<PAGE> 1
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001.

[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___ TO ___.

Commission file number 000-22469

                            LAFAYETTE BANCORPORATION
             (Exact name of registrant as specified in its charter)

         INDIANA                                      35-1605492
(State or other jurisdiction of                     (I.R.S. Employer
incorporation or organization)                     Identification No.)

133 North 4th Street, Lafayette, Indiana                47902
(Address of principal executive offices)              (Zip Code)

                                 (765) 423-7100
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) filed all reports  required to
be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of 1994 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days: Yes (x) No ( )

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date:

Class                                             Outstanding at May 11, 2001
Common Stock, without par value                              3,957,522 shares


<PAGE>


                            LAFAYETTE BANCORPORATION

                                      INDEX


PART I.             FINANCIAL INFORMATION

Item 1.

     Consolidated Balance Sheets -- March 31, 2001 and December 31, 2000

     Consolidated  Statements of Income and Comprehensive Income -- Three Months
     Ended March 31, 2001 and 2000

     Consolidated  Statements of Cash Flows -- Three Months Ended March 31, 2001
     and 2000

     Notes to Consolidated Financial Statements -- March 31, 2001


Item 2.

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


Item 3.

     Quantitative and Qualitative Disclosures About Market Risk




PART II.            OTHER INFORMATION

Item 6.       Exhibits and Reports on Form 8-K

       a)     Exhibits


       b)     Reports on Form 8-K



SIGNATURES

                            LAFAYETTE BANCORPORATION

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

          See accompanying notes to consolidated financial statements.
<PAGE>

<TABLE>

ITEM 1.
                                                       LAFAYETTE BANCORPORATION
                                                      CONSOLIDATED BALANCE SHEETS
                                                     (Dollar amounts in thousands)

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

                                                                                  (Unaudited)
                                                                                   March 31,         December 31,
<S>                                                                                  <C>                 <C>
                                                                                     2001                2000
                                                                                     ----                ----
ASSETS
Cash and due from banks                                                       $       22,989      $      26,452
Interest-bearing balances with other financial institutions                           26,609             21,820
Federal funds sold                                                                    24,800             25,200
                                                                              --------------      -------------
    Total cash and cash equivalents                                                   74,398             73,472

Securities available-for-sale (at market)                                             86,210             78,857
Securities held-to-maturity (market value $4,287
  and $4,580)                                                                          4,134              4,484
Loans held for sale                                                                    7,383              5,949
Loans                                                                                533,387            537,725
    Less:  Allowance for loan losses                                                  (5,194)            (5,071)
                                                                              --------------      -------------
       Loans, net                                                                    528,193            532,654
Federal Home Loan Bank stock (at cost)                                                 2,200              2,200
Premises, furniture and equipment, net                                                11,122             11,353
Intangible assets                                                                     12,828             13,007
Accrued interest receivable and other assets                                          17,785             19,171
                                                                              --------------      -------------

          Total assets                                                        $      744,253      $     741,147
                                                                              ==============      =============




LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
    Noninterest-bearing deposits                                              $       62,881      $      70,866
    Interest-bearing demand and savings deposits                                     255,967            230,984
    Interest-bearing time deposits                                                   285,287            276,447
                                                                              --------------      -------------
       Total deposits                                                                604,135            578,297
    Short-term borrowings                                                             31,135             55,572
    FHLB advances                                                                     35,389             35,737
    Note payable                                                                      11,200             11,550
    Accrued interest payable and other liabilities                                     7,696              7,190
                                                                              --------------      -------------
       Total liabilities                                                             689,555            688,346


Shareholders' equity
    Common stock, no par value:  5,000,000 shares authorized;
    3,957,522 and 3,953,616 shares issued and outstanding                              3,958              3,954
    Additional paid-in capital                                                        38,071             38,024
    Retained earnings                                                                 12,367             11,086
    Accumulated other comprehensive income                                               302               (263)
                                                                              --------------      --------------
       Total shareholders' equity                                                     54,698             52,801
                                                                              --------------      -------------

          Total liabilities and shareholders' equity                          $      744,253      $     741,147
                                                                              ==============      =============
</TABLE>


                            LAFAYETTE BANCORPORATION

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

          See accompanying notes to consolidated financial statements

<PAGE>

                            LAFAYETTE BANCORPORATION
           CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                      For the three months ended March 31,
                        2001 and 2000 (Dollar amounts in
                        thousands, except per share data)
                                   (Unaudited)
<TABLE>

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

<S>                                                                                <C>                 <C>
                                                                                   2001                2000
                                                                                   ----                ----
Interest income
    Loans                                                                     $       11,842      $      10,744
Taxable securities                                                                       776                860
    Tax exempt securities                                                                423                412
    Other                                                                                745                107
                                                                              --------------      -------------
       Total interest income                                                          13,786             12,123
Interest expense
    Deposits                                                                           6,393              5,114
    Short-term borrowings                                                                470                339
    Other borrowings                                                                     736                586
                                                                              --------------      -------------
       Total interest expense                                                          7,599              6,039
                                                                              --------------      -------------
Net interest income                                                                    6,187              6,084
Provision for loan losses                                                                300                300
                                                                              --------------      -------------
Net interest income after provision for loan losses                                    5,887              5,784
Noninterest income
    Income from fiduciary activities                                                     297                316
    Service charges on deposit accounts                                                  488                405
    Net realized gain on securities                                                        -                  -
    Net gain on loan sales                                                               366                112
    Other service charges and fees                                                       259                253
    Investment product commissions                                                       117                 89
    Other operating income                                                               122                 77
                                                                              --------------      -------------
       Total noninterest income                                                        1,649              1,252
                                                                              --------------      -------------
Noninterest expense
    Salaries and employee benefits                                                     2,958              2,318
    Occupancy expenses, net                                                              326                281
    Equipment expenses                                                                   469                389
    Intangible amortization                                                              179                185
    Other operating expenses                                                           1,195              1,130
                                                                              --------------      -------------
       Total noninterest expense                                                       5,127              4,303
                                                                              --------------      -------------
Income before income taxes                                                             2,409              2,733
Income taxes                                                                             731                935
                                                                              --------------      -------------
Net income                                                                             1,678              1,798
                                                                              --------------      -------------
Other comprehensive income, net of tax:
    Change in unrealized gains / (losses) on securities                                  565                (19)
                                                                              --------------      --------------
Comprehensive income                                                          $        2,243      $       1,779
                                                                              ==============      =============

Basic earnings per share                                                      $         .42   $             .46
                                                                              =================================
Diluted earnings per share                                                    $         .42   $             .45
                                                                              =================================
Dividend per share                                                            $         .10   $             .09
                                                                              ==============  =================
</TABLE>


       ------------------------------------------------------------------
          See accompanying notes to consolidated financial statements

<PAGE>


                            LAFAYETTE BANCORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
               For the three months ended March 31, 2001 and 2000
                          (Dollar amounts in thousands)
                                   (Unaudited)
<TABLE>

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

<S>                                                                       <C>             <C>
                                                                          2001            2000
                                                                          ----            ----

Cash flows from operating activities
    Net income                                                         $     1,678    $     1,798
    Adjustments to reconcile net income to net cash
      from operating activities
       Depreciation                                                            358            305
       Net amortization                                                        170            182
       Provision for loan losses                                               300            300
       Change in assets and liabilities:
          Loans originated for sale                                        (23,760)       (11,081)
          Loans sold                                                        22,326          9,903
          Accrued interest receivable and other assets                         993            904
          Accrued interest payable and other liabilities                       506           (106)
                                                                       -----------    ------------
              Net cash from operating activities                             2,571          2,205
Cash flows from investing activities
    Purchase of securities available-for-sale                              (16,500)        (1,630)
    Proceeds from sales of securities available-for-sale                         -              -
    Proceeds from maturities of securities available-for-sale               10,092          1,160
    Purchase of securities held-to-maturity                                      -              -
    Proceeds from maturities of securities held-to-maturity                    350            228
    Loans made to customers, net of payments collected                       4,142        (14,474)
    Property and equipment expenditures                                       (127)          (416)
    Proceeds from sales of other real estate                                    41              -
                                                                       -----------    -----------
              Net cash from investing activities                            (2,002)       (15,132)
Cash flows from financing activities
    Net change in deposit accounts                                          25,838         18,870
    Net change in short-term borrowings                                    (24,437)           (27)
    Payments on FHLB advances                                                 (348)        (9,368)
    Payments on note payable                                                  (350)          (350)
    Common stock issued                                                         50             67
    Dividends paid                                                            (396)          (358)
                                                                       ------------   ------------
              Net cash from financing activities                               357          8,834
Net change in cash and cash equivalents                                        926         (4,093)
Cash and cash equivalents at beginning of period                            73,472         30,570
                                                                       -----------    -----------
Cash and cash equivalents at end of period                             $    74,398    $    26,477
                                                                       ===========    ===========



Supplemental disclosures of cash flow information Cash paid during the period
    for:
       Interest                                                        $     7,545    $     5,938
       Income taxes                                                            850            570
Non-cash investing activity
     Loans transferred to other real estate                            $        28    $         -
</TABLE>



         -------------------------------------------------------------
          See accompanying notes to consolidated financial statements



<PAGE>





                            LAFAYETTE BANCORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2001
              (Dollar amounts in thousands, except per share data)
                                   (Unaudited)

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

NOTE 1 - BASIS OF PRESENTATION

The significant  accounting  policies followed by Lafayette  Bancorporation (the
"Corporation")   for  interim  financial   reporting  are  consistent  with  the
accounting  policies followed for annual financial  reporting.  The consolidated
interim  financial  statements  have been prepared in accordance  with Generally
Accepted Accounting  Principles and in accordance with instructions to Form 10-Q
and may not include all  information and footnotes  normally  disclosed for full
annual  financial  statements.  All  adjustments  which are,  in the  opinion of
management,  necessary  for a fair  presentation  of the results for the periods
reported have been included in the accompanying unaudited consolidated financial
statements and all such  adjustments are of a normal recurring  nature.  Certain
prior period  information  has been  reclassified  to  correspond  with the 2000
presentation.



NOTE 2 - PER SHARE DATA

The following  illustrates  the  computation  of basic and diluted  earnings per
share,  and includes the weighted  average  number of shares used in calculating
earnings and dividends per share amounts for the periods presented. The weighted
average number of shares has been retroactively restated for stock dividends and
splits.

<TABLE>

<S>                                                                <C>                 <C>
                                                             March 31,           March 31,
                                                               2001                2000
                                                               ----                ----
Basic earnings per share
 Net income                                                $       1,678      $        1,798
Weighted average shares outstanding                            3,956,177           3,945,302
                                                           -------------      --------------

    Basic earnings per share                               $            .42  $              .46
                                                           =====================================


Diluted earnings per share
 Net income                                                $       1,678      $        1,798

Weighted average shares outstanding                            3,956,177           3,945,302
Diluted effect of assumed shares
  exercised of stock options                                      36,906              64,761
                                                           -------------      --------------
    Diluted average shares outstanding                         3,993,083           4,010,063
                                                           --------------     --------------

    Diluted earnings per share                             $            .42  $             .45
                                                           =====================================
</TABLE>




<PAGE>



                            LAFAYETTE BANCORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2001
              (Dollar amounts in thousands, except per share data)
                                   (Unaudited)
------------------------------------------------------------------------------

NOTE 3 - SECURITIES

The  amortized  cost and estimated  fair values of securities  are as follows at
March 31, 2001:

<TABLE>
<S>                                                             <C>                             <C>
                                                         Amortized                      Estimated
                                                           Cost                        Fair Value
Securities Available-for-Sale
U.S. Government and its agencies                       $     3,001                    $     3,007
Obligations of states and political subdivisions            30,574                         31,158
Corporate obligations                                        8,573                          8,666
Mortgage-backed and other asset-backed securities           41,005                         40,778
Other securities                                             2,558                          2,601
                                                       -----------                    -----------
                                                       $    85,711                    $    86,210
                                                       ===========                    ===========

Securities Held-to-Maturity

Obligations of states and political subdivisions       $     4,134                    $     4,287
                                                       ===========                    ===========


The amortized cost and estimated fair values of securities are as follows at
December 31, 2000:

                                                         Amortized                      Estimated
                                                           Cost                        Fair Value
Securities Available-for-Sale
U.S. Government and its agencies                       $     4,201                    $     4,193
Obligations of states and political subdivisions            30,880                         31,012
Corporate obligations                                        3,953                          4,001
Mortgage-backed and other asset-backed securities           37,699                         37,105
Other securities                                             2,560                          2,546
                                                       -----------                    -----------
                                                       $    79,293                    $    78,857
                                                       ===========                    ===========

Securities Held-to-Maturity

Obligations of states and political subdivisions       $     4,484                    $     4,580
                                                       ===========                    ===========
</TABLE>


NOTE 4 - LOANS

Loans are comprised of the following:
<TABLE>
<S>                                                                                   <C>                  <C>
                                                                                March 31,         December 31,
                                                                                   2001                2000
                                                                                   ----                ----

         Commercial and agricultural loans                                   $        211,801    $       215,087
         Real estate construction loans                                                59,584             54,768
         Residential real estate loans                                                211,233            212,190
         Installment loans to individuals                                              48,772             50,696
         Commercial paper                                                               1,997              4,984
                                                                             ----------------    ---------------

             Total loans                                                     $        533,387    $       537,725
                                                                             ================    ===============
</TABLE>

<PAGE>

                            LAFAYETTE BANCORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2001
              (Dollar amounts in thousands, except per share data)
                                   (Unaudited)
------------------------------------------------------------------------------


NOTE 5 - ALLOWANCE FOR LOAN LOSSES

The activity in the allowance for loan losses is as follows:

<TABLE>
<S>                                                            <C>                 <C>
                                                               2001                2000
                                                               ----                ----

    Balance, January 1                                     $       5,071      $        4,618
    Provision charged to operations                                  300                 300
    Loans charged-off                                               (210)                (89)
    Recoveries on loans previously charged-off                        33                  31
                                                           -------------      --------------

    Balance, March 31                                      $       5,194      $        4,860
                                                           =============      ==============

</TABLE>



NOTE 6 - SHORT-TERM BORROWINGS

Short-term borrowings are comprised of the following:
<TABLE>
<S>                                                                                    <C>                  <C>
                                                                                 March 31,         December 31,
                                                                                   2001                2000
                                                                                   ----                ----

         Repurchase agreements                                               $         30,542    $        54,275
         Treasury tax and loan open-end note                                              593              1,297
                                                                             ----------------    ---------------

             Total short-term borrowings                                     $         31,135    $        55,572
                                                                             ================    ===============

</TABLE>



NOTE 7 - SEGMENT INFORMATION

The Corporation's operations include three primary segments:  banking,  mortgage
banking, and trust.  Through its banking  subsidiary's  locations in Tippecanoe,
White,  and Jasper  Counties,  the Corporation  provides  traditional  community
banking services, such as accepting deposits and making commercial,  residential
and consumer  loans.  Mortgage  banking  activities  include the  origination of
residential  mortgage  loans for sale on a servicing  released  basis to various
investors.  The  Corporation's  trust  department  provides  both  personal  and
corporate trust services.

The Corporation's  three reportable  segments are determined by the products and
services  offered.  Interest on loans,  investments  and  deposits  comprise the
primary revenues and expenses of the banking operation,  net gains on loans sold
account for the primary  revenues in the  mortgage  banking  segment,  and trust
administration fees provide the primary revenues in the trust department.


<PAGE>





                            LAFAYETTE BANCORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2001
              (Dollar amounts in thousands, except per share data)
                                   (Unaudited)
---------------------------------------------------------------------------


NOTE 7 - SEGMENT INFORMATION (Continued)

The following segment  financial  information has been derived from the internal
profitability  reporting system utilized by management to monitor and manage the
financial  performance of the Corporation.  The accounting policies of the three
segments  are  the  same  as  those  described  in the  summary  of  significant
accounting  policies of the annual report.  The  Corporation  evaluates  segment
performance based on profit or loss before income taxes. The evaluation  process
for the mortgage banking and trust segments include only direct expenses,  while
certain  indirect  expenses,  including  goodwill,  are  absorbed by the banking
operation.  The difference  between segment totals and  consolidated  totals are
holding company amounts and income tax expense.

Quarter ended March 31:

<TABLE>

2001                                                              Mortgage                               Total
----                                                Banking        Banking            Trust            Segments

<S>                                         <C>                <C>                <C>               <C>
     Net interest income                    $         6,346    $           37     $            -    $         6,383
     Net gain on loan sales                               -               366                  -                366
     Other noninterest income                           986                 -                297              1,283
     Noncash items:
         Depreciation                                   332                14                 12                358
         Provision for loan loss                        300                 -                  -                300
     Segment profit                                   2,440               164                 91              2,695
     Segment assets                                 736,119             7,549                167            743,835





2000                                                              Mortgage                               Total
----                                                Banking        Banking            Trust            Segments

     Net interest income                    $         6,271    $           33     $            -    $         6,304
     Net gain on loan sales                               -               112                  -                112
     Other noninterest income                           818                 6                316              1,140
     Noncash items:
         Depreciation                                   281                12                 12                305
         Provision for loan loss                        300                 -                  -                300
     Segment profit                                   2,947                40                137              3,124
     Segment assets                                 650,412             4,492                190            655,094

</TABLE>


NOTE 8 - NEW ACCOUNTING PRONOUNCEMENT

Beginning January 1, 2001, a new accounting standard requires all derivatives to
be recorded at fair value.  Unless  designated as hedges,  changes in these fair
values will be recorded in the income  statement.  Fair value changes  involving
hedges will  generally be recorded by  offsetting  gains and losses on the hedge
and on the  hedged  item,  even if the  fair  value  of the  hedged  item is not
otherwise  recorded.  Adoption of this standard on January 1, 2001 had no effect
on the financial statements, as no applicable derivatives were held.

<PAGE>


ITEM 2.
                            LAFAYETTE BANCORPORATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                       FINANCIAL CONDITION AND RESULTS OF
                          OPERATIONS (Dollar amounts in
                        thousands, except per share data)

Lafayette  Bancorporation  (the  "Corporation")  is a one-bank  holding  company
located  in  Lafayette,  Indiana.  The  Corporation's  wholly-owned  subsidiary,
Lafayette Bank and Trust Company ("Bank") conducts business from its main office
and  seventeen  branches  located in  Tippecanoe,  White,  and Jasper  Counties,
Indiana.  The  Corporation  provides a wide  range of  commercial  and  personal
banking activities, including accepting deposits; making commercial and consumer
loans;  originating  mortgage  loans;  providing  personal and  corporate  trust
services;  providing  investment advisory and brokerage services;  and providing
auto, homeowners, and other insurance products.

On March 14, 2001,  the  Corporation  established  a loan  production  office in
Flora,  Indiana. This Carroll County Loan Center, which provides a full-range of
lending  products,  is  currently  staffed  by  three  individuals.  Subject  to
regulatory  approval,  the  Corporation  plans to open a full-service  branch in
Flora in order to meet all the banking needs of Carroll County residents.

On March 15, 2000, the Corporation  opened a full-service  branch located in the
Super  Wal-Mart  in  Monticello,  Indiana.  Also,  on July 19,  2000,  a similar
full-service branch was opened in the Super Wal-Mart in Lafayette, Indiana. Both
of  these  locations  are open  seven  days a week to  serve  the  Corporation's
customers.

The  Corporation  established a new mortgage line of business  during the second
quarter of 2000, which assists  customers who do not meet the  qualifications of
conventional or traditional  mortgage loan programs in securing  financing.  The
newly created Mortgage Alternative Department will only offer mortgage products,
such as first and second  mortgages and lines of credit that are secured by real
estate.  Loans  originated in this department are  pre-approved for sale and are
sold in the secondary mortgage market with no servicing retained.


RESULTS OF OPERATIONS


Net Income

The Corporation  earned $1,678,  or $.42 per share for the first quarter of 2001
compared to $1,798,  or $.46 per share for the first quarter of 2000.  The $120,
or 6.7%  decrease in net income was  attributable  to the declining net interest
margin,  which was  significantly  impacted by the Federal  Reserve's three deep
interest  rate cuts  during  the first  quarter  of 2001.  Increases  in service
charges,  net realized gain on the sale of mortgage  loans,  investment  product
commissions,  and other operating income  contributed to earnings.  Increases in
salaries and employee  benefits,  and  occupancy and  equipment  expenses,  as a
result of the two new Wal-Mart branches,  the Mortgage  Alternative  Department,
and the Carroll  County Loan Center,  more than offset the  increases  posted to
noninterest  income.  None of the new operations  mentioned  above were in place
during the first  quarter of 2000,  with the  exception of one  Wal-Mart  branch
which opened March 15, 2000.

Return on average  assets (ROA) was .91% and 1.11% for the periods  ending March
31, 2001 and 2000,  while  return on average  equity (ROE) was 12.46% and 15.48%
for the periods ending March 31, 2001 and 2000, respectively.


Net Interest Income

Net  interest  income is the most  significant  component  of the  Corporation's
earnings.  Net  interest  income is the  difference  between  interest  and fees
realized on earning assets, primarily loans and securities, and interest paid on
deposits and other borrowed  funds.  The net interest  margin is this difference
expressed as a percentage  of average  earning  assets.  Net interest  income is
determined  by several  factors,  including  the  volume of  earning  assets and
liabilities, the mix of earning assets and liabilities, and interest rates.

<PAGE>

Net interest  income for the first quarter of 2001 was $103, or 1.7% higher than
that same  three-month  period  ending March 31,  2000.  Total  interest  income
increased $1,663, or 13.7% to $13,786 for the first quarter of 2001, while total
interest  expense  increased  $1,560,  or 25.8%  for the same  time  period.  In
general,  the small  increase in net interest  income was due to asset  interest
rates,  predominately  loans,  declining  at a  greater  and  faster  pace  than
liability interest rates. Assets generally reprice immediately, and depending on
the index to which loans are tied, the repricing could equal any Federal Reserve
change made in interest rates.  Interest-bearing  liabilities,  other than money
market  accounts,  will  reprice at  maturity,  which is normally at some future
point  in time.  In  addition,  the  extent  of  repricing  on  interest-bearing
liabilities  generally tends to be less than any interest rate change  initiated
by the Federal Reserve, due to the competitive local market.

The following  table  summarizes  the  Corporation's  net interest  income (on a
tax-equivalent  basis) for each of the  periods  presented.  A marginal  federal
income tax rate of 34% for each period was used.

<TABLE>
                                      Three Months                         Change from
                                     Ended March 31,                      Prior Period
<S>                                <C>              <C>
                                   2001             2000             Amount        Percent
                                   ----             ----             ------        -------


Interest income                  $14,027           $12,337           $1,690          13.7%

Interest expense                   7,599             6,039            1,560          25.8%
                                   -----             -----            -----
     Net interest income          $6,428            $6,298          $   130           2.1%
                                  ======            ======          =======
</TABLE>



The net interest  margin,  on a tax equivalent basis for the three months ending
March 31, 2001 and 2000 was 3.79% and 4.29%, respectively.


Provision for Loan Losses and Asset Quality

The provision for loan losses represents charges made to earnings to maintain an
adequate  allowance  for loan losses.  The  allowance is maintained at an amount
believed by management to be sufficient to absorb losses  inherent in the credit
portfolio.  Management conducts,  on a quarterly basis, a detailed evaluation of
the adequacy of the allowance.

The consolidated  provision for loan losses was $300 for the three months ending
March 31, 2001 and 2000.  The allowance for loan losses was $5,194 and $5,071 at
March 31, 2001 and December 31, 2000, respectively.  Adding the credit valuation
account,  which was established in connection with the 1999 purchase of the Bank
One branches,  with the allowance for loan losses, the allowance as a percentage
of loans  was  1.04%  and  1.02% at  March  31,  2001  and  December  31,  2000,
respectively.  During the first  quarter of 2001 net  charge-offs  increased  to
$177,  compared to $58 during the same time period one year  earlier.  This $119
change was primarily  associated  with increases in commercial  and  installment
loan portfolio charge-offs.

Nonperforming  loans include  nonaccrual  loans,  restructured  loans, and loans
delinquent 90 days or more.  Loans are classified as nonaccrual  when management
believes that  collection of interest is doubtful,  typically  when payments are
past due 90 days,  unless  the  loans are well  secured  and in the  process  of
collection.


The following table indicated the composition of nonperforming loans:

<TABLE>
<S>                                                                                    <C>                  <C>
                                                                                 March 31,         December 31,
                                                                                   2001                2000
                                                                                   ----                ----

         Loans past due 90 days or more                                      $            860    $         1,052
         Nonaccrual loans                                                               3,006              2,718
         Restructured loans                                                                31                 55
                                                                             ----------------    ---------------

             Total nonperforming loans                                       $          3,897    $         3,825
                                                                             ================    ===============
</TABLE>

<PAGE>


Management  continues to believe  overall  asset  quality  remains  satisfactory
despite a slight increase in the nonperforming loan totals. While loans past due
90 days or more and  restructured  loan  totals  have  declined  slightly  since
year-end,  nonaccrual loan totals have increased $288, or 10.6%. The majority of
the  change  between  the  loans  past  due 90  days or  more  category  and the
nonaccrual  loan  category was a result of two mortgage  loans from one borrower
which were 90 days or more past due being placed on nonaccrual status during the
first  quarter of 2001.  At both March 31,  2001 and 2000,  total  nonperforming
loans as a percentage of assets were .52%.


Noninterest Income and Expense

Noninterest  income increased $397, or 31.7% for the first three months of 2001,
compared  to the  same  2000  time  period.  Income  from  fiduciary  activities
decreased  6.0% to $297 for the quarter  ending March 31,  2001.  The lower fees
recorded were a direct result of the recent  decline in the  performance  of the
stock  market,  in that the market value of assets are used in  determining  the
amount of fee income derived by the Corporation.

Service  charges  on  deposit  accounts   comprise  the  largest   component  of
noninterest  income.  The $83, or 20.5%  increase in revenue for the first three
months of 2001 was attributed to higher NSF and service charge income associated
with the Corporation's larger deposit base.

Net gain on loans originated and sold in the secondary mortgage market increased
226.8%  to $366 for the first  quarter  of 2001  compared  to $112 for the first
quarter  of  2000.  The  lower  interest  rate  environment   generated  greater
opportunities for customers,  both in the new home and refinancing  markets, and
led to an increase of $12,423,  or 125.4% in loan sales for the first quarter of
2001 compared to the first quarter of 2000.

For  customers of the  Investment  Center,  a full service  brokerage  operation
offered through Raymond James Financial  Services,  Inc., member NASD/SIPC,  the
recent  downturn in the stock market led to additional  investing  opportunities
during the first  quarter of 2001  which,  in turn,  led to a 31.5%  increase in
investment product commissions posted.

Other  operating  income  increased  $45,  or 58.4% to $122 for the first  three
months of 2001  compared to the $77 recorded for the first three months of 2000.
This  increase was  attributed  to the income  earned on the  additional  $2,995
director's life insurance coverage purchased in November 2000.

Noninterest  expense increased $824, or 19.1% to $5,127 for the first quarter of
2001 compared to that same 2000 time period. Salaries and employee benefits, the
largest noninterest expense component, increased $640, or 27.6% during the first
quarter of 2001. This increase was primarily a result of the increased  staffing
needs associated with the new Wal-Mart branch,  Mortgage Alternative Department,
and Carroll County Loan Center.

Occupancy  and equipment  expenses  increased  $125, or 18.6%,  during the first
quarter  of 2001.  Expenses,  such as rent,  depreciation,  utilities  and other
start-up costs,  associated with the new Wal-Mart branch,  Mortgage  Alternative
Department,  and Carroll  County Loan Center  accounted  for the majority of the
increase in these categories.

Other operating  expenses increased $65, or 5.8% to $1,195 for the first quarter
of 2001  compared  to the same  2000  time  period.  Increased  advertising  and
marketing  expenses,  along with postage and the mortality costs associated with
the additional  $2,995 director's life insurance  coverage  purchased led to the
higher costs incurred.



Income Taxes

The Corporation's  effective tax rate was 30.3% and 34.2% for the periods ending
March  31,  2001  and  2000,  respectively.  The  lower  effective  tax rate was
primarily  attributable  to a change in state tax law which now allows a portion
of the Corporation's revenues to be apportioned outside the state of Indiana.

<PAGE>


FINANCIAL CONDITION

Total  assets were  $744,253 at March 31, 2001  compared to $741,147 at December
31,  2000,  an  increase  of  $3,106.  Cash  and  cash  equivalents,  investment
securities,  and  loans  held for  sale  increased  $926,  $7,003,  and  $1,434,
respectively,  while net loans and accrued interest  receivable and other assets
decreased $4,461 and $1,386, respectively.

Total  deposits  increased  $25,838 to $604,135  at March 31,  2001  compared to
$578,297  at  December  31,  2000,  with  accrued  interest  payable  and  other
liabilities  also  increasing  $506.  These  increases were offset by $24,437 of
short-term borrowings reductions,  and principal repayments of Federal Home Loan
Bank of Indianapolis  advances and the quarterly principal repayment of the note
payable totaling $348 and $350, respectively.


Capital

The Corporation and Bank are subject to various regulatory capital guidelines as
required by federal and state  banking  agencies.  These  guidelines  define the
various components of core capital and assign risk weights to various categories
of assets.

Tier 1 capital consists of  shareholders'  equity less goodwill and core deposit
intangibles,  as defined by bank  regulators.  The  definition of Tier 2 capital
includes the amount of allowance  for loan losses which does not exceed 1.25% of
gross  risk  weighted  assets.  Total  capital  is the sum of Tier 1 and  Tier 2
capital.

The minimum requirements under the capital guidelines are a 4.00% leverage ratio
(Tier 1 capital divided by average assets less intangible  assets and unrealized
gains/losses),  a 4.00% Tier 1 risk-based  capital ratio (Tier 1 capital divided
by risk-weighted  assets), and an 8.00% total capital ratio (Tier 1 capital plus
Tier 2 capital divided by risk-weighted assets).

The Federal  Deposit  Insurance  Corporation  Improvement  Act of 1991  (FDICIA)
requires  federal  regulatory  agencies  to define  capital  tiers.  These  are:
well-capitalized,   adequately  capitalized,   undercapitalized,   significantly
undercapitalized,  and critically  undercapitalized.  Under these regulations, a
"well-capitalized" institution must achieve a Tier 1 risk-based capital ratio of
at least 6.00%,  a total capital ratio of at least 10.00%,  and a leverage ratio
of at least 5.00% and not be under a capital  directive  order.  Failure to meet
capital  requirements  can result in the initiation of regulatory  action by the
appropriate regulatory agency. If an institution is only adequately capitalized,
regulatory   approval   is   required   to   accept   brokered   deposits.    If
undercapitalized,   the   institution   may  be   required   to  limit   capital
distributions,   limit  asset  growth  and  expansion,   and  submit  a  capital
restoration plan.

At March 31, 2001,  management was not aware of any current  recommendations  by
banking  regulatory  authorities  which, if they were to be  implemented,  would
have, or are reasonably  likely to have, a material effect on the  Corporation's
consolidated liquidity, capital resources or operations


<PAGE>


The  Corporation's  actual  consolidated  capital  amounts are  presented in the
following table.

<TABLE>
<S>                                                                                    <C>                  <C>
                                                                                 March 31,         December 31,
                                                                                   2001                2000
                                                                                   ----                ----

       Tier 1 capital
         Shareholders' equity                                                $         54,698    $        52,801
         Less:  Intangibles                                                           (12,828)           (13,007)
                Net unrealized losses on
                 Available-for-sale equity securities                                                        (14)
         Add/less:  Unrealized loss/(gain) on securities                                 (302)               263
                                                                             -----------------   ---------------

             TOTAL TIER 1 CAPITAL                                            $         41,568    $        40,043
                                                                             ================    ===============

       Total capital
         Tier 1 capital                                                      $         41,568    $        40,043
         Allowable allowance for loan losses                                            5,194              5,071
                                                                             ----------------    ---------------

             TOTAL  CAPITAL                                                  $         46,762    $        45,114
                                                                             ================    ===============

       RISK WEIGHTED ASSETS                                                  $        556,809    $       541,362
                                                                             ================    ===============

       AVERAGE ASSETS                                                        $        724,597    $       692,178
                                                                             ================    ===============
</TABLE>



The Corporation and Bank's actual capital ratios and minimum required levels are
presented in the following table.

<TABLE>
<S>                             <C>             <C>                     <C>                     <C>
                                   Actual ratios as of                       Minimum
                                March 31,      December 31,             Capital Adequacy          Well-Capitalized
                                  2001             2000                    Requirement               Requirement
                                  ----             ----                    -----------               -----------

Tier I Capital
 (to average assets)
    Consolidated                  5.74%              5.79%                    4.00%                     5.00%
    Lafayette Bank and Trust      7.17%              7.29%                    4.00%                     5.00%


Tier I Capital
 (to risk weighted assets)
    Consolidated                  7.47%             7.40%                     4.00%                     6.00%
    Lafayette Bank and Trust      9.26%             9.26%                     4.00%                     6.00%


Total Capital
 (to risk weighted assets)
    Consolidated                   8.40%              8.33%                   8.00%                    10.00%
    Lafayette Bank and Trust     10.19%              10.19%                   8.00%                    10.00%
</TABLE>

<PAGE>


Management  believes the Bank met all the capital  requirements  as of March 31,
2001 and  December  31,  2000,  and was  well-capitalized  under the  regulatory
framework  for  prompt  corrective   action.   The  Corporation  was  adequately
capitalized as of March 31, 2001 and December 31, 2000. While the  Corporation's
total capital status is below the  well-capitalized  category as a result of the
Jasper County branch  acquisitions  in 1999,  capital  ratios have improved each
quarter since the transaction occurred, and management  anticipates  maintaining
its  adequately  capitalized  status for the  foreseeable  future.  The  Federal
Reserve Bank considers the holding company  capital  adequacy in connection with
any  application  activity  which requires their  approval.  Further,  since the
Corporation's capital levels are below the well-capitalized category, the use of
expedited  Federal  Reserve Bank  procedures in any  application  activity which
requires their approval will not be available to the  Corporation  until it once
again becomes well-capitalized. Certain statements in this paragraph relating to
future capital levels of the Corporation and Bank are forward-looking  which may
or may not be accurate due to the  impossibility  of predicting  future economic
and  business  events,  including  the  ability  of  the  Corporation  to  raise
additional  capital,  if needed,  as well as other  factors  that are beyond the
control of the Corporation.


Liquidity

The  consolidated  statement of cash flows  illustrates  the elements which gave
rise to the change in the Corporation's  cash and cash equivalents for the three
months ended March 31, 2001 and 2000.  Including  net income of $1,678,  the net
cash from  operating  activities  for the first three  months of 2001  generated
$2,571 of available cash. Net cash from investing  activities utilized $2,002 of
available  cash primarily as a result of investment  security  purchases made by
the Corporation.  Net cash from financing activities generated $357 of available
cash as a result  of an  $25,838  increase  in  deposits,  offset  by a  $24,437
reduction in  short-term  borrowings,  and $698 in FHLB advance and note payable
principal repayments.

Total cash inflows for the three-month  period in 2001 exceeded cash outflows by
$926  resulting  in a cash and cash  equivalent  balance of $74,398 at March 31,
2001.






ITEM 3.          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


Market  risk of the  Corporation  encompasses  exposure  to both  liquidity  and
interest rate risk and is reviewed  quarterly by the Funds Management  Committee
and the  Board  of  Directors.  There  have  been  no  material  changes  in the
quantitative and qualitative disclosures about market risks as of March 31, 2001
from the analysis and disclosures  provided in the  Corporation's  Form 10-K for
the year ended December 31, 2000.

<PAGE>

PART II.   OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

        (a)    Exhibits

               No exhibits  were filed with the  submission of Form 10-Q for the
               quarter ended March 31, 2001


        (b)    Reports on Form 8-K

               No Form 8-K was filed with the SEC during the quarter ended March
               31, 2001.


SIGNATURES

Pursuant to the  requirements  of the  Securities  and Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


Date:  May 11, 2001                   By /s/ Robert J. Weeder
                                      ---------------------------------------
                                      Robert J. Weeder
                                      President and CEO


Date:  May 11, 2001                   By /s/ Marvin S. Veatch
                                      ---------------------------------------
                                      Marvin S. Veatch
                                      Vice President and Controller