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, 2000.

[ ]  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 12, 2000
Common Stock, without par value                          3,590,691 shares




<PAGE>





                            LAFAYETTE BANCORPORATION

                                      INDEX

PART I.             FINANCIAL INFORMATION

Item 1.

       Consolidated Balance Sheets  --  March 31, 2000 and December 31, 1999

       Consolidated Statements of Income and
         Comprehensive Income --  Three Months Ended March 31, 2000 and 1999

       Consolidated Statements of Cash Flows  --  Three Months Ended March 31,
         2000 and 1999

       Notes to Consolidated Financial Statements  --  March 31, 2000


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

              27    Financial Data Schedule

       b)     Reports on Form 8-K



SIGNATURES


<PAGE>



ITEM 1.

                            LAFAYETTE BANCORPORATION
                           CONSOLIDATED BALANCE SHEETS
                (Dollar amounts in thousands, except share data)
                                   (Unaudited)

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

<TABLE>
<S>                                                                          <C>                   <C>
                                                                                 March 31,          December 31,
                                                                                   2000                 1999
                                                                                   ----                 ----
ASSETS

Cash and due from banks                                                       $       24,277      $      28,370
Federal funds sold                                                                     2,200              2,200
                                                                              --------------      -------------
    Total cash and cash equivalents                                                   26,477             30,570

Securities available-for-sale (at market)                                             80,164             79,722
Securities held-to-maturity (market value $4,487
  and $4,709)                                                                          4,484              4,712
Loans held for sale                                                                    4,352              3,174
Loans                                                                                503,486            489,070
    Less:  Allowance for loan losses                                                  (4,860)            (4,618)
                                                                              --------------      -------------
       Loans, net                                                                    498,626            484,452
Federal Home Loan Bank stock (at cost)                                                 1,897              1,897
Premises, furniture and equipment, net                                                10,694             10,583
Intangible assets                                                                     13,562             13,747
Accrued interest receivable and other assets                                          15,400             16,292
                                                                              --------------      -------------
          Total assets                                                        $      655,656      $     645,149
                                                                              ==============      =============


LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

    Noninterest-bearing deposits                                              $       60,348      $      63,206
    Interest-bearing demand and savings deposits                                     239,614            229,302
    Interest-bearing time deposits                                                   241,155            229,739
                                                                              --------------      -------------
       Total deposits                                                                541,117            522,247
    Short-term borrowings                                                             27,246             27,273
    FHLB advances                                                                     20,659             30,027
    Note payable                                                                      12,600             12,950
    Accrued interest payable and other liabilities                                     6,761              6,867
                                                                              --------------      -------------
       Total liabilities                                                             608,383            599,364


Shareholders' equity

    Common stock, no par value:  5,000,000 shares authorized;
    3,590,691 and 3,586,140 shares issued and outstanding                              3,591              3,586
    Additional paid-in capital                                                        32,948             32,886
    Retained earnings                                                                 12,709             11,269
    Unrealized gain / (loss) on securities available-for-sale,
     net of tax (($1,296) and ($1,283))                                               (1,975)            (1,956)
                                                                              --------------      --------------
       Total shareholders' equity                                                     47,273             45,785
                                                                              --------------      -------------

          Total liabilities and shareholders' equity                          $      655,656      $     645,149
                                                                              ==============      =============
</TABLE>

          See accompanying notes to consoldiated financial statements.


<PAGE>

                            LAFAYETTE BANCORPORATION
           CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                      For the three months ended March 31,
                        2000 and 1999 (Dollar amounts in
                        thousands, except per share data)

                                   (Unaudited)

--------------------------------------------------------------------------------
<TABLE>
<S>                                                                        <C>                 <C>
                                                                                   2000                1999
                                                                                   ----                ----
Interest income
    Loans                                                                     $       10,744      $       8,130
Taxable Securities                                                                       860                890
    Tax exempt securities                                                                412                361
    Other                                                                                107                102
                                                                              --------------      -------------
       Total interest income                                                          12,123              9,483

Interest expense
    Deposits                                                                           5,114              3,901
    Short-term borrowings                                                                339                275
    Other borrowings                                                                     586                396
                                                                              --------------      -------------
       Total interest expense                                                          6,039              4,572
                                                                              --------------      -------------
Net interest income                                                                    6,084              4,911

Provision for loan losses                                                                300                180
                                                                              --------------      -------------
Net interest income after provision for loan losses                                    5,784              4,731
Noninterest income
    Income from fiduciary activities                                                     316                253
    Service charges on deposit accounts                                                  405                307
    Net realized gain on securities                                                        -                  -
    Net gain on loan sales                                                               112                308
    Other service charges and fees                                                       253                182
    Other operating income                                                               166                150
                                                                              --------------      -------------
       Total noninterest income                                                        1,252              1,200
                                                                              --------------      -------------
Noninterest expense
    Salaries and employee benefits                                                     2,318              2,166
    Occupancy expenses, net                                                              281                243
    Equipment expenses                                                                   389                286
    Intangible amortization                                                              185                 55
    Other operating expenses                                                           1,130                911
                                                                              --------------      -------------
       Total noninterest expense                                                       4,303              3,661
                                                                              --------------      -------------
Income before income taxes                                                             2,733              2,270

Income taxes                                                                             935                751
                                                                              --------------      -------------
Net income                                                                             1,798              1,519
                                                                              --------------      -------------
Other comprehensive income, net of tax:
    Change in unrealized gains / (losses) on securities                                  (19)               (82)
                                                                              ---------------     --------------
Comprehensive income                                                          $        1,779      $       1,437
                                                                              ==============      =============

Basic earnings per share                                                      $         .50       $         .42
                                                                              ==============      =============
Diluted earnings per share                                                    $         .49       $         .41
                                                                              ==============      =============
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, 2000 and 1999
                          (Dollar amounts in thousands)
                                   (Unaudited)

--------------------------------------------------------------------------------
<TABLE>
<S>                                                                       <C>             <C>
                                                                           2000            1999
                                                                           ----            ----
Cash flows from operating activities

    Net income                                                         $     1,798    $     1,519
    Adjustments to reconcile net income to net cash
      from operating activities
       Depreciation                                                            305            194
       Net amortization                                                        182            104
       Provision for loan losses                                               300            180
       Net realized gain on securities                                           -              -
       Net realized (gain) loss on sale of :
          Other real estate                                                      -              -
       Change in assets and liabilities:
          Loans originated for sale                                        (11,081)       (22,085)
          Loans sold                                                         9,903         23,791
          Accrued interest receivable and other assets                         904         (1,011)
          Accrued interest payable and other liabilities                      (106)         1,397
                                                                       ------------   -----------
              Net cash from operating activities                             2,205          4,089

Cash flows from investing activities
    Change in interest-bearing balances with other
      financial institutions                                                    -              (8)
    Purchase of securities available-for-sale                               (1,630)       (24,883)
    Proceeds from sales of securities available-for-sale                         -              -
    Proceeds from maturities of securities available-for-sale                1,160          5,927
    Purchase of securities held-to-maturity                                      -         (2,000)
    Proceeds from maturities of securities held-to-maturity                    228             19
    Loans made to customers, net of payments collected                     (14,474)       (14,765)
    Property and equipment expenditures                                       (416)          (735)
                                                                       ------------   ------------
              Net cash from investing activities                           (15,132)       (36,445)

Cash flows from financing activities
    Net change in deposit accounts                                          18,870        (11,225)
    Cash received in branch acquisition for liabilities assumed, net
       of assets acquired                                                        -         45,266
    Net change in short-term borrowings                                        (27)         3,235
    Proceeds from FHLB advances                                                  -              -
    Payments on FHLB advances                                               (9,368)          (388)
    Proceeds from note payable                                                   -         14,000
    Payments on note payable                                                  (350)             -
    Common stock issued                                                         67            122
    Dividends paid                                                            (358)          (334)
                                                                       ------------   ------------
              Net cash from financing activities                             8,834         50,676

Net change in cash and cash equivalents                                     (4,093)        18,320

Cash and cash equivalents at beginning of period                            30,570         18,768
                                                                       -----------    -----------
Cash and cash equivalents at end of period                             $    26,477    $    37,088
                                                                       ===========    ===========

Supplemental disclosures of cash flow information
  Cash paid during the period for:
       Interest                                                        $     5,938    $     3,841
       Income taxes                                                            570            150
Non-cash investing activity
     Loans transferred to other real estate                            $      -       $       181

</TABLE>

          See accompanying note to consolidated financial statements.
<PAGE>





                            LAFAYETTE BANCORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2000

         (Dollar amounts in thousands, except share and 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,
                                                               2000                1999
                                                               ----                ----
Basic earnings per share

 Net income                                                $       1,798      $        1,519
Weighted average shares outstanding                            3,586,259           3,585,425
                                                           -------------      --------------

    Basic earnings per share                               $        .50       $          .42
                                                           =============      ==============
Diluted earnings per share
 Net income                                                $       1,798      $        1,519

Weighted average shares outstanding                            3,586,259           3,585,425
Diluted effect of assumed shares
  exercised of Stock Options                                      52,770              93,427
                                                           -------------      --------------
    Diluted average shares outstanding                         3,639,029           3,678,852
                                                           --------------     --------------

    Diluted earnings per share                             $         .49      $          .41
                                                           ==============     ==============
</TABLE>

<PAGE>



                            LAFAYETTE BANCORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2000
         (Dollar amounts in thousands, except share and per share data)
                                   (Unaudited)
--------------------------------------------------------------------------------

NOTE 3 - SECURITIES

The  amortized  cost and estimated  fair values of securities  are as follows at
March 31, 2000:
<TABLE>
<S>                                                   <C>                         <C>
                                                         Amortized                      Estimated
                                                           Cost                        Fair Value

Securities Available-for-Sale
U.S. Government and its agencies                       $     5,203                    $     5,005
Obligations of states and political subdivisions            30,398                         29,255
Corporate obligations                                        2,000                          1,947
Mortgage-backed and other asset-backed securities           43,264                         41,561
Other securities                                             2,566                          2,396
                                                       -----------                    -----------
                                                       $    83,431                    $    80,164
                                                       ===========                    ===========

Securities Held-to-Maturity

Obligations of states and political subdivisions       $     4,484                    $     4,487
                                                       ===========                    ===========

The  amortized  cost and estimated  fair values of securities  are as follows at
December 31, 1999:

                                                         Amortized                      Estimated
                                                           Cost                        Fair Value

Securities Available-for-Sale

U.S. Government and its agencies                       $     5,207                    $     5,005
Obligations of states and political subdivisions            28,785                         27,268
Corporate obligations                                        2,000                          1,973
Mortgage-backed and other asset-backed securities           44,402                         42,888
Other securities                                             2,567                          2,588
                                                       -----------                    -----------
                                                       $    82,961                    $    79,722
                                                       ===========                    ===========

Securities Held-to-Maturity

Obligations of states and political subdivisions       $     4,712                    $     4,709
                                                       ===========                    ===========
</TABLE>

NOTE 4 - LOANS

Loans are comprised of the following:
<TABLE>
<S>                                                                           <C>                <C>
                                                                                 March 31,           December 31,
                                                                                   2000                  1999
                                                                                   ----                  ----
         Commercial and agricultural loans                                   $        201,472    $       192,760
         Real estate construction loans                                                49,455             47,375
         Residential real estate loans                                                200,974            197,181
         Installment loans to individuals                                              51,585             51,754
                                                                             ----------------    ---------------

             Total loans                                                     $        503,486    $       489,070
                                                                             ================    ===============
</TABLE>
<PAGE>


                            LAFAYETTE BANCORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2000
         (Dollar amounts in thousands, except share and 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>
                                                               2000                1999
                                                               ----                ----

    Balance, January 1                                     $       4,618      $        4,241
    Provision charged to operations                                  300                 180
    Loans charged-off                                                (89)               (211)
    Recoveries on loans previously charged-off                        31                  17
                                                           -------------      --------------

    Balance, March 31                                      $       4,860      $        4,227
                                                           =============      ==============
</TABLE>



NOTE 6 - SHORT-TERM BORROWINGS

Short-term borrowings are comprised of the following:
<TABLE>
<S>                                                                         <C>                  <C>
                                                                                 March 31,         December 31,
                                                                                   2000                1999
                                                                                   ----                ----

         Repurchase agreements                                               $         25,767    $        24,645
         Treasury tax and loan open-end note                                            1,479              2,628
                                                                             ----------------    ---------------

             Total short-term borrowings                                     $         27,246    $        27,273
                                                                             ================    ===============
</TABLE>



NOTE 7 - SEGMENT INFORMATION

The Corporation's operations include three primary segments:  banking,  mortgage
banking,  and trust.  Through  its banking  subsidiary's  sixteen  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  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, 2000
         (Dollar amounts in thousands, except share and 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.

Quarter ended March 31:
<TABLE>

<S>                                         <C>               <C>                 <C>              <C>
2000                                                                Mortgage                               Total
                                                  Banking            Banking            Trust            Segments

     Net interest income                    $         6,271    $           33     $            -    $         6,304
     Net gain on loan sales                               -               112                  -                112
     Other revenue                                      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


1999                                                                Mortgage                               Total
                                                  Banking            Banking            Trust            Segments

     Net interest income                    $         4,882    $           61     $            -    $         4,943
     Net gain on loan sales                               -               308                  -                308
     Other revenue                                      617                22                253                892
     Noncash items:
         Depreciation                                   181                 7                  6                194
         Provision for loan loss                        180                 -                  -                180
     Segment profit                                   2,109               213                 87              2,409
     Segment assets                                 599,852             8,514                166            608,532
</TABLE>

<PAGE>


                            LAFAYETTE BANCORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2000
         (Dollar amounts in thousands, except share and per share data)
                                   (Unaudited)
--------------------------------------------------------------------------------

NOTE 7 - SEGMENT INFORMATION (Continued)

Significant  segment  totals  are  reconciled  to the  financial  statements  as
follows:
<TABLE>
<S>                                        <C>                <C>              <C>
                                              Reportable                          Consolidated
2000                                           Segments             Other            Totals
----                                           --------             -----            ------

     Net interest income (expense)          $         6,304    $         (220)    $        6,084
     Provision for loan loss                            300                 -                300
     Net gain on loan sales                             112                 -                112
     Other revenue                                    1,140                 -              1,140
     Profit                                           3,124            (1,326)             1,798
     Assets                                         655,094               562            655,656



                                              Reportable                          Consolidated
1999                                           Segments             Other            Totals
----                                           --------             -----            ------

     Net interest income                    $         4,943    $          (32)    $        4,911
     Provision for loan loss                            180                 -                180
     Net gain on loan sales                             308                 -                308
     Other revenue                                      892                 -                892
     Profit                                           2,409              (890)             1,519
     Assets                                         608,532               696            609,228
</TABLE>



Amounts included in the "other" column are as follows:

                                                      2000               1999
                                                      ----               ----

Income:
     Holding company net interest
       income (expense)                        $       (220)        $      (32)

Profit:
     Holding company net interest
       income (expense)                                (220)               (32)

     Holding company expenses                          (171)              (107)
     Income tax expense                                (935)              (751)

Assets:
     Holding company assets                             562                696

<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 sixteen offices
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.

RESULTS OF OPERATIONS

Mergers and Acquisitions

On March 12,  1999,  the Bank  purchased  three Bank One,  Indiana,  branches in
Jasper  County,  Indiana,  located  in the  towns  of  DeMotte,  Remington,  and
Rensselaer.

The fair value of assets  acquired was  $71,749,  which  consisted  primarily of
commercial  loans,  the  physical   facilities,   goodwill,   and  core  deposit
intangibles. The fair value of liabilities assumed was $117,015, which consisted
primarily of customer  deposits.  Since the Bank acquired more  liabilities than
assets  in  the  transaction,  the  Bank  received  $45,266  of  cash  as of the
settlement date.

From a year-to-year  comparative standpoint,  this transaction had a significant
effect on the Corporation's results of operations, as the Corporation had use of
the earning assets and  interest-bearing  liabilities acquired during the entire
three months of 2000,  and only  approximately  one-half  month during the first
three months of 1999.

Net Income

The Corporation  earned $1,798,  or $.50 per share for the first quarter of 2000
compared to $1,519,  or $.42 per share for the first quarter of 1999.  The $279,
or 18.4%  increase  in net  income  was  attributable  primarily  to higher  net
interest  income  due, in large part,  from the  increase in earning  assets and
liabilities  obtained  in  the  branch  acquisition.  Gross  earnings  from  the
Corporation's  trust department,  along with higher service charges and ATM fees
recorded were contributing  factors in enhancing earnings.  The increase in 2000
profits was  partially  offset by lower  realized  gains on the sale of mortgage
loans, in addition to higher salaries and benefits expense and other operational
expenses  incurred in  connection  with the purchase of the three Jasper  County
branches.

Return on average  assets (ROA) was 1.11% and 1.16% for the periods ending March
31, 2000 and 1999,  while  return on average  equity (ROE) was 15.48% and 13.99%
for the periods  ending March 31, 2000 and 1999,  respectively.  The increase in
ROE was primarily the result of the  Corporation's  decreased  capital  position
after the branch acquisition.

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. Net
interest  income for the first quarter of 2000 was $1,173,  or 23.9% higher than
that same three month period ending March 31, 1999 and was fueled  predominately
by the continued growth of the Corporation's loan portfolio.

<PAGE>

Total  interest  income  increased  $2,640,  or 27.8% to  $12,123  for the first
quarter of 2000.  The  deployment of excess funds  obtained in the Jasper County
branch  acquisition  into the loan portfolio during the second and third quarter
of 1999, in addition to the loan growth experienced in the first quarter of 2000
resulted in the increased revenue posted. From March 1999 to March 2000, average
loan balances increased $67,406, or 15.6%.

For the first quarter of 2000, total interest expense increased $1,467, or 32.1%
compared  to the same  1999 time  period.  Approximately  $200,  or 13.6% of the
$1,467 increase is attributable to the interest  expense on the note payable the
Corporation  obtained in connection  with the  acquisition  of the Jasper County
branches.  While  there was an  outstanding  balance on that note for the entire
first quarter of 2000, there was an outstanding  balance for only  approximately
two weeks during 1999. The remaining  increase in total  interest  expense was a
result of the higher interest rate environment combined with the increase in the
Corporation's total interest-bearing liabilities.

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>
<S>                              <C>              <C>             <C>             <C>
                                      Three Months                         Change from
                                     Ended March 31,                      Prior Period

                                   2000             1999             Amount        Percent
                                   ----             ----             ------        -------

Interest income                  $12,337            $9,674           $2,663          27.5%

Interest expense                   6,039             4,572            1,467          32.1%
                                   -----             -----            -----
     Net interest income          $6,298            $5,102           $1,196          23.4%
                                  ======            ======           ======
</TABLE>

The net interest  margin,  on a tax equivalent basis for the three months ending
March 31, 2000 and 1999 was 4.29% and 4.23%, 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.

Loans with a fair value of $56,398 were acquired in the Bank One, Indiana branch
acquisition. The fair value of loans acquired was net of a fair value adjustment
for credit  risk of $563.  This credit risk  valuation  account  will be used to
absorb future charge-off's recorded on the acquired loans.

The  consolidated  provision  for loan  losses  was $300 and $180 for the  three
months  ending  March  31,  2000 and 1999,  respectively.  The  increase  in the
provision was a result of the Corporation's  loan growth. The allowance for loan
losses  was  $4,860  and  $4,618  at March  31,  2000  and  December  31,  1999,
respectively. Adding the established credit valuation account with the allowance
for loan losses,  the  allowance as a percentage of loans was 1.08% and 1.06% at
March 31, 2000 and December 31, 1999, respectively.  During the first quarter of
2000 net  charge-offs  decreased  to $58,  compared to $194 during the same time
period one year earlier. The 70.1% change in net charge-off amounts is primarily
associated with decreases in commercial and mortgage 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.

<PAGE>

The following table indicated the composition of nonperforming loans:
<TABLE>
<S>                                                                        <C>                   <C>
                                                                                 March 31,         December 31,
                                                                                   2000                1999
                                                                                   ----                ----

         Loans past due 90 days or more                                      $            524    $           584
         Nonaccrual loans                                                                 754                622
         Restructured loans                                                                98                114
                                                                             ----------------    ---------------

             Total nonperforming loans                                       $          1,376    $         1,320
                                                                             ================    ===============
</TABLE>


Management  believes  overall  asset  quality has not declined  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  $132,  or 21.2%.  A total of eight new credits have
been added to the nonaccrual  list during the first quarter of 2000,  while only
one  borrower  has been removed  from that  category.  At March 31, 2000,  total
nonperforming  loans as a  percentage  of assets  was .21% -- the lowest in over
three and one-half years.

Noninterest Income and Expense

Noninterest  income  increased  $52, or 4.3% for the first three months of 2000,
compared  to the  same  1999  time  period.  Income  from  fiduciary  activities
increased  24.9% to $316 for the quarter  ending March 31, 2000.  An increase in
the number of  large-dollar  accounts,  along with an  increase  in the base fee
structure attributed to the higher fees recorded.

Service charges on deposit accounts were 31.9% higher for the first three months
of 2000  compared to the same 1999 time  period.  The larger  deposit  base as a
result of the branch  acquisition led to increases in service  charges,  NSF and
early certificate of deposit withdrawal fees during the first quarter of 2000.

Net gain on loans originated and sold in the secondary mortgage market decreased
63.6% to $112 for the  first  quarter  of 2000  compared  to $308 for the  first
quarter of 1999.  The higher  interest  rate  environment  led to a decrease  of
$13,888,  or 58.4% in loan sales for the first  quarter of 2000  compared to the
first quarter of 1999.

Other service  charges and fees increased 39.0% to $253 during the first quarter
of 2000 compared to the $182 posted in 1999.  Approximately 62% of this increase
is attributed to foreign ATM fees recorded based on higher transaction  volumes,
with the remaining  increase due to higher volume for other  services  provided,
such as wire transfer and check cashing fees.

Other  operating  income  increased  $16,  or 10.7% to $166 for the first  three
months of 2000 compared to the $150 recorded for the first three months of 1999.
For  customers of the  Investment  Center,  a full service  brokerage  operation
offered through Raymond James Financial  Services,  Inc., member NASD/SIPC,  the
pullback in the stock market led to additional  investing  opportunities  during
the first quarter  which,  in turn, led to 84.5% higher  revenues  posted in the
first quarter of 2000. Volume incentive fees generated by the secondary mortgage
market  department on loan fundings declined 74.8% compared to the prior year as
a result of the lower funding amounts,  largely offsetting the increase realized
in the Investment Center.

Noninterest  expense increased $642, or 17.5% to $4,303 for the first quarter of
2000 compared to that same 1999 time period. Salaries and employee benefits, the
largest noninterest expense component,  increased $152, or 7.0% during the first
quarter of 2000.  This increase was primarily a result of the  employment of the
Jasper County branch  personnel.  The Jasper County branch staff was employed by
the  Corporation  the entire first  quarter of 2000,  compared to only  one-half
month in 1999.

<PAGE>

Approximately  79% of the total  increase in occupancy  and  equipment  expenses
related to the increase in depreciation  expense  recorded.  This is a result of
not only the items acquired in the branch  acquisition,  but also the investment
the Corporation is making in new technology.  A new communication  system, along
with a wide- area network,  teller system and proof imaging system,  will enable
the  Corporation  to remain  competitive  within  the  market  area  while  also
improving overall operational efficiencies.

The $130  increase in  intangible  amortization  is solely  attributable  to the
purchase of the Jasper County branches.

Other  operating  expenses  increased  $219,  or 24.0% to  $1,130  for the first
quarter of 2000  compared  to the same 1999 time  period.  The  majority  of the
increase in this category was attributable to the ongoing  operational  expenses
of  the  branches  acquired  for  items  such  as  office  supplies,  telephone,
advertising, and insurance, in addition to increased fees associated with higher
ATM volumes.

Income Taxes

The Corporation's  effective tax rate was 34.2% and 33.1% for the periods ending
March 31, 2000 and 1999, respectively.

FINANCIAL CONDITION

Total  assets were  $655,656 at March 31, 2000  compared to $645,149 at December
31, 1999,  an increase of $10,507.  Loans held for sale and net loans  increased
$1,178 and $14,174,  respectively,  while cash and cash  equivalents and accrued
interest receivable and other assets decreased $4,093 and $892, respectively.

Total  deposits  increased  $18,870 to $541,117  at March 31,  2000  compared to
$522,247 at December 31, 1999 and were offset by principal repayments of Federal
Home Loan Bank of Indianapolis advances and the quarterly principal repayment of
the note payable in the amount of $9,368 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 initiate  regulatory action. If an institution is only
adequately  capitalized,  regulatory  approval is  required  to accept  brokered
deposits.  If  undercapitalized,   capital  distributions,   asset  growth,  and
expansion  may be  limited,  and the  institution  may be  required  to submit a
capital restoration plan.

At March 31, 2000,  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,
                                                                                   2000                1999
                                                                                   ----                ----
       Tier 1 capital

         Shareholders' equity                                                $         47,273    $        45,785
         Less:  Intangibles                                                           (13,554)           (13,737)
         Add/less:  Unrealized loss/(gain) on securities                                1,975              1,956
                                                                             ----------------    ---------------

             TOTAL TIER 1 CAPITAL                                            $         35,694    $        34,004
                                                                             ================    ===============
       Total capital

         Tier 1 capital                                                      $         35,694    $        34,004
         Allowable allowance for loan losses                                            4,860              4,618
                                                                             ----------------    ---------------

             TOTAL  CAPITAL                                                  $         40,554    $        38,622
                                                                             ================    ===============

       RISK WEIGHTED ASSETS                                                  $        496,589    $       483,307
                                                                             ================    ===============

       AVERAGE ASSETS                                                        $        633,469    $       627,045
                                                                             ================    ===============
</TABLE>


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

                                  Actual ratios as of                       Minimum
                                March 31,      December 31,             Capital Adequacy          Well-Capitalized
                                  2000             1999                    Requirement               Requirement
                                  ----             ----                    -----------               -----------

<S>                            <C>                <C>                      <C>                      <C>
Tier I Capital
 (to average assets)
    Consolidated                  5.63%              5.42%                    4.00%                     5.00%
    Lafayette Bank and Trust      7.38%              7.22%                    4.00%                     5.00%


Tier I Capital
 (to risk weighted assets)
    Consolidated                  7.19%             7.04%                     4.00%                     6.00%
    Lafayette Bank and Trust      9.34%             9.38%                     4.00%                     6.00%


Total Capital
 (to risk weighted assets)
    Consolidated                   8.17%              7.99%                   8.00%                    10.00%
    Lafayette Bank and Trust     10.32%              10.33%                   8.00%                    10.00%
</TABLE>


Management  believes the Bank met all the capital  requirements  as of March 31,
2000 and  December  31,  1999,  and was  well-capitalized  under the  regulatory
framework  for  prompt  corrective   action.  The  Corporation,   however,   was
categorized as undercapitalized as of December 31, 1999 due to the Jasper County
branch  acquisition,  with a total  capital ratio of 7.99%,  slightly  below the
8.00% minimum. The Corporation has returned to adequately  capitalized status as
of March 31, 2000.  Although slightly below the minimum at December 31, 1999, no
corrective   regulatory  action  was  initiated,   and  management   anticipates
maintaining its current adequately  capitalized status. 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.

<PAGE>

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, 2000 and 1999.  Including  net income of $1,798,  the net
cash from  operating  activities  for the first three  months of 2000  generated
$2,205 of available cash. Net cash from investing activities utilized $15,132 of
available  cash  primarily  as a result of $14,474 of net loan  fundings  by the
Corporation.  Net cash from financing  activities  generated $8,834 of available
cash as a result of an $18,870  increase in  deposits,  offset by $9,718 in FHLB
advance and note payable principal repayments.

Total cash outflows for the three-month  period in 2000 exceeded cash inflows by
$4,093  resulting in a cash and cash equivalent  balance of $26,477 at March 31,
2000.

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  Asset/Liability  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, 2000
from the analysis and disclosures  provided in the  Corporation's  Form 10-K for
the year ended December 31, 1999.

PART II.   OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

        (a)   Exhibits

                 27   Financial Data Schedule for March 31, 2000


        (b)   Reports on Form 8-K

                    No Form 8-K was filed with the SEC during the quarter  ended
                    March 31, 2000.
<PAGE>

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 12, 2000                        By /s/ Robert J. Weeder
                                           -------------------------------------
                                           Robert J. Weeder
                                           President and CEO


Date:  May 12, 2000                        By /s/ Marvin S. Veatch
                                           -------------------------------------
                                           Marvin S. Veatch
                                           Vice President and Controller