; (x) focusing on commercial and consumer loans with the
purchase 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, 2000 report the Bank had a greater than "normal" level of interest
rate risk.

         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,                          Year Ended September 30,
                                -----------------  ------------------------------------------------------------------------
                                      2000                        2000                                 1999
                                 ----------------  ------------------------------------- ----------------------------------
                                                      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)                 7.61  %       $29,956     $2,359       7.87 %       $30,152     $2,417      8.02 %
   Securities
   available-for-sale:
     Mortgage-backed securities         7.01           11,278        757       6.71           9,838        606      6.16
     Investment securities              6.24           18,304      1,128       6.16          19,282      1,177      6.10
   Other interest-earning assets(2)     3.90            2,274        106       4.66           2,425        113      4.66
                                                   -----------  ----------               -----------  ---------
     Total interest-earning assets      6.95           61,812       4,350      7.04          61,697      4,313      6.99
                                                   -----------  ----------               -----------  ---------
Non-interest-earning assets                             1,447                                 1,117
                                                   -----------                           -----------
   Total assets                                       $63,259                               $62,814
                                                   ===========                           ===========
Interest-bearing liabilities
   Interest checking                    3.39            9,050        320       3.54           8,739        322      3.68
   Time deposits/passbook               5.87           24,127      1,264       5.24          24,262      1,226      5.05
                                                   -----------  ---------                ----------- ----------
   Total deposit accounts               5.11           33,177      1,584       4.77          33,001      1,548      4.69
   FHLB advances                        4.91           16,190        948       5.86          15,078        810      5.37
                                                   -----------  ---------                ----------- ----------
     Total interest-bearing             5.03           49,367      2,532       5.13          48,079      2,358      4.90
       liabilities

Non-interest-bearing liabilities                          837                                   793
                                                   -----------                           -----------
   Total liabilities                                   50,204                                48,872
                                                   -----------                           -----------
   Total stockholders' equity                          13,055                                13,942
                                                   -----------                           -----------
   Total liabilities and
     stockholders' equity                             $63,259                               $62,814
                                                   ===========  ---------                ===========
                                                                                                     ----------
Net interest income                                               $1,818                                $1,955
                                                                =========                            ==========
Interest rate spread                                                           1.91 %                               2.09 %
                                                                            ========                             ========
Net interest margin before allowance                                           2.94 %                               3.17 %
                                                                            ========                             ========
Ratio of average interest-earning assets
to average interest-bearing liabilities                                      125.21 %                             128.32 %
                                                                            ========                             ========
</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.

         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,
                                                       2000 vs. 1999
                                                 Increase (Decrease) Due to
                                                                Rate/
                                               Volume   Rate    Volume     Net
                                               ------   -----   ------    ------
                                                         In Thousands
Interest Income:
     Loans receivable                          $ (15)   $ (43)   $  --    $ (58)
     Securities available-for-sale:
       Mortgage-backed securities                 89       54        8      151
       Investment securities                     (60)      12       (1)     (49)
     Other interest-earning assets                (7)      --       --       (7)
                                               -----    -----    -----    -----
         Total interest-earning assets         $   7    $  23    $   7    $  37
                                               =====    =====    =====    =====

Interest expense
     Deposit accounts                          $   9    $  27    $  --    $  36
     FHLB advances                                60       74        4      138
                                               -----    -----    -----    -----
         Total interest-bearing                $  69    $ 101    $   4    $ 174
         liabilities
                                               =====    =====    =====    =====

Net change in net interest income              $ (62)   $ (78)   $   3    $(137)
                                               =====    =====    =====    =====

Financial Condition

         The Company's  assets  increased by $1.165 million from $63.661 million
at  September  30, 1999 to $64.826  million at September  30,  2000.  The mix in
assets changed with an increase in cash and loans receivable and a corresponding
decrease in investments.

         Deposits  decreased by $2.168 million from $34.249 million at September
30,  1999 to $32.081  million at  September  30, 2000  primarily  as a result of
decreases in public certificates of deposits and a slight decrease in retirement
accounts  offset by an increase in checking  accounts.  Advances  from the FHLB,
used for  funding  loans,  increased  by $3.700  million to  $19.300  million at
September 30, 2000.

         The  Company's  net  investment  in   mortgage-backed   and  investment
securities  available  for sale  decreased by $610,000  from $29.479  million at
September  30,  1999 to $28.869  million at  September  30,  2000.  The  Company
experienced  an increase in loans from  September 30, 1999 to September 30, 2000
net  loans  receivable  increased  from  $29.727  million  to  $30.980  million,
representing an increase of $1.253 million or 4.22%. Increases in all categories
of loans were experienced.

         Deposits  decreased by $2.168 million from $34.249 million at September
30, 1999 to $32.081  million at September  30, 2000.  Interest-bearing  checking
accounts  (NOW and  money  market  checking)  increased  by  $683,000,  business
checking  accounts  increased  $803,000,  passbook and  certificates of deposits
decreased by $3.654 million.

         The Company  increased its level of borrowings from the FHLB of Seattle
from $15.600  million at September 30, 1999 to $19.300  million at September 30,
2000.  This  represents  an increase  of $3.700  million.  The  increase in FHLB
advances was primarily used to offset the decline 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.

                                      -7-
<PAGE>

         Total stockholders' equity declined by $277,000 from $13.356 million at
September  30, 1999 to $13.079  million at  September  30, 2000  primarily  as a
result of stock repurchases. The Company repurchased a total of 64,190 shares of
its common stock in January,  July,  and August of 2000.  The purchases  totaled
$693,000.  The  change  in the  unrealized  loss on  investment  securities  and
mortgage-backed securities  available-for-sale increased stockholders' equity by
$123,000.  Stockholders'  equity was further reduced by cash dividends  declared
during fiscal year 2000. These dividends totaled $0.48 per share or $368,000.

Non-performing Assets

         Non-performing assets totaled $62,000 at September 30, 2000 or 0.10% of
total  assets  compared  to  $141,000  at  September  30, 1999 or 0.22% of total
assets.  Non-performing  assets  are  primarily  comprised  of loans  secured by
residential real estate. Included in non-performing assets at September 30, 2000
is a $39,000  loan  secured by  residential  real estate and $23,000 in consumer
loans.  At  September  30,  1999,  the Company had one  residential  real estate
property owned by the Bank valued at $73,000. At September 30, 2000, the Company
did not have any repossessed properties.

Comparison of Results of Operations  for the Years Ended  September 30, 2000 and
1999

         Net Income.  For the year ended  September 30, 2000 the Company  posted
net income of $559,000  or diluted  earnings  per share of $.70  compared to net
income of  $690,000  or  diluted  earnings  per share of $.80 for the year ended
September  30,  1999.  Net income was lower in 2000 than in 1999  primarily as a
result of declining net interest income and increased non-interest expenses.

         Net Interest  Income.  Net interest  income  before  provision for loan
losses  decreased by $137,000 from $1.955  million for the year ended  September
30, 1999 to $1.818  million for the year ended  September 30, 2000. The decrease
in net interest  income was primarily  attributed to a decrease in the volume of
interest  earning  assets.  The ratio of  interest  earning  assets to  interest
bearing  liabilities  decreased  from  128.32% for the twelve month period ended
September 30, 1999 to 125.21% for the same period in 2000. Also  contributing to
the decrease in net interest  income was a slight  decrease in the interest rate
spread from 2.09% for the twelve month period ended  September 30, 1999 to 1.91%
for the twelve month period ended September 30, 2000.

         Interest Income. Total interest income increased by $37,000 from $4.313
million for the year ended  September  30,  1999 to $4.350  million for the year
ended September 30, 2000. The increase in interest  income was primarily  caused
by an  increase  in the yield on average  interest  earning  assets from 1999 to
2000.  An  increase  in the yield on average  earning  assets from 6.99% for the
twelve  month period  ended  September  30, 1999 to 7.04% for the same period in
2000 caused  interest  income to increase  by $23,000.  During the twelve  month
period ended September 30, 1999 average  interest earning assets totaled $61.697
million  compared to $61.812  million for the same period in 2000. This increase
in volume caused interest income to increase by $7,000 for the periods covered.

         Interest  Expense.  Deposit interest expense  increased by $36,000 from
$1.548  million for the year ended  September 30, 1999 to $1.584 million for the
year ended  September 30, 2000 primarily as a result of a slight 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 $176,000  from
September 30, 1999 to September 30, 2000 contributing to the $36,000 increase in
interest  expense.  An increase in the cost of interest  bearing  deposits  from
4.69% for the twelve  month  period  ended  September  30, 1999 to 4.77% for the
twelve month period  ended  September  30, 2000  increased  interest  expense by
$27,000.

                                      -8-
<PAGE>

         FHLB advances  interest expense increased by $138,000 from $810,000 for
the year ended  September 30, 1999 to $948,000 for the year ended  September 30,
2000,  primarily due to higher  interest  rates on such  advances.  Average FHLB
advances  increased  from  $15.078  million for the twelve  month  period  ended
September  30,  1999 to  $16.190  million  for the  twelve  month  period  ended
September 30, 2000. This increase in volume caused interest  expense to increase
by $60,000. An increase in the cost of FHLB advances from 5.37% in 1999 to 5.86%
2000 accounted for a $74,000 increase in interest expense.

         The total cost of average  interest  bearing  liabilities was 5.13% for
2000 and 4.90% for 1999.

         Provision  for Loan Losses.  A provision  for loan losses of $6,000 was
made during 1999 and no provision was made in 2000. In 2000,  recoveries totaled
$42,000 while  charge-offs  totaled  $21,000.  Loan recoveries were greater than
charge-offs in 2000 resulting in a net increase in the allowance for loan losses
of $21,000. 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, 2000, the allowance
represented  0.87% of net loans  receivable  as  compared  to 0.84% of net loans
receivable at September 30, 1999.

         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 $24,000 from
$65,000  for the year ended  September  30,  1999 to $89,000  for the year ended
September 30, 2000.  Customer service charges  accounted for $15,000 as a result
of a change in deposit fees.  Other  operating  income  increased by $8,000 as a
result of late fees associated  with the loan portfolio and other  miscellaneous
charges.

         Non-Interest  Expense.  The Company  experienced a $121,000 increase in
non-interest  expense from $1.000 million for the years ended September 30, 1999
to $1.121  million  for the year ended  September  30,  2000.  Compensation  and
benefit expense was $58,000 higher in 2000 than in 1999 primarily as a result of
general pay  increases in 2000 and the addition of a loan officer and  increased
costs  associated with the Bank's ESOP and Management Stock Bonus Plan ("MSBP").
Occupancy and equipment  expenses  increased by $9,000 from $80,000 for the year
ended  September 30, 1999 to $89,000 for the year ended  September 30, 2000, due
to increased depreciation expense and building maintenance. FDIC/SAIF Assessment
declined by $9,000 as a result of the  aligning of the Bank  Insurance  Fund and
the Savings  Association  Insurance  Fund.  Advertising  increased  $13,000 as a
result of new promotional  program.  Professional  fees increased during 2000 to
$99,000 from $72,000 in 1999, due to expenses related to a marketing consultant.
Other  operating  expenses  expense were $14,000 higher in 2000 than in 1999. In
2000, losses on the sale of investment  securities were $13,000. In 1999, losses
on the  sale of  investment  securities  totaled  $3,000.  There  were no  other
significant changes in operating expenses.

         Income Taxes. The effective tax rates for 2000 and 1999 were 28.88% and
31.95%,  respectively.  There is no state income tax imposed on the Company.  In
2000 the Company received a refund for prior year amended tax returns.

                                      -9-
<PAGE>

Liquidity and Capital Resources

         The  Company's  primary  source of liquidity is derived from  dividends
received from the Bank and are subject to regulatory provisions.

         The Bank is  required to maintain  minimum  levels of liquid  assets as
defined by OTS  regulations.  This  requirement,  which varies from time to time
depending upon economic conditions and deposit flows, is based upon a percentage
of deposits and short term borrowings. The required liquidity ratio currently is
4.0% and the Bank's liquidity ratio was 72.43% at September 30, 2000 compared to
63.93% at September 30, 1999.

         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,  2000 and  1999,  the Bank had
positive net cash flows of $522,000 and $920,000 from  operating  activities and
$466,000  and  $1.376  million  from  financing  activities,  respectively.  The
Company,  however,  experienced  negative  net cash flows of $381,000 and $1.668
million, respectively, 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 2000 and
1999.

         During  fiscal 2000 and 1999,  investing  activities  used $381,000 and
$1.668 million, respectively, primarily to purchase investment securities and to
fund  the  origination  of  loans.  This  use of cash  was  offset  somewhat  by
maturities and calls of investment  securities and the repayment of principal on
loans.  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 2000 and 1999, the Bank originated mortgage
loans in the amounts of $8.501 million and $10.116  million,  respectively.  The
proceeds from new advances were used to fund  investment  activities such as the
origination of loans and to off-set the decrease in deposits.

         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 2000 and 1999. The primary financing  activities of the
Bank  are the  attraction  of  deposits  and  borrowing  funds  from the FHLB of
Seattle.  During fiscal year 2000,  deposits decreased $2.168 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
2000,  FHLB advances  increased by $3.7  million.  The increases in deposits and
FHLB  advances  were used to  purchase  investment  securities  and to fund loan
originations.  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. At September 30, 2000, the Bank had commitments to
originate loans of $866,000, including undisbursed Line of Credits. Certificates
of deposit and State of Wyoming  deposits  which are scheduled to mature in less
than one year at September 30, 2000 totaled $12.919  million.  Even though there
was a $3.654 million decrease in certificate and passbook  accounts,  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  generally  accepted
accounting  principles,  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  and Interest
Rate Risk."

                                      -11-

<PAGE>

[LOGO]
KPMG

          1000 First Interstate Center
          401 N. 31st Street
          P.O. Box 7108
          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, 2000 and 1999, 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, 2000 and 1999, 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
October 27, 2000


                                       12
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999

<TABLE>
<CAPTION>
                               Assets                           2000        1999
                               ------                        ---------  ----------

<S>                                                        <C>          <C>
Cash and cash equivalents                                    $  2,796       2,189
Investment and mortgage-backed securities
      available-for-sale                                       28,869      29,479
Stock in Federal Home Loan Bank of Seattle, at cost             1,055         988
Loans receivable, net                                          30,980      29,727
Accrued interest receivable                                       534         522
Premises and equipment, net                                       525         544
Income tax receivable                                              28           -
Deferred income taxes                                               -          62
Other assets                                                       39         150
                                                             --------    --------
                                                             $ 64,826      63,661
                                                             ========    ========

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

Liabilities:
     Deposits                                                $ 32,081      34,249
     Advances from Federal Home Loan Bank                      19,300      15,600
     Advance payments by borrowers for taxes and insurance         72          69
     Income taxes payable                                           -           7
     Dividends payable                                             96         104
     Accrued expenses and other liabilities                       198         276
                                                             --------    --------

           Total liabilities                                   51,747      50,305

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                                10,100      10,096
     Unearned ESOP/MSBP shares                                   (528)       (577)
     Retained earnings                                          7,271       7,080
     Accumulated other comprehensive loss, net                   (218)       (341)
     Treasury stock at cost, 275,976 and 215,786 shares
        at September 30, 2000 and 1999, respectively           (3,652)     (3,008)
                                                             --------    --------
           Total stockholders' equity                          13,079      13,356
                                                             --------    --------
                                                             $ 64,826      63,661
                                                             ========    ========
</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, 2000 and 1999


                                                                  2000     1999
                                                                 ------   ------

Interest income:
     Loans receivable ........................................   $2,359    2,417
     Mortgage-backed securities ..............................      757      606
     Investment securities ...................................    1,128    1,177
     Other interest-earning assets ...........................      106      113
                                                                 ------   ------

           Total interest income .............................    4,350    4,313

Interest expense:
     Deposits ................................................    1,584    1,548
     Advances from Federal Home Loan Bank ....................      948      810
                                                                 ------   ------

           Total interest expense ............................    2,532    2,358
                                                                 ------   ------

           Net interest income ...............................    1,818    1,955

Provision for loan losses ....................................        -        6
                                                                 ------   ------

           Net interest income after provision for loan losses    1,818    1,949
                                                                 ------   ------

Non-interest income:
     Customer service charges ................................       62       46
     Other operating income ..................................       27       19
                                                                 ------   ------

           Total non-interest income .........................       89       65
                                                                 ------   ------

Non-interest expense:
     Compensation and benefits ...............................      581      523
     Occupancy and equipment .................................       89       80
     FDIC/SAIF deposit insurance premiums ....................       10       19
     Advertising .............................................       49       36
     Data processing services ................................      116      117
     Professional fees .......................................       99       72
     Other ...................................................      164      150
     Loss on sale of securities, net .........................       13        3
                                                                 ------   ------

           Total non-interest expense ........................    1,121    1,000
                                                                 ------   ------

           Income before income taxes ........................      786    1,014
Income tax expense ...........................................      227      324
                                                                 ------   ------

           Net income ........................................   $  559      690
                                                                 ======   ======

Basic earnings per share .....................................   $ 0.70     0.81
                                                                 ======   ======

Diluted earnings per share ...................................   $ 0.70     0.80
                                                                 ======   ======


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, 2000 and 1999

<TABLE>
<CAPTION>
                                                            Unearned          Accumulated
                                                 Additional   ESOP/             other                      Total
                                       Common     paid-in     MSBP  Retained comprehensive  Treasury    stockholders'
                                       stock      capital    shares earnings income (loss)    stock        equity
                                       ------     -------   ------- -------- ----------    ---------      ---------
<S>                                 <C>           <C>      <C>     <C>          <C>        <C>            <C>
Balance at September 30, 1998         $   106       10,083   (671)   6,736        208        (2,426)        14,036

Comprehensive income:
    Net income                              -            -      -      690          -             -            690
    Unrealized loss on securities
      available-for-sale, net of
      reclassification adjustment           -            -      -        -       (549)            -           (549)
                                                                                                           -------

         Total comprehensive income                                                                            141

Repurchase of 45,463 shares of
  common stock                              -            -      -        -          -          (582)          (582)

Tax benefit from stock related
  compensation                              -            1      -        -          -             -              1

ESOP shares committed to be
  released                                  -           12     46        -          -             -             58

MSBP shares vested                          -            -     48        -          -             -             48

Cash dividends declared
  ($.42 per share)                          -            -      -     (346)         -             -           (346)
                                      -------       ------   ----    -----       ----        ------        -------

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
                                      =======       ======   ====    =====       ====        ======        =======
</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, 2000 and 1999
<TABLE>
<CAPTION>
                                                             2000        1999
                                                           --------    --------
<S>                                                      <C>            <C>
Cash flows from operating activities:
    Net income                                             $    559         690
    Adjustments to reconcile net income to net cash
      provided by operating activities:
         Provision for loan losses                                -           6
         Amortization of premiums and discounts on
           investment securities, net                           (10)         21
         Deferred income tax expense (benefit)                   (1)         10
         Federal Home Loan Bank stock dividend                  (67)        (71)
         Depreciation                                            52          50
         Loss on sale of securities                              13           3
         Loss (gain) on sale of foreclosed real estate            2          (3)
         Mutual funds dividends reinvested                      (33)        (41)
         Deferred loan origination fees, net                     (7)         32
         Loss on sale of premises and equipment                   -           1
         ESOP shares committed to be released                    50          58
         MSBP compensation expense                               52          48
         Change in:
           Accrued interest receivable                          (12)         16
           Other assets                                          38         (34)
           Income taxes payable                                 (35)         47
           Accrued expenses and other liabilities               (79)         87
                                                           --------    --------
              Net cash provided by operating activities         522         920
                                                           --------    --------
Cash flows from investing activities:
    Decrease in interest-bearing deposits                         -          99
    Purchases of securities available-for-sale               (1,669)    (13,971)
    Proceeds from maturities, calls and prepayments of
      securities available-for-sale                           2,009      11,290
    Proceeds from sales of securities available-for-sale        487         960
    Origination of loans receivable                          (8,501)    (10,116)
    Repayment of principal on loans receivable                7,328      10,164
    Purchases of premises and equipment                         (33)       (197)
    Proceeds from sale of foreclosed real estate                 (2)        103
                                                           --------    --------
              Net cash used in investing activities            (381)     (1,668)
                                                           --------    --------
Cash flows from financing activities:
    Net increase (decrease) in deposits                      (2,168)      1,336
    Advances from Federal Home Loan Bank                     29,700      23,100
    Repayment of advances from Federal Home Loan Bank       (26,000)    (22,150)
    Net change in advances from borrowers for taxes
      and insurance                                               3           5
    Repurchase of common stock                                 (693)       (582)
    Dividends paid to stockholders                             (376)       (333)
                                                           --------    --------
              Net cash provided by financing activities         466       1,376
                                                           --------    --------
Net increase in cash and cash equivalents                       607         628
Cash and cash equivalents at beginning of year                2,189       1,561
                                                           --------    --------
Cash and cash equivalents at end of year                   $  2,796       2,189
                                                           ========    ========
Cash paid during the year for:
    Interest                                               $  2,533       2,375
    Income taxes                                                263         278
                                                           ========    ========
</TABLE>
Noncash investing activities:
     The Company transferred loans of $73 and $173 to other real estate owned in
     2000 and 1999, respectively.

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, 2000 and 1999



(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 customers in the Buffalo,  Wyoming area.  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  generally  accepted   accounting   principles.   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.


                                       17                            (Continued)

<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


       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. Investment securities and mortgage-backed securities,  other than
       those designated as  available-for-sale or trading, are comprised of debt
       securities for which the Company has positive  intent and ability to hold
       to  maturity  and  are  carried  at  cost.   Management   determines  the
       appropriate  classification of investment and mortgage-backed  securities
       as either available-for-sale or held-to-maturity at the purchase date.

       The carrying  value of debt  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 then  temporary  are charged to expense as
       realized losses and the related carrying value is reduced to fair value.


       Stock in Federal Home Loan Bank

       Member  institutions  of the  Federal  Home Loan Bank  (FHLB)  System are
       required  to  hold  common  stock  of  its  district  FHLB  according  to
       predetermined  formulas. FHLB provides a source of borrowed funds for its
       member institutions which are secured by this FHLB stock.


       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.

       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.


                                       18                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


       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.


       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.  Other real estate  owned of $73 at  September  30, 1999 is
       included in other assets on the accompanying  consolidated balance sheet.
       No other real estate owned was held at September 30, 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.


       Long-Lived Assets

       Long-lived assets and certain  identifiable  intangibles 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. No long-lived  assets were identified as impaired as
       of September 30, 2000 or 1999.


       Income Taxes

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


                                       19                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


       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-based  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.



                                       20                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


       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  $3,938  as
       available-for-sale.  The  net  effect  of  this  reclassification  was an
       increase in total  assets of $84,  deferred  tax  liabilities  of $29 and
       accumulated other comprehensive income of $55.


       Reclassifications

       Certain reclassifications have been made to the 1999 financial statements
       to conform with the 2000 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:
<TABLE>
<CAPTION>
                                                                     Gross                Gross              Estimated
                                              Amortized           unrealized           unrealized              fair
                2000                            cost                 gains               losses                value
                                        ---------------------------------------------------------------------------------
<S>                                  <C>                            <C>                 <C>                <C>
     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
                                        ==================   ==================   ==================   ==================
</TABLE>

                                       21                            (Continued)
<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999

<TABLE>
<CAPTION>

                                                                     Gross                Gross              Estimated
                                              Amortized           unrealized           unrealized              fair
                1999                            cost                 gains               losses                value
                                        ---------------------------------------------------------------------------------
<S>                                 <C>                            <C>                 <C>                <C>
     U.S. agency obligations            $       15,749                   -                 (603)              15,146
     Municipal securities                        2,033                   7                  (95)               1,945
     Mutual funds                                1,073                 348                  (12)               1,409

     Mortgage-backed securities:
         GNMA certificates                       4,001                  19                  (81)               3,939
         FHLMC certificates                      3,949                  13                  (71)               3,891
         REMIC certificates                        719                   -                  (27)                 692
         FNMA certificates                       2,472                  13                  (28)               2,457
                                        ------------------   ------------------   ------------------   ------------------
             Total MBS                          11,141                  45                 (207)              10,979
                                        ------------------   ------------------   ------------------   ------------------
                                        $       29,996                 400                 (917)              29,479
                                        ==================   ==================   ==================   ==================
</TABLE>

       The REMICs  consist of two  certificates  at September  30, 2000 and 1999
       which are backed by the FNMA or the FHLMC.

       Maturities of securities  available-for-sale (other than mutual funds) at
       September  30,  2000 are  shown  below.  Mortgage-backed  securities  are
       included in this maturity  schedule  based on current  estimates of their
       expected average lives.
<TABLE>
<CAPTION>
                                                                                         Estimated
                                                                Amortized                  Fair
                                                                  Cost                     Value
                                                          ----------------------   ----------------------
<S>                                                       <C>                              <C>
Due within one year                                       $             86                       86
Due after one year through five years                                9,258                    9,154
Due after five years through ten years                              17,346                   16,724
Due after ten years                                                  1,403                    1,329
                                                          ----------------------   ----------------------
                                                          $         28,093                   27,293
                                                          ======================   ======================
</TABLE>

       Gross  realized  losses  on the sale of  investment  and  mortgage-backed
       securities  available-for-sale  were $13 and $3 during  the  years  ended
       September  30,  2000 and 1999,  respectively.  There were no gross  gains
       during the years ended September 30, 2000 and 1999.

       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, 2000 have call features.


                                       22                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


(3)    Loans Receivable, Net
       Loans receivable, net at September 30 are summarized as follows:
<TABLE>
<CAPTION>
                                                                  2000                     1999
                                                          ----------------------   ----------------------
<S>                                                      <C>                             <C>
Real estate mortgage loans, including commercial
    real estate                                           $         27,199                   26,499
Real estate construction loans                                         516                      473
Consumer loans                                                       1,699                    1,498
Home equity loans                                                    1,003                      837
Commercial and agricultural loans                                    1,134                      877
Savings account and other loans                                        212                      181
                                                          ----------------------   ----------------------
                                                                    31,763                   30,365
Less:
    Loans in process                                                   331                      200
    Allowance for loan losses                                          270                      249
    Net deferred loan origination fees                                 182                      189
                                                          ----------------------   ----------------------
                                                          $         30,980                   29,727
                                                          ======================   ======================
</TABLE>

       Adjustable  rate mortgages  included in the real estate loans  receivable
       balance above were  approximately  $182 and $67 at September 30, 2000 and
       1999, respectively.

       Real estate loans  serviced for others were $65 and $70 at September  30,
       2000 and 1999, respectively.

       First  mortgage loans pledged as collateral for public funds or for other
       funds on  deposit  with  BFSB were  approximately  $7,012  and  $7,445 at
       September 30, 2000 and 1999, respectively.

       A summary of activity in the allowance for loan losses is as follows:
<TABLE>
<CAPTION>
                                                                  2000                     1999
                                                          ----------------------   ----------------------
<S>                                                     <C>                                <C>
Balance at beginning of year                              $           249                      284
Provision                                                               -                        6
Losses charged against the allowance                                  (21)                     (71)
Recoveries of amounts previously charged off                           42                       30
                                                          ----------------------   ----------------------
Balance at end of year                                    $           270                      249
                                                          ======================   ======================
</TABLE>

       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 $62 and $68
       at September 30, 2000 and 1999,  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.


                                       23                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


(4)    Accrued Interest Receivable
       Accrued interest receivable at September 30 is summarized as follows:
<TABLE>
<CAPTION>
                                                                  2000                     1999
                                                          ----------------------   ----------------------
<S>                                                     <C>                                <C>
Investment securities                                     $           253                      268
Mortgage-backed securities                                             60                       61
Loans receivable                                                      221                      193
                                                          ----------------------   ----------------------
                                                          $           534                      522
                                                          ======================   ======================
</TABLE>

(5)    Premises and Equipment

       Premises and equipment at September 30 is summarized as follows:
<TABLE>
<CAPTION>

                                                                  2000                     1999
                                                          ----------------------   ----------------------
<S>                                                     <C>                              <C>
Land and building                                         $           668                      662
Furniture, fixtures and equipment                                     372                      352
                                                          ----------------------   ----------------------
                                                                    1,040                    1,014
Less accumulated depreciation                                         515                      470
                                                          ----------------------   ----------------------
                                                          $           525                      544
                                                          ======================   ======================
</TABLE>


(6)    Deposits

       Deposits at September 30 are summarized as follows:
<TABLE>
<CAPTION>
                                                         2000                                          1999
                                --------------------------------------------------------   ------------------------------
                                      Weighted
                                    average rate             Amount          Percent          Amount          Percent
                                ----------------------    -------------   --------------   -------------    -------------
<S>                               <C>                    <C>             <C>             <C>               <C>
     Demand, NOW and MMDA
        accounts                        3.17%             $     10,585        33.0%        $      9,099         26.6%
     Passbook savings                   3.63%                    3,391        10.6                3,683         10.8

     Certificates of deposit,       4.01 to 5.00%                2,397         7.5                6,223         18.2
        by interest rate            5.01 to 6.00                 8,930        27.8               13,553         39.5
                                    6.01 to 7.00                 5,627        17.5                1,691          4.9
                                    7.01 to 8.00                 1,151         3.6                    -            -
                                                          -------------   --------------   -------------    -------------
       Total certificates of
          deposit                                               18,105        56.4               21,467         62.6
                                                          -------------   --------------   -------------    -------------
       Total deposits                                     $     32,081       100.0%        $     34,249        100.0%
                                                          =============   ==============   =============    =============
</TABLE>

       Certificates  of deposit  and savings  accounts  of $100 or greater  were
       approximately   $5,377  and  $7,700  at  September  30,  2000  and  1999,
       respectively.


                                       24                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999



     Certificates  of deposit at September  30, 2000 are  scheduled to mature as
     follows:

Year ending September 30                                         Amount
                                                          ----------------------

    2001                                                  $         12,919
    2002                                                             3,263
    2003                                                             1,680
    2004                                                               243
                                                          ----------------------
                                                          $         18,105
                                                          ======================

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

<TABLE>
<CAPTION>
                                                                  2000                     1999
                                                          ----------------------   ----------------------
<S>                                                     <C>                               <C>
NOW accounts and MMDA                                     $           320                      322
Certificates of deposit and savings                                 1,264                    1,226
                                                          ----------------------   ----------------------
                                                          $         1,584                    1,548
                                                          ======================   ======================
</TABLE>

       Accrued  interest  payable on deposits  (included in accrued expenses and
       other  liabilities)  was $129 and $130 at  September  30,  2000 and 1999,
       respectively.


(7)    Advances From Federal Home Loan Bank

       Advances  from the Federal Home Loan Bank at September 30 are  summarized
       as follows:
<TABLE>
<CAPTION>
                                                                  2000                    1999
                                                          ---------------------   ----------------------
<S>                                                    <C>                               <C>
4.77% to 6.84% Putable Advances, put option
    exercisable quarterly, interest payable monthly
                                                          $         12,700                  11,200
5.95% to 7.49% Fixed Rate Advances, interest payable
    monthly                                                          6,600                   4,400
                                                          ---------------------   ----------------------
                                                          $         19,300                  15,600
                                                          =====================   ======================
</TABLE>

       At September  30, 2000,  BFSB had a Cash  Management  Advance note with a
       maximum  allowable  advance of $3,106  maturing on December 22, 2000.  No
       amounts  were  outstanding  as of  September  30, 2000 or 1999.  BFSB did
       receive  advances  under the Cash  Management  Advance note of $5,800 and
       $4,600 during the years ended  September 30, 2000 and 1999,  respectively
       which were fully repaid prior to September 30, 2000 and 1999.


                                       25                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


     Contractual  principal  payments on advances  from  Federal  Home Loan Bank
     subsequent to September 30, 2000 are as follows:

Year ending September 30                                         Amount
                                                          ----------------------

    2001                                                  $         10,900
    2002                                                             4,400
    2003                                                             3,500
    2004                                                                 -
    Thereafter                                                         500
                                                          ----------------------

                                                          $         19,300
                                                          ======================

     These advances are secured by pledges of FHLB demand  accounts,  FHLB stock
     and a  blanket  assignment  of  unpledged,  qualifying  mortgage  loan  and
     investment and mortgage-backed securities.

     The weighted average interest rate on these advances was 6.35% and 5.15% at
     September 30, 2000 and 1999, respectively.

(8)  Comprehensive Income

     A summary of the  reclassification  amounts  and  related  tax  effects for
     comprehensive income follows:
<TABLE>
<CAPTION>
                                                                                Year Ended September 30,
                                                                     -----------------------------------------------
                                                                             2000                      1999
                                                                     ----------------------    ---------------------
<S>                                                                <C>                          <C>
Disclosure of reclassification amount:
    Unrealized and realized holding gains (losses) arising
       during the period, net of income tax expense
       (benefit) of $60 and $(312) in 2000 and 1999,
       respectively                                                  $      114                      (606)
    Effect of adoption of SFAS No. 133, net of income tax
       expense of $28                                                         -                        55
    Reclassification adjustment for losses included in net
       income, net of income tax benefit of $4 and $1 in
       2000 and 1999, respectively                                            9                         2
                                                                     -----------------    ---------------------
          Net change in unrealized loss on
              available-for-sale investment securities               $      123                      (549)
                                                                     =================    =====================
</TABLE>

                                       26                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


(9)    Income Taxes

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

                                                                  2000                     1999
                                                          ----------------------   ----------------------
<S>                                                    <C>                                 <C>
Current                                                   $           228                      314
Deferred                                                               (1)                      10
                                                          ----------------------   ----------------------
    Total                                                 $           227                      324
                                                          ======================   ======================
</TABLE>

       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:

<TABLE>
<CAPTION>
                                                                  2000                     1999
                                                          ----------------------   ----------------------
<S>                                                     <C>                                <C>
Computed "expected" tax expense                           $           267                      345
Increase (decrease) resulting from:
     Tax-exempt interest                                              (31)                     (32)
     Dividends exclusion                                               (8)                      -
     Mark-to-market adjustment on ESOP shares
         committed to be released                                       1                        4
     Other                                                             (2)                       7
                                                          ----------------------   ----------------------
                                                          $           227                      324
                                                          ======================   ======================
</TABLE>

       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:
<TABLE>
<CAPTION>
                                                                  2000                     1999
                                                          ----------------------   ----------------------
<S>                                                     <C>                                <C>
Deferred tax assets:
    Unrealized loss on securities available-for-sale      $           112                      176
    Allowance for loan losses                                          92                       85
    Employee benefits                                                  18                        -
    Deferred loan fees                                                 10                       13
    Other                                                               -                       14
                                                          ----------------------   ----------------------
           Gross deferred tax assets                                  232                      288
                                                          ----------------------   ----------------------

Deferred tax liabilities:
    FHLB stock dividends                                             (219)                    (196)
    Tax bad debt reserve in excess of base year
       amount                                                         (13)                     (26)
    Prepaid deposit insurance premium                                  (1)                      (4)
                                                          ----------------------   ----------------------
           Gross deferred tax liabilities                            (233)                    (226)
                                                          ----------------------   ----------------------
           Net deferred tax asset (liability)             $            (1)                      62
                                                          ======================   ======================
</TABLE>

                                       27                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999



       At September  30, 2000 the deferred tax liability is included in "accrued
       expenses and other liabilities" in the accompanying  consolidated balance
       sheet.

       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, 2000 and 1999,  management  believes it is more likely than
       not that the  Company  will  realize  the  benefits  of these  deductible
       differences.

       Retained earnings at September 30, 2000 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.  A deferred tax  liability
       has been recognized by BFSB for the amount of the tax bad debt reserve in
       excess of the Base Year  Reserve.  The August 1996 tax  legislation  also
       requires this excess to be recaptured and included in taxable income over
       a six year period.


(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,  2000 and
       1999.

       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 (9.5% and 7.75% at September
       30, 2000 and 1999,  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.


                                       28                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


       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,  2000 and 1999,  ESOP
       principal   and  interest   payments  of   approximately   $86  and  $85,
       respectively,  were funded by Bank contributions of approximately $57 and
       $59,  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, 2000 and 1999 and the fair value of the
       remaining shares to be released in future years was approximately $476 at
       September 30, 2000. BFSB recognized  compensation expense relating to the
       ESOP of $41 and $53 during the years ended  September  30, 2000 and 1999,
       respectively.  The  dividends  on the  unallocated  ESOP  shares  are not
       recorded as dividends in the  consolidated  statements  of  stockholders'
       equity.

       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  1997,  BFSB
       purchased  42,320  shares  for the  MSBP and  granted  24,122  shares  to
       officers  and  directors.  During  1998,  3,386 of  unvested  shares were
       forfeited.  During 2000,  4,000  shares were  granted to  officers.  BFSB
       recognized compensation expense for the MSBP of $52 and $48 for the years
       ended  September 30, 2000 and 1999,  respectively.  At September 30, 2000
       and 1999, there were 7,845 and 7,956 of unvested shares, respectively.

       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 110% 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, 2000
       and 1999,  total  shares  available  for options  grants  under the Stock
       Option Plan are 29,675 and 38,088 shares, respectively.


                                       29                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


       Changes in shares  issuable  under  options  granted  for the years ended
September 30, 2000 and 1999 are summarized as follows:
<TABLE>
<CAPTION>
                                               Options outstanding                    Options exercisable
                                        -----------------------------------    -----------------------------------
                                                               Weighted                              Weighted
                                                               average                               average
                                           Number of           exercise           Number of          exercise
                                            Shares              price              Shares             price
                                        ----------------   ----------------    ----------------   ----------------
<S>                                        <C>              <C>                    <C>            <C>
Balance September 30, 1998                    65,596           $ 11.80                25,390         $ 11.75

Became exercisable                                 -                 -                13,118         $ 11.80
                                        ----------------                       ----------------

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
                                        ================                       ================
</TABLE>

       The stock  options  outstanding  at  September  30,  2000  consist of the
following:

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

      10,529                      $ 10.15                  9.52 years

      61,364                      $ 11.75                  6.0  year

       2,116                      $ 13.25                  7.96 years
-----------------------
      74,009
=======================

       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  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, 2000 and 1999 would have been
       as follows:
                                                 2000           1999
                                             -------------   -----------
Net income:    As reported                   $    559            690
               Pro forma                          536            667
                                             =============   ===========


                                       30                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999

<TABLE>
<CAPTION>

                                                                          2000              1999
                                                                  -----------------    ------------------
<S>                                                            <C>                         <C>
Basic earnings per share:    As reported                          $        .70               .81
                             Proforma                                      .67               .78
                                                                  =================    ================
Diluted earnings per share:      As reported                      $        .70               .80
                                 Pro forma                                 .67               .78
                                                                  =================    ================
</TABLE>

       The per share weighted-average fair value of stock options granted during
       2000 for this pro forma  disclosure was $2.54,  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
       5.56% and 6.25%, volatility factor of 21%, and expected life of 10 years.
       There were no stock option grants during 1999.

       Severance  Agreements.  BFSB  has  four  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.


(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>
                                                                                     2000                   1999
                                                                              --------------------   -------------------
<S>                                                                         <C>                            <C>
    Number of shares on which basic earnings per share is calculated:
       Average outstanding common shares during the fiscal year                        800,818                853,230

       Add:    Incremental shares under stock option plans                                 675                  4,656
               Incremental shares related to MSBP                                            -                    297
                                                                              --------------------   -------------------
    Number of shares on which diluted earnings per share is calculated                 801,493                858,183
                                                                              ====================   ===================
    Net income applicable to common stockholders                              $            559                    690
                                                                              ====================   ===================
    Basic earnings per share                                                  $            .70                    .81
                                                                              ====================   ===================
    Diluted earnings per share                                                $            .70                    .80
                                                                              ====================   ===================
</TABLE>

                                       31                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


       Stock  options and MSBP  awards of 72,988 and 4,106  shares for the years
       ended September 30, 2000 and 1999,  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, 2000 and 1999
       were approximately $25,798 and $24,793, respectively.

       BFSB's  compliance  with capital  requirements  at September 30, 2000 and
       1999 follows:
<TABLE>
<CAPTION>
                                                                              Minimum to be
                                                                         adequately capitalized        Minimum to be well
                                                                              under prompt              capitalized under
                                                                           corrective actions           prompt corrective
                                                     Actual                     provision               actions provision
                                             ------------------------    ------------------------    ------------------------
                                              Amount         Ratio        Amount         Ratio        Amount         Ratio
                                             ----------    ----------    ----------    ----------    ----------    ----------
<S>                                        <C>              <C>        <C>              <C>        <C>             <C>
         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          1,926        3.00           3,210        5.00
           Tangible capital (to
              tangible assets)                 11,607         18.08            963        1.50             963        1.50
                                             ==========    ==========    ==========    ==========    ==========    ==========
         As of September 30, 1999:
           Total capital (to
              risk-weighted assets)          $ 12,400         50.01%     $   1,983        8.00%      $   2,479       10.00%
           Core (Tier 1) capital (to
              risk-weighted assets)            12,151         49.01            744        3.00           1,488        6.00
           Core (Tier 1) capital (to
              adjusted assets)                 12,151         19.22          1,897        3.00           3,161        5.00
           Tangible capital (to
              tangible assets)                 12,151         19.22            948        1.50             948        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.


                                       32                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999



       Consolidated stockholders' equity differs from BFSB's tangible, core, and
       risk-based capital at September 30 as a result of the following:
<TABLE>
<CAPTION>
                                                                  2000                     1999
                                                          ----------------------   ----------------------
<S>                                                       <C>                           <C>
Consolidated stockholders' equity                         $        13,079                   13,356
Holding Company net assets                                         (2,000)                  (1,767)
                                                          ----------------------   ----------------------
    BFSB capital                                                   11,079                   11,589
Add back unrealized losses on certain
    available-for-sale securities                                     528                      562
                                                          ----------------------   ----------------------
Tangible and core capital                                          11,607                   12,151
Allowance for loan losses (limited to 1.25% of
    risk-weighted assets)                                             270                      249
                                                          ----------------------   ----------------------
           Risk-based capital                             $        11,877                   12,400
                                                          ======================   ======================
</TABLE>

       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, 2000.


(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.

       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.


                                       33                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999



       Financial  instruments  outstanding  at September 30, 2000 whose contract
       amounts represent credit risk are fixed-rate commitments to extend credit
       totaling  approximately  $384.  These  commitments  generally  contain  a
       termination date of 30 days from the date the commitment is approved.


(14)   Commitments

       The Company has  entered  into a purchase  and  assumption  agreement  to
       purchase the assets and assume the liabilities, deposits of approximately
       $1,300  (unaudited),  of a branch in  Gillette,  Wyoming  for  $675.  The
       closing of the  transaction is expected to take place in first quarter of
       fiscal year 2001.  The Company has also entered into a related  agreement
       to  purchase a vacant  lot  adjacent  to the branch for a total  purchase
       price of $75.

       The Company  has entered  into an option  agreement  to purchase  land in
       Sheridan,  Wyoming. The option expires on December 1, 2000. The land will
       facilitate  construction  of a branch.  The purchase price of the land is
       $277.  The  purchase is expected to close in the first  quarter of fiscal
       year 2001.

       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.

       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
              redemption value.

                                       34                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999


              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.

The approximate book value and fair value of the Company's financial instruments
as of September 30 are as follows:
<TABLE>
<CAPTION>
                                                         2000                                     1999
                                        ---------------------------------------   --------------------------------------
                                           Book value           Fair value           Book value           Fair value
                                        ------------------   ------------------   ------------------   -----------------
<S>                                   <C>                          <C>                  <C>                  <C>
Assets:
    Cash and cash equivalents           $         2,796                2,796                2,189                2,189
    Investment and mortgage-backed
        securities
        available-for-sale                       28,869               28,869               29,479               29,479
    Stock in FHLB                                 1,055                1,055                  988                  988
    Loans receivable, net                        30,980               30,588               29,727               29,278
    Accrued interest receivable                     534                  534                  522                  522

Liabilities:
    Deposits                                     32,081               32,037               34,249               34,166
    Advances from FHLB                           19,300               19,188               15,600               15,519
                                        ==================   ==================   ==================   =================
</TABLE>


                                       35                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999



(16)   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,
                                                                                --------------------------------------
                                                                                      2000                 1999
                                                                                -----------------    -----------------
                                  Assets
                                  ------

<S>                                                                          <C>                          <C>
Cash (demand account with BFSB)                                                 $            37                   25
Investment in subsidiary                                                                 11,078               11,565
Loan to ESOP                                                                                434                  480
Dividend receivable - BFSB                                                                  200                   90
Investment securities available-for-sale - mutual funds                                   1,576                1,409
Income taxes receivable                                                                      11                    8
Other assets                                                                                  1                    1
                                                                                -----------------    -----------------
        Total assets                                                            $        13,337               13,578
                                                                                =================    =================

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

Deferred tax liability - investment securities available-for-sale               $           160                  114
Dividends payable                                                                            96                  104
Other liabilities                                                                             2                    4
Stockholders' equity:
    Common stock                                                                            106                  106
    Additional paid-in capital                                                           10,100               10,096
    Unearned ESOP/MSBP shares                                                              (528)                (577)
    Retained earnings                                                                     7,271                7,080
    Accumulated other comprehensive loss                                                   (218)                (341)
    Treasury stock                                                                       (3,652)              (3,008)
                                                                                -----------------    -----------------
        Total stockholders' equity                                                       13,079               13,356
                                                                                -----------------    -----------------
        Total liabilities and stockholders' equity                              $        13,337               13,578
                                                                                =================    =================

</TABLE>

                                       36                            (Continued)
<PAGE>

              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

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

                           September 30, 2000 and 1999

       Condensed Statements of Income
<TABLE>
<CAPTION>
                                                                                      Year Ended September 30,
                                                                                --------------------------------------
                                                                                      2000                 1999
                                                                                -----------------    -----------------
<S>                                                                          <C>                          <C>
Dividends from BFSB                                                             $       1,180                  270
Dividends on mutual funds                                                                  33                   41
Interest income (ESOP loan and loan to BFSB)                                               41                   58
Management fee to BFSB                                                                    (28)                 (28)
Other operating expenses                                                                  (32)                 (34)
                                                                                -----------------    -----------------
    Income before equity in undistributed earnings of subsidiary and
       income taxes                                                                     1,194                  307
Equity in undistributed earnings (distributions in excess of earnings) of
    subsidiary                                                                           (652)                 393
                                                                                -----------------    -----------------
    Income before income taxes                                                            542                  700
Income tax benefit (expense)                                                               17                  (10)
                                                                                -----------------    -----------------
    Net income                                                                  $         559                  690
                                                                                =================    =================
</TABLE>

<TABLE>
<CAPTION>
       Condensed Statements of Cash Flows
                                                                                      Year Ended September 30,
                                                                                --------------------------------------
                                                                                      2000                 1999
                                                                                -----------------    -----------------
<S>                                                                          <C>                          <C>
Net income                                                                      $         559                  690
Adjustments to reconcile net income to net cash provided by operating
    activities:
       Dividends in excess of earnings (equity in undistributed earnings)
           of subsidiary                                                                  652                 (393)
       Mutual fund dividends reinvested                                                   (33)                 (41)
       Increase in dividends receivable - BFSB                                           (110)                 (90)
       Decrease (increase) in income taxes receivable                                      (3)                   2
       Decrease in other liabilities                                                       (2)                  (1)
       Decrease in other assets                                                             -                   11
                                                                                -----------------    -----------------
           Net cash provided by operating activities                                    1,063                  178
                                                                                -----------------    -----------------
Cash flows from investing activities:
    Principal payments received on loan to BFSB                                             -                  674
    Principal payments received on ESOP note receivable                                    46                   46
                                                                                -----------------    -----------------
           Net cash provided by investing activities                                       46                  720
                                                                                -----------------    -----------------
Cash flows from financing activities:
    Repurchase of common stock                                                           (693)                (582)
    Cash dividends paid                                                                  (404)                (360)
                                                                                -----------------    -----------------
           Net cash used in financing activities                                       (1,097)                (942)
                                                                                -----------------    -----------------
Net increase (decrease) in cash                                                            12                  (44)
Cash at beginning of year                                                                  25                   69
                                                                                -----------------    -----------------
                                                                                           37                   25
                                                                                =================    =================
Cash paid (refunds received) during the year for income taxes                   $         (11)                   7
                                                                                =================    =================
</TABLE>
                                       37                            (Continued)
<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                                         Mark A. Gannon
President and Chief Executive Officer                   Executive Vice President

Arnold R. Griffith, Jr.                                 John B. Snyder
Senior Vice President                                   Vice President and Chief Financial Officer


                             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

                                   Form 10-KSB

Crazy  Woman  Creek  Bancorp  Incorporated's  Annual  Report  for the year ended
September  30, 2000 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 24,
2001 at 3:00 p.m.  at the  Company's  main  office  located at 106 Fort  Street,
Buffalo, Wyoming.


</TABLE>

<PAGE>

                     Crazy Woman Creek Bancorp, Incorporated
                                 106 Fort Street
                                  P.O. Box 1020
                                Buffalo, WY 82834
                                 (307) 684-5591