<PAGE>

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  Form 10-KSB

                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934


                  For the fiscal year ended December 31, 2000

                       Commission File Number:  0-24135

                              PCB HOLDING COMPANY
--------------------------------------------------------------------------------
         (Name of small business issuer as specified in its charter.)

               Indiana                                    35-2040715
---------------------------------------        ---------------------------------
(State or Other Jurisdiction of                        (I.R.S. Employer
 Incorporation or Organization)                       Identification No.)

                   819 Main Street, Tell City, Indiana 47586
-------------------------------------------------------------------------------
                   (Address of Principal Executive Offices)

        Issuer's telephone number, including area code:  (812) 547-7094
  Securities registered pursuant to Section 12(b) of the Exchange Act:  None
Securities registered pursuant to Section 12(g) of the Act: Common Stock, par
value $0.01

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 [ ]

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form and no disclosure will be contained, to
the best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [X]

The issuer's revenues for its most recent fiscal year were $2.2 million.

The aggregate market value of the voting common equity held by non-affiliates of
the issuer was $3.9 million.  This figure is based on the closing price on the
OTC Bulletin Board for a share of the issuer's common stock on March 1, 2001,
which was $11.25.  For purposes of this calculation, the Registrant is assuming
that directors and executive officers are affiliates.

The Registrant had 382,910 shares of common stock outstanding as of March 1,
2001.

Portions of the Annual Report to Shareholders for the year ended December 31,
2000 are incorporated by reference into Part II of this Form 10-KSB.  Also,
portions of the proxy statement for the annual meeting of shareholders to be
held on April 23, 2001 are incorporated by reference into Part III of this Form
10-KSB.

Transitional Small Business Disclosure Format.    Yes [ ]    No [X]
<PAGE>

                                     INDEX

<TABLE>
<CAPTION>

PART I

                                                                             Page No.
<S>            <C>                                                           <C>
     Item 1.   Description of Business.......................................   3

     Item 2.   Description of Property.......................................  24

     Item 3.   Legal Proceedings.............................................  24

     Item 4.   Submission of Matters to a Vote of Security Holders...........  24

PART II

     Item 5.   Market for Common Equity and Related Stockholder Matters......  25

     Item 6.   Management's Discussion and Analysis or Plan of Operation.....  25

     Item 7.   Financial Statements..........................................  25

     Item 8.   Changes In and Disagreements With Accountants on
               Accounting and Financial Disclosure...........................  25

PART III

     Item 9.   Directors, Executive Officers, Promoters and Control Persons;
               Compliance with Section 16(a) of the Exchange Act.............  25

     Item 10.  Executive Compensation........................................  26

     Item 11.  Security Ownership of Certain Beneficial Owners
               and Management................................................  26

     Item 12.  Certain Relationships and Related Transactions................  26

     Item 13.  Exhibits and Reports on Form 8-K..............................  26
</TABLE>

SIGNATURES

                                       2
<PAGE>

Item 1.  Description of Business.
---------------------------------

                            BUSINESS OF THE COMPANY

General

     PCB Holding Company (the "Company") serves as the holding company for
Peoples Community Bank (the "Bank").  The Company's sole business activity is to
direct the operations of the Bank.

     The Bank was chartered in 1914 as an Indiana mutual building and loan
association.  In February 1998, the Bank adopted a federal mutual charter and in
July 1998, upon the completion of its mutual to stock conversion, became a
federal stock savings bank.  The Bank's primary federal regulator is the Office
of Thrift Supervision ("OTS").  The Bank operates as a traditional savings
association, specializing in single-family residential mortgage lending and
savings deposits.  The Bank's business consists primarily of attracting retail
deposits from the general public and using those funds to originate real estate
loans.  The Bank generally holds its loans for long-term investment purposes.

Market Area and Competition

     The Bank conducts operations out of its one office in Tell City, which is
the largest town in Perry County, Indiana.  Tell City has a population of
approximately 9,000 persons, and Perry County has a population of approximately
20,000 persons.  Most of the Bank's depositors live in Perry County and most of
the Bank's loans are secured by real estate in Perry County.  The Bank also
makes loans in Spencer County, Indiana and occasionally in other surrounding
counties.  Perry County is a rural county that historically has had higher
unemployment and lower income compared to the rest of Indiana.  The economy of
Perry County is dependent on manufacturing, much of which is located across the
Ohio River in Kentucky.  Industries present in the region include woodworking,
steel, motors, aluminum and paper.

     The Bank faces intense competition in its primary market area for the
attraction of deposits (its primary source of lendable funds) and in the
origination of loans.  Its most direct competition for deposits has historically
come from the three commercial banks operating in Tell City and, to a lesser
extent, from other financial institutions, such as brokerage firms and insurance
companies.  All of the three commercial banks in Tell City are affiliated with
large, multi-state bank holding companies and, therefore, have significantly
greater resources than the Bank.  Particularly in times of high interest rates,
the Bank has faced additional significant competition for investors' funds from
short-term money market securities and other corporate and government
securities.  The Bank's competition for loans comes primarily from the
commercial banks operating in Tell City.  Such competition for deposits and the
origination of loans may limit the Bank's growth in the future.

Lending Activities

     General.  At December 31, 2000, the Bank's net loans receivable totaled
$26.5 million, or 87.3% of total assets. The Bank has concentrated its lending
activities on one- to four-family mortgage loans, with such loans amounting to
77.9% of loans at December 31, 2000.  The Bank also offers multi-family,
commercial real estate, land and residential construction loans, as well as
selected consumer loans.  All of the Bank's mortgage loan portfolio is secured
by real estate located in Indiana.  The Bank's consumer loans include loans
secured by savings accounts, automobile loans and secured and unsecured consumer
loans.

                                       3
<PAGE>

     Loan Portfolio Analysis.  The following table sets forth the composition of
the Bank's loan portfolio at the dates indicated. The Bank had no concentration
of loans exceeding 10% of total loans receivable other than as disclosed below.

<TABLE>
<CAPTION>
                                                                       At December 31,
                                                 --------------------------------------------------------
                                                         2000               1999              1998
                                                 ------------------  -----------------  -----------------
                                                   Amount   Percent   Amount   Percent   Amount   Percent
                                                 --------   -------  -------   -------  -------   -------
                                                                  (Dollars in thousands)
<S>                                                <C>      <C>       <C>      <C>       <C>      <C>
Mortgage loans:
 One- to four-family.........................      $21,168     77.9%  $20,219     81.8%  $17,892     83.1%
 Multi-family................................          484      1.8       507      2.1       362      1.7
 Commercial real estate......................        1,170      4.3       598      2.4       901      4.2
 Land........................................          828      3.0       510      2.1       654      3.0
 Residential construction....................        1,550      5.7     1,210      4.9       980      4.6
                                                   -------    -----   -------    -----   -------    -----
  Total mortgage loans.......................       25,200     92.7    23,044     93.3    20,789     96.6

Commercial business..........................           45      0.2         -      0.0         -      0.0

Consumer Loans:
 Loans secured by savings accounts...........          152      0.6       263      1.0       274      1.3
 Other.......................................        1,773      6.5     1,399      5.7       454      2.1
                                                   -------    -----   -------    -----   -------    -----
  Total consumer loans.......................        1,925      7.1     1,662      6.7       728      3.4
                                                   -------    -----   -------    -----   -------    -----
   Total loans...............................       27,170    100.0%   24,706    100.0%   21,517    100.0%
                                                   -------    =====   -------    =====   -------    =====

Less:
 Undisbursed portion of loans in process.....          590                535                472
 Deferred loan origination fees, net.........           61                 63                 64
 Allowance for loan losses...................           60                 54                 51
                                                   -------            -------            -------

  Total loans receivable, net................      $26,459            $24,054            $20,930
                                                   =======            =======            =======
</TABLE>

     The following table sets forth certain information at December 31, 2000
regarding the dollar amount of loans maturing in the Bank's portfolio based on
their contractual terms to maturity, but does not include scheduled payments or
potential prepayments.  Demand loans, loans having no stated schedule of
repayments and no stated maturity, and overdrafts are reported as becoming due
within one year.  Loan balances do not include undisbursed loan proceeds,
unearned discounts, unearned income and allowance for loans losses.

<TABLE>
<CAPTION>
                                                      After     After
                                                     One Year  5 Years
                                            Within   Through   Through     After
                                           One Year  5 Years   10 Years   10 Years  Total
                                           --------  --------  --------   --------  ------
                                                           (In thousands)
<S>                                        <C>       <C>       <C>       <C>       <C>
Mortgage loans:
  One- to four-family...................     $1,935    $3,367    $4,091   $11,775  $21,168
  Multi-family..........................         21       112        96       255      484
  Commercial real estate................        139       554       147       330    1,170
  Land..................................        260       169       161       238      828
  Residential construction..............      1,550         -         -         -    1,550
Commercial business.....................         45         -         -         -       45
Consumer Loans:
  Loans secured by savings accounts.....        152         -         -         -      152
  Other.................................        467       915       242       149    1,773
                                             ------    ------    ------   -------  -------
     Total gross loans..................     $4,569    $5,117    $4,737   $12,747  $27,170
                                             ======    ======    ======   =======  =======
</TABLE>

                                       4
<PAGE>

     The following table sets forth the dollar amount of all loans due after
December 31, 2001, which have fixed interest rates and have floating or
adjustable interest rates.

<TABLE>
<CAPTION>
                                                     Floating or
                                            Fixed     Adjustable
                                            Rates        Rates
                                          -------    -----------
                                              (In thousands)
<S>                                         <C>      <C>
Mortgage loans:
   One- to four-family..................    $ 8,919      $10,314
   Multi-family.........................        221          242
   Commercial real estate...............        602          429
   Land.................................        166          402
   Residential construction.............          -            -
Commercial business.....................          -            -
Consumer loans:
   Loans secured by savings accounts....          -            -
   Other................................      1,306            -
                                            -------      -------
     Total gross loans..................    $11,214      $11,387
                                            =======      =======
</TABLE>

     Scheduled contractual principal repayments of loans do not reflect the
actual life of such assets.  The average life of a loan is substantially less
than its contractual term because of prepayments.  In addition, due-on-sale
clauses on loans generally give the Bank the right to declare loans immediately
due and payable in the event, among other things, that the borrower sells the
real property subject to the mortgage and the loan is not repaid.  The average
life of a mortgage loan tends to increase, however, when current mortgage loan
market rates are substantially higher than rates on existing mortgage loans and,
conversely, tends to decrease when rates on existing mortgage loans are
substantially higher than current mortgage loan market rates.

     One- to Four-Family Real Estate Loans.  The Bank's primary lending activity
is the origination of loans secured by one- to four-family residences located in
its market area.  The Bank offers both adjustable-rate mortgage ("ARM") loans
and fixed-rate mortgage loans.  The Bank's ARM loans provide for an interest
rate that adjusts every year or that is fixed for three years and then adjusts
every year after the initial period.  The Bank's ARM loans generally provide for
annual and lifetime interest rate adjustment limits of 1% and 5%, respectively.
When it was a state-chartered savings association, the Bank based its ARM loans
on the Bank's internal cost of funds.  When the Bank adopted a federal mutual
charter in February 1998 it began basing its ARM loans on the One Year U.S.
Treasury Note Constant Maturity Rate.  The Bank's ARM loans are typically based
on a 30-year amortization schedule.  The initial rate on most of the Bank's ARM
loans is 1% to 1.5% below the rate offered for fixed-rate loans that have a term
of ten to 20 years.

     The Bank offers fixed-rate, one- to four-family mortgage loans with
maturities of up to 30 years.  These loans are fully amortizing with monthly
payments sufficient to repay the total amount of the loan with interest by the
end of the loan term.  Generally, they are underwritten and documented in
accordance with guidelines established by Freddie Mac.  The Bank's fixed-rate
loans customarily include "due on sale" clauses, which give the Bank the right
to declare a loan immediately due and payable in the event the borrower sells or
otherwise disposes of the real property subject to the mortgage and the loan is
not paid.

                                       5
<PAGE>

     Borrower demand for ARM loans versus fixed-rate mortgage loans is a
function of the level of interest rates, the expectations of changes in the
level of interest rates and the difference between the initial interest rates
and fees charged for each type of loan.  The relative amount of fixed-rate
mortgage loans and ARM loans that can be originated at any time is largely
determined by the demand for each in a competitive environment.

     The retention of ARM loans in the Bank's loan portfolio helps reduce the
Bank's exposure to changes in interest rates.  There are, however,
unquantifiable credit risks resulting from the potential of increased costs due
to changed rates to be paid by the borrower.  It is possible that during periods
of rising interest rates the risk of default on ARM loans may increase as a
result of repricing and the increased payments required by the borrower.  In
addition, although ARM loans allow the Bank to increase the sensitivity of its
asset base to changes in interest rates, the extent of this interest sensitivity
is limited by the annual and lifetime interest rate adjustment limits.  Because
of these considerations the Bank has no assurance that yields on ARM loans will
be sufficient to offset increases in the Bank's cost of funds.  The Bank
believes these risks, which have not had a material adverse effect on the Bank
to date, generally are less than the risks associated with holding fixed-rate
loans in portfolio during a rising interest rate environment.

     The Bank generally requires an acceptable attorney's opinion on the status
of its lien on all loans where real estate is the primary source of security.
The Bank also requires that fire and casualty insurance (and, if appropriate,
flood insurance) be maintained in an amount at least equal to the outstanding
loan balance.

     The Bank's one- to four-family residential mortgage loans typically do not
exceed 80% of the appraised value of the security property.  Pursuant to
underwriting guidelines adopted by the Bank's Board of Directors, the Bank can
lend up to 95% of the appraised value of the property securing a one- to- four
family residential loan; however, the Bank generally requires private mortgage
insurance on the portion of the principal amount that exceeds 90% of the
appraised value of the security property.

     Multi-family and Commercial Real Estate Loans.  The Bank occasionally
originates mortgage loans for the acquisition and refinancing of multi-family
and commercial real estate properties.  The majority of the Bank's commercial
real estate loans are secured by churches, motels and a country club, all of
which are located in Indiana. At December 31, 2000, the Bank's largest multi-
family or commercial real estate loan was $495,000 and is secured by a hotel.

     Most of the Bank's commercial real estate loans have adjustable interest
rates and terms of 15 years or less. The Bank requires appraisals of all
properties securing commercial real estate loans.  Appraisals are performed by
an independent appraiser designated by the Bank, all of which are reviewed by
management.

     Multi-family and commercial real estate lending affords the Bank an
opportunity to receive interest at rates higher than those generally available
from one- to four-family residential lending.  However, loans secured by such
properties usually are greater in amount and are more difficult to evaluate and
monitor and, therefore, involve a greater degree of risk than one- to four-
family residential mortgage loans.  Because payments on loans secured by income
producing properties are often dependent on the successful operation and
management of the properties, repayment of such loans may be affected by adverse
conditions in the real estate market or the economy.  The Bank seeks to minimize
these risks by limiting the maximum loan-to-value ratio to 80% and strictly
scrutinizing the financial condition of the borrower, the cash flow of the
project, the quality of the collateral and the management of the property
securing the loan. The Bank also obtains loan guarantees from financially
capable parties based on a review of personal financial statements.

     Residential Construction Loans.  The Bank originates residential
construction loans to local home builders and to individuals for the
construction and acquisition of their personal residence.

     The Bank's construction loans to builders generally have fixed interest
rates and are for a term of one year. Such loans to builders are typically made
with a maximum loan to value ratio of 85%.  These loans are usually made on a
speculative (unsold) basis.   The maximum amount that any one builder may borrow
from the Bank is $500,000,

                                       6
<PAGE>

which is the Bank's internal loan-to-one-borrower limit. At December 31, 2000,
the largest amount of construction loans outstanding to one builder was
$234,000, all of which was for speculative construction. Construction loans to
individuals are made on the same terms as the Bank's one- to four-family
mortgage loans, but provide for the payment of interest only during the
construction phase, which is usually six months. At the end of the construction
phase, the loan converts to a permanent mortgage loan.

     Prior to making a commitment to fund a construction loan, the Bank requires
an appraisal of the property by a staff appraiser.  The Bank also reviews and
inspects each project prior to disbursement of funds during the term of the
construction loan.  Loan proceeds are disbursed after inspection of the project
based on percentage of completion.

     Construction lending affords the Bank the opportunity to earn higher
interest rates with shorter terms to maturity relative to single-family
permanent mortgage lending.  Construction lending, however, is generally
considered to involve a higher degree of risk than single-family permanent
mortgage lending because of the inherent difficulty in estimating both a
property's value at completion of the project and the estimated cost of the
project.  The nature of these loans is such that they are generally more
difficult to evaluate and monitor.  If the estimate of construction cost proves
to be inaccurate, the Bank may be required to advance funds beyond the amount
originally committed to permit completion of the project.  If the estimate of
value upon completion proves to be inaccurate, the Bank may be confronted with a
project whose value is insufficient to assure full repayment.  Projects may also
be jeopardized by disagreements between borrowers and builders and by the
failure of builders to pay subcontractors.  Loans to builders to construct homes
for which no purchaser has been identified carry more risk because the payoff
for the loan is dependent on the builder's ability to sell the property prior to
the time that the construction loan is due.

     The Bank has attempted to minimize the foregoing risks by, among other
things, limiting its construction lending to residential properties.  It is also
the Bank's general policy to obtain regular financial statements from builders
so that it can monitor their financial strength.

     Land Loans.  The Bank occasionally originates loans secured by unimproved
land.  Most of these loans have a term of ten years or less and may have fixed
or adjustable interest rates.  The largest land loan at December 31, 2000 was
$94,000.

     Commercial Business Loans.  The Bank occasionally originates commercial
business loans to local businesses.  The Bank generally requires that the
business or its owners provide real estate as collateral.

     Savings Account Loans.  The Bank offers loans secured by savings deposits.
Generally, such loans are made at an interest rate that is 2% above the account
rate for an amount up to 100% of the amount on deposit at the Bank less six
month's interest.

     Other Consumer Loans.  The Bank offers automobile loans and other secured
and unsecured consumer loans. The Bank also offers home equity second mortgage
loans.  Generally, the Bank makes home equity loans only where it holds the
first mortgage, unless the combined loan to value ratio is less than 50%.  At
December 31, 2000, the Bank had $652,000 of home equity consumer loans included
in its loan portfolio.

     Consumer loans entail greater risk than do residential mortgage loans,
particularly in the case of loans that are unsecured or secured by rapidly
depreciating assets such as automobiles.  In such cases, any repossessed
collateral for a defaulted consumer loan may not provide an adequate source of
repayment of the outstanding loan balance as a result of the greater likelihood
of damage, loss or depreciation.  The remaining deficiency often does not
warrant further substantial collection efforts against the borrower beyond
obtaining a deficiency judgment.  In addition, consumer loan collections are
dependent on the borrower's continuing financial stability, and thus are more
likely to be adversely affected by job loss, divorce, illness or personal
bankruptcy.

                                       7
<PAGE>

     Loans to One Borrower.  The maximum amount that the Bank may lend to one
borrower is limited by federal regulations.  At December 31, 2000, the Bank's
regulatory limit on loans to one borrower was $662,000.  At such date, the
Bank's largest amount of loans to one borrower (including the borrower's related
interests) was $686,000 and consisted of ten single family mortgage loans (nine
of which were secured by non-owner-occupied properties) and one commercial real
estate loan.  The Bank has received regulatory approval for exceeding its limit
on loans to one borrower with respect to this borrower.

     Loan Solicitation and Processing.  The Bank's lending activities are
subject to the written, non-discriminatory, underwriting standards and loan
origination procedures established by the Bank's Board of Directors and
management. Loan originations come from a number of sources.  The customary
sources of loan originations are realtors, referrals and existing customers.
The Bank does not utilize mortgage brokers or other third-party originators.

     Single-family residential mortgage loans up to $100,000 may be approved by
unanimous vote of the Bank's Loan Committee, which consists of the President and
three Directors.  If the Loan Committee does not unanimously approve a loan, it
is referred to the Board of Directors.  All single-family residential mortgage
loans of $100,000 or more and all other mortgage loans must be approved by the
Bank's Board of Directors.  Consumer loans must be approved by an authorized
officer and ratified by the Board of Directors.

     Loan Originations, Purchases and Sales.  While the Bank originates both
adjustable-rate and fixed-rate loans, its ability to generate each type of loan
depends upon relative customer demand for loans.

     The Bank generally retains for its portfolio all of the loans that it
originates and does not often purchase loans. Occasionally, the Bank will
participate with other area financial institutions in multi-family or commercial
real estate loans.  In 1995, the Bank established an informal relationship with
another financial institution pursuant to which the Bank occasionally sells 90%
participations in single-family mortgage loans and purchases participations in
loans secured by non-owner-occupied, one- to four-family properties.  The Bank
retains the servicing rights on the participation loans that it sells.  The Bank
does not receive a fee for the loans sold under this arrangement and pays no fee
on the loans it purchases.

     Loan Commitments.  The Bank issues commitments for mortgage loans
conditioned upon the occurrence of certain events.  Such commitments are made in
writing on specified terms and conditions and are honored for up to 90 days from
approval.  At December 31, 2000, the Bank had loan commitments totaling $481,000
(not including undisbursed portions of loans in process of $590,000).

     Loan Fees.  In addition to interest earned on loans, the Bank receives
income from fees in connection with loan originations, loan modifications, late
payments and for miscellaneous services related to its loans.  Income from these
activities varies from period to period depending upon the volume and type of
loans made and competitive conditions.

     The Bank charges loan origination fees for fixed-rate loans which are
calculated as a percentage of the amount borrowed.  In accordance with
applicable accounting procedures, loan origination fees and discount points in
excess of loan origination costs are deferred and recognized over the
contractual remaining lives of the related loans on a level yield basis.
Discounts and premiums on loans purchased are accreted and amortized in the same
manner.  At December 31, 2000, the Bank had $61,000 of deferred loan fees.  The
Bank recognized $13,000 and $17,000 of deferred loan fees during the years ended
December 31, 2000 and 1999, respectively, in connection with loan refinancings,
payoffs, sales and ongoing amortization of outstanding loans.

     Nonperforming Assets and Delinquencies.  When a borrowers fails to make a
required payment on a loan, the Bank attempts to cure the deficiency by
contacting the borrower and seeking the payment.  A late notice is mailed 20
days after a payment is due.  In most cases, deficiencies are cured promptly.
If a delinquency continues, additional contact is made either through additional
notices or other means and the Bank will attempt to work out a payment schedule.
While the Bank generally prefers to work with borrowers to resolve such
problems, the Bank will institute foreclosure or other proceedings, as
necessary, to minimize any potential loss.

                                       8
<PAGE>

     The Bank's Board of Directors is informed monthly of the amounts of loans
delinquent more than 60 days, all loans in foreclosure and all foreclosed and
repossessed property owned by the Bank.

     The Bank ceases accruing interest on a loan when, in the judgment of
management, the probability of collection of interest is deemed to be
insufficient to warrant further accrual.  The Bank does not accrue interest on
loans past due 90 days or more when the estimated value of collateral and
collection efforts are deemed insufficient to ensure full recovery.

     The following table sets forth information with respect to the Bank's
nonperforming assets at the dates indicated.  The Bank had no restructured loans
within the meaning of SFAS No. 15 at the dates indicated.

<TABLE>
<CAPTION>
                                                                 At December 31,
                                                            -----------------------
                                                              2000    1999    1998
                                                            -------  ------  ------
                                                             (Dollars in thousands)

<S>                                                          <C>     <C>     <C>
Loans accounted for on a nonaccrual basis................    $  58   $  --   $  --
Accruing loans which are contractually
 past due 90 days or more:
  Mortgage loans.........................................      120     104      29
  Consumer loans.........................................       14      --      --
    Total................................................      134      --      29
                                                             -----   -----   -----
Foreclosed real estate, net..............................       --      --      --
                                                             -----   -----   -----
  Total nonperforming assets.............................    $ 192   $ 104   $  29
                                                             =====   =====   =====
Total loans delinquent 90 days or more to net loans......     0.73%   0.43%   0.14%
Total loans delinquent 90 days or more to total assets...     0.63%   0.37%   0.11%
Total nonperforming assets to total assets...............     0.63%   0.37%   0.11%
</TABLE>


     Real Estate Owned.  Real estate acquired by the Bank as a result of
foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned
until sold.  When property is acquired it is recorded at fair market value at
the date of foreclosure.  Subsequent to foreclosure, real estate owned is
carried at the lower of the foreclosed amount or fair value, less estimated
selling costs.  At December 31, 2000, the Bank had no real estate owned.

     Asset Classification.  The OTS has adopted various regulations regarding
problem assets of savings institutions.  The regulations require that each
insured institution review and classify its assets on a regular basis.  In
addition, in connection with examinations of insured institutions, OTS examiners
have authority to identify problem assets and, if appropriate, require them to
be classified.  There are three classifications for problem assets:
substandard, doubtful and loss.  Substandard assets have one or more defined
weaknesses and are characterized by the distinct possibility that the insured
institution will sustain some loss if the deficiencies are not corrected.
Doubtful assets have the weaknesses of substandard assets with the additional
characteristic that the weaknesses make collection or liquidation in full on the
basis of currently existing facts, conditions and values questionable, and there
is a high possibility of loss. An asset classified as loss is considered
uncollectible and of such little value that continuance as an asset of the
institution is not warranted.  If an asset or portion thereof is classified as
loss, the insured institution establishes specific allowances for loan losses
for the full amount of the portion of the asset classified as loss.  All or a
portion of general loan loss allowances established to cover possible losses
related to assets classified substandard or doubtful can be included in
determining an institution's regulatory capital, while specific valuation
allowances for loan losses generally do not qualify as regulatory capital.
Assets that do not currently expose the insured institution to sufficient risk
to warrant classification in one of the aforementioned categories but possess
weaknesses are designated "special mention" and monitored by the Bank.

                                       9
<PAGE>

     The following table sets forth the number and amount of classified loans at
December 31, 2000.

<TABLE>
<CAPTION>
                                     Loss                Doubtful            Substandard             Special Mention
                           ----------------------  ---------------------  --------------------   --------------------
                              Number    Principal    Number    Principal   Number    Principal    Number    Principal
                             of Loans    Amount     of Loans    Amount    of Loans    Amount     of Loans    Amount
                           ----------   ---------  ---------   ---------  --------   ---------   --------   ---------
                                                              (Dollars in thousands)
<S>                          <C>        <C>        <C>        <C>        <C>        <C>          <C>        <C>
Mortgage loans:
 One- to four-family              -          -          -          -          3       $180           14       $402
 Multi-family                     -          -          -          -          -          -            -          -
 Commercial real estate           -          -          -          -          -          -            -          -
 Land                             -          -          -          -          -          -            -          -
 Residential construction         -          -          -          -          -          -            -          -
Consumer loans                    -          -          -          -          4         35            2          5
</TABLE>


     Allowance for Loan Losses.  In originating loans, the Bank recognizes that
losses will be experienced and that the risk of loss will vary with, among other
things, the type of loan being made, the creditworthiness of the borrower over
the term of the loan, general economic conditions and, in the case of a secured
loan, the quality of the security for the loan.  The allowance method is used in
providing for loan losses.  Accordingly, all loan losses are charged to the
allowance and all recoveries are credited to it.  The allowance for loan losses
is established through a provision for loan losses charged to operations.  The
provision for loan losses is based on management's evaluation of  of the
collectibility of the loan portfolio, including the nature of the portfolio,
credit concentrations, trends in historical loss experience, specified impaired
loans, and economic conditions.

     Although management believes that it uses the best information available to
establish the allowance for loan losses, future adjustments to the allowance for
loan losses may be necessary and results of operations could be significantly
and adversely affected if circumstances differ substantially from the
assumptions used in making the determinations.  Furthermore, while the Bank
believes it has established its existing allowance for loan losses in accordance
with generally accepted accounting principles, there can be no assurance that
regulators, in reviewing the Bank's loan portfolio, will not request the Bank to
increase significantly its allowance for loan losses.  In addition, because
future events affecting borrowers and collateral cannot be predicted with
certainty, there can be no assurance that the existing allowance for loan losses
is adequate or that substantial increases will not be necessary should the
quality of any loans deteriorate as a result of the factors discussed above.
Any material increase in the allowance for loan losses may adversely affect the
Bank's financial condition and results of operations.

                                       10
<PAGE>

     The following table sets forth an analysis of the Bank's allowance for loan
losses.

<TABLE>
<CAPTION>
                                                 Years Ended December 31,
                                               ---------------------------
                                                 2000       1999     1998
                                               -------     ------   ------
                                                      (In thousands)
<S>                                              <C>      <C>      <C>
Allowance at beginning of period...........    $   54     $   51   $    51
Provision for loan losses..................        12          6        --
Recoveries.................................         2         --        --

Charge-offs:
 Mortgage loans............................        --          3        --
 Consumer loans............................         8         --        --
                                               ------     ------   -------
   Total charge-offs.......................         8          3        --
                                               ------     ------   -------
   Net charge-offs.........................         6          3        --
                                               ------     ------   -------
   Balance at end of period................    $   60     $   54   $    51
                                               ======     ======   =======

Allowance for loan losses as a
 percentage of total loans outstanding
 at the end of the period..................      0.22%      0.22%     0.24%

Net charge-offs (recoveries) as a
 percentage of average loans outstanding
 during the period.........................      0.02%      0.01%     0.00%

Allowance for loan losses as a
 percentage of nonperforming loans
 at end of period..........................     31.25%     51.92%   175.86%
</TABLE>

                                       11
<PAGE>

  The following table sets forth the breakdown of the allowance for loan losses
by loan category at the dates indicated.  Management believes that the allowance
can be allocated by category only on an approximate basis.  The allocation of
the allowance to each category is not necessarily indicative of future losses
and does not restrict the use of the allowance to absorb losses in any other
category.

<TABLE>
<CAPTION>
                                                                    At December 31,
                                          -----------------------------------------------------------------
                                                   2000                  1999                 1998
                                          ---------------------   -------------------  --------------------
                                                      Percent               Percent               Percent
                                                     of Loans              of Loans              of Loans
                                                    in Category           in Category           in Category
                                                     to Total              to Total              to Total
                                            Amount    Loans       Amount    Loans       Amount    Loans
                                          --------  -----------  -------  -----------  -------  -----------
                                                                 (Dollars in thousands)
<S>                                         <C>     <C>           <C>     <C>           <C>     <C>
Mortgage loans:
 One- to four-family.................        $33       77.9%       $31       81.8%       $33       83.1%
 Multi-family........................          1        1.8          1        2.0          1        1.7
 Commercial real estate..............          4        4.3          3        2.4          5        4.2
 Land................................          4        3.0          4        2.1          6        3.0
 Residential construction............          2        5.7          2        4.9          1        4.6
Commercial business..................         --        0.2         --         --         --         --
Consumer loans:
 Loans secured by savings accounts...         --        0.6         --        1.1         --        1.3
 Other consumer loans................         16        6.5         13        5.7          5        2.1
Unallocated..........................          -        N/A         --        N/A         --        N/A
                                             ---      -----        ---      -----        ---      -----
  Total allowances for loan losses...        $60      100.0%       $54      100.0%       $51      100.0%
                                             ===      =====        ===      =====        ===      =====
</TABLE>


Investment Activities

     The Bank is permitted under federal law to invest in various types of
liquid assets, including U.S. Government obligations, securities of various
federal agencies and of state and municipal governments, deposits at the FHLB-
Indianapolis, certificates of deposit of federally insured institutions, certain
bankers' acceptances and federal funds. Subject to various restrictions, the
Bank may also invest a portion of its assets in commercial paper and corporate
debt securities.  Savings institutions like the Bank are also required to
maintain an investment in FHLB stock.  The Bank is required under federal
regulations to maintain a minimum amount of liquid assets.

     Applicable accounting guidelines require that investments be categorized as
"held to maturity," "trading securities" or "available for sale," based on
management's intent as to the ultimate disposition of each security.  Debt
securities may be classified as "held to maturity" and reported in financial
statements at amortized cost only if the reporting entity has the positive
intent and ability to hold those securities to maturity.  Securities that might
be sold in response to changes in market interest rates, changes in the
security's prepayment risk, increases in loan demand, or other similar factors
cannot be classified as "held to maturity."  Debt and equity securities held for
current resale are classified as "trading securities."  Such securities are
reported at fair value, and unrealized gains and losses on such securities would
be included in earnings.  The Company does not currently use or maintain a
trading account.  Debt and equity securities not classified as either "held to
maturity" or "trading securities" are classified as "available for sale." Such
securities are reported at fair value, and unrealized gains and losses on such
securities are excluded from earnings and reported as a net amount in a separate
component of equity.

     The Company's investment policies limit investments to U.S. Government and
agency securities, mortgage-backed securities and higher rated corporate
securities.  A high credit rating indicates only that the rating agency believes
there is a low risk of default.  However, all of the Company's investment
securities, including those that have

                                       12
<PAGE>

high credit ratings, are subject to market risk insofar as increases in market
rates of interest may cause a decrease in their market value. Corporate
securities are also subject to credit risk insofar as the payment obligations on
such securities are dependent on the successful operation of issuer's business.
The Company's investment policy does not permit engaging directly in hedging
activities or purchasing high risk mortgage derivative products. Investments are
made based on certain considerations, which include the interest rate, yield,
settlement date and maturity of the investment, the Company's liquidity
position, and anticipated cash needs and sources (which in turn include
outstanding commitments, upcoming maturities, estimated deposits and anticipated
loan amortization and repayments). The effect that the proposed investment would
have on the Company's credit and interest rate risk and risk-based capital is
also considered.

     The Bank purchases investment securities to provide necessary liquidity for
day-to-day operations.  The Bank also purchases investment securities when
investable funds exceed loan demand.  In recent years, the Bank has preferred to
invest in individual mortgage loans rather than mortgage-backed securities.
Depending on loan demand, the Bank may consider increasing its investment in
mortgage-backed securities.

     The following table sets forth the amortized cost and fair value of the
Company's securities, by accounting classification and by type of security, at
the dates indicated.

<TABLE>
<CAPTION>
                                                         At December 31,
                                         ----------------------------------------------
                                                    2000                   1999
                                         -----------------------  ---------------------
                                           Amortized              Amortized
                                             Cost     Fair Value    Cost     Fair Value
                                         -----------  ----------  ---------  ----------
                                                     (Dollars in thousands)
<S>                                        <C>        <C>         <C>        <C>
Available for sale:
Investment securities:
 U.S. Government agency obligations....    $1,199      $1,164     $1,198      $1,113
</TABLE>

                                       13
<PAGE>

     The following table sets forth certain information regarding the amortized
cost, weighted average yields and maturities or periods to repricing of the
Company's debt securities at December 31, 2000, all of which are available for
sale.

<TABLE>
<CAPTION>
                                                                  At December  31, 2000
                           ---------------------------------------------------------------------------------------------------------
                                                      One to            After Five to             After
                            Less than One Year      Five Years            Ten Years             Ten Years               Total
                           -------------------  -------------------   -------------------   -------------------  -------------------
                                      Weighted             Weighted              Weighted              Weighted             Weighted
                           Amortized  Average   Amortized  Average    Amortized   Average   Amortized   Average  Amortized   Average
                             Cost      Yield      Cost      Yield       Cost       Yield      Cost       Yield     Cost       Yield
                           ---------  --------  ---------  -------   ----------  --------   --------  --------   ---------  --------
                                                                      (Dollars in thousands)
<S>                        <C>        <C>       <C>        <C>       <C>        <C>        <C>        <C>        <C>        <C>
Investment securities:
 U.S. Government agency
  obligations............    $250      5.99%       $250      5.43%      $100      6.13%       $599      6.38%     $1,199      6.08%
</TABLE>

                                       14
<PAGE>

Deposit Activities and Other Sources of Funds

     General.  Deposits are the major external source of funds for the Bank's
lending and other investment activities. In addition, the Bank also generates
funds internally from loan principal repayments and prepayments and maturing
investment securities.  Scheduled loan repayments are a relatively stable source
of funds, while deposit inflows and outflows and loan prepayments are influenced
significantly by general interest rates and money market conditions.  The Bank
may use borrowings from the FHLB-Indianapolis to compensate for reductions in
the availability of funds from other sources.  Presently, the Bank has no other
borrowing arrangements.

     Deposit Accounts.  Nearly all of the Bank's depositors reside in Indiana.
The Bank's deposit products include checking accounts, money market accounts,
passbook accounts, and term certificate accounts.  Deposit account terms vary
with the principal difference being the minimum balance deposit, early
withdrawal penalties and the interest rate. The Bank reviews its deposit mix and
pricing weekly.  The Bank does not utilize brokered deposits, nor has it
aggressively sought jumbo certificates of deposit.

     The Bank believes it is competitive in the interest rates it offers on its
deposit products.  The Bank determines the rates paid based on a number of
factors, including rates paid by competitors, the Bank's need for funds and cost
of funds, borrowing costs and movements of market interest rates.

     The following table indicates the amount of the Bank's jumbo certificate
accounts by time remaining until maturity as of December 31, 2000.  Jumbo
certificate accounts have principal balances of $100,000 or more.

<TABLE>
<CAPTION>
                                                 Certificate
            Maturity Period                       Accounts
        ---------------------                    -----------
                                                (In thousands)

<S>                                              <C>
Three months or less......................         $  516
Over three through six months.............            345
Over six through 12 months................            427
Over 12 months............................          1,780
                                                   ------
   Total..................................         $3,068
                                                   ======
</TABLE>

                                       15
<PAGE>

     The following table sets forth the balances (inclusive of interest
credited) and changes in dollar amounts of deposits in the various types of
accounts offered by the Bank between the dates indicated.

<TABLE>
<CAPTION>
                                                             At December 31,
                                           -------------------------------------------------
                                                      2000                       1999
                                           -------------------------------------------------
                                                      Percent                        Percent
                                                        of      Increase               of
                                             Amount    Total   (Decrease)   Amount    Total
                                           -------------------------------------------------
                                                          (Dollars in thousands)
<S>                                          <C>      <C>       <C>         <C>      <C>
Noninterest-bearing demand
   accounts............................    $   598      2.7%    $   424   $   174      0.8%
Interest-bearing demand accounts.......        582      2.6         444       138      0.7
Regular savings accounts...............        988      4.5         (53)    1,041      5.1
Money market deposit accounts..........      2,339     10.6        (231)    2,570     12.6
Fixed-rate certificates which mature:
   Within 1 year.......................      8,412     38.1         329     8,083     39.5
   After 1 year, but within 2 years....      5,242     23.7       1,770     3,472     17.0
   After 2 years, but within 4 years...      2,409     10.9      (1,731)    4,140     20.2
   After 4 years, but within 6 years...      1,528      6.9         681       847      4.1
                                           -------    -----     -------   -------    -----
       Total...........................    $22,098    100.0%    $ 1,633   $20,465    100.0%
                                           =======    =====     =======   =======    =====
</TABLE>

     The following table sets forth the amount of time deposits in the Bank
categorized by maturities at December 31, 2000.

<TABLE>
<CAPTION>



                                     Amount Due
              -------------------------------------------------------   Percentage
                           One to   Two to   Three to  After            to Total
               Less Than    Two     Three      Four     Four              Time
               One Year    Years    Years     Years    Years   Total    Deposits
              -------------------------------------------------------  ---------
                                         (In thousands)
<S>             <C>        <C>     <C>     <C>       <C>     <C>        <C>
Below 4.99%....  $2,086    $  613  $    3    $   --    $ --   $ 2,702    15.4%

5.00 - 5.49%...   2,226       611     736       252     284     4,109    23.4%
5.50 - 5.99%...     748       154     835       519      --     2,256    12.8%
6.00 - 6.49%...   1,507     1,264     312       329     144     3,556    20.2%
6.50 - 6.99%...   1,845     2,444     477        --      --     4,766    27.1%
7.00 - 7.49%...      --       156      46        --      --       202     1.1%
                 ------    ------  ------    ------    ----   -------   -----
     Totals....  $8,412    $5,242  $2,409    $1,100    $428   $17,591   100.0%
                 ======    ======  ======    ======    ====   =======   =====
</TABLE>


     Borrowings.  The Bank has the ability to use advances from the FHLB-
Indianapolis to supplement its supply of lendable funds and to meet deposit
withdrawal requirements.  The FHLB-Indianapolis functions as a central reserve
bank providing credit for savings associations and certain other member
financial institutions.  As a member of the FHLB-Indianapolis, the Bank is
required to own capital stock in the FHLB-Indianapolis and is authorized to
apply for advances on the security of such stock and certain of its mortgage
loans and other assets (principally securities that are obligations of, or
guaranteed by, the U.S. Government or agencies thereof) provided certain
creditworthiness standards have been met.  Advances are made pursuant to several
different credit programs.  Each credit program has its own

                                       16
<PAGE>

interest rate and range of maturities. Depending on the program, limitations on
the amount of advances are based on the financial condition of the member
institution and the adequacy of collateral pledged to secure the credit.

     The following table sets forth certain information regarding the Bank's use
of FHLB advances during the periods indicated.

<TABLE>
<CAPTION>
                                    Years Ended December 31,
                                    ------------------------
                                     2000     1999     1998
                                    ------   ------   -----
                                        (In thousands)
<S>                                 <C>      <C>      <C>

Maximum balance at any month end..  $3,000   $2,000   $  --
Average balance...................   2,454      769      --
Year end balance..................   2,500    2,000      --
Weighted average interest rate:
   At end of year.................    6.75%    6.12%     --
   During the year................    6.68%    5.42%     --
</TABLE>


Subsidiary Activities

     The Company's only direct subsidiary is the Bank.  Under OTS regulations,
the Bank generally may invest up to 3% of its assets in service corporations,
provided that at least one-half of investment in excess of 1% is used primarily
for community, inner-city and community development projects.  In 1989 the Bank
formed Peoples Building and Loan Association Service Corporation for the purpose
of selling annuities and mutual funds to customers of the Bank.  The Bank's
service corporation is currently inactive.

Personnel

    As of December 31, 2000, the Company had ten full-time employees and two
part-time employee, none of whom is represented by a collective bargaining unit.
The Company believes its relationship with its employees is good.


                           REGULATION AND SUPERVISION

General

    As a savings and loan holding company, the Company is required by federal
law to file reports with, and otherwise comply with, the rules and regulations
of the OTS.  The Bank is subject to extensive regulation, examination and
supervision by the OTS, as its primary federal regulator, and the FDIC, as the
deposit insurer.  The Bank is a member of the Federal Home Loan Bank System and,
with respect to deposit insurance, the Savings Association Insurance Fund
("SAIF") managed by the FDIC.  The Bank must file reports with the OTS and the
FDIC concerning its activities and financial condition in addition to obtaining
regulatory approvals prior to entering into certain transactions such as mergers
with, or acquisitions of, other savings institutions.  The OTS and/or the FDIC
conduct periodic examinations to test the Bank's safety and soundness and
compliance with various regulatory requirements. This regulation and supervision
establishes a comprehensive framework of activities in which an institution can
engage and is intended primarily for the protection of the insurance fund and
depositors.  The regulatory structure also gives the regulatory authorities
extensive discretion in connection with their supervisory and enforcement
activities and examination policies, including policies with respect to the
classification of assets and the establishment of adequate loan loss reserves
for regulatory purposes.  Any change in such regulatory requirements and
policies, whether by the OTS, the FDIC or the Congress, could have a material
adverse impact on the Bank and its operations.  Certain of the

                                       17
<PAGE>

regulatory requirements applicable to the Bank are referred to below or
elsewhere herein. The description of statutory provisions and regulations
applicable to savings institutions and their holding companies set forth in this
Form 10-KSB does not purport to be a complete description of such statutes and
regulations and their effects on the Bank.

Holding Company Regulation

    The Company is a nondiversified unitary savings and loan holding company
within the meaning of federal law. Under prior law, a unitary savings and loan
holding company, such as the Company was not generally restricted as to the
types of business activities in which it may engage, provided that the Bank
continued to be a qualified thrift lender. See "Federal Savings Institution
Regulation - QTL Test."  The Gramm-Leach-Bliley Act of 1999 provides that no
company may acquire control of a savings association after May 4, 1999 unless it
engages only in the financial activities permitted for financial holding
companies under the law or for multiple savings and loan holding companies as
described below.  Further, the Gramm-Leach-Bliley Act specifies that existing
savings and loan holding companies may only engage in such activities.  The
Gramm-Leach-Bliley Act, however, grandfathered the unrestricted authority for
activities with respect to unitary savings and loan holding companies existing
prior to May 4, 1999, such as the Company, so long as the Bank continues to
comply with the QTL Test.  Upon any non-supervisory acquisition by the Company
of another savings institution or savings bank that meets the qualified thrift
lender test and is deemed to be a savings institution by the OTS, the Company
would become a multiple savings and loan holding company (if the acquired
institution is held as a separate subsidiary) and would generally be limited to
activities permissible for bank holding companies under Section 4(c)(8) of the
Bank Holding Company Act, subject to the prior approval of the OTS, and certain
activities authorized by OTS regulation.

    A savings and loan holding company is prohibited from, directly or
indirectly, acquiring more than 5% of the voting stock of another savings
institution or savings and loan holding company without prior written approval
of the OTS and from acquiring or retaining control of a depository institution
that is not insured by the FDIC.  In evaluating applications by holding
companies to acquire savings institutions, the OTS considers the financial and
managerial resources and future prospects of the company and institution
involved, the effect of the acquisition on the risk to the deposit insurance
funds, the convenience and needs of the community and competitive factors.

    The OTS may not approve any acquisition that would result in a multiple
savings and loan holding company controlling savings institutions in more than
one state, subject to two exceptions:  (i) the approval of interstate
supervisory acquisitions by savings and loan holding companies and (ii) the
acquisition of a savings institution in another state if the laws of the state
of the target savings institution specifically permit such acquisitions.  The
states vary in the extent to which they permit interstate savings and loan
holding company acquisitions.

    Although savings and loan holding companies are not subject to specific
capital requirements or specific restrictions on the payment of dividends or
other capital distributions, federal regulations  do prescribe such restrictions
on subsidiary savings institutions as described below. The Bank must notify the
OTS 30 days before declaring any dividend to the Company.  In addition, the
financial impact of a holding company on its subsidiary institution is a matter
that is evaluated by the OTS and the agency has authority to order cessation of
activities or divestiture of subsidiaries deemed to pose a threat to the safety
and soundness of the institution.

    Acquisition of the Holding Company.  Under the Change in Bank Control Act
("CIBCA"), a notice must be submitted to the Office of Thrift Supervision if any
person (including a company), or group acting in concert, seeks to acquire 10%
or more of the Company's outstanding voting stock, unless the Office of Thrift
Supervision has found that the acquisition will not result in a change of
control of the Company.  Under the CIBCA, the Office of Thrift Supervision has
60 days from the filing of a complete notice to act, taking into consideration
certain factors, including the financial and managerial resources of the
acquirer and the anti-trust effects of the acquisition.  Any company that so
acquires control would then be subject to regulation as a savings and loan
holding company.

                                       18
<PAGE>

Federal Savings Institution Regulation

    Business Activities.  The activities of federal savings institutions are
governed by federal law and regulations. These laws and regulations delineate
the nature and extent of the activities in which federal associations may
engage. In particular, many types of lending authority for federal association,
e.g., commercial, non-residential real property loans and consumer loans, are
limited to a specified percentage of the institution's capital or assets.

    Capital Requirements.  The OTS capital regulations require savings
institutions to meet three minimum capital standards:  a 1.5% tangible capital
ratio, a 4% leverage ratio (3% for institutions receiving the highest rating on
the CAMELS financial institution rating system) and an 8% risk-based capital
ratio.  In addition, the prompt corrective action standards discussed below also
establish, in effect, a minimum 2% tangible capital standard, a 4% leverage
ratio (3% for institutions receiving the highest rating on the rating system)
and, together with the risk-based capital standard itself, a 4% Tier 1 risk-
based capital standard.  The OTS regulations also require that, in meeting the
tangible, leverage and risk-based capital standards, institutions must generally
deduct investments in and loans to subsidiaries engaged in activities as
principal that are not permissible for a national bank.

    The risk-based capital standard for savings institutions requires the
maintenance of Tier 1 (core) and total capital (which is defined as core capital
and supplementary capital) to risk-weighted assets of at least 4% and 8%,
respectively.  In determining the amount of risk-weighted assets, all assets,
including certain off-balance sheet assets, are multiplied by a risk-weight
factor of 0% to 100%, assigned by the OTS capital regulation based on the risks
believed inherent in the type of asset.  Core (Tier 1) capital is defined as
common stockholders' equity (including retained earnings), certain noncumulative
perpetual preferred stock and related surplus, and minority interests in equity
accounts of consolidated subsidiaries less intangibles other than certain
mortgage servicing rights and credit card relationships. The components of
supplementary capital currently include cumulative preferred stock, long-term
perpetual preferred stock, mandatory convertible securities, subordinated debt
and intermediate preferred stock, the allowance for loan and lease losses
limited to a maximum of 1.25% of risk-weighted assets and up to 45% of
unrealized gains on available-for-sale equity securities with readily
determinable fair market values.  Overall, the amount of supplementary capital
included as part of total capital cannot exceed 100% of core capital.

    The capital regulations also incorporate an interest rate risk component.
Savings institutions with "above normal" interest rate risk exposure are subject
to a deduction from total capital for purposes of calculating their risk-based
capital requirements.  For the present time, the OTS has deferred implementation
of the interest rate risk capital charge.  At December 31, 2000, the Bank met
each of its capital requirements.

    The following table presents the Bank's capital position at December 31,
2000.

<TABLE>
<CAPTION>
                                                          Capital
                                         Excess     ---------------------
                   Actual   Required  (Deficiency)   Actual   Required
                   Capital  Capital      Amount     Percent    Percent
                   -------  --------  ------------  -------   --------
                               (Dollars in thousands)
<S>                <C>      <C>       <C>           <C>       <C>

Tangible.........   $4,353    $  455       $3,898     14.35%       1.5%
Core (Leverage)..    4,353     1,214        3,139     14.35%       4.0%
Risk-based.......    4,413     1,430        2,983     25.59%       8.0%
</TABLE>

                                       19
<PAGE>

    Prompt Corrective Regulatory Action.  The OTS is required to take certain
supervisory actions against undercapitalized institutions, the severity of which
depends upon the institution's degree of undercapitalization. Generally, a
savings institution that has a ratio of total capital to risk weighted assets of
less than 8%, a ratio of Tier 1 (core) capital to risk-weighted assets of less
than 4% or a ratio of core capital to total assets of less than 4% (3% or less
for institutions with the highest examination rating) is considered to be
"undercapitalized."  A savings institution that has a total risk-based capital
ratio less than 6%, a Tier 1 capital ratio of less than 3% or a leverage ratio
that is less than 3% is considered to be "significantly undercapitalized" and a
savings institution that has a tangible capital to assets ratio equal to or less
than 2% is deemed to be "critically undercapitalized."  Subject to a narrow
exception, the OTS is required to appoint a receiver or conservator for an
institution that is "critically undercapitalized."  The regulation also provides
that a capital restoration plan must be filed with the OTS within 45 days of the
date a savings institution receives notice that it is "undercapitalized,"
"significantly undercapitalized" or "critically undercapitalized.  In addition,
numerous mandatory supervisory actions become immediately applicable to an
undercapitalized institution, including, but not limited to, increased
monitoring by regulators and restrictions on growth, capital distributions and
expansion. The OTS could also take any one of a number of discretionary
supervisory actions, including the issuance of a capital directive and the
replacement of senior executive officers and directors.

    Insurance of Deposit Accounts.  Deposits of the Bank are presently insured
by the SAIF.  The FDIC maintains a risk-based assessment system by which
institutions are assigned to one of three categories based on their
capitalization and one of three subcategories based on examination ratings and
other supervisory information.  An institution's assessment rate depends upon
the categories to which it is assigned.  Assessment rates for SAIF member
institutions are determined semiannually by the FDIC and currently range from
zero basis points for the healthiest institutions to 27 basis points for the
riskiest.

    In addition to the assessment for deposit insurance, institutions are
required to make payments on bonds issued in the late 1980s by the Financing
Corporation ("FICO") to recapitalize the predecessor to the SAIF.  During 2000,
FICO payments approximated 2.07 basis points.

     The FDIC has authority to increase insurance assessments.  A significant
increase in SAIF insurance premiums would likely have an adverse effect on the
operating expenses and results of operations of the Bank.  Management cannot
predict what insurance assessment rates will be in the future.

    Insurance of deposits may be terminated by the FDIC upon a finding that the
institution has engaged in unsafe or unsound practices, is in an unsafe or
unsound condition to continue operations or has violated any applicable law,
regulation, rule, order or condition imposed by the FDIC or the OTS.  The
management of the Bank does not know of any practice, condition or violation
that might lead to termination of deposit insurance.

    Loans to One Borrower.  Federal law provides that savings institutions are
generally subject to the limits on loans to one borrower applicable to national
banks.  A savings institution may not make a loan or extend credit to a single
or related group of borrowers in excess of 15% of its unimpaired capital and
surplus.  An additional amount may be lent, equal to 10% of unimpaired capital
and surplus, if secured by specified readily-marketable collateral.

    QTL Test.  Federal law requires savings institutions to meet a qualified
thrift lender test.  Under the test, a savings association is required to either
qualify as a "domestic building and loan association" under the Internal Revenue
Code or maintain at least 65% of its "portfolio assets" (total assets less:
(i) specified liquid assets up to 20% of total assets; (ii) intangibles,
including goodwill; and (iii) the value of property used to conduct business) in
certain "qualified thrift investments" (primarily residential mortgages and
related investments, including certain mortgage-backed securities) in at least
9 months out of each 12 month period.

    A savings institution that fails the qualified thrift lender test is subject
to certain operating restrictions and may be required to convert to a bank
charter.  As of December 31, 2000, the Bank maintained 82.7% of its portfolio
assets in qualified thrift investments and, therefore, met the qualified thrift
lending test.  Recent legislation has expanded the extent to which education
loans, credit card loans and small business loans may be considered "qualified
thrift investments."

                                       20
<PAGE>

    Limitation on Capital Distributions.  OTS regulations impose limitations
upon all capital distributions by a savings institution, including cash
dividends, payments to repurchase its shares and payments to shareholders of
another institution in a cash-out merger.  Under current regulations, an
application to and the prior approval of the OTS is required prior to any
capital distribution if the institution does not meet the criteria for
"expedited treatment" of applications under OTS regulations (i.e., generally,
examination ratings in the two top categories), the total capital distributions
for the calendar year exceed net income for that year plus the amount of
retained net income for the preceding two years, the institution would be
undercapitalized following the distribution or the distribution would otherwise
be contrary to a statute, regulation or agreement with OTS.  If an application
is not required, the institution must still provide prior notice to OTS of the
capital distribution under certain circumstances.   In the event the Bank's
capital fell below its regulatory requirements or the OTS notified it that it
was in need of more than normal supervision, the Bank's ability to make capital
distributions could be restricted.  In addition, the OTS could prohibit a
proposed capital distribution by any institution, which would otherwise be
permitted by the regulation, if the OTS determines that such distribution would
constitute an unsafe or unsound practice.

    Assessments.  Savings institutions are required to pay assessments to the
OTS to fund the agency's operations. The general assessments, paid on a semi-
annual basis, are computed upon the savings institution's total assets,
including consolidated subsidiaries, as reported in the Bank's latest quarterly
thrift financial report.  The assessments paid by the Bank for the fiscal year
ended December 31, 2000 totaled $10,000.

    Transactions with Related Parties.  The Bank's authority to extend credit to
executive officers, directors and 10% shareholders ("insiders"), as well as
entities such persons control, is governed by Sections 22(g) and 22(h) of the
Federal Reserve Act.  Among other things, such loans are required to be made on
terms substantially the same as those offered to unaffiliated individuals and to
not involve more than the normal risk of repayment.  Recent legislation created
an exception for loans made pursuant to a benefit or compensation program that
is widely available to all employees of the institution and does not give
preference to insiders over other employees.  The law limits both the individual
and aggregate amount of loans the Bank may make to insiders based, in part, on
the Bank's capital position and requires certain board approval procedures to be
followed.

    Enforcement.  The OTS has primary enforcement responsibility over savings
institutions and has the authority to bring actions against the institution and
all institution-affiliated parties, including stockholders, and any attorneys,
appraisers and accountants who knowingly or recklessly participate in wrongful
action likely to have an adverse effect on an insured institution.  Formal
enforcement action may range from the issuance of a capital directive or cease
and desist order to removal of officers and/or directors to institution of
receivership, conservatorship or termination of deposit insurance.  Civil
penalties cover a wide range of violations and can amount to $25,000 per day, or
even $1 million per day in especially egregious cases.  The FDIC has the
authority to recommend to the Director of the OTS that enforcement action to be
taken with respect to a particular savings institution.  If action is not taken
by the Director, the FDIC has authority to take such action under certain
circumstances.  Federal law also establishes criminal penalties for certain
violations.

    Standards for Safety and Soundness.  The federal banking agencies have
adopted Interagency Guidelines prescribing Standards for Safety and Soundness.
The guidelines set forth the safety and soundness standards that the federal
banking agencies use to identify and address problems at insured depository
institutions before capital becomes impaired.  If the OTS determines that a
savings institution fails to meet any standard prescribed by the guidelines, the
OTS may require the institution to submit an acceptable plan to achieve
compliance with the standard.

Federal Home Loan Bank System

    The Bank is a member of the Federal Home Loan Bank System, which consists of
12 regional Federal Home Loan Banks.  The Federal Home Loan Bank provides a
central credit facility primarily for member institutions.  The Bank, as a
member of the Federal Home Loan Bank, is required to acquire and hold shares of
capital stock in that Federal Home Loan Bank in an amount at least equal to 1.0%
of the aggregate principal amount of its unpaid residential mortgage loans and
similar obligations at the beginning of each year, or 1/20 of its advances
(borrowings) from the Federal Home Loan Bank, whichever is greater.  The Bank
was in compliance with this requirement with an investment

                                       21
<PAGE>

in Federal Home Loan Bank stock at December 31, 2000, of $207,000. Federal Home
Loan Bank advances must be secured by specified types of collateral.

    The Federal Home Loan Banks are required to provide funds for the resolution
of insolvent thrifts in the late 1980s and to contribute funds for affordable
housing programs.  These requirements could reduce the amount of dividends that
the Federal Home Loan Banks pay to their members and could also result in the
Federal Home Loan Banks imposing a higher rate of interest on advances to their
members.  If dividends were reduced, or interest on future Federal Home Loan
Bank advances increased, The Bank's net interest income would likely also be
reduced.  Recent legislation has changed the structure of the Federal Home Loan
Banks funding obligations for insolvent thrifts, revised the capital structure
of the Federal Home Loan Banks and implemented entirely voluntary membership for
Federal Home Loan Banks.  Management cannot predict the effect that these
changes may have with respect to its Federal Home Loan Bank membership.

Federal Reserve System

    The Federal Reserve Board regulations require savings institutions to
maintain non-interest earning reserves against their transaction accounts
(primarily NOW and regular checking accounts).  The regulations generally
provide that reserves be maintained against aggregate transaction accounts as
follows: for accounts aggregating $44.3 million or less (subject to adjustment
by the Federal Reserve Board) the reserve requirement is 3%; and for accounts
aggregating greater than $44.3 million, the reserve requirement is $1.33 million
plus 10% (subject to adjustment by the Federal Reserve Board between 8% and 14%)
against that portion of total transaction accounts in excess of $44.3 million.
The first $5.0 million of otherwise reservable balances (subject to adjustments
by the Federal Reserve Board) are exempted from the reserve requirements.  The
Bank complies with the foregoing requirements.

                                       22
<PAGE>

                           FEDERAL AND STATE TAXATION

Federal Taxation

    General.  The Company and the Bank report their income on a calendar year,
consolidated basis and the accrual method of accounting, and are subject to
federal income taxation in the same manner as other corporations with some
exceptions, including particularly the Bank's reserve for bad debts discussed
below.  The following discussion of tax matters is intended only as a summary
and does not purport to be a comprehensive description of the tax rules
applicable to the Bank or the Company.  The Bank has not been audited by the IRS
since 1995, which covered the tax year 1994. For its 2000 taxable year, the Bank
is subject to a maximum federal income tax rate of 34%.

    Bad Debt Reserves.  For fiscal years beginning prior to December 31, 1995,
thrift institutions which qualified under certain definitional tests and other
conditions of the Internal Revenue Code were permitted to use certain favorable
provisions to calculate their deductions from taxable income for annual
additions to their bad debt reserve.  A reserve could be established for bad
debts on qualifying real property loans (generally secured by interests in real
property improved or to be improved) under (i) the percentage of taxable income
method or (ii)  the experience method.  The reserve for nonqualifying loans was
computed using the experience method.

    The reserve method of accounting for bad debts has been repealed for tax
years beginning after 1995 and requires savings institutions to recapture (i.e.,
take into income) certain portions of their accumulated bad debt reserves.
Thrift institutions eligible to be treated as "small banks" (assets of $500
million or less) are allowed to use the experience method applicable to such
institutions, while thrift institutions that are treated as large banks (assets
exceeding $500 million) are required to use only the specific charge-off method.
The percentage of taxable income method of accounting for bad debts is no longer
available for any financial institution.

    Distributions.  If the Bank makes "non-dividend distributions" to the
Company, such distributions will be considered to have been made from the Bank's
unrecaptured tax bad debt reserves (including the balance of its reserves as of
December 31, 1987) to the extent thereof, and then from the Bank's supplemental
reserve for losses on loans, to the extent thereof, and an amount based on the
amount distributed (but not in excess of the amount of such reserves) will be
included in the Bank's income.  Non-dividend distributions include distributions
in excess of the Bank's current and accumulated earnings and profits, as
calculated for federal income tax purposes, distributions in redemption of
stock, and distributions in partial or complete liquidation.  Dividends paid out
of the Bank's current or accumulated earnings and profits will not be so
included in the Bank's income.

    The amount of additional taxable income triggered by a non-dividend is an
amount that, when reduced by the tax attributable to the income, is equal to the
amount of the distribution.  Thus, if the Bank makes a non-dividend distribution
to the Company, approximately one and one-half times the amount of such
distribution (but not in excess of the amount of such reserves) would be
includable in income for federal income tax purposes, assuming a 35% federal
corporate income tax rate.  The Bank does not intend to pay dividends that would
result in a recapture of any portion of its bad debt reserves.

Indiana Taxation

    Indiana imposes an 8.5% franchise tax based on a financial institution's
adjusted gross income as defined by statute.  In computing adjusted gross
income, deductions for municipal interest, U.S. Government interest, the bad
debt deduction computed using the reserve method and pre-1990 net operating
losses are disallowed.  The Bank's state franchise tax returns have not been
audited for the past five years.

                                       23
<PAGE>

Item 2. Description of Property.
--------------------------------

    The Bank owns its one office.  At December 31, 2000, the net book value of
the Bank's main office (including land and buildings), fixtures, furniture and
equipment was $333,000.  In April 2000, the Bank purchased a parcel of land,
which it intends to use as the location of a future branch, for $106,000.

Item 3.  Legal Proceedings.
---------------------------

    Periodically, there have been various claims and lawsuits involving the
Bank, such as claims to enforce liens, condemnation proceedings on properties in
which the Bank holds security interests, claims involving the making and
servicing of real property loans and other issues incident to the Bank's
business.  Neither the Company nor the Bank is a party to any pending legal
proceedings that it believes would have a material adverse effect on the
financial condition or operations of the Company.


Item 4. Submission of Matters to a Vote of Security Holders.
-----------------------------------------------------------

    None.

                                       24
<PAGE>

                                    PART II

Item 5. Market for the Company's Common Equity and Related Stockholder Matters.
------------------------------------------------------------------------------

    Information relating to the market for the Company's common equity and
related stockholder matters is disclosed in the Company's 2000 Annual Report to
Shareholders on page 34 and is incorporated herein by reference.


Item 6. Management's Discussion and Analysis or Plan of Operation.
-----------------------------------------------------------------

    This information is disclosed in the Company's 2000 Annual Report to
Shareholders at pages 4 through 11 and is incorporated herein by reference.


Item 7. Financial Statements.
----------------------------

    The consolidated financial statements of the Company and its subsidiary,
together with the report thereon by Monroe Shine & Co., Inc. for the year ended
December 31, 2000 are included in the Company's 2000 Annual Report to
Shareholders at pages 12 through 32 and are incorporated herein by reference.


Item 8. Changes in and Disagreements with Accountants on Accounting and
-----------------------------------------------------------------------
        Financial Disclosures.
        ---------------------

    None.


                                    PART III

Item 9. Directors, Executive Officers, Promoters and Control
------- ----------------------------------------------------
        Persons; Compliance with Section 16(a) of the Exchange Act.
        ----------------------------------------------------------

    Information regarding directors of the Company is incorporated herein by
reference to the Company's Proxy Statement for the Annual Meeting of
Shareholders to be held on April 23, 2001, at pages 4 through 5.

    The following table sets forth certain information regarding the executive
officers of the Company and the Bank.

<TABLE>
<CAPTION>
        Name           Age                     Position
---------------------  ---  ----------------------------------------------
<S>                    <C>  <C>
Carl D. Smith           54  President and Chief Executive Officer of the
                            Company and the Bank
Clarke A. Blackford     53  Vice President, Treasurer and Secretary of
                            the Company and the Bank

</TABLE>


     Carl D. Smith has served as President and Chief Executive Officer of the
Bank since 1976 and as President and Chief Executive Officer of the Company
since its formation in 1998.

     Clarke A. Blackford has served as Vice President of the Bank since 1993 and
as Treasurer and Secretary since 1980.  He has served as Vice President,
Treasurer and Secretary of the Company since its formation in 1998.


                                       25
<PAGE>

Item 10.  Executive Compensation.
--------------------------------

     Information regarding the compensation of directors and executive officers
of the Company is incorporated herein by reference to the Company's Proxy
Statement for the Annual Meeting of Shareholders to be held on April 23, 2001,
at pages 6 through 7.


Item 11.  Security Ownership of Certain Beneficial Owners and Management.
------------------------------------------------------------------------

     Information regarding security ownership of certain beneficial owners and
management of the Company is incorporated herein by reference to the Company's
Proxy Statement for the Annual Meeting of Shareholders to be held on April 23,
2001, at page 3.


Item 12. Certain Relationships and Related Transactions.
-------------------------------------------------------

     Information regarding certain relationships and related transactions is
incorporated herein by reference to the Company's Proxy Statement for the Annual
Meeting of Shareholders to be held on April 23, 2001, at page 8.


Item 13.  Exhibits and Reports on Form 8-K.
------------------------------------------

     (a) The following exhibits are filed as a part of this report:

          3.1  Articles of Incorporation of PCB Holding Company (incorporated by
               reference to Exhibit 3.1 to the Company's Registration Statement
               on Form SB-2 (File No. 333-48191))
          3.2  Bylaws of PCB Holding Company (incorporated by reference to
               Exhibit 3.2 to the Company's Registration Statement on Form SB-2
               (File No. 333-48191))
          4.0  Stock Certificate of PCB Holding Company (incorporated by
               reference to Exhibit 4.0 to the Company's Registration Statement
               on Form SB-2 (File No. 333-48191))
          10.1 Employment Agreement with Carl D. Smith (incorporated by
               reference to Exhibit 10.1 to the Company's Form 10-KSB for the
               year ended December 31, 1998)
          10.2 PCB Holding Company 1999 Stock Option Plan (incorporated by
               reference to the Company's Registration Statement on Form S-8,
               File No. 333-85883)
          10.3 PCB Holding Company Management Recognition and Development Plan
               (incorporated by reference to the Company's Registration
               Statement on Form S-8, File No. 333-85883)
          13.0 Portions of Annual Report to Stockholders
          21.0 Subsidiaries of Registrant
          23.0 Consent of Independent Auditors

     (b)  Reports on Form 8-K.

          None.

                                       26
<PAGE>

                                   SIGNATURES

   In accordance with Section 13 of the Securities Exchange Act of 1934, the
Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                   PCB HOLDING COMPANY


                                   By:  /s/ Carl D. Smith
                                       -----------------------------
                                       Carl D. Smith
                                       President and Chief Executive Officer

 DATED: March 13, 2001

   In accordance with the Exchange Act, this report has been signed by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

<TABLE>
<CAPTION>

Name                                                  Title                           Date
---------------------------------  --------------------------------------------  --------------
<S>                                <C>                                           <C>

/s/ Carl D. Smith                  President, Chief Executive Officer            March 13, 2001
---------------------------------  and Director
Carl D. Smith                      (Principal Executive Officer)


/s/ Clarke A. Blackford            Treasurer and Corporate Secretary             March 13, 2001
---------------------------------  (Principal Accounting and Financial Officer)
Clarke A. Blackford


/s/ David L. Lasher                Director                                      March 13, 2001
---------------------------------
David L. Lasher


/s/ Howard L. Traphagen            Director                                      March 13, 2001
---------------------------------
Howard L. Traphagen


/s/ James G. Tyler                 Director                                      March 13, 2001
---------------------------------
James G. Tyler


/s/ Daniel P. Lutgring             Director                                      March 13, 2001
--------------------------------
Daniel P. Lutgring


/s/ Mark L. Ress                   Director                                      March 13, 2001
--------------------------------
Mark L. Ress
</TABLE>

                                       27