EXHIBIT 13

                       2001 ANNUAL REPORT TO STOCKHOLDERS

<PAGE>
                               2001 ANNUAL REPORT

                         LEXINGTON B & L FINANCIAL CORP.


<PAGE>
<TABLE>
<CAPTION>
LEXINGTON B & L FINANCIAL CORP.

2001  ANNUAL  REPORT



TABLE OF CONTENTS

<S>                                                                                    <C>
Letter to Stockholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1
Business of the Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   2
Common Stock Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   2
Selected Consolidated Financial Information . . . . . . . . . . . . . . . . . . . . .   3
Management's Discussion and Analysis of Financial Condition and Results of Operations   6
Independent Auditors' Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13
Consolidated Statements of Financial Condition. . . . . . . . . . . . . . . . . . . .  14
Consolidated Statements of Stockholders' Equity and Comprehensive Income. . . . . . .  15
Consolidated Statements of Income . . . . . . . . . . . . . . . . . . . . . . . . . .  16
Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . .  17
Notes to Consolidated Financial Statements. . . . . . . . . . . . . . . . . . . . . .  19
Directors and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  37
Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  38
Stockholder Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  39
</TABLE>


<PAGE>
LETTER TO STOCKHOLDERS



President's Message
To Our Stockholders:


Earnings  for  the  year  ended  September 30, 2001 were $609,000, a decrease of
27.1%  from  the  $835,000  reported last year.  Earnings per share diluted were
$0.84  per  share  or  a  decrease  of 23.6% from the $1.10 per share last year.
Lower  earnings  can  be  attributed  to a decline in net interest income and to
higher  non-interest  expenses  from  cost  associated  with  the  merger of the
Company's  two  banking  subsidiaries and the occupancy of the newly constructed
banking  facility  in  Lexington, Missouri.  Stockholders' equity increased from
$13.9  million  at  September  30,  2000 to $14.6 million at September 30, 2001.
Tangible  book value per share increased 7.3% from $16.68 last year to $17.90 at
September  30,  2001.

Our  return  on  average  assets for the year ended September 30, 2001 was 0.52%
while  our return on average equity was 4.25%.  We paid a semiannual dividend in
January  and  July  for  a  total  of  $0.30  per  share.

Lexington  B  &  L  Financial Corp. stock trades on the Nasdaq (Small Cap) Stock
Market  under the symbol LXMO.  We began the year at $11.00 per share, reached a
high  of  $13.00 and closed on September 30, 2001 at $12.25 per share.  While we
are  disappointed  with  the  market  performance  of the Company's stock we are
pleased  that  our  stock  price  has remained stable considering the volatility
experienced  in  the  stock  market  during  the  past year.  During the year we
continued the stock repurchase program with the purchase of 14,931 shares of our
outstanding  stock  at  a  cost  of  $192,000.

Our  primary  focus  continues to be directed towards being a community-oriented
financial  institution  offering  a full range of outstanding financial products
and services for our customers.  A major step towards implementing this strategy
was  achieved  this  year  with  the  occupancy  of  our new banking facility in
Lexington,  Missouri  and  the  merger  of our two banking subsidiaries in April
2001.  The  merged  institution,  operating  from its new facility in Lexington,
with  branch  offices  in  Wellington and Callao, Missouri, is now positioned to
improve  and  expand  our  financial  products  and  services.

The  management  and  staff  of  Lexington B & L Financial Corp. appreciate your
support  and  confidence.


Sincerely,



Erwin  Oetting  Jr.
President


                                      -1-
<PAGE>
BUSINESS OF THE CORPORATION

Lexington  B  &  L  Financial  Corp.  ("Company"),  a  Missouri corporation, was
organized in 1995 for the purpose of becoming the holding company for B & L Bank
("B&L")  upon  its conversion from a federal mutual savings and loan association
to a federal stock savings bank ("conversion").  The conversion was completed on
June  5, 1996.  On October 1, 1997, the Company acquired 100% of the outstanding
stock  of  Lafayette  County  Bank  ("LCB").  The  acquisition was accounted for
utilizing  the purchase method of accounting.  During November 1998, the Company
formed  a  mortgage  banking  subsidiary, B & L Mortgage, Inc. ("MTG").  MTG has
been  originating  residential  mortgages  for  resale in the secondary mortgage
market.  On April 6, 2001, the Company merged its two bank subsidiaries, B&L and
LCB,  with  B&L  as  the surviving entity, which at September 30, 2001 had total
assets  of  $126.2  million.  At  September  30,  2001,  the  Company  had total
consolidated  assets  of $126.4 million and consolidated stockholders' equity of
$14.6  million.

The  Company  is  not  engaged  in  any significant business activity other than
holding the stock of B&L and MTG. Accordingly, the information set forth in this
report,  including  financial  statements and related data, applies primarily to
the  operations  of  its  banking  and  mortgage  banking  subsidiaries.

B&L  is  a  federal  stock  savings  bank, originally organized in 1887.  B&L is
regulated  by the Office of Thrift Supervision ("OTS").  The deposits of B&L are
insured  up  to  applicable limits by the FDIC and it is a member of the Federal
Home  Loan  Bank  ("FHLB")  System.

The  Company's  banking  subsidiary  operates  as a community-oriented financial
institution  devoted  to  serving  the  needs  of  its  customers  in Lexington,
Wellington  and  Callao,  Missouri  and nearby communities.  B&L Bank's business
consists  primarily  of  attracting  deposits  from the general public and using
those  funds  to  originate residential real estate, commercial, agriculture and
consumer  loans.

COMMON STOCK INFORMATION

The  Company's  common  stock  is  traded on the Nasdaq (Small Cap) Stock Market
under the symbol "LXMO".  As of September 30, 2001, there were approximately 500
stockholders of record and 769,242 shares of common stock outstanding (including
unreleased  Employee  Stock  Ownership  Plan  ("ESOP")  shares  of  46,004  and
Management  Recognition  and  Development  Plan  ("MRDP")  shares  of  10,117).
Dividend  payments  by the Company are dependent primarily on dividends received
by  the  Company  from  its  banking subsidiary.  Under federal regulations, the
dollar  amount  of  dividends  the  bank  may  pay is dependent upon its capital
position  and recent net income.  However, B&L may not declare or pay a dividend
on, or repurchase any of, its common stock if the effect thereof would cause the
regulatory  capital  of  the institution to be reduced below the amount required
for  the  liquidation  account  which  was  established  in  accordance with OTS
regulations.  The Company also has certain dividend limitations applicable under
Missouri  law  that prohibits it from declaring or paying dividends when its net
assets  are  less  than  its stated capital or when the payment of any dividends
would  reduce  its  net  assets  below  its  stated  capital.

The  following  table  sets forth the market price range of the Company's common
stock and dividends paid for the years ended September 30, 2001 and 2000.  Share
price  information  was  provided  by  the  Nasdaq  Stock  Market.

<TABLE>
<CAPTION>
                        Fiscal 2001                    Fiscal 2000
                --------------------------  --------------------------
                 High    Low    Dividends    High    Low    Dividends
                ------  ------  ----------  ------  ------  ----------
<S>             <C>     <C>     <C>         <C>     <C>     <C>
First Quarter   $12.50  $11.00  $      ---  $13.44  $12.12  $      ---
Second Quarter  $13.00  $11.19  $     0.15  $13.50  $10.87  $     0.15
Third Quarter   $13.00  $12.25  $      ---  $13.12  $ 9.00  $      ---
Fourth Quarter  $13.00  $12.10  $     0.15  $12.44  $ 9.62  $     0.15
</TABLE>


                                      -2-
<PAGE>
SELECTED CONSOLIDATED FINANCIAL INFORMATION

The  following  table sets forth certain information concerning the consolidated
financial position and results of operations of the Company at and for the dates
indicated.  The consolidated data is derived in part from, and should be read in
conjunction  with,  the Consolidated Financial Statements of the Company and its
subsidiaries  presented  herein.

<TABLE>
<CAPTION>
                                                                               AT SEPTEMBER 30,
                                                            ---------------------------------------------------
                                                              2001       2000       1999       1998      1997
                                                            ---------  ---------  ---------  --------  --------
<S>                                                         <C>        <C>        <C>        <C>       <C>
                                                                            (Dollars in Thousands)

SELECTED FINANCIAL CONDITION DATA:

Total assets                                                $126,389   $107,687   $106,693   $93,761   $58,789
Loans receivable, net                                         72,504     64,680     62,126    62,315    45,888
Investment securities                                         30,811     30,021     32,700    17,338     4,256
Cash and interest-bearing deposits(1)                         13,251      4,746      6,091     8,985     6,843
FHLB stock                                                       618        543        535       520       464
Deposits                                                     100,129     85,338     85,150    76,764    42,694
Stockholders' equity                                          14,555     13,944     15,110    15,593    15,652


                                                                               AT SEPTEMBER 30,
                                                            ---------------------------------------------------
                                                              2001       2000       1999       1998      1997
                                                            ---------  ---------  ---------  --------  --------
                                                              (Dollars in Thousands, Except Per Share Amounts)

SELECTED OPERATING DATA:

Interest income                                             $  8,154   $  7,640   $  7,337   $ 6,997   $ 4,597
Interest expense                                               5,108      4,374      4,282     3,776     2,298
                                                            ---------  ---------  ---------  --------  --------
     Net interest income                                       3,046      3,266      3,055     3,221     2,299

Provision for loan losses                                        144         70         37        26        29
                                                            ---------  ---------  ---------  --------  --------
     Net interest income after provision for loan losses       2,902      3,196      3,018     3,195     2,270

Noninterest income                                               576        465        403       305        84
Noninterest expense                                            2,758      2,441      2,438     2,483     1,218
                                                            ---------  ---------  ---------  --------  --------

     Income before income taxes                                  720      1,220        983     1,017     1,136

Income taxes                                                     111        385        323       358       390
                                                            ---------  ---------  ---------  --------  --------

     Net income                                             $    609   $    835   $    660   $   659   $   746
                                                            =========  =========  =========  ========  ========

Basic income per share                                      $   0.85   $   1.12   $   0.74   $  0.68   $  0.70
                                                            =========  =========  =========  ========  ========

Diluted income per share                                    $   0.84   $   1.10   $   0.72   $  0.66   $  0.69
                                                            =========  =========  =========  ========  ========

Dividends per share                                         $   0.30   $   0.30   $   0.30   $  0.30   $  0.15
                                                            =========  =========  =========  ========  ========


                                      -3-
<PAGE>
                                                                   AT OR FOR THE YEAR ENDED SEPTEMBER 30,
                                                            ---------------------------------------------------
                                                              2001       2000       1999       1998      1997
                                                            ---------  ---------  ---------  --------  --------

KEY OPERATING RATIOS:

PERFORMANCE RATIOS:
Return on average assets (net income divided by
 average assets)                                                0.52%      0.79%      0.63%     0.70%     1.24%
Return on average equity (net income divided by
 average equity)                                                4.25       5.93       4.20      4.00      4.23
Interest rate spread (difference between average yield
 on interest-earning assets and average cost of interest-
 bearing liabilities)                                           2.20       2.60       2.26      2.63      2.40
Net interest margin (net interest income to
 average interest-earning assets)                               2.83       3.32       3.10      3.64      3.93
Noninterest expense to assets                                   2.18       2.27       2.29      2.65      2.07
Average interest-earning assets to interest-bearing
 liabilities                                                     114        116        119       124       139
Dividend payout ratio (dividends paid divided by
 net income per share-basic)                                   35.29      29.79      40.54     44.12     21.43

ASSET QUALITY RATIOS:
Allowance for loan losses to total loans receivable at
 end of period                                                  0.98       0.99       0.96      0.95      0.48
Net charge offs to average outstanding loans
 receivable during the period                                   0.11       0.03       0.06      0.06      0.02
Non-performing assets to total assets (2)                       0.55       0.41       0.43      0.56      0.67

CAPITAL RATIOS:
Equity to total assets at end of period                        11.52      12.95      14.16     16.63     26.63
Average equity to average assets                               12.30      13.38      15.08     17.58     29.24


                                                                                AT SEPTEMBER 30,
                                                            ---------------------------------------------------
                                                                2001       2000       1999      1998      1997
                                                            ---------  ---------  ---------  --------  --------
OTHER DATA:
Number of:
 Loans outstanding                                             2,978      2,926      3,053     3,095     1,595
 Deposit accounts                                             10,537     10,630     10,659    10,449     4,487
 Full-service offices                                              3          4          4         4         1

_______________
<FN>
(1)     Includes interest-bearing deposits in other depository institutions.
(2)     Non-performing assets include non-accrual loans and other repossessed assets.
</TABLE>


                                      -4-
<PAGE>
<TABLE>
<CAPTION>
SELECTED  QUARTERLY  FINANCIAL  DATA

The  following  table  provides a summary of operations by quarter for the years
ended  September  30,  2001  and  2000.

                                                   FISCAL 2001 QUARTER ENDED
                                      -----------------------------------------------------
                                      SEPTEMBER 30    JUNE 30      MARCH 31    DECEMBER 31
                                      -------------  ----------  ------------  ------------
<S>                                   <C>            <C>         <C>           <C>
                                           (Dollars in Thousands, Except Per Share Data)

Interest income                       $       2,019  $   2,066   $      2,044  $      2,025
Interest expense                              1,312      1,352          1,257         1,187
                                      -------------  ----------  ------------  ------------
Net interest income                             707        714            787           838
Provision for loan losses                        41         67             18            18
                                      -------------  ----------  ------------  ------------
Net interest income after provision
 for loan losses                                666        647            769           820

Noninterest income                              135        210            120           113
Noninterest expense                             606        913            643           597
                                      -------------  ----------  ------------  ------------
Income before income taxes                      195        (56)           246           336
Income taxes                                     44       (122)            80           109
                                      -------------  ----------  ------------  ------------
     Net income                       $         151  $      66   $        166  $        227
                                      =============  ==========  ============  ============

     Basic income per share           $        0.21  $    0.09   $       0.23  $       0.32
                                      =============  ==========  ============  ============

     Diluted income per share         $        0.21  $    0.09   $       0.23  $       0.31
                                      =============  ==========  ============  ============


                                                      FISCAL 2000 QUARTER ENDED
                                      -----------------------------------------------------
                                      SEPTEMBER 30    JUNE 30      MARCH 31    DECEMBER 31
                                      -------------  ----------  ------------  ------------
                                           (Dollars in Thousands, Except Per Share Data)

Interest income                       $       1,962  $   1,931   $      1,879  $      1,868
Interest expense                              1,103      1,089          1,100         1,082
                                      -------------  ----------  ------------  ------------
Net interest income                             859        842            779           786
Provision for loan losses                        28         16             14            12
                                      -------------  ----------  ------------  ------------
Net interest income after provision
 for loan losses                                831        826            765           774

Noninterest income                              101        138            106           120
Noninterest expense                             590        600            627           624
                                      -------------  ----------  ------------  ------------
Income before income taxes                      342        364            244           270
Income taxes                                     94        124             83            84
                                      -------------  ----------  ------------  ------------
     Net income                       $         248  $     240   $        161  $        186
                                      =============  ==========  ============  ============

     Basic income per share           $        0.34  $    0.34   $       0.21  $       0.23
                                      =============  ==========  ============  ============

     Diluted income per share         $        0.34  $    0.33   $       0.21  $       0.22
                                      =============  ==========  ============  ============
</TABLE>


                                      -5-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS


This report contains certain "forward-looking statements". These forward-looking
statements, which are included in Management's Discussion and Analysis, describe
future  plans  or  strategies  and  include the Company's expectations of future
financial  results.  The  words  "believe",  "expect", "anticipate", "estimate",
"project"  and  similar  expressions  identify  forward-looking  statements. The
Company's ability to predict results or the effect of future plans or strategies
is  inherently  uncertain.  Factors  which  could  affect actual results include
interest  rate trends, the general economic climate in the Company's market area
and  the  country as a whole, loan delinquency rates, and changes in federal and
state  regulations.  These  factors  should  be  considered  in  evaluating  the
forward-looking  statements  and  undue  reliance  should  not be placed on such
statements.

GENERAL
-------

Management's  discussion  and analysis of the financial condition and results of
operations  is  intended  to  assist in understanding the consolidated financial
condition  and  results of operations of the Company.  The information contained
in  this  section  should be read in conjunction with the Consolidated Financial
Statements  and  accompanying  notes  thereto.

OPERATING  STRATEGY
-------------------

The business of the Company consists principally of attracting deposits from the
general  public  and  using  such  deposits  to  originate  one-  to four-family
residential mortgages, commercial, agricultural and consumer loans.  The Company
also  invests in U.S. Treasury securities, certificates of deposit, U.S. Federal
agency  securities,  state and local obligations and mortgage-backed securities.
The  Company  plans  to  continue to fund its assets primarily with deposits and
FHLB  advances.

Operating  results  are dependent primarily on net interest income, which is the
difference  between  the  income  earned on its interest-earning assets, such as
loans  and investments, and the cost of interest-bearing liabilities, consisting
primarily  of  deposits.  Operating  results  are also significantly affected by
general  economic  and  competitive  conditions,  primarily  changes  in  market
interest  rates,  governmental  legislation and policies concerning monetary and
fiscal  affairs and housing, as well as financial institutions and the attendant
actions  of  the  regulatory  authorities.

The  Company's  strategy  is  to  operate  as  a conservative, well-capitalized,
profitable  community-oriented financial institution dedicated to financing home
ownership,  commercial,  agricultural  and  consumer  needs within the market it
serves  and  to  provide quality service to all customers.  The Company believes
that  it  has  successfully  implemented  its strategy by (i) maintaining strong
capital  levels,  (ii)  maintaining effective control over operating expenses to
attempt  to achieve profitability under differing interest rate scenarios, (iii)
limiting  interest  rate risk, (iv) emphasizing local loan originations, and (v)
emphasizing  high-quality  customer  service  with  a competitive fee structure.

INTEREST  RATE  RISK  MANAGEMENT
--------------------------------

In  order  to  reduce  the  impact on the Company's net interest earnings due to
changes  in  interest rates, the Company's strategy on interest rate sensitivity
risk  is  to  manage  the  exposure  to potential risks associated with changing
interest  rates by maintaining a balance sheet posture where annual net interest
earnings and the market value of portfolio equity are not significantly impacted
by  unexpected  changes  in  interest  rates.


                                      -6-
<PAGE>
INTEREST  RATE  SENSITIVITY  OF  NET  PORTFOLIO  VALUE
------------------------------------------------------

The  Bank measures its interest rate risk ("IRR") in terms of sensitivity of its
net portfolio value ("NPV") to changes in interest rates.  NPV is the difference
between incoming and outgoing discounted cash flows from assets, liabilities and
off-balance  sheet contracts.  An institution's IRR is measured as the change to
its  NPV  as  a result of a hypothetical 200 basis point ("bp") change in market
interest  rates.  The  following  table presents the Bank's NPV at September 30,
2001,  as  calculated  by  the  OTS.

        BASIS POINT              NET PORTFOLIO VALUE
        CHANGE       -----------------------------------------
        IN RATES           $AMOUNT         $CHANGE   % CHANGE
                     --------------------  --------  ---------

        +300 bp      $             13,745  $  (801)       (6)%
        +200 bp                    14,480      (66)       ---
        +100 bp                    14,847      301          2
           0 bp                    14,546      ---        ---
        -100 bp                    13,722     (824)        (6)
        -200 bp                    12,721   (1,825)       (13)
        -300 bp                       ---      ---        ---

Because  of  the  market rates of interest at September 30, 2001, calculation of
the  NPV  for  a  decline  of  300  basis  points  is  not  possible.

As  with  any  method of measuring IRR, certain shortcomings are inherent in the
method  of  analysis  presented  in  the foregoing table.  For example, although
certain  assets  and  liabilities  may  have  similar  maturities  or periods of
repricing,  they  may  react  in different degrees to changes in market interest
rates.  Also,  the interest rates on certain types of assets and liabilities may
fluctuate  in  advance of changes in market interest rates, while interest rates
on  other  types  may lag behind changes in market rates.  Additionally, certain
assets,  have  features  that restrict changes in interest rates on a short-term
basis  and over the life of the asset.  Furthermore, in the event of a change in
interest  rates,  expected  rates  of prepayments on loans and early withdrawals
from  certificates  could  likely  deviate  significantly  from those assumed in
calculating  the  table.  Accordingly,  actual  results could vary significantly
from  the  results  predicted  by  the  foregoing  table.

COMPARISON  OF  FINANCIAL  CONDITION  AT  SEPTEMBER  30,  2001  AND  2000
-------------------------------------------------------------------------

Total  assets  increased  to  $126.4  million at September 30, 2001, from $107.7
million  at  September  30, 2000.  The increase can primarily be attributed to a
$14.8 million increase in deposits and a $3.5 million new FHLB advance. Deposits
increased  principally  from  an  increase in retail certificates of deposit and
funds deposited by public entities.  The majority of the new funds were invested
into  the  loan  portfolio,  which  increased $7.8 million, and interest-bearing
deposits,  which  increased  $8.4  million.  Investment  securities  increased
$790,000.  Equity  increased  from  $13.9 million at September 30, 2000 to $14.6
million  at  September  30, 2001, primarily from retained earnings less treasury
stock  purchases.  For  the  year ended September 30, 2001, the Company acquired
14,931  shares  of  its  outstanding  common  stock  at  a  cost  of  $192,000.


                                      -7-
<PAGE>
COMPARISON  OF  OPERATING RESULTS FOR THE YEAR ENDED SEPTEMBER 30, 2001 AND 2000
--------------------------------------------------------------------------------

NET  INCOME.  For  the  year  ended  September  30,  2001,  net income decreased
$226,000  or  27.1%  to $609,000 from the $835,000 reported last year.  Earnings
per  share-diluted  for the year ended September 30, 2001, decreased 26 cents or
23.6%  to  $0.84  per share from the $1.10 per share last year.  The decrease in
net  income  can  be  attributed  to  a  decline  in the net interest spread and
interest margin, higher provision for loan losses and higher noninterest expense

NET  INTEREST  INCOME.  Net  interest  income decreased 6.7% or $220,000 to $3.0
million  for  the  year ended September 30, 2001, from $3.3 million for the year
ended  September  30,  2000.  Total  interest  income increased $514,000 to $8.2
million  from $7.6 million in 2000.  The increase can be attributed to increased
volume  of  average  earning  assets,  which increased of $9.0 million to $107.5
million  during  the year ended September 30, 2001 from $98.5 million last year.
The  interest  rate spread decreased 40 basis points to 2.20% from 2.60% for the
same  period  last  year.  The  net interest margin decreased 49 basis points to
2.83% from 3.32% for the year ended September 30, 2000.  The decrease in the net
interest  spread  and  the net interest margin can be attributed to the yield on
investment  securities  and overnight funds.  As a result of the general decline
in  interest  rates  during the year ended September 30, 2001, a majority of the
Federal  agency  securities  held  at  the beginning of the year were called and
reinvested  at  a  lower  yield.  The average yield on the investment securities
portfolio  decreased 53 basis points to 5.48% from the 6.01% realized last year.
The  average  cost  of  interest bearing liabilities of 5.39% for the year ended
September 30, 2001 increased 23 basis points from 5.16% reported last year.  The
increase  in  the  average  cost  of  funds  can  be  attributed  to competitive
pressures,  which  necessitated  higher  rates  of  interest on new and renewing
certificates of deposit during the first five months of the current fiscal year.

PROVISION  FOR  LOAN LOSSES.  The provision for loan losses was $144,000 for the
year  ended  September  30,  2001,  as  compared to $70,000 for last year.  Loan
charge-offs  for  the  year  September  30,  2001 totaled to $93,000 compared to
$31,000  last  year.  Net loan charge-offs for 2001 amounted to $72,000 or 0.11%
of  average  outstanding  loans,  compared  to  $21,000  or 0.3% last year.  The
increase  in  the  provision  for  loan losses over last year is attributable to
provisions required by the Company's methodologies and documentation requirement
to determine the provision for losses and the adequacy of the allowance for loan
losses.

NONINTEREST  INCOME.  Noninterest  income increased $112,000 to $576,000 for the
year  ended  September  30,  2001.  The  increased  noninterest  income  can  be
attributed  to a $62,000 gain on the sale of a parking lot and to gains realized
on  securities  called  prior  to  maturity.

NONINTEREST  EXPENSE.  Noninterest expense increased $317,000 for the year ended
September  30,  2001  over  last  year.  The  majority  of  the  increase can be
attributed  to  the  contribution  of a bank building previously occupied by B&L
Bank,  with  a  value  of  $211,000,  to  the City of Lexington, Missouri.  Also
contributing  to  the  increase in non-interest expense were increases in salary
and  benefits  of $13,000, occupancy of $61,000, and data processing of $43,000,
which  can be attributed to the merger of the Company's two banking subsidiaries
and  the  cost  associated with the new banking facility occupied in March 2001.

INCOME TAXES.  The provision for income taxes decreased $274,000 to $111,000 for
the  year  ended  September 30, 2001, from $385,000 for the year ended September
30,  2000.  The effective tax rate for 2001 was 15.4% compared to 31.6% for last
year.  The  decline  in  the  effective  tax  rate  can  be  attributed  to  the
contribution  of  a bank building to the City of Lexington with a carrying value
of  $209,000,  which for tax purposes will be deducted at its appraised value of
$465,000  for  a  tax  benefit  of  $172,000.

COMPARISON  OF  OPERATING RESULTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 AND 1999
--------------------------------------------------------------------------------

NET  INCOME.  For  the  year  ended  September  30,  2000,  net income increased
$175,000  or  26.5%  to  $835,000 from $660,000 for the year ended September 30,
1999.  Earnings  per  share-diluted  for  the  year  ended  September  30, 2000,
increased  38  cents  or  52.8%  to $1.10 per share over the $0.72 per share for
fiscal  1999.  The increase in net income can be attributed to an improvement in
the  interest  spread  and  interest  margin and higher noninterest income.  The
purchase  of treasury stock also contributed to the increase in diluted earnings
per  share.


                                      -8-
<PAGE>
NET  INTEREST  INCOME.  Net  interest  income increased 6.9% or $211,000 to $3.3
million  for  the  year  ended September 30, 2000, over the $3.1 million for the
year ended September 30, 1999.  Total interest income increased $303,000 to $7.6
million  from  the  $7.3  million  in  1999.  The  increase can be attributed to
increased  yield on average earning assets, despite a decrease in earning assets
of $187,000 to $98.5 million during the year ended September 30, 2000 from $98.7
million  in  fiscal 1999.  The interest rate spread increased 33 basis points to
2.60%  from  2.27%  for  the  same  period  last  year.  The net interest margin
increased  22  basis points to 3.32% from 3.10% for the year ended September 30,
1999.  The  increase  in the net interest spread and the net interest margin can
be attributed to the yield on loans, which are adjustable to changes in interest
rates.  The  average  yield  on  the loan portfolio increased 27 basis points to
8.77%  over  the 8.50% realized last year.  The average cost of interest bearing
liabilities  of  5.16%  for  the  year  ended  September  30, 2000 was virtually
unchanged  from  the  5.17%  reported  during  the  same  period  a  year  ago.

PROVISION  FOR  LOAN  LOSSES.  The provision for loan losses was $70,000 for the
year  ended  September  30,  2000,  as  compared to $37,000 for last year.  Loan
charge-offs  for  the  year  September  30,  2000 totaled to $31,000 compared to
$59,000  for  fiscal 1999.  Net loan charge-offs for 2000 amounted to $21,000 or
0.3%  of  average outstanding loans, compared to $37,000 or 0.6% last year.  The
increase  in  the  provision  for  loan losses over last year is attributable to
provisions required by the Company's methodologies and documentation requirement
to determine the provision for losses and the adequacy of the allowance for loan
losses.

NONINTEREST  INCOME.  Noninterest  income  increased $62,000 to $465,000 for the
year  ended  September  30,  2000.  The  increased  noninterest  income  can  be
attributed to a $57,000 increase in service charges and other fees.  Included in
other  fees  were  mortgage banking fees of $68,000 for 2000 compared to $76,000
earned  in  fiscal  1999.

NONINTEREST  EXPENSE.  Noninterest  expense  increased $3,000 for the year ended
September  30, 2000 over last year.  Employee compensation and benefits declined
$43,000  as  a  result  of a $69,000 decrease in the MRDP expense, which totaled
$104,000  for the year ended September 30, 2000, compared to $173,000 last year.
The  five year amortization period of the Management Recognition and Development
Plan  ("MRDP")  expense is weighted towards higher expense in the earlier years.

INCOME  TAXES.  The provision for income taxes increased $62,000 to $385,000 for
the  year  ended  September 30, 2000, from $323,000 for the year ended September
30, 1999. The effective tax rate for 2000 was 31.6% compared to 32.9% for fiscal
1999.  The  decline in the effective tax rate was the result of sales taxes paid
on  the construction of the new office building, which was a direct reduction in
the  state income tax.  Also contributing to the lower effective tax rate was an
increase in tax-exempt interest income on state and municipal security holdings.


                                      -9-
<PAGE>


<TABLE>
<CAPTION>
                                                      YEAR ENDED SEPTEMBER 30,
                                                       ------------------------

                                                               2001                              2000                  1999
                                                --------------------------------  --------------------------------  -----------
                                                            INTEREST                          INTEREST
                                                 AVERAGE       AND      YIELD/     AVERAGE       AND      YIELD/     AVERAGE
                                               BALANCE(1)   DIVIDENDS    COST    BALANCE(1)   DIVIDENDS    COST    BALANCE(1)
                                               -----------  ----------  -------  -----------  ----------  -------  -----------
<S>                                            <C>          <C>         <C>      <C>          <C>         <C>      <C>
Interest-earning assets(2):
    Loans receivable                           $    66,542  $    5,941    8.93%  $   62,440   $    5,475    8.77%  $   62,023
    Investment securities and other interest-
      bearing deposits                              36,998       2,027    5.48       33,783        2,030    6.01       35,397
    Federal funds sold                               3,959         186    4.70        2,253          135    5.99        1,243
                                               -----------  ----------           -----------  ----------           -----------
        Total interest-earning assets              107,499       8,154    7.59       98,476        7,640    7.76       98,663
Noninterest-earning assets                           9,072                            6,708                             5,628
                                               -----------                       -----------                       -----------
        Total assets                           $   116,571                       $  105,184                        $  104,291
                                               ===========                       ===========                       ===========

Interest-bearing liabilities:
    NOW, money market and
      passbook accounts                        $    22,107         776    3.51   $   22,454          804    3.58       22,902
    Certificates of deposit                         63,639       3,892    6.12       56,889        3,280    5.77       55,264
                                               -----------  ----------           -----------  ----------           -----------
        Total deposits                              85,746       4,668    5.44       79,343        4,084    5.15       78,166
    FHLB advances                                    8,802         425    4.83        5,182          265    5.11        4,280
    Notes payable                                      158          15    9.49          253           25    9.88          341
                                               -----------  ----------           -----------  ----------           -----------
        Total interest-bearing liabilities          94,706       5,108    5.39       84,778        4,374    5.16       82,787
                                                            ----------                        ----------
Noninterest-bearing liabilities                      7,532                            6,331                             5,773
                                               -----------                       -----------                       -----------
        Total liabilities                          102,238                           91,109                            88,560
Stockholders' equity                                14,333                           14,075                            15,731
                                               -----------                       -----------                       -----------
        Total liabilities and stockholders'
          equity                               $   116,571                       $  105,184                        $  104,291
                                               ===========                       ===========                       ===========
Net interest income                                         $    3,046                        $    3,266
                                                            ==========                        ==========
Interest rate spread                                                      2.20%                             2.60%
                                                                        =======                           =======
Net interest margin                                                       2.83%                             3.32%
                                                                        =======                           =======
Ratio of average interest-earning assets
      To average interest-bearing liabilities                                           116%                              119%
                                                                                 ===========                       ===========


                                                       1999
                                               ------------------
                                                INTEREST
                                                  AND      YIELD/
                                               DIVIDENDS    COST
                                               ----------  -------
<S>                                            <C>         <C>
Interest-earning assets(2):
    Loans receivable                           $    5,275    8.50%
    Investment securities and other interest-
      bearing deposits                              2,003    5.66
    Federal funds sold                                 59    4.75
                                               ----------
        Total interest-earning assets               7,337    7.44
Noninterest-earning assets

        Total assets


Interest-bearing liabilities:
    NOW, money market and
      passbook accounts                               818    3.57
    Certificates of deposit                         3,205    5.80
                                               ----------
        Total deposits                              4,023    5.15
    FHLB advances                                     225    5.26
    Notes payable                                      34    9.97
                                               ----------
        Total interest-bearing liabilities          4,282    5.17
                                               ----------
Noninterest-bearing liabilities

        Total liabilities
Stockholders' equity

        Total liabilities and stockholders'
          equity

Net interest income                            $    3,055
                                               ==========
Interest rate spread                                         2.27%
                                                           =======
Net interest margin                                          3.10%
                                                           =======
Ratio of average interest-earning assets
      To average interest-bearing liabilities

<FN>
(1) Average balances for a period are calculated using the average month end balance during each period
(2) Interest-earning assets include non-accrual loans and loans 90 days or more past due.
</TABLE>


                                      -10-
<PAGE>
The  following table sets forth the effects of changing rates and volumes on net
interest  income  of  the  Company.  Information is provided with respect to (i)
effects  on interest income attributable to changes in volume (changes in volume
multiplied  by  prior  rate);  (ii)  effects  on interest income attributable to
changes  in rate (changes in rate multiplied by prior volume); and, (iii) to the
net  change.  The  changes  attributed to the combined impact of rate and volume
have been allocated proportionately to the changes due to volume and the changes
due  to  rate.


<TABLE>
<CAPTION>
                                                                    YEAR ENDED SEPTEMBER 30,
                                                   ----------------------------------------------------------
                                                       2001 COMPARED TO 2000         2000 COMPARED TO 1999
                                                     INCREASE (DECREASE) DUE TO   INCREASE (DECREASE) DUE TO
                                                   ----------------------------  ----------------------------
                                                     RATE     VOLUME     NET       RATE     VOLUME     NET
                                                   --------  --------  --------  --------  --------  --------
<S>                                                <C>       <C>       <C>       <C>       <C>       <C>
                                                                       (Dollars in Thousands)

Interest-earning assets:
Loans receivable (1)                               $   101   $   365   $   466   $   165   $    35   $   200
Investment securities and other interest-bearing
 deposits                                             (187)      184        (3)      120       (93)       27
Federal funds sold                                     (35)       86        51        18        58        76
                                                   --------  --------  --------  --------  --------  --------
    Total net change in income on
    interest-earning assets                           (121)      635       514       303         0       303

Interest-bearing liabilities:
Passbook, NOW and money market accounts                (16)      (12)      (28)        2       (16)      (14)
Certificates of deposit                                207       405       612       (19)       94        75
FHLB advances                                          (16)      176       160        (6)       46        40
Notes payable                                            0       (10)      (10)        0        (9)       (9)
                                                   --------  --------  --------  --------  --------  --------
Total interest-bearing liabilities                     175       559       734       (23)      115        92
                                                   --------  --------  --------  --------  --------  --------
Net change in net interest income                  $  (296)  $    76   $  (220)  $   326   $  (115)  $   211
                                                   ========  ========  ========  ========  ========  ========

<FN>
(1) For purposes of calculating volume, rate and rate/volume variances, non-accrual loans are included in the
    weighted-average balance outstanding
</TABLE>

LIQUIDITY  AND  CAPITAL  RESOURCES
----------------------------------

The  Company's  banking  subsidiary,  B&L,  must  maintain  an adequate level of
liquidity  to ensure availability of sufficient funds to support loan growth and
deposit  withdrawals,  satisfy  financial  commitments  and to take advantage of
investment  opportunities.

The  primary  source  of  liquidity for B&L is liability liquidity, which is the
ability to raise new funds and renew maturing liabilities.  Principal sources of
liability  liquidity  are  customer's deposits and advances from the FHLB. Asset
liquidity  is  typically  provided from the proceeds from principal and interest
payments  on  loans,  investment  securities  and  net  operating income.  While
scheduled maturities of loans and investment securities are somewhat predictable
source  of  funds, deposit flows and mortgage prepayments are greatly influenced
by  general  interest  rates,  economic  conditions  and  competition.


                                      -11-
<PAGE>
LIQUIDITY  AND  CAPITAL  RESOURCES  -  CONT'D
---------------------------------------------

Liquid  funds necessary for normal daily operations are maintained with the FHLB
of  Des  Moines  and correspondent banks. Excess funds over balances required to
cover  bank  charges  for  services,  are  sold  in  overnight  Federal funds or
transferred  to  time  deposit accounts at the FHLB.  At September 30, 2001, B&L
held  $13.4  million  in  excess  funds in time deposit accounts at the FHLB and
Federal  funds  sold.

The  Company uses its sources of funds primarily to fund loan commitments and to
pay deposits withdrawals.  At September 30, 2001, the Company had commitments to
originate  loans  aggregating  approximately  $8.8 million.  As of September 30,
2001,  certificates  of  deposit  amounted  to  $65.4 million, or 65.3% of total
deposits, including $41.6 million which are scheduled to mature in less than one
year.  Historically, the Company has been able to retain a significant amount of
its  deposits as they mature.  The Company believes it has adequate resources to
fund all loan commitments through deposit growth by adjusting the offering rates
of certificates to retain deposits in changing interest rate environments or, if
necessary,  through  FHLB  advances.

Net  cash provided by operating activities for the Company during the year ended
September  30,  2001,  was  $1.2  million.  Net income of $609,000, adjusted for
non-cash  charges,  largely  accounted  for  the  net cash provided by operating
activities.  Net  cash  used  by  investing  activities  was $10.3 million.  The
largest  component  of  cash  used  by  investing activities was the increase in
investment  securities, loans originated and purchased and the construction of a
new  banking  facility.  Net  cash  provided  by  financing activities was $17.6
million.  The  largest  component  of  cash provided by financing activities was
from  the  increase  in  deposits  and  new  FHLB  advance.

At  September 30, 2001, the Company's stockholders' equity totaled $14.6 million
or  11.5%  of  total  assets compared to $13.9 million or 12.9% at September 30,
2000.  The  increase  can be attributed to retained earnings less the repurchase
of  the  Company's common stock, which during the year ended September 30, 2001,
amounted  to  $192,000.  The  Company  is  not subject to any regulatory capital
requirements.  B&L is subject to certain capital requirements imposed by the OTS
and  FDIC,  which  were  satisfied  at  September  30,  2001.  See Note J of the
Consolidated  Financial  Statements.

EFFECT  OF  INFLATION  AND  CHANGING  PRICES
--------------------------------------------

The  consolidated  financial  statements  and  related  financial data presented
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 due to inflation. The primary
impact  of  inflation  on  operations  of  the Company is reflected in increased
operating costs.  Unlike most industrial companies, virtually all the assets and
liabilities  of  a  financial  institution are monetary in nature.  As a result,
interest  rates  generally  have  a  more  significant  impact  on  a  financial
institution's  performance  than do general levels of inflation.  Interest rates
do  not  necessarily  move  in  the  same direction or to the same extent as the
prices  of  goods  and  services.

IMPACT  OF  NEW  ACCOUNTING  STANDARDS
--------------------------------------

See  Note  A  of  the  Notes  to  the  Consolidated  Financial  Statements.


                                      -12-
<PAGE>
                          INDEPENDENT AUDITORS' REPORT




Board  of  Directors
Lexington  B  &  L  Financial  Corp.
Lexington,  Missouri


We  have audited the accompanying consolidated statements of financial condition
of  Lexington  B  &  L  Financial Corp. ("Company") as of September 30, 2001 and
2000,  and  the related consolidated statements of income, stockholders' equity,
and  cash  flows  for  each of the three years in the period ended September 30,
2001.  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  audits  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 the Company at
September  30,  2001  and  2000,  and the results of its operations and its cash
flows  for  each  of  the three years in the period ended September 30, 2001, in
conformity with accounting principles generally accepted in the United States of
America.

                                /s/ Moore, Horton, & Carlson, P.C.

Mexico,  Missouri
November  28,  2001


                                      -13-
<PAGE>
<TABLE>
<CAPTION>
LEXINGTON B & L FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                                                                                       SEPTEMBER 30
                                                                                   2001           2000
                                                                               -------------  -------------
<S>                                                                            <C>            <C>
ASSETS

Cash and due from banks                                                        $  1,738,068   $  1,657,815
Interest-bearing deposits                                                        11,513,314      3,087,806
Investment securities-Note B
    Available-for-sale, at fair value                                            24,737,457      7,789,500
    Held-to-maturity (fair value of $6,194,394 and $21,591,759, respectively)     6,073,428     22,231,430
Federal funds sold                                                                1,919,000      1,374,000
Stock in FHLB of Des Moines                                                         618,400        542,900
Loans held for sale                                                                 197,437        327,750
Loans receivable-Note C                                                          72,504,032     64,680,411
Accrued interest receivable-Note D                                                1,132,287      1,132,059
Premises and equipment-Note E                                                     3,851,665      2,832,177
Cost in excess of net assets acquired                                               789,370        863,044
Other assets                                                                      1,314,524      1,167,943
                                                                               -------------  -------------
                                                                 TOTAL ASSETS  $126,388,982   $107,686,835
                                                                               =============  =============


LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
    Deposits-Note F                                                            $100,129,183   $ 85,338,476
    Advances from borrowers for property taxes and insurance                        201,376        180,097
    Advances from FHLB-Note G                                                    10,336,980      7,002,646
    Notes payable-Note H                                                             83,219        178,219
    Other liabilities                                                             1,082,782      1,043,236
                                                                               -------------  -------------
                                                            TOTAL LIABILITIES   111,833,540     93,742,674

Commitments and contingencies-Note M

Stockholders' Equity-Notes I, J and K
    Preferred stock, $.01 par value; 500,000 shares authorized, none issued
    Common stock, $.01 par value; 8,000,000 shares authorized, 1,265,000
      shares issued                                                                  12,650         12,650
    Additional paid-in capital                                                   12,315,709     12,293,275
    Retained earnings                                                             9,864,797      9,491,125
    Accumulated other comprehensive gain (loss)                                      89,704       (158,962)
    Unearned ESOP shares                                                           (460,042)      (562,282)
    Unearned MRDP shares                                                            (20,635)       (77,379)
    Treasury stock at cost (495,758 and 480,827 shares, respectively)            (7,246,741)    (7,054,266)
                                                                               -------------  -------------
                                                   TOTAL STOCKHOLDERS' EQUITY    14,555,442     13,944,161
                                                                               -------------  -------------
                                   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $126,388,982   $107,686,835
                                                                               =============  =============

See  accompanying  notes  to  consolidated  financial  statements.
</TABLE>


                                      -14-
<PAGE>
<TABLE>
<CAPTION>
LEXINGTON B & L FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME

YEARS  ENDED  SEPTEMBER  30,  2001,  2000  AND  1999


                                                                       ACCUMULATED
                                           ADDITIONAL                     OTHER        UNEARNED    UNEARNED
                                  COMMON     PAID-IN     RETAINED     COMPREHENSIVE      ESOP        MRDP       TREASURY
                                   STOCK     CAPITAL     EARNINGS     INCOME (LOSS)     SHARES      SHARES       STOCK
                                  -------  -----------  -----------  ---------------  ----------  ----------  ------------
<S>                               <C>      <C>          <C>          <C>              <C>         <C>         <C>
                     BALANCE AT
             SEPTEMBER 30, 1998   $12,650  $12,260,818  $8,547,489   $       22,843   $(766,762)  $(354,223)  $(4,129,538)

Net income                            ---          ---     660,051              ---         ---         ---           ---
Other comprehensive loss,
  net of tax benefit of $80,647       ---          ---         ---         (156,061)        ---         ---           ---
Repurchase of common stock            ---          ---         ---              ---         ---         ---      (975,581)
Release of ESOP shares                ---       16,161         ---              ---     102,240         ---           ---
Amortization of MRDP                  ---          ---         ---              ---         ---     172,813           ---
Dividends paid
  ($.30 per share)                    ---          ---    (302,605)             ---         ---         ---           ---
                                  -------  -----------  -----------  ---------------  ----------  ----------  ------------
                     BALANCE AT
             SEPTEMBER 30, 1999    12,650   12,276,979   8,904,935         (133,218)   (664,522)   (181,410)   (5,105,119)



Net income                            ---          ---     834,554              ---         ---         ---           ---
Other comprehensive loss,
  net of tax benefit of $14,778       ---          ---         ---          (25,744)        ---         ---           ---
Repurchase of common stock            ---          ---         ---              ---         ---         ---    (1,949,147)
Release of ESOP shares                ---       16,296         ---              ---     102,240         ---           ---
Amortization of MRDP                  ---          ---         ---              ---         ---     104,031           ---
Dividends paid
  ($.30 per share)                    ---          ---    (248,364)             ---         ---          --           ---
                                  -------  -----------  -----------  ---------------  ----------  ----------  ------------
                     BALANCE AT
             SEPTEMBER 30, 2000    12,650   12,293,275   9,491,125         (158,962)   (562,282)    (77,379)   (7,054,266)

Net income                            ---          ---     608,842              ---         ---         ---           ---
Other comprehensive income,
  net of tax  of $158,962             ---          ---         ---          248,666         ---         ---           ---
Repurchase of common stock            ---          ---         ---              ---         ---         ---      (192,475)
Release of ESOP shares                ---       22,434         ---              ---     102,240         ---           ---
Amortization of MRDP                  ---          ---         ---              ---         ---      56,744           ---
Dividends paid
  ($.30 per share)                    ---          ---    (235,170)             ---         ---         ---           ---
                                  -------  -----------  -----------  ---------------  ----------  ----------  ------------
                     BALANCE AT
             SEPTEMBER 30, 2001   $12,650  $12,315,709  $9,864,797   $       89,704   $(460,042)  $ (20,635)  $(7,246,741)
                                  =======  ===========  ===========  ===============  ==========  ==========  ============



                                       TOTAL
                                   STOCKHOLDERS'
                                      EQUITY
<S>                               <C>
                     BALANCE AT
             SEPTEMBER 30, 1998   $   15,593,277

Net income                               660,051
Other comprehensive loss,
  net of tax benefit of $80,647         (156,061)
Repurchase of common stock              (975,581)
Release of ESOP shares                   118,401
Amortization of MRDP                     172,813
Dividends paid
  ($.30 per share)                      (302,605)
                                  ---------------
                     BALANCE AT
             SEPTEMBER 30, 1999       15,110,295



Net income                               834,554
Other comprehensive loss,
  net of tax benefit of $14,778          (25,744)
Repurchase of common stock            (1,949,147)
Release of ESOP shares                   118,536
Amortization of MRDP                     104,031
Dividends paid
  ($.30 per share)                      (248,364)
                                  ---------------
                     BALANCE AT
             SEPTEMBER 30, 2000       13,944,161

Net income                               608,842
Other comprehensive income,
  net of tax  of $158,962                248,666
Repurchase of common stock              (192,475)
Release of ESOP shares                   124,674
Amortization of MRDP                      56,744
Dividends paid
  ($.30 per share)                      (235,170)
                                  ---------------
                     BALANCE AT
             SEPTEMBER 30, 2001   $   14,555,442
                                  ===============
</TABLE>

<TABLE>
<CAPTION>
COMPREHENSIVE INCOME
                                                                                 YEAR ENDED SEPTEMBER 30
                                                                               2001       2000        1999
                                                                             ---------  ---------  ----------
<S>                                                                          <C>        <C>        <C>
Net Income                                                                   $608,842   $834,554   $ 660,051
Change in unrealized gains (losses) on securities available-for-sale,
  net of taxes (benefit) of $158,962, $(14,778) and $(80,647), respectively   248,666    (25,744)   (156,061)
Less reclassification adjustment for gains included in net income,
  net of tax of $19,500                                                       (33,206)       ---         ---
                                                                             ---------  ---------  ----------
                                                                             $824,302   $808,810   $ 503,990
                                                                             =========  =========  ==========
</TABLE>

See  accompanying  notes  to  consolidated  financial  statements.


                                      -15-
<PAGE>
<TABLE>
<CAPTION>
LEXINGTON B & L FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

                                                                         YEAR ENDED SEPTEMBER 30
                                                                    2001        2000           1999
                                                                 ----------  -----------  --------------
<S>                                                              <C>         <C>          <C>

INTEREST INCOME
    Mortgage loans                                               $4,474,892  $4,045,390   $   3,857,030
    Other loans                                                   1,465,862   1,428,686       1,418,028
    Investment securities and interest-bearing deposits           2,027,061   2,029,792       2,002,566
    Federal funds sold                                              186,259     135,466          59,629
                                                                 ----------  -----------  --------------
    Total Interest Income                                         8,154,074   7,639,334       7,337,253

INTEREST EXPENSE
    Deposits                                                      4,667,512   4,083,754       4,023,320
    Advances from FHLB                                              424,718     264,960         224,660
    Notes payable                                                    15,505      24,856          34,730
                                                                 ----------  -----------  --------------
    Total Interest Expense                                        5,107,735   4,373,570       4,282,710
                                                                 ----------  -----------  --------------
    Net Interest Income                                           3,046,339   3,265,764       3,054,543

PROVISION FOR LOAN LOSSES                                           143,919      69,865          36,707
                                                                 ----------  -----------  --------------
    Net Interest Income After Provision for Loan Losses           2,902,420   3,195,899       3,017,836

NONINTEREST INCOME
    Service charges and other fees                                  348,949     336,886         279,724
    Commissions, net                                                 39,520      53,915          65,427
    Net income (expense) of foreclosed real estate                    5,483      (2,684)        (11,449)
    Gain on sale of investments                                      33,735       7,560           7,742
    Other                                                           148,554      68,493          61,679
                                                                 ----------  -----------  --------------
    Total Noninterest Income                                        576,241     464,170         403,123

NONINTEREST EXPENSE
    Employee compensation and benefits                            1,428,231   1,415,683       1,458,933
    Occupancy costs                                                 271,498     210,733         206,562
    Advertising                                                      41,272      34,049          34,075
    Data processing                                                 158,168     115,278         122,398
    Federal insurance premium                                        18,266      21,620          30,690
    Professional and consulting fees                                142,995     157,808         147,362
    Amortization of intangible assets arising from acquisitions      73,674      74,222          74,222
    Contributions                                                   216,436       3,580           4,000
    Other                                                           408,279     408,042         359,666
                                                                 ----------  -----------  --------------
    Total Noninterest Expense                                     2,758,819   2,441,015       2,437,908
                                                                 ----------  -----------  --------------
                                     INCOME BEFORE INCOME TAXES     719,842   1,219,054         983,051

INCOME TAXES-NOTE I                                                 111,000     384,500         323,000
                                                                 ----------  -----------  --------------
                                                     NET INCOME  $  608,842  $  834,554   $     660,051
                                                                 ==========  ===========  ==============

BASIC INCOME PER SHARE                                           $     0.85  $     1.12   $        0.74
                                                                 ==========  ===========  ==============

DILUTED INCOME PER SHARE                                         $     0.84  $     1.10   $        0.72
                                                                 ==========  ===========  ==============
</TABLE>

See  accompanying  notes  to  consolidated  financial  statements.


                                      -16-
<PAGE>
<TABLE>
<CAPTION>
LEXINGTON B & L FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                   YEAR ENDED SEPTEMBER 30
                                                                              2001           2000          1999
                                                                          -------------  ------------  -------------
<S>                                                                       <C>            <C>           <C>

CASH FLOWS FROM OPERATING ACTIVITIES

Net income                                                                $    608,842   $   834,554   $    660,051
Adjustments to reconcile net income to net cash provided by
 operating activities
    Depreciation and amortization                                              148,990        93,575         93,154
    Amortization of premiums and discounts                                      36,222       (13,948)       (12,649)
    Amortization of deferred loan fees                                          14,578         7,670          3,443
    Provision for salary continuation plan costs                                64,126        86,444         79,566
    Amortization of cost in excess of net assets acquired                       73,674        74,222         74,222
    Gain on sales of foreclosed real estate                                     (5,483)       (2,000)           ---
    Gain on held-to-maturity securities                                           (529)       (7,560)        (7,742)
    Gain on available-for-sale securities                                      (33,206)          ---            ---
    Provisions for loan losses                                                 143,919        69,865         36,707
    Provision for deferred income tax benefit                                 (196,500)      (68,800)       (58,000)
    Originations of loans held for sale                                     (4,098,995)   (5,175,988)    (4,701,875)
    Proceeds from sale of loans held for sale                                4,229,308     5,315,382      4,234,731
    ESOP shares released                                                       124,674       118,536        118,401
    Amortization of MRDP                                                        56,744       104,031        172,813
    Gift of bank building                                                      209,233           ---            ---
    Gain on sale of premises and equipment                                     (61,684)          ---            ---
    Changes to assets and liabilities increasing (decreasing) cash flows
    Accrued interest receivable                                                   (228)     (106,991)      (278,554)
        Other assets                                                           (88,082)       (2,558)       (29,746)
        Other liabilities                                                      (24,580)      141,205          6,893
                                                                          -------------  ------------  -------------
                               NET CASH PROVIDED BY OPERATING ACTIVITIES     1,201,023     1,467,639        391,415

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from maturities/sales of securities available-for-sale             11,568,819     1,122,994      1,769,118
Proceeds from maturities/calls of securities held-to-maturity               17,139,009     2,312,500      9,365,652
Net (increase) decrease in federal funds sold                                 (545,000)     (856,000)       457,000
Purchase of FHLB stock                                                         (75,500)       (8,000)       (14,600)
Loans originated, net of repayments                                         (3,185,947)   (2,603,129)       658,171
Proceeds from sales of foreclosed real estate                                      ---         5,000         17,708
Purchase of securities available-for-sale                                  (28,123,628)     (577,058)    (7,969,831)
Purchase of securities held-to-maturity                                       (989,977)     (198,547)   (18,743,090)
Purchase of loans                                                           (4,790,687)          ---       (558,666)
Proceeds on sale of bank premises and equipment                                130,000           ---            ---
Purchase of premises and equipment                                          (1,446,027)   (1,745,593)      (317,041)
                                                                          -------------  ------------  -------------
                                   NET CASH USED IN INVESTING ACTIVITIES   (10,318,938)   (2,547,833)   (15,335,579)
</TABLE>

See  accompanying  notes  to  consolidated  financial  statements.


                                      -17-
<PAGE>
<TABLE>
<CAPTION>
LEXINGTON B & L FINANCIAL CORP.

CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS  -  CONT'D

                                                                                YEAR ENDED SEPTEMBER 30
                                                                          2001            2000          1999
                                                                    ----------------  ------------  ------------
<S>                                                                 <C>               <C>           <C>

CASH FLOWS FROM FINANCING ACTIVITIES

Net increase in deposits                                            $    14,790,707   $   188,224   $ 8,386,356
Net increase (decrease) in advances from borrowers for property
 taxes and insurance                                                         21,280        (1,828)       15,716
Payments on notes payable                                                   (95,000)      (95,000)      (95,000)
Advance from FHLB
    Borrowings                                                            3,500,000     2,000,000     6,050,000
    Repayments                                                             (165,666)     (158,930)   (1,028,424)
Payment of dividends                                                       (235,170)     (248,364)     (302,605)
Purchase of treasury stock                                                 (192,475)   (1,949,147)     (975,581)
                                                                    ----------------  ------------  ------------
                                              NET CASH PROVIDED BY
                                    (USED IN) FINANCING ACTIVITIES       17,623,676      (265,045)   12,050,462
                                                                    ----------------  ------------  ------------
                                   NET INCREASE (DECREASE) IN CASH        8,505,761    (1,345,239)   (2,893,702)

Cash and due from banks, beginning of year                                4,745,621     6,090,860     8,984,562
                                                                    ----------------  ------------  ------------
                              CASH AND DUE FROM BANKS, END OF YEAR  $    13,251,382   $ 4,745,621   $ 6,090,860
                                                                    ================  ============  ============



SUPPLEMENTAL DISCLOSURES OF CASH FLOW
 INFORMATION

Cash paid for
    Interest                                                        $     5,122,398   $ 3,690,455   $ 4,247,161
                                                                    ================  ============  ============

    Income taxes                                                    $       349,806   $   347,956   $   453,823
                                                                    ================  ============  ============

Noncash investing and financing activities are as follows
    Loans to facilitate sales of real estate                        $        37,000   $    29,000   $    36,000
                                                                    ================  ============  ============

    Foreclosed real estate acquired by foreclosure or deed in lieu
    of foreclosure                                                  $           ---   $       ---   $   113,004
                                                                    ================  ============  ============
</TABLE>

See accompanying notes to consolidated financial statements.


                                      -18-
<PAGE>
LEXINGTON  B  &  L  FINANCIAL  CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER  30,  2001,  2000  AND  1999


NOTE  A--SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

The  accompanying  reporting  policies  and  practices  of  the  Company and its
subsidiaries conform to generally accepted accounting principles ("GAAP") and to
prevailing practices within the thrift and banking industries.  A summary of the
more  significant  accounting  policies  follows:

NATURE  OF OPERATIONS:  The Company, a Missouri corporation, was incorporated in
---------------------
November  1995  for  the  purpose  of becoming the holding company of B & L Bank
("B&L").  On  June 5, 1996, B&L converted from mutual to stock form of ownership
and  the  Company  completed its initial public offering and acquired all of the
outstanding capital stock of B&L.  On October 1, 1997, the Company acquired 100%
of  the  outstanding  stock  of  Lafayette County Bank ("LCB"), in a transaction
accounted  for  as  a  purchase.  On  April  6,  2001,  LCB was merged into B&L.

During  November  1998,  the  Company  formed  a  wholly-owned subsidiary, B & L
Mortgage,  Inc.  ("MTG"), to originate and sell loans primarily in the secondary
market.  MTG  currently  retains  no  servicing  rights  on  loans  originated.

The Company provides a variety of financial services to individual and corporate
customers including checking, money market and savings accounts and certificates
of  deposit.  Its  primary  lending products are one- to four-family residential
mortgage,  commercial,  agriculture  and  consumer  loans.

PRINCIPLES  OF CONSOLIDATION:  The consolidated financial statements include the
----------------------------
accounts  of  the  Company  and  its  wholly-owned  subsidiaries,  B&L  and MTG.
Significant  intercompany  balances  and  transactions  have  been eliminated in
consolidation.

INVESTMENT  SECURITIES:  Investment  securities  are  classified  as  held  to
----------------------
maturity, which are recorded at amortized cost, or available-for-sale, which are
--------
recorded at fair value.  Unrealized holding gains and losses, net of the related
tax  effect, on available-for-sale securities are excluded from earnings and are
reported  as  a  separate  component  of  stockholders'  equity  until realized.

Mortgage-backed  securities  represent  participating  interests  in  pools  of
long-term  first  mortgage  loans  originated  and  serviced  by  issuers of the
securities.  These  securities  are  reported  at  fair  value.

Gains  or losses on sales of securities are recognized in operations at the time
of  sale  and are determined by the difference between the net sale proceeds and
the  cost  of  the securities using the specific identification method, adjusted
for  any unamortized premiums or discounts.  Premiums or discounts are amortized
or accreted to income using a method which approximates the interest method over
the  period  to  expected  maturity.

STOCK  IN  FEDERAL HOME LOAN BANK OF DES MOINES:  Stock in the FHLB is stated at
-----------------------------------------------
cost  and the amount of stock held is determined by regulation.  No ready market
exists  for  such  stock  and  it  has  no  quoted  market  value.

LOANS HELD FOR SALE:  Mortgage loans originated and held for sale are carried at
-------------------
the  lower  of  cost  or market on an aggregate basis.  Loans held for sale were
originated  by  MTG  and  are  generally  committed  for  sale  at  the  time of
origination.  MTG  recognizes  no  gain  or  loss on the sale of these loans and
receives  a  predetermined  fee  for  the  origination.  Sales  are made without
recourse  and  no  rights  are  retained  on  loans  sold  to  others.


                                      -19-
<PAGE>
NOTE  A--SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  CONT'D

LOANS  RECEIVABLE:  Loans  receivable  are carried at unpaid principal balances,
-----------------
less  allowance  for  loan  losses.  Loan  origination  and  commitment fees and
certain  direct  loan  origination  costs are deferred and amortized to interest
income  over  the contractual life of the loan using a method which approximates
the  interest  method.

The  Company's  real estate loan portfolio consists primarily of long-term loans
secured  by  first-trust  deeds  on  single-family residences, other residential
property,  commercial  property  and  land.  The adjustable-rate mortgage is the
Company's  primary  loan  investment.

Mortgage  loans  are  generally  placed  on  nonaccrual status when principal or
interest  is  delinquent  for  90  days  or  more.  Interest  income on loans is
recognized  only  to  the  extent  cash  payments  are received until delinquent
interest  is  paid in full and in management's judgement, the borrower's ability
to make periodic interest and principal payments is back to normal in which case
the loan is returned to accrual status.  Interest on consumer loans continues to
accrue  even  if  the  loan  is  90  days  or more past due and is reversed when
management  determines  the  interest  to  be  uncollectible.

ALLOWANCE  FOR  LOAN  LOSSES:  The  allowance for loan losses is maintained at a
----------------------------
level  which,  in  management's  judgment,  is  adequate to absorb credit losses
inherent  in  the  loan  portfolio.  The  amount  of  the  allowance is based on
management's  evaluation  of the collectibility of the loan portfolio, including
the  nature  of  the portfolio, credit concentrations, trends in historical loss
experience,  specific  impaired  loans  and economic conditions.  Allowances for
impaired  loans  are  generally  determined  based  on  collateral values or the
present  value  of  estimated  cash  flows.  The  allowance  is  increased  by a
provision  for  loan  losses,  which  is  charged  to  expense,  and  reduced by
charge-offs,  net  of  recoveries.

Management  applies its normal loan review procedures in determining when a loan
is  impaired.  All  nonaccrual  loans  are  considered  impaired,  except  those
classified  as  small-balance homogeneous loans which are collectively evaluated
for  impairment.  The  Company  considers  all  one-to  four-family  residential
mortgage loans, residential construction loans, and all consumer and other loans
to  be  smaller homogeneous loans.  Impaired loans are assessed individually and
impairment  identified when the accrual of interest has been discontinued, loans
have  been  restructured  or  management  has  serious  doubts  about the future
collectibility  of  principal  and interest, even though the loans are currently
performing.  Factors  considered  in determining impairment include, but are not
limited  to  expected  future cash flow, the financial condition of the borrower
and  current economic conditions.  The Company measures each impaired loan based
on  the  fair value of its collateral and charges off those loans or portions of
loans  deemed  uncollectible.  Management  has  elected  to  continue to use its
existing  nonaccrual  methods for recognizing interest income on impaired loans.

PREMISES  AND  EQUIPMENT:  Premises  and equipment have been stated at cost less
------------------------
accumulated  depreciation  and  amortization.  Depreciation and amortization are
computed  generally  on a straight-line basis over the estimated useful lives of
the  respective  assets,  which  range  from  five  to  forty  years.

FORECLOSED  REAL ESTATE:  Real estate acquired in settlement of loans is carried
-----------------------
at  the  lower  of the balance of the related loan at the time of foreclosure or
fair  value  less  the  estimated  costs  to  sell  the asset.  Costs of holding
foreclosed  property  are  charged  to expense in the current period, except for
significant  property  improvements  which  are  capitalized  to the extent that
carrying  value  does  not  exceed  estimated  fair  market  value.

COST  IN EXCESS OF NET ASSETS ACQUIRED:  Amounts paid for subsidiaries in excess
--------------------------------------
of  the  fair  value  of  the  net assets are recorded as an asset and are being
amortized  on  a  straight-line  basis  over  fifteen  years.

INCOME TAXES:  Deferred tax assets and liabilities are recognized for the future
------------
tax  consequences  attributable  to  differences between the financial statement
carrying  amounts of existing assets and liabilities and their respective income
tax  bases.  As changes in tax law or rates are enacted, deferred tax assets and
liabilities  are  adjusted  through  the  provision  for  income  taxes.


                                      -20-
<PAGE>
NOTE  A--SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  CONT'D

STATEMENTS  OF CASH FLOWS:  For purposes of the cash flows, cash and amounts due
-------------------------
from depository institutions and interest-bearing deposits in other banks with a
maturity  of  three  months  or  less  at  date  of purchase are considered cash
equivalents.

RISKS  AND  UNCERTAINTIES:  The  Company  is  a  community-oriented  financial
-------------------------
institution  which  provides  traditional financial services within the areas it
serves.  The Company is engaged primarily in the business of attracting deposits
from  the  general public and using these funds to originate one- to four-family
residential  mortgage,  commercial,  agriculture  and  consumer  loans  located
primarily  in Lafayette and Macon Counties, Missouri.  Accordingly, the ultimate
collectibility  of  the  Company's  loan  portfolio  is  dependent  upon  market
conditions  in  that  area.  This  geographic  concentration  is  considered  in
management's  establishment  of  the  allowance  for  loan  losses.

The  consolidated  financial  statements  have  been prepared in conformity with
GAAP.  In  preparing  the  consolidated  financial  statements,  management  is
required  to make estimates and assumptions which affect the reported amounts of
assets and liabilities as of the balance sheet dates and income and expenses for
the  periods  covered.  Actual  results  could  differ  significantly from these
estimates  and  assumptions.

In  the  normal  course  of its business, the Company encounters two significant
types  of  risk:  economic  and  regulatory.  There are three main components of
economic  risk: interest rate risk, credit risk and market risk.  The Company is
subject  to  interest  rate  risk  to  the  degree  that  its  interest-bearing
liabilities  mature  or  reprice  more or less rapidly, or on a different basis,
than  its  interest-earning  assets.  Credit  risk is the risk of default on the
Company's  loan  portfolio  that  results  from  the  borrower's  inability  or
unwillingness to make contractually required payments.  Market risk results from
changes  in  the  value of assets and liabilities which may impact, favorably or
unfavorably,  the  realizability  of  those  assets  and liabilities held by the
Company.

The Company is subject to the regulations of various government agencies.  These
regulations  can and do change significantly from period to period.  The Company
also  undergoes  periodic  examinations  by  the  regulatory agencies, which may
subject  it  to  further  changes  with  respect to asset valuations, amounts of
required  loss  allowances  and  operating  restrictions  resulting  from  the
regulators'  judgements  based  on  information available to them at the time of
their  examination.

NET INCOME PER SHARE:  Basic income per share is based upon the weighted average
---------------------
number  of  common  shares  outstanding  during  the periods presented.  Diluted
income  per  share  includes the effects of all dilutive potential common shares
outstanding  during  each  period

NEW  ACCOUNTING  STANDARDS:  In  June  2001,  the Financial Accounting Standards
--------------------------
Board  ("FASB")  issued Statement of Financial Accounting Standards ("SFAS") No.
141,  Business  Combinations.  SFAS  No.  141  requires  that  all  business
combinations after June 30, 2001 be accounted for using the purchase method.  It
also  defines  certain  criteria  for  intangible  assets that are acquired in a
business  combination,  in  order  to be recognized and reported separately from
goodwill.  SFAS  No.  141  supersedes Accounting Principles Board Opinion No. 16
("APB  16"),  Business  Combinations  and  Financial  Accounting Standards Board
Statement  No.  38  ("SFAS  38"), Accounting for Preacquisition Contingencies of
Purchased  Enterprises.  The  Company  does  not  expect the statement to have a
significant  effect  on  the  consolidated  financial  statements.

In  June  2001,  FASB issued SFAS No. 142, Goodwill and Other Intangible Assets.
SFAS  No.  142  establishes  accounting  and  reporting standards for intangible
assets.  It  requires that goodwill and intangible assets with indefinite useful
lives  be  tested  for  impairment annually rather than amortized.  SFAS No. 142
supersedes  Accounting  Principles  Board  Opinion No. 17 ("APB 17"), Intangible
Assets.  Beginning  October  1,  2001,  amortization  of  the Company's existing
goodwill  has  been  discontinued as a result of early adoption of SFAS No. 142.
The  financial  effect  of  this statement will increase consolidated net income
$70,848  for  the  year  ended  September  30,  2002.  The  Company  has made an
impairment  assessment  and  determined  that no transition impairment charge is
necessary.


                                      -21-
<PAGE>
NOTE  A--SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  CONT'D

RECLASSIFICATION:  Certain  amounts  in the prior periods consolidated financial
----------------
statements have been reclassified to conform with the current year presentation.


<TABLE>
<CAPTION>
NOTE B--INVESTMENT SECURITIES

                                                                    GROSS UNREALIZED
                                                       AMORTIZED  --------------------      FAIR
                                                         COST       GAINS      LOSSES       VALUE
                                                     ------------  --------  ----------  -----------
<S>                                                  <C>           <C>       <C>         <C>

September 30, 2001:
  Available-for-sale
    U.S. Government and Federal agency obligations   $  7,518,142  $ 94,259  $     ---   $ 7,612,401
    Mortgage-backed securities                         17,075,612    89,132    (39,688)   17,125,056
                                                     ------------  --------  ----------  -----------
                                                     $ 24,593,754  $183,391  $ (39,688)  $24,737,457
                                                     ============  ========  ==========  ===========
  Held-to-maturity
    U.S. Government and Federal agency obligations   $  1,860,451  $ 55,333  $  (2,150)  $ 1,913,634
    State and local obligations                         4,212,977    84,317    (16,534)    4,280,760
                                                     ------------  --------  ----------  -----------
                                                     $  6,073,428  $139,650  $ (18,684)  $ 6,194,394
                                                     ============  ========  ==========  ===========
September 30, 2000:
  Available-for-sale
    U.S. Government and Federal agency obligations   $  7,488,262  $ 12,632  $(243,140)  $ 7,257,754
    Mortgage-backed securities                            544,201     4,341    (16,796)      531,746
                                                     ------------  --------  ----------  -----------
                                                     $  8,032,463  $ 16,973  $(259,936)  $ 7,789,500
                                                     ============  ========  ==========  ===========
  Held-to-maturity
    U. S. Government and Federal agency obligations  $ 18,380,040  $    ---  $(586,154)  $17,793,886
    State and local obligations                         3,851,390    74,677   (128,194)    3,797,873
                                                     ------------  --------  ----------  -----------
                                                     $ 22,231,430  $ 74,677  $(714,348)  $21,591,759
                                                     ============  ========  ==========  ===========
</TABLE>

The  scheduled  contractual maturities of debt securities at September 30, 2001,
are  shown below.  Mortgaged-backed securities are allocated on the basis of the
prior  three  months  historical  constant  prepayment  rate  ("CPR").  Expected
maturities may differ from contractual maturities because borrowers may have the
right  to  call  or  prepay  obligations  without  call or prepayment penalties.

<TABLE>
<CAPTION>
                                            HELD-TO-MATURITY      AVAILABLE-FOR-SALE
                                        ------------------------------------------------
                                        AMORTIZED      FAIR      AMORTIZED      FAIR
                                        ----------  ----------  -----------  -----------
                                           COST       VALUE        COST         VALUE
<S>                                     <C>         <C>         <C>          <C>
Amounts maturing:
    One year or less                    $    5,000  $    5,135  $ 4,366,383  $ 4,379,237
    After one year through five years    2,593,092   2,676,745   13,241,527   13,346,330
    After five years through ten years   1,727,854   1,750,743    4,035,268    4,060,432
    After ten years                      1,747,482   1,761,771    2,950,576    2,951,458
                                        ----------  ----------  -----------  -----------
                                        $6,073,428  $6,194,394  $24,593,754  $24,737,457
                                        ==========  ==========  ===========  ===========
</TABLE>


                                      -22-
<PAGE>
NOTE  B--INVESTMENT  SECURITIES  -  CONT'D

Securities  held-to-maturity  were  called  for redemption for total proceeds of
$2,134,450,  $257,500 and $2,180,000, resulting in gross realized gains of $529,
$7,560  and  $7,742  in  2001,  2000  and  1999,  respectively.

During  2001,  securities  available-for-sale were sold or called for redemption
for  total proceeds of $2,421,300 resulting in a gross realized gain of $33,206.

Investment  securities  were pledged to secure deposits as required or permitted
by  law, with an amortized cost of $15,078,525 and $10,685,791 and fair value of
$15,204,483  and  $10,316,413  at  September  30,  2001  and 2000, respectively.


NOTE  C--LOANS  RECEIVABLE

Loans receivable consist of the following at September 30:
                                        2001          2000
                                    ------------  ------------

Mortgage loans:
    One- to four-family residences  $42,818,520   $40,241,161
    Multi-family residential            256,271       361,023
    Commercial                        7,117,182     6,021,199
    Construction                      1,782,457     1,410,832
    Land                              2,808,910     1,783,385
                                    ------------  ------------
                                     54,783,340    49,817,600

Commercial                            6,233,449     1,941,232
Agricultural                          3,563,828     3,087,504
Consumer and other loans:
    Home equity                         257,687       727,763
    Loans on savings                  1,409,647     2,293,050
    Automobile                        5,663,107     5,553,598
    Other                             1,195,912     1,828,293
                                    ------------  ------------
                                     18,323,630    15,431,440
                                    ------------  ------------
                                     73,106,970    65,249,040
Net deferred loan-origination fees      117,062        79,771
Allowance for loan losses              (720,000)     (648,400)
                                    ------------  ------------
                                    $72,504,032   $64,680,411
                                    ============  ============

At  September  30,  2001  and  2000,  the  Company  serviced  loans amounting to
$1,008,354  and  $111,621,  respectively,  for the benefit of others.  Also, the
Company  had  loans serviced by others amounting to $5,551,799 and $1,834,794 at
September  30,  2001  and  2000,  respectively.


                                      -23-
<PAGE>
NOTE  C--LOANS  RECEIVABLE  -  CONT'D

In the ordinary course of business, the Company makes loans to its directors and
officers  at  substantially the same terms prevailing at the time of origination
for  comparable  transactions  with  borrowers.  The  following  is a summary of
related  party  loan  activity:

                           YEAR ENDED SEPTEMBER 30
                              2001        2000
                            ---------  ----------
Balance, beginning of year  $289,756   $ 412,643
Originations                     143      47,025
Payments                     (61,422)   (169,912)
                            ---------  ----------
      BALANCE, END OF YEAR  $228,477   $ 289,756
                            =========  ==========

Activity  in  the  allowance  for  loan  losses  is  as  follows:

                                    YEAR ENDED SEPTEMBER 30
                                  2001       2000       1999
                                ---------  ---------  ---------

Balance, beginning of year      $648,400   $599,209   $599,127
Provision for loan losses        143,919     69,865     36,707
Charge-offs, net of recoveries   (72,319)   (20,674)   (36,625)
                                ---------  ---------  ---------
          BALANCE, END OF YEAR  $720,000   $648,400   $599,209
                                =========  =========  =========

The  recorded  investment  in  impaired  loans, for which there is no need for a
valuation  allowance  based  upon  the  measure  of the loan's fair value of the
underlying  collateral at September 30, 2001 and 2000, was $226,861 and $26,667,
respectively.  The average recorded investment in impaired loans during the year
ended  September  30, 2001 and 2000, was $97,942 and $22,071, respectively.  The
amount  of interest included in interest income on such loans for the year ended
September  30,  2001  and  2000,  amounted  to  approximately  $7,976  and $500,
respectively.

NOTE  D--ACCRUED  INTEREST  RECEIVABLE

Accrued interest receivable consists of the following at September 30:


                                                        2001        2000
                                                     ----------  ----------
Loans                                                $  891,427  $  698,145
Investment securities and interest bearing deposits     240,860     433,914
                                                     ----------  ----------
                                                     $1,132,287  $1,132,059
                                                     ==========  ==========


                                      -24-
<PAGE>
NOTE  E-PREMISES  AND  EQUIPMENT

Premises  and  equipment  consists  of  the  following  at  September  30:

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

Land                                            $  503,465  $  555,594
Building and improvements                        3,148,603     870,140
Furniture and equipment                          1,335,751     953,328
Construction in progress                               ---   1,727,002
                                                ----------  ----------
                                                 4,987,819   4,106,064
Less accumulated depreciation and amortization   1,136,154   1,273,887
                                                ----------  ----------
                                                $3,851,665  $2,832,177
                                                ==========  ==========

Interest  costs  of  $72,194  and $37,482, related to new building construction,
were  capitalized  during  the  period  ended  September  30,  2001  and  2000,
respectively.


NOTE  F--DEPOSITS

Deposit  account  balances  are  summarized  as  follow  at  September  30:

<TABLE>
<CAPTION>
                                             2001                       2000
                                  ----------------------       ---------------------
                                      AMOUNT        %              AMOUNT       %
                                  -------------  -------       ------------  -------
<S>                               <C>            <C>           <C>           <C>
Noninterest-bearing               $  9,128,715     9.12%       $ 6,164,136     7.22%
NOW                                  8,462,351     8.45          7,378,359     8.65
Money Market                        10,972,993    10.96          6,043,478     7.08
Passbook savings                     6,140,565     6.13          7,364,041     8.63
                                  -------------  -------       ------------  -------
                                    34,704,624    34.66         26,950,014    31.58
Certificates of deposit:
    2.00 to 2.99%                       41,448      .04                ---      ---
    3.00 to 3.99%                    4,316,000     4.31            125,000     0.15
    4.00 to 4.99%                   14,770,393    14.75            394,561     0.46
    5.00 to 5.99%                   14,217,040    14.20         29,158,806    34.17
    6.00 to 6.99%                   20,558,006    20.53         18,092,386    21.27
    7.00 to 7.99%                   11,521,672    11.51          6,450,863     7.49
    8.00 to 8.99%                          ---      ---          4,166,846     4.88
                                  -------------  -------       ------------  -------
                                    65,424,559    65.34         58,388,462    68.42
                                  -------------  -------       ------------  -------
                                  $100,129,183   100.00%       $85,338,476   100.00%
                                  =============  =======       ============  =======
Weighted Average Interest Rates           4.87%                       5.20%
                                  =============                ============
</TABLE>

The  aggregate  amount of certificates of deposit with a minimum denomination of
$100,000  was approximately $12,092,519 and $8,753,289 at September 30, 2001 and
2000,  respectively.  Deposits  over  $100,000  are  not  federally  insured.

The  Company  had  deposits  of  approximately $2,161,000 and $2,101,000 for its
directors  and  officers  at  September  30,  2001  and  2000,  respectively.


                                      -25-
<PAGE>
NOTE F--DEPOSITS - CONT'D

At  September  30,  2001,  contractual maturities of certificate accounts are as
follows:

<TABLE>
<CAPTION>
   STATED
INTEREST RATE       2002         2003         2004       2005      2006      AFTER
-------------  -----------  -----------  ----------  ----------  --------  ----------
<S>             <C>          <C>          <C>         <C>         <C>       <C>


2.00 to 2.99%   $    41,448  $       ---  $      ---  $      ---  $    ---  $      ---
3.00 to 3.99%     3,819,486      496,514         ---         ---       ---         ---
4.00 to 4.99%    10,760,748    2,860,722     683,704     340,762     6,043     118,414
5.00 to 5.99%     9,155,320    2,188,070   1,843,491     313,414   263,158     453,587
6.00 to 6.99%    10,625,334    5,066,473   2,983,845     979,248   339,955     563,151
7.00 to 7.99%     7,233,444    3,967,313      81,700     139,215       ---     100,000
                -----------  -----------  ----------  ----------  --------  ----------
                $41,635,780  $14,579,092  $5,592,740  $1,772,639  $609,156  $1,235,152
                ===========  ===========  ==========  ==========  ========  ==========
</TABLE>

Interest  expense  on  deposits  are  as  follows:

<TABLE>
<CAPTION>
                                                       YEAR ENDED SEPTEMBER 30
                                                    2001        2000        1999
                                                 ----------  ----------  ----------
<S>                                              <C>         <C>         <C>

Now, Money Market and Passbook savings accounts  $  775,903  $  803,907  $  818,220
Certificate accounts                              3,891,609   3,279,847   3,205,100
                                                 ----------  ----------  ----------
                                                 $4,667,512  $4,083,754  $4,023,320
                                                 ==========  ==========  ==========
</TABLE>

NOTE G--ADVANCES FROM FEDERAL HOME LOAN BANK OF DES MOINES

<TABLE>
<CAPTION>
Advances  from  FHLB  consist  of  the  following  at  September  30:

                                                                  2001        2000
                                                              -----------  ----------
<S>                                                           <C>          <C>
6.70% fixed rate, due on or before March 15, 2001             $       ---  $   35,000
6.80% fixed rate, due on or before March 15, 2002                  35,000      35,000
5.25% fixed rate, due in monthly installments over a
 period of fifteen years through December 2, 2013               1,740,473   1,839,199
4.76% fixed rate, final maturity date of December 15,
 2008, callable quarterly beginning December 15, 2003           2,500,000   2,500,000
5.47% fixed rate, due in monthly installments over a
 period of fifteen years through October 21, 2013,
 putable quarterly beginning October 21, 2003                     561,507     593,447
6.90% fixed rate, due August 29, 2003                           1,000,000   1,000,000
6.61% fixed rate, due September 30, 2003                        1,000,000   1,000,000
5.26% fixed rate, due March 16, 2001, callable quarterly
  after one year if the three-month LIBOR rate is equal to
  or greater than 8%.  If called, the Bank has the option of
  requesting any advance from FHLB otherwise available
  pursuant to its credit policy.                                3,500,000         ---
                                                              -----------  ----------
                                                              $10,336,980  $7,002,646
                                                              ===========  ==========
</TABLE>


                                      -26-
<PAGE>
NOTE  G--ADVANCES  FROM  FEDERAL  HOME  LOAN  BANK  OF  DES  MOINES  -  CONT'D

Scheduled  maturities  of  FHLB  advances  are  as  follows:

         YEAR ENDING
         SEPTEMBER 30                      AMOUNT
             2002                       $   172,767
             2003                         2,145,254
             2004                           153,148
             2005                           161,472
             2006                           170,248
          Thereafter                      7,534,091
                                        -----------
                                        $10,336,980
                                        ===========

The  advances  are  collateralized by a blanket pledge agreement with FHLB under
which  the  Company  can draw advances of unspecified amounts.  The Company must
hold an unencumbered portfolio of one- to four-family residential mortgages with
a  book  value of not less than 170% of the indebtedness  The advance agreements
include  certain prepayment privileges that generally include penalty provisions
if  prepaid  before  certain  specified  dates.


NOTE  H--NOTES  PAYABLE

Notes  payable  at September 30, 2001 and 2000, were acquired in the purchase of
LCB.  The  notes are unsecured, bear interest at the rate of 10% and are payable
to  the previous owners of LCB.  The final principal payment is due July 3, 2002
in  the  amount  of  $83,219.


NOTE  I--INCOME  TAXES


Components of income tax expense (benefit) are as follows:

                      YEAR ENDED SEPTEMBER 30
                     2001       2000       1999
                  ----------  ---------  ---------

Current           $ 307,500   $453,300   $381,000
Deferred benefit   (196,500)   (68,800)   (58,000)
                  ----------  ---------  ---------
                  $ 111,000   $384,500   $323,000
                  ==========  =========  =========

The  Company has a contribution carryover which expires in 2006 in the amount of
approximately  $382,000.

During  1996,  the  Small Business Job Protection Act (the "Act) was signed into
law.  The  Act  eliminated  the percentage of taxable income bad debt deductions
for  thrift  institutions  for tax years beginning after December 31, 1995.  The
Act  provides  that  bad  debt reserves accumulated prior to 1988 be exempt from
recapture.  Bad  debt  reserves  accumulated after 1987 are subject to recapture
over  a  six  year  period.  B&L  has provided for deferred income taxes for the
reserve  recapture after 1987; therefore the impact of this legislation will not
have  a  material  effect  on  B&L's  financial  statements.

Prior  to the enactment of the Act, B&L accumulated approximately $2,000,000 for
which  no  deferred  income  tax  liability  has  been  recognized.  This amount
represents  an  allocation  of  income  to  bad  debt  deductions for income tax
purposes  only.  If  any of this amount is used other than to absorb loan losses
(which  is  not  anticipated),  the  amount will be subject to income tax at the
current  corporate  rates.


                                      -27-
<PAGE>
NOTE  I--INCOME  TAXES  -  CONT'D

The provision for income taxes as shown on the consolidated statements of income
differs  from amounts computed by applying the statutory federal income tax rate
of  34%  to  income  before  taxes  as  follows:

<TABLE>
<CAPTION>
                                                                  YEAR ENDED SEPTEMBER 30
                                                       2001                2000                1999
                                                --------------------------------------------------------
                                                  AMOUNT      %      AMOUNT       %      AMOUNT       %
                                                ---------  -------  ---------  -------  ---------  -----
<S>                                             <C>        <C>      <C>        <C>      <C>        <C>
Income tax expense at statutory rate            $244,746     34.0%  $414,478     34.0%  $334,237   34.0%
Increase (decrease) in taxes resulting from:
    Officers life insurance                       (9,846)    (1.4)   (10,056)    (0.8)    (9,420)  (1.0)
    Tax exempt income, net of related expenses   (64,054)    (8.9)   (66,077)    (5.4)   (61,891)  (6.3)
    Amortization of intangible assets arising
     from acquisitions                            25,049      3.5     25,235      2.1     25,235    2.6
    State income tax, net of federal benefit         ---      ---     21,780      1.8     36,300    3.7
    Excess of appraised value of contribution
     of building over carrying value             (86,961)   (12.1)       ---      ---        ---    ---
    Other, net                                     2,066      0.3       (860)    (0.1)    (1,461)  (0.1)
                                                ---------  -------  ---------  -------  ---------  -----
                                                $111,000     15.4%  $384,500     31.6%  $323,000   32.9%
                                                =========  =======  =========  =======  =========  =====
</TABLE>

Deferred  income  taxes  reflect  the  impact of "temporary differences" between
amounts  of  assets  and  liabilities  for financial reporting purposes and such
amounts  as  measured  by  tax laws.  Temporary differences which give rise to a
significant  portion  of  deferred  tax assets and liabilities are as follows at
September  30:

<TABLE>
<CAPTION>
                                                         2001       2000
                                                       ---------  ---------
<S>                                                    <C>        <C>
Deferred tax assets
    Allowance for loan losses                          $226,800   $192,800
    Unearned MRDP shares                                 94,000    120,700
    Deferred compensation                               147,300    123,600
    Contribution carryforward                           141,300        ---
    Unrealized loss on available-for-sale securities        ---     84,000
    Capital loss                                            663        663
Deferred tax liabilities
    Depreciation                                        (16,800)   (41,000)
    Unrealized gain on available-for-sale securities    (54,000)       ---
    FHLB stock dividend                                 (58,300)   (58,300)
                                                       ---------  ---------
                               NET DEFERRED TAX ASSET  $480,963   $422,463
                                                       =========  =========
</TABLE>


NOTE  J--REGULATORY  CAPITAL  REQUIREMENTS

B&L  is  subject  to various regulatory capital requirements administered by the
OTS.  Failure  to  meet  the capital requirements can initiate certain mandatory
and discretionary actions by regulators that could have a material effect on the
Company's  financial  statements.  Under  capital  adequacy  guidelines  and the
regulatory  framework  for  prompt  corrective  action,  B&L  must  meet capital
guidelines that involve quantitative measures of assets, liabilities and certain
off-balance-sheet  items  as  calculated  under regulatory accounting practices.
Capital  amounts and classification are also subject to qualitative judgments by
the  regulators  about  components,  risk  weightings  and  other  factors.


                                      -28-
<PAGE>
NOTE  J--REGULATORY  CAPITAL  REQUIREMENTS  -  CONT'D

Quantitative  measures  established  by  regulations  to ensure capital adequacy
require the Company's subsidiary bank to maintain minimum amounts and ratios, as
set forth in the table below of Total Risk-Based Capital to Risk-Weighted Assets
and  Tier  1  Capital to Risk-Weighted Assets, Tier 1 Capital to Adjusted Assets
(the  leverage  ratio),  and  Tangible  Capital  to  Adjusted  Assets.

<TABLE>
<CAPTION>
                                                                       MINIMUM
                                                                      TO BE WELL
                                                     MINIMUM       CAPITALIZED UNDER
                                                   FOR CAPITAL     PROMPT CORRECTIVE
                                   ACTUAL       ADEQUACY PURPOSES  ACTION PROVISIONS
                               ---------------  -----------------  -----------------
                               AMOUNT   RATIO    AMOUNT    RATIO    AMOUNT    RATIO
                               -------  ------  --------  -------  --------  -------
<S>                            <C>      <C>     <C>       <C>      <C>       <C>
(Dollars in Thousands)
As of September 30, 2001
  B & L Bank
    Total Risk-Based Capital   $12,997  18.67%  $  5,570    8.00%  $  6,962   10.00%
      (to Risk Weighted Assets)
    Tier 1 Capital              12,413  17.83      2,785    4.00      7,542    6.00
      (to Risk Weighted Assets)
    Tier 1 Capital              12,413   9.87      3,771    3.00      6,285    5.00
      (to Adjusted Assets)
    Tangible Capital            12,413   9.87      1,885    1.50        N/A     N/A
      (to Adjusted Assets)

As of September 30, 2000
  B & L Bank
    Total Risk-Based Capital   $ 8,199  21.75%  $  3,016    8.00%  $  3,770   10.00%
      (to Risk Weighted Assets)
    Tier 1 Capital               8,013  21.25      1,508    4.00      8,013   21.25
      (to Risk Weighted Assets)
    Tier 1 Capital               8,013  12.77      1,883    3.00      8,013   12.77
      (to Adjusted Assets)
    Tangible Capital             8,013  12.77        942   1.50         N/A     N/A
      (to Adjusted Assets)

  Lafayette County Bank
    Total Risk-Based Capital   $ 3,704  15.83%  $  1,871    8.00%  $  2,339   10.00%
      (to Risk Weighted Assets)
    Tier 1 Capital               3,435  14.68        936    4.00      2,697    6.00
      (to Risk Weighted Assets)
    Tier 1 Capital               3,435   7.64      1,798    3.00      2,248    5.00
      (to Adjusted Assets)
    Tangible Capital             3,435   7.64        674    1.50        N/A     N/A
      (to Adjusted Assets)
</TABLE>

Management  believes  that  as  of  September  30,  2001 and 2000, the Company's
banking  subsidiary  met  all  capital  requirements to which they were subject.


                                      -29-
<PAGE>
NOTE  K--EMPLOYEE  BENEFITS

B&L  is a participating employer in the Financial Institution Retirement Fund, a
multi-employer  defined  benefit  pension  plan  that  covers  substantially all
full-time  employees after one year of service.  B&L's policy is to fund pension
costs  as  necessary.  The  plan  has  been  fully  funded  since June 30, 1997.
Pension  expense  of  $45,300, $37,800, and $36,000 was recognized for the years
ended  September  30,  2001,  2000  and  1999,  respectively.

B&L  also  has  a 401(k) salary reduction plan for all full-time employees.  The
plan  is  entirely  funded  by participant contributions.  Participants may make
deferrals  up  to  15%  of  compensation,  subject  to  internal  revenue  code
limitations.

The  Company  has  also entered into salary continuation agreements with four of
its  officers.  These  agreements  provide  for  monthly  deferred  compensation
payments  for  a  period  of  180  months following retirement.  The Company has
purchased  life  insurance  policies  to  fund  these  agreements.  Deferred
compensation  charged to operations for the years ended September 30, 2001, 2000
and  1999,  was  $64,126,  $86,444,  and  $79,566,  respectively.

In  connection with the conversion from mutual to stock form, B&L established an
ESOP  for  the  benefit  of  participating employees.  Employees are eligible to
participate  upon  attaining  age twenty-one and completing one year of service.

The  ESOP  borrowed  $1,012,000 from the Company to fund the purchase of 101,200
shares  of  the  Company's  common stock. The purchase of shares of the ESOP was
recorded  in  the  consolidated  financial statements through a credit to common
stock  and  additional  paid-in  capital with a corresponding charge to a contra
equity  account  for  the  unreleased shares.  The loan is secured solely by the
common  stock  and  is to be repaid in equal quarterly installments of principal
and  interest  payable through March 2006, at 8.25%.  The intercompany ESOP note
and  related  interest  are  eliminated  in  consolidation.

B&L  makes  quarterly  contributions  to  the  ESOP  which are equal to the debt
service  less  dividends  on  unallocated  ESOP  shares  used to repay the loan.
Dividends  on allocated shares will be paid to participants of the ESOP.  Shares
are  released from collateral and allocated to participating employees, based on
the  proportion  of  loan  principal and interest repaid and compensation of the
participants.  Forfeitures will be reallocated to participants on the same basis
as  other  contributions  in  the  plan  year.  Benefits  are  payable  upon  a
participant's  retirement,  death,  disability  or  separation  from  service.

Effective  with  the date of the stock conversion, the Company adopted Statement
of  Position  ("SOP")  93-6.  As  shares  are  committed  to  be  released  from
collateral,  the  Company reports compensation expense equal to the average fair
value  of  the  shares  committed to be released.  Dividends on allocated shares
will  be  charged  to stockholders' equity.  Dividends on unallocated shares are
recorded  as  a  reduction  to  the  ESOP loan.  ESOP expense for the year ended
September  30,  2001,  2000  and  1999,  was  $107,804,  $98,601,  and  $95,399,
respectively.  The  fair value of unreleased shares based on market price of the
Company's  stock  at  September  30,  2001  and 2000 was $563,549, and $618,508,
respectively.

The  number  of  ESOP  shares  are  summarized  as  follows  at  September  30:

                                              2001       2000
                                            -------     -------
 Allocated shares                            55,196      44,972
 Unreleased shares                           46,004      56,228
                                            -------     -------
                                            101,200     101,200
                                            =======     =======


                                      -30-
<PAGE>
NOTE  K--EMPLOYEE  BENEFITS  -  CONT'D

The  Board  of  Directors  adopted and the shareholders subsequently approved an
MRDP.  Under  the  MRDP,  common  stock  of 50,600 shares was awarded to certain
directors,  officers  and  employees of the Company and B&L.  The award will not
require  any  payment  by the recipients and will vest over five years beginning
one  year after the date of the award (June 11, 1997). Amortization of the award
resulted  in  a  charge to compensation and benefit expense of $56,745, $104,031
and  $172,813  in  2001,  2000  and  1999,  respectively.

The  Company  has  entered  into  three  year employment agreements with certain
members  of  management.  Under the agreements, the Company will pay the members
their  initial  base  salaries,  which may be increased at the discretion of the
Board of Directors.  Additionally, the agreements provide for severance payments
if  employment is terminated following a change in control.  These payments will
be  equal  to  2.99 times their average annual compensation paid during the five
years  immediately  preceding  the  change  in  control.

The  Company has authorized and the shareholders have approved the adoption of a
stock  option  plan.  Under  the  stock  option plan, options to acquire 126,500
shares  of the Company's stock may be granted to certain officers, directors and
employees  of  the  Company  and  B&L.  The options will enable the recipient to
purchase  stock at an exercise price equal to the fair market value of the stock
at the date of grant.  On June 11, 1997, the Company granted options for 101,200
shares  for  $15.125  per  share.  The  options  will  vest  over the five years
following  the date of grant and are exercisable for up to 10 years.  No options
have  been  exercised  at  September  30,  2001.

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

The  Company  has elected to apply the recognition provisions of APB Opinion No.
25  and  provide  the  pro  forma  disclosure  provisions  of SFAS No. 123.  Had
compensation  expense for the Company's incentive and nonstatutory stock options
been  determined based upon the fair value of the grant date consistent with the
methodology  prescribed  under  SFAS  No.  123,  the  Company's net earnings and
diluted  earnings  per  share  would have been reduced by approximately $88,453,
$88,453  and  $88,453  or  $0.11,  $0.10  and $0.07 per share for the year ended
September  30,  2001,  2000  and  1999,  respectively.

Following  is  a  summary  of  the  fair  values  of  options  granted using the
Black-Scholes  option-pricing model for the years ended September 30, 2001, 2000
and  1999:

Fair value at grant date                               $6.94
Assumptions:
   Dividend yield                                      1.14%
   Volatility                                         20.27%
   Risk-free interest rate                             6.10%
   Expected life                                    10 years

Pro  forma  net earnings reflect only options granted and vested in fiscal 2001,
2000  and  1999.  Therefore, the full impact of calculating compensation expense
for  stock  options  under  SFAS  is not reflected in the pro forma net earnings
amount  presented  above  because  compensation  expense  is  reflected over the
options'  vesting  period.


                                      -31-
<PAGE>
NOTE  L--INCOME  PER  SHARE

The  shares  used  in  calculation  of basic and diluted income per share are as
follows:

                                             YEAR ENDED SEPTEMBER 30
                                             2001     2000     1999
                                            -------  -------  -------

Weighted average common shares outstanding  714,208  746,406  896,545
Stock options and MRDP                       10,117   15,008   17,704
                                            -------  -------  -------
                                            724,325  761,414  914,249
                                            =======  =======  =======


NOTE  M--FINANCIAL  INSTRUMENTS  WITH  OFF-BALANCE SHEET RISK, CONCENTRATIONS OF
CREDIT  RISK  AND  CONTINGENCIES

The  Company  is a party to financial instruments with off-balance sheet risk in
the normal course of business to meet customer financing needs.  These financial
instruments  consist  principally  of commitments to extend credit.  The Company
uses  the same credit policies in making commitments and conditional obligations
as  it  does  for on-balance sheet instruments. The Company's exposure to credit
loss  in  the  event  of nonperformance by the other party is represented by the
contractual amount of those instruments.  The Company does not generally require
collateral  or  other security on unfunded loan commitments until such time that
loans  are  funded.  Commitments  to  extend  credit are agreements to lend to a
customer  as  long  as there is no violation of any condition established in the
contract.  Commitments  generally  have  fixed  expiration  dates  or  other
termination clauses. The Company evaluates each customer's creditworthiness on a
case-by-case  basis.  The  amount of collateral obtained, if deemed necessary by
the Company upon extension of credit, is based on management's credit evaluation
of  the  counterparty.  Such  collateral  consists  primarily  of  residential
properties.

At  September  30,  2001  and 2000, the Company was committed to originate loans
aggregating  approximately  $8,800,000 and $3,218,000, respectively.  Fixed loan
commitments at September 30, 2001 and 2000, amounted to approximately $2,276,000
and  $332,000  with interest rates ranging from 4.0% to 18.5% and 7.0% to 12.0%,
respectively.  The  Company also has outstanding letters of credit in the amount
of  $37,000  at  September  30,  2001  and  2000.

At  September 30, 2001 and 2000, the Company had amounts on deposit at banks and
federal  agencies  in  excess  of  federally  insured  limits  of  approximately
$12,052,295  and  $4,076,658,  respectively.

In addition, the Company from time to time becomes a defendant in certain claims
and  legal actions arising in the ordinary course of business.  At September 30,
2001,  there  were  no  such  claims  and  legal  actions.


                                      -32-
<PAGE>
NOTE  N--FAIR  VALUE  OF  FINANCIAL  INSTRUMENTS

SFAS  No.  107, Disclosures about Fair Values of Financial Instruments, requires
disclosure of fair value information about financial instruments, whether or not
recognized  in  the  statement  of  financial  condition.  In cases where quoted
market  prices  are  not  available,  fair  values  are based on estimates using
present value or other valuation techniques.  Those techniques are significantly
affected  by  the assumptions used, including the discount rate and estimates of
future  cash  flows.  In that regard, the derived fair value estimates cannot be
substantiated by comparison to independent markets and, in many cases, could not
be  realized  in immediate settlement of the instruments.  SFAS No. 107 excludes
certain  financial  instruments  and  all  nonfinancial  instruments  from  its
disclosure  requirements.  Accordingly,  the  aggregate  fair  value  amounts
presented  do  not  represent  the  underlying  value  of  the  Company.

The  following  methods  and  assumptions were used by the Company in estimating
fair  values  of  financial  instruments  as  disclosed  herein:

     Cash and due from banks and interest-bearing deposits: The carrying amounts
     of  cash  and  due from depository institutions and certificates of deposit
     approximate  their  fair  value.

     Investment  and  mortgage-backed  securities:  Fair  value is determined by
     reference  to  quoted  market  prices.

     Federal  funds  sold:  The  carrying  value  approximates  fair  value.

     Stock in FHLB: This stock is a restricted asset and its carrying value is a
     reasonable  estimate  of  fair  value.

     Loans  held  for  sale: The carrying value approximates fair value based on
     sales  commitments  at  the  time  of  origination.

     Loans  receivable:  The  fair value of first mortgage loans is estimated by
     using discounted cash flow analyses, using interest rates currently offered
     by  the Company for loans with similar terms to borrowers of similar credit
     quality.  The majority of real estate loans are residential. First mortgage
     loans are segregated by fixed and adjustable interest terms. The fair value
     of  consumer  loans  is  calculated by using the discounted cash flow based
     upon  the  current  market  for  like instruments. Fair values for impaired
     loans  are  estimated  using  discounted  cash  flow  analyses.

     Accrued  interest  receivable:  The carrying value approximates fair value.

     Transaction  deposits:  Transaction  deposits,  payable  on  demand or with
     maturities  of  90  days  or  less,  have a fair value equal to book value.

                                      -33-
<PAGE>
NOTE N--FAIR VALUE OF FINANCIAL INSTRUMENTS - CONT'D

     Certificates  of  deposit: The fair value of fixed maturity certificates of
     deposit  is  estimated by discounting the future cash flows using the rates
     currently  offered  for  deposits  of  similar  maturities.

     Advances  from  borrowers  for  taxes  and  insurance:  The  book  value
     approximates  fair  value.

     Advances  from  FHLB: The fair value is estimated by discounting the future
     cash  flows using interest rates currently offered by the FHLB for advances
     with  similar  maturities.

     Notes  payable:  The  book  value  approximates  fair  value.

     Off-balance  sheet  instruments:  The fair value of a loan commitment and a
     letter of credit is determined based on the fees currently charged to enter
     into  similar  agreements,  taking  into account the remaining terms of the
     agreement  and  the present creditworthiness of the counterparties. Neither
     the  fees  earned  during  the year on these instruments nor their value at
     year  end are significant to the Company's consolidated financial position.

     Limitations:  Fair  value  estimates  are made at a specific point in time,
     based  on  relevant  market information and information about the financial
     instrument.  The  valuation techniques employed above involve uncertainties
     and  are affected by assumptions used and judgements regarding prepayments,
     credit  risk,  discount  rates,  cash  flows  and other factors. Changes in
     assumptions  could  significantly  affect  the  reported  fair  value.

In  addition,  the 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.  The fair value estimates do not include the
benefit  that  results  from  the  low-cost  funding  provided  by  the  deposit
liabilities  compared to the cost of borrowing funds in the market.  The amounts
are  as  follows  at  September  30:

<TABLE>
<CAPTION>
                                                            2001                2000
                                                     --------------------------------------
                                                     CARRYING    FAIR    CARRYING    FAIR
                                                      AMOUNT     VALUE    AMOUNT     VALUE
                                                     ---------  -------  ---------  -------
<S>                                                  <C>        <C>      <C>        <C>
                                                            (Dollars in Thousands)
ASSETS

    Cash                                             $   1,738  $ 1,738  $   1,695  $ 1,695
    Interest-bearing deposits                           11,513   11,513      3,088    3,088
    Investment securities available-for-sale            24,737   24,737      7,790    7,790
    Investment securities held-to-maturity               6,073    6,194     22,231   21,565
    Federal funds sold                                   1,919    1,919      1,374    1,374
    Stock in FHLB                                          618      618        543      543
    Loans held for sale                                    197      197        328      328
    Loans receivable                                    72,504   74,046     64,680   65,199
    Accrued interest receivable                          1,132    1,132      1,132    1,132

LIABILITIES

    Transaction accounts                                34,705   34,705     26,950   26,950
    Certificates of deposit                             65,425   66,465     58,388   58,108
    Advances from borrowers for taxes and insurance        201      201        180      180
    Advances from FHLB                                  10,337   10,211      7,003    6,915
    Notes payable                                           83       83        178      178
</TABLE>


                                      -34-
<PAGE>
NOTE  O--CONDENSED  PARENT  COMPANY  ONLY  FINANCIAL  STATEMENTS

The  following condensed balance sheets, condensed statements of income and cash
flows for Lexington B & L Financial Corp. should be read in conjunction with the
consolidated  financial  statements  and  the  notes  thereto.

<TABLE>
<CAPTION>
CONDENSED BALANCE SHEETS
                                                                    SEPTEMBER 30
                                                                 2001          2000
                                                             ------------  ------------
<S>                                                          <C>           <C>
ASSETS
Cash                                                         $   326,768   $   520,597
Municipal investment held-to-maturity                                ---       265,000
ESOP note receivable                                             557,650       656,119
Investment in subsidiaries:
    B & L Bank                                                13,508,009     8,040,174
    Lafayette County Bank                                            ---     4,413,035
    B & L Mortgage, Inc.                                          61,426        59,351
Other                                                            188,308       196,686
                                                             ------------  ------------
                                               TOTAL ASSETS  $14,642,161   $14,150,962
                                                             ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued expenses                                             $     3,500   $    28,582
Notes payable                                                     83,219       178,219
Stockholders' equity                                          14,555,442    13,944,161
                                                             ------------  ------------
                                      TOTAL LIABILITIES AND
                                       STOCKHOLDERS' EQUITY  $14,642,161   $14,150,962
                                                             ============  ============

CONDENSED STATEMENTS OF INCOME

                                                                    YEAR ENDED SEPTEMBER 30
                                                                 2001          2000          1999
                                                             ------------  ------------  ------------
INCOME
    Dividends from subsidiary                                $       ---   $       ---   $ 3,700,000
    Interest                                                      65,164        93,894       100,919
    Loss on sale of investment                                    (2,650)          ---           ---
                                                             ------------  ------------  ------------
                                                                  62,514        93,894     3,800,919
EXPENSES
    MRDP                                                          56,745       104,031       172,813
    Interest                                                      15,505        24,856        34,730
    Professional fees                                             80,419        78,498        71,414
    Other                                                         29,539        22,332        24,482
                                                             ------------  ------------  ------------
                                                                 182,208       229,717       303,439
                                                             ------------  ------------  ------------
INCOME (LOSS)BEFORE EQUITY IN UNDISTRIBUTED EARNINGS
 OF SUBSIDIARIES AND INCOME TAXES                               (119,694)     (135,823)    3,497,480
Increase (decrease) in undistributed equity of subsidiaries      683,536       923,377    (2,908,429)
                                                             ------------  ------------  ------------
                                  INCOME BEFORE INCOME TAXES     563,842       787,554       589,051
INCOME TAXES BENEFIT                                             (45,000)      (47,000)      (71,000)
                                                             ------------  ------------  ------------
                                                 NET INCOME  $   608,842   $   834,554   $   660,051
                                                             ============  ============  ============
</TABLE>


                                      -35-
<PAGE>
<TABLE>
<CAPTION>
NOTE O--CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - CONT'D

CONDENSED STATEMENTS OF CASH FLOWS
                                                                         YEAR ENDED SEPTEMBER 30
                                                                     2001         2000          1999
                                                                  ----------  ------------  ------------
<S>                                                               <C>         <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                                                    $ 608,842   $   834,554   $   660,051
    Adjustments to reconcile net income to net cash
    provided from operating activities:
    (Increase) decrease in undistributed equity of subsidiaries    (683,536)     (923,377)    2,908,429
    Loss on sale of investment                                        2,650           ---           ---
    Amortization of MRDP                                             56,745       104,031       172,813
    Increase (decrease) in other assets and liabilities             (16,704)      (52,095)       43,157
                                                                  ----------  ------------  ------------
                                            NET CASH PROVIDED BY
                                  (USED IN) OPERATING ACTIVITIES    (32,003)      (36,887)    3,784,450
CASH FLOW FROM INVESTING ACTIVITIES
    Purchase of security held-to-maturity                               ---      (265,000)          ---
    Proceeds from sale of security                                  262,350           ---           ---
    Surplus distribution from subsidiary                                ---       450,000           ---
    Investment in subsidiary                                            ---           ---      (500,000)
                                                                  ----------  ------------  ------------
                                           NET CASH PROVIDED BY
                                  (USED IN) INVESTING ACTIVITIES    262,350       185,000      (500,000)
CASH FLOWS FROM FINANCING ACTIVITIES
    Principal payments on notes payable                             (95,000)      (95,000)      (95,000)
    Principal collected from ESOP                                    98,469        90,748        83,631
    Dividends paid                                                 (235,170)     (248,364)     (302,606)
    Purchase of treasury stock                                     (192,475)   (1,949,147)     (975,581)
                                                                  ----------  ------------  ------------
NET CASH USED IN  FINANCING ACTIVITIES                             (424,176)   (2,201,763)   (1,289,556)
                                                                  ----------  ------------  ------------
                                         NET INCREASE (DECREASE)
                                    IN CASH AND CASH EQUIVALENTS   (193,829)   (2,053,650)    1,994,894
                                         CASH, BEGINNING OF YEAR    520,597     2,574,247       579,353
                                                                  ----------  ------------  ------------
                                               CASH, END OF YEAR  $ 326,768   $   520,597   $ 2,574,247
                                                                  ==========  ============  ============
</TABLE>


                                      -36-
<PAGE>
DIRECTORS AND OFFICERS

            LEXINGTON B & L FINANCIAL CORP.


OFFICERS:                              DIRECTORS:

Erwin Oetting, Jr.                     Erwin Oetting, Jr.
President and Chief Executive Officer  Chairman of the Board

E. Steva Vialle                        E. Steva Vialle
Executive Vice-President, Chief        Executive Vice-President, Chief
Operating Officer and Secretary        Operating Officer and Secretary

William J. Huhmann                     William J. Huhmann
Senior Vice-President and              Senior Vice-President and
Chief Financial Officer                Chief Financial Officer

Mark D. Summerlin                      Steve Oliaro
Senior Vice-President                  President
                                       Baker Memorials, Inc.
Terry L. Thompson
Vice-President                         Norman Vialle
                                       Retired Businessman

                                       Charles R. Wilcoxon
                                       Retired Businessman

                      B & L BANK

OFFICERS:                              DIRECTORS:

Erwin Oetting, Jr.                     Erwin Oetting, Jr.
President and Chief Executive Officer  Chairman of the Board

E. Steva Vialle                        E. Steva Vialle
Executive Vice-President, Chief        Executive Vice-President, Chief
Operating Officer and Secretary        Operating Officer and Secretary

William J. Huhmann                     Terry L. Thompson
Senior Vice-President                  Senior Vice-President

Mark D. Summerlin                      Steve Oliaro
Senior Vice-President                  President
                                       Baker Memorials, Inc.
Terry L. Thompson
Senior Vice-President                  Norman Vialle
                                       Retired Businessman
Kathryn M. Swafford
Senior Vice-President and Treasurer    Charles R. Wilcoxon
                                       Retired Businessman
Carol Summerlin
Vice President


                                      -37-
<PAGE>
                 B & L BANK - CONT'D

OFFICERS:                              DIRECTORS:

Kirk Craven                            ADVISORY DIRECTORS
Vice President
                                       Alfred Block
Betty Smith                            Farmer
Assistant Vice-President
                                       Norman Rasa
Vickie Church                          Businessman/Farmer
Assistant Vice-President
                                       William C. LaHue, M.D.
Betty Teter                            Medical Doctor
Assistant Vice-President

Elsie Binder
Assistant Branch Manager

Mary Ann Campbell
Branch Manager


CORPORATE INFORMATION


OFFICES                                INDEPENDENT AUDITORS

LEXINGTON B & L FINANCIAL CORP.        Moore, Horton & Carlson, P.C.
AND B & L BANK                         Mexico, Missouri

205 S. 13th Street                     GENERAL COUNSEL
Lexington, Missouri 64067
Telephone (660) 259-2247               Aull, Sherman, Worthington,
                                         Giorza & Hamilton, LLC
BRANCH LOCATIONS                       Lexington, Missouri

558 Highway 224                        SPECIAL COUNSEL
Wellington, Missouri 64097
Telephone (816) 934-2641               Muldoon Murphy & Faucette LLP
                                       Washington, D.C.
Second and Highway 3
Callao, Missouri 63534
Telephone (660) 768-5511


                                      -38-
<PAGE>
STOCKHOLDER INFORMATION


ANNUAL  MEETING

The  Annual  Meeting  of  Stockholders  will be held at the main office of B & L
Bank,  205  S. 13th Street, Lexington, Missouri, on Tuesday, January 22, 2002 at
10:00  a.m.,  local  time.



SHAREHOLDER AND GENERAL INQUIRIES   REGISTRAR  AND  TRANSFER  AGENT

E.  Steva  Vialle                   Registrar  and  Transfer  Company
B  &  L  Bank                       10  Commerce  Drive
205  S.  13th  Street               Cranford,  New  Jersey  07016-3572
Lexington,  Missouri  64067         (800)  866-1340
(660)  259-2247


ANNUAL  AND  OTHER  REPORTS

A  COPY  OF  THE FORM 10-KSB (WITHOUT EXHIBITS) AS FILED WITH THE SECURITIES AND
EXCHANGE  COMMISSION  WILL BE FURNISHED WITHOUT CHARGE TO STOCKHOLDERS AS OF THE
RECORD  DATE  FOR  VOTING  AT  THE  ANNUAL  MEETING OF STOCKHOLDERS UPON WRITTEN
REQUEST  TO  THE SECRETARY, LEXINGTON B & L FINANCIAL CORP., 205 S. 13TH STREET,
LEXINGTON,  MISSOURI 64067.  THE COMPANY'S FORM 10-KSB IS ALSO AVAILABLE THROUGH
THE  SEC'S  WORLD  WIDE  WEB  SITE  ON  THE  INTERNET  (HTTP://WWW.SEC.GOV).


                                      -39-
<PAGE>