2000 ANNUAL REPORT

                                TABLE OF CONTENTS
<TABLE>

                                                                           Page

<S>                                                                        <C>
       President's Message to Stockholders                                 1

       Selected Consolidated Financial Information                         2

       Management's Discussion and Analysis                                4

       Report of Independent Certified Public Accountants                 15

       Consolidated Balance Sheets                                        16

       Consolidated Statements of Earnings                                18

       Consolidated Statements of Comprehensive Income                    19

       Consolidated Statements of Stockholders' Equity                    20

       Consolidated Statements of Cash Flows                              21

       Notes to Consolidated Financial Statements                         23

       Stockholder Information                                            40

       Directors and Executive Officers                             Inside Back
                                                                       Cover
</TABLE>


                                 ANNUAL MEETING

The Annual  Meeting of  Stockholders  will be held at our main office located at
Myrtle  and Sixth  Streets,  Independence,  Kansas at 10:30  a.m.  Independence,
Central Standard time, on January 31, 2001.


<PAGE>


                   [FIRST INDEPENDENCE CORPORATION LETTERHEAD]





To Our Stockholders, Depositors and Friends:


     The  Board  of  Directors,   Officers,  and  Staff  of  First  Independence
Corporation  and its wholly owned  subsidiary,  First  Federal  Savings and Loan
Association, are pleased to provide you with the Company's 2000 Annual Report.

     As you will see by reading the  accompanying  financial  statements,  First
Independence  had another  excellent year with $1,376,000 in net earnings;  2000
was our second best year in earnings, a 20% increase over 1999. Diluted earnings
per share for the 2000 fiscal year were $1.30,  compared to diluted earnings per
share of $1.07 for the 1999  fiscal  year,  an  increase  of 21%.  One other key
number worth noting is our  Operating  Expense to Average  Assets;  it is 1.92%,
well  below our peer  group.  Our recent  growth has not been at the  expense of
higher overhead.

     Since the  conversion,  the  Company  has been  focusing on ways to enhance
stockholder value,  including the payment of cash dividends and the continuation
of a stock  repurchase  program.  In 2000,  the Company  repurchased  5% (53,187
shares) of its  outstanding  stock at an average  price of $10.00 per share.  We
believe the  repurchase  of our shares  continues  to  represent  an  attractive
investment opportunity which will benefit the Company and our stockholders.

     In 2000,  we completed the  installation  of ATM's at our  Coffeyville  and
Neodesha  facilities.  Since that time, we have seen a 65% increase in our debit
card  base.  The  cost  of a  banking  transaction  nationwide  at an  ATM  runs
approximately $ .27 versus a teller  transaction that runs approximately $ 1.07.
We would prefer to see our customers face to face for cross-sell  opportunities,
but they want the convenience of 24 hour banking. The customer is always right.

     Our Lawrence loan production  office  continues to be very successful and a
big contributor to the bottom line. In fiscal year 2000, it earned approximately
25% of the gross income of the Company.  Douglas  County  continues to be one of
the fastest growing areas in Kansas.

     I  invite  you to  review  our  Annual  Report.  We are  very  proud of our
accomplishments and look forward to the coming year. On behalf of the directors,
management  and  employees,  I would like to  express  our  appreciation  to our
stockholders and valued customers for your continued support.




                                                  Sincerely,

                                                  /s/ Larry G. Spencer

                                                  Larry G. Spencer
                                                  President and Chief
                                                  Executive Officer



<PAGE>
                   SELECTED CONSOLIDATED FINANCIAL INFORMATION
<TABLE>

                                                                               September 30,
                                             ------------------------------------------------------------------------------------
                                                  2000             1999             1998            1997               1996
                                             ---------------   --------------   --------------   --------------    --------------
                                                                               (In Thousands)
<S>                                           <C>               <C>              <C>             <C>                 <C>
Selected Financial Condition Data:

Total assets                                   $149,130         $138,131         $124,337         $112,523          $108,539
Cash, cash equivalents and interest-
  bearing deposits                                1,921            1,440              914            3,151             1,763
Loans receivable                                125,119          112,893           93,684           74,559            67,683
Mortgage-backed securities - at cost              8,747           10,912           17,274           23,528            28,039
Investment securities - at cost                   6,496            7,005            5,000            3,000             2,000
Securities available for sale                     1,992            2,000            3,418            4,783             5,894
Real estate acquired through foreclosure            423              109               72               12                12
Deposits                                         94,128           95,453           80,573           76,229            69,356
Borrowings                                       39,100           27,500           30,100           23,700            24,300
Stockholders' equity                             13,764           13,107           12,099           11,529            13,003
</TABLE>

<TABLE>
                                                                          Year Ended September 30,
                                             ------------------------------------------------------------------------------------
                                                  2000              1999             1998            1997              1996
                                             ---------------   --------------   --------------   --------------    --------------
                                                                               (In Thousands)
<S>                                             <C>              <C>              <C>               <C>              <C>
Selected Operations Data:

Total interest income                           $11,186          $10,101          $ 9,075          $ 8,069           $ 7,773
Total interest expense                            6,562            5,989            5,556            5,059             4,669
                                                -------          -------          -------          -------           -------
   Net interest income                            4,624            4,112            3,519            3,010             3,104
Provision for losses on loans                        99               66              ---              ---               ---
                                                -------          -------          -------          -------           -------

Net interest income after provision for
  losses on loans                                 4,525            4,046            3,519            3,010             3,104
Non-interest income                                 451              389              192              159               214
Gain on sale of investments                         ---              ---              ---              ---               251
Non-interest expense                             (2,813)          (2,604)          (2,161)          (1,989)           (2,267)
                                                -------          -------          -------          -------           -------
Earnings before income tax expense                2,163            1,831            1,550            1,180             1,302
Income tax expense                                  787              688              649              468               487
                                                -------          -------          -------          -------           -------
Net earnings                                    $ 1,376          $ 1,143          $   901          $   712           $   815
                                                =======          =======          =======          =======           =======
Basic earnings per share                        $  1.36          $  1.13          $   .98          $   .73           $   .72
                                                =======          =======          =======          =======           =======
</TABLE>

<PAGE>

FINANCIAL RATIOS
--------------------------------------------------------------------------------

<TABLE>

                                                                                                       September 30,
                                                                                -----------  --------------------------------------
                                                                                   2000         1999       1998     1997      1996
                                                                                  -----         ----       ----     ----      -----
<S>                                                                                <C>           <C>        <C>      <C>       <C>
Selected Financial Ratios and Other Data:

Performance Ratios:
  Return on assets (ratio of net earnings to
     average total assets)                                                        0.95%          0.84%      0.75%    0.65%     0.78%
Interest rate spread information:
    Average during period                                                         2.83           2.69       2.52     2.31      2.36
    End of period                                                                 2.59           2.58       2.29     2.19      2.17
  Net interest margin (1)                                                         3.26           3.11       2.99     2.81      3.02
  Ratio of operating expense to average total assets                              1.92           1.89       1.80     1.81      2.17
  Return on equity (ratio of net earnings to
   average equity)                                                               10.30           8.95       7.72     6.09      6.21

Quality Ratios:
  Non-performing assets to total assets, at end of period (2)                     1.16           1.84       1.07     1.25      0.57
  Allowance for loan losses to non-performing assets, at end of period (2)       43.74          29.65      49.48    47.64    112.36
  Allowance for loan losses to non-performing loans at end of period             57.86          30.99      52.30    48.05    114.62

Capital Ratios:
  Equity to total assets, at end of period                                        9.23           9.49       9.73    10.25     11.98
  Average equity to average assets                                                9.21           9.38       9.70    10.62     12.57
  Ratio of average interest-earning assets to average interest-bearing          109.47         109.26     109.98   110.64    114.50
   liabilities
  Dividend payout ratio (3)                                                      29.81          31.54      31.25    34.93     27.37
  Number of full service offices                                                   3              3          2        2         1
</TABLE>

(1)  Net interest income divided by average interest-earning assets.
(2)  Includes non-accuring loans, deliquent 90 days or more and assets acquired
     through foreclosure.
(3)  Dividends paid per share divided by earnings per share.
<TABLE>
         [OMITTED EARNINGS PER SHARE GRAPH                      [OMITTED DIVIDENDS PAID PER SHARE GRAPH

                         Basic     Diluted
                         -----     -------
          <S>      <C>    <C>       <C>                               <C>       <C>       <C>
          1996      -    $.072     $0.69                              1996      -         $0.1875
          1997      -    $0.73     $0.68                              1997      -         $0.2375
          1998      -    $0.98     $0.92                              1998      -         $0.2875
          1999      -    $1.13     $1.07                              1999      -         $0.3375
          2000      -    $1.36     $1.30]                             2000      -         $0.3875]
</TABLE>
<PAGE>

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

General

     On  October  5,  1993,  First  Federal  Savings  and  Loan  Association  of
Independence,  Kansas  converted  from  a  federally  chartered  mutual  savings
association to a federally  chartered stock savings association and concurrently
became a  wholly-owned  subsidiary  of  First  Independence  Corporation.  First
Independence  earnings  are  primarily  dependent  on the  operations  of  First
Federal.  Currently,  First  Independence  has no business  activity  other than
acting as the holding  company for First  Federal.  As a result,  the  following
discussion relates primarily to the activities of First Federal. This discussion
should be read in conjunction  with the  consolidated  financial  statements and
accompanying notes included elsewhere in this report.

     Our business  consists of attracting  deposits from the general  public and
using these deposits primarily to make residential mortgage and other loans. Our
revenues are derived  principally  from interest  charges on mortgage  loans and
mortgage-backed  securities  and, to a lesser  extent,  from interest  earned on
investment  securities and interest-bearing  deposits.  In addition,  we receive
fees from loan  originations,  late payments and for various services related to
transaction and other deposit  accounts,  and dividends on our Federal Home Loan
Bank stock.  Operating  expenses consist primarily of employee  compensation and
benefits,  occupancy  and equipment  expenses,  data  processing  fees and other
general and administrative expenses.

     Our  operations,  and the  operations  of  savings  institutions  and their
holding  companies in general,  are  significantly  affected by general economic
conditions and the related monetary and fiscal policies of regulatory  agencies.
Deposit flows and cost of funds are  influenced  by interest  rates on competing
investments  and  general  market  rates of  interest.  Lending  activities  are
affected by the demand for  financing  of real estate and other types of assets,
which in turn is affected by the interest  rates at which such  financing may be
offered and other  factors  including  the  availability  of funds.  The primary
sources of funds for  lending  activities  include  deposits,  loan  repayments,
borrowings,  sales and  maturities  of  securities  available for sale and funds
provided from operations.

Forward-Looking Statements

     Certain  statements in this report that relate to our plans,  objectives or
future  performance may be deemed to be  forward-looking  statements  within the
meaning  of  the  Private  Securities  Litigation  Reform  Act  of  1995.  These
statements are based on our current expectations.  Actual strategies and results
in future periods may differ materially from those currently expected because of
various risks and uncertainties.  Additional discussion of factors affecting our
business and prospects is contained in our periodic  filings with the Securities
and Exchange Commission.

Asset/Liability Management and Market Risk

     Qualitative Aspects of Market Risk. We derive our income primarily from the
excess of interest  collected  over interest paid. The rates of interest we earn
on assets and pay on liabilities  generally are established  contractually for a
period of time. Market interest rates change over time. Accordingly, our results
of  operations,  like those of many  financial  institutions,  are  impacted  by
changes in interest rates.  Our ability to adapt to changes in interest rates is
known as interest rate risk, and is our most significant market risk.

                                       4
<PAGE>

     Quantitative  Aspects of Market Risk.  In an attempt to manage our exposure
to changes in interest rates and comply with applicable regulations,  we monitor
our interest rate risk. In monitoring interest rate risk, we continually analyze
and manage  our  assets  and  liabilities  based on their  payment  streams  and
interest rates, the timing of their maturities,  and their sensitivity to actual
or potential changes in market interest rates.

     The matching of assets and  liabilities  may be analyzed by  examining  the
extent  to  which  they are  "interest  rate  sensitive"  and by  monitoring  an
institution's  interest rate sensitivity "gap." An asset or liability is said to
be interest  rate  sensitive  within a specific time period if it will mature or
reprice within that time period. The interest rate sensitivity gap is defined as
the difference between the amount of interest-earning assets anticipated,  based
upon certain assumptions, to mature or reprice within a specific time period and
the amount of  interest-bearing  liabilities  anticipated,  based  upon  certain
assumptions,  to mature or  reprice  within  that  same  time  period.  A gap is
considered  positive when the amount of interest rate  sensitive  assets exceeds
the amount of interest rate sensitive liabilities.  A gap is considered negative
when the amount of interest  rate  sensitive  liabilities  exceeds the amount of
interest rate  sensitive  assets.  During a period of rising  interest  rates, a
negative  gap would tend to  adversely  affect  operations  while a positive gap
would tend to benefit operations. During a period of falling interest rates, the
opposite would be expected to occur.

     Since the early 1980's, we have emphasized,  subject to market  conditions,
the  origination  and holding of  adjustable-rate  mortgage loans and loans with
shorter  terms to maturity  than  traditional  30-year,  fixed-rate  loans.  Our
strategy has been to increase the  percentage  of assets in our  portfolio  with
more frequent repricing or shorter  maturities.  In response to customer demand,
however,  we continue to originate for our loan portfolio  fixed-rate  mortgages
with terms not greater than 30 years. In recent periods,  we have also purchased
adjustable-rate mortgage-backed securities. At September 30, 2000, approximately
$25.4  million,  or  19.8% of the  total  loans  secured  by real  estate,  were
adjustable-rate  mortgage  loans.  On the same date, we also had $6.3 million in
adjustable-rate mortgage-backed securities.

     Our adjustable-rate mortgage loans and mortgage-backed securities adjust to
various indices. We monitor the mix of indices on our adjustable rate assets and
seek,  consistent  with  market  conditions,  to  achieve  a close  match in the
repricing characteristics of our assets and liabilities.

     To increase  the  interest  rate  sensitivity  of our assets,  we have also
maintained short and  intermediate-term  investment securities and other assets.
At  September  30,  2000,  we had $4.8  million  of  investment  securities  and
interest-bearing  deposits maturing or repricing within three years. Finally, we
have  undertaken  various  marketing  programs  from  time to time over the last
decade in order to extend the term of our deposit liabilities. We offer a longer
term  certificate of deposit  program in an attempt to reduce  deposit  outflows
which  were  being lost as a result of the  general  decline in market  rates of
interest.  This program offers two certificate products which have 4- and 5-year
terms.  At September  30, 2000, we had  approximately  $8.2 million in these two
certificates.

<PAGE>
     In the future,  in managing our  interest  rate  sensitivity,  we intend to
continue to stress the origination of adjustable-rate mortgage loans, subject to
market conditions,  the purchase of adjustable-rate  mortgage-backed  securities
and the  maintenance  of a relatively  high level of short-term  securities  and
other assets.

     As part of our effort to monitor and manage  interest rate risk, we use the
"net portfolio value" methodology  adopted by the Office of Thrift  Supervision.
This approach  calculates the  difference  between the present value of expected
cash flows from assets and  liabilities,  as well as cash flows from off balance
sheet contracts, arising from an assumed 200 basis point increase or decrease in
interest rates. Under Office of Thrift Supervision regulations, an institution's
"normal"  level of interest rate risk for this assumed  change in interest rates
is a decrease in the  institution's  net  portfolio  value not  exceeding  2% of
assets.

     Presented  below,  as of  September  30,  2000,  is an  analysis  of  First
Federal's  interest rate risk as measured by changes in net portfolio  value for
instantaneous  and sustained  parallel  shifts in the yield curve,  in 100 basis
point  increments,  up and down 200 basis  points and  compared to Board  policy
limits.  The table was  prepared  and  furnished  to us by the  Office of Thrift
Supervision.  Assumptions  used in  calculating  the  amounts in this table were
determined by the Office of Thrift Supervision (dollars in thousands):
<TABLE>
                                                                             Net Portfolio Value
           Change in                                                        At September 30, 2000
         interest rate                 Board Limit                ----------------------------------------
        (Basis Points)                  % Change                  $ Amount         $ Change       % Change
        --------------                  --------                  --------         --------       --------
<S>          <C>                          <C>                      <C>              <C>             <C>
            +200                          -40%                    $ 8,835          $ (5,796)         -40%
            +100                          -25                      11,833            (2,798)         -19
               0                          ---                      14,631               ---          ---
            -100                          -25                      16,658             2,027          +14
            -200                          -40                      17,806             3,175          +22
</TABLE>

     As illustrated in the table,  we have structured our assets and liabilities
to minimize  our  exposure to  interest  rate risk.  In the event of a 200 basis
point  change in  interest  rates,  we would  experience  a 22%  increase in net
portfolio  value in a declining rate  environment and a 40% decrease in a rising
rate environment. During periods of rising interest rates, the value of monetary
assets and liabilities generally decline. Conversely,  during periods of falling
interest rates, the value of monetary assets and liabilities generally increase.
However, the amount of change in value of specific assets and liabilities due to
changes in interest rates is not the same in a rising interest rate  environment
as in a falling interest rate environment  (i.e., as indicated above, the amount
of value  increase  under a specific  rate  decline  may not equal the amount of
value decrease under an identical upward rate movement).

     Certain  shortcomings  are inherent in the method of analysis  presented in
the foregoing  table.  For example,  although certain assets and liabilities may
have similar  maturities  or periods to  repricing,  they may react in different
degrees to changes in market interest rates. Also, the interest rates on certain
types of assets and  liabilities  may  fluctuate in advance of changes in market
interest  rates,  while  interest rates on other types may lag behind changes in
market rates.  Additionally,  certain assets,  such as adjustable-rate  mortgage
loans,  have features which  restrict  changes in interest rates on a short-term
basis  and over the life of the  asset.  Further,  in the  event of a change  in
interest  rates,  prepayment  and early  withdrawal  levels would likely deviate
significantly from those assumed in calculating the table.  Finally, the ability
of many borrowers to service their debt may decrease in the event of an interest
rate  increase.  As a result,  the actual effect of changing  interest rates may
differ from that presented in the foregoing table.

<PAGE>
Asset Quality

     The ratio of non-performing  assets to total assets is one indicator of our
exposure to credit  risk.  Our  non-performing  assets  consist of  non-accruing
loans,  accruing loans delinquent 90 days or more, troubled debt restructurings,
and  foreclosed  assets,  which have been acquired as a result of foreclosure or
deed-in-lieu of foreclosure.  At September 30, 2000,  non-performing assets were
approximately  $1,734,000,  which represents a decrease of $805,000, or 31.7% as
compared to September  30,  1999.  The ratio of  non-performing  assets to total
assets at September 30, 2000 was 1.16%  compared to 1.84% at September 30, 1999.
Included in  non-accruing  loans at September 30, 2000,  were four  construction
loans  totaling  $373,000  secured  by  one- to  four-family  real  estate,  one
construction  loan  totaling  $35,000  secured by  non-residential  real estate,
fourteen loans totaling $587,000 secured by one- to four-family real estate, one
loan  totaling  $50,000  secured by  non-residential  real  estate and  nineteen
consumer loans totaling $56,000.  All non-accruing  loans at September 30, 2000,
were located in our primary  market area. At September 30, 2000,  accruing loans
delinquent 90 days or more included  eight loans  totaling  $169,000  secured by
one- to  four-family  real  estate  and one loan  totaling  $18,000  secured  by
non-residential  real estate.  All of our accruing  loans  delinquent 90 days or
more were  secured by real  estate  located in our  primary  market.  All of the
non-performing  construction loans were originated at our loan production office
in  Lawrence,  Kansas.  At  September  30, 2000,  real estate  acquired  through
foreclosure  consisted of eleven single family residences located in our primary
market area.  The  properties  have a total  carrying  value of $423,000 and are
currently offered for sale.

              [OMITTED NON-PERFORMING ASSETS TO TOTAL ASSETS GRAPH
           1996-0.57%; 1997-1.25%; 1998-1.07%; 1999-1.84%; 2000-1.16%]


     We have taken into account our non-performing assets and the composition of
the loan portfolio in establishing our allowance for loan losses.  The allowance
for loan losses  totaled  $758,000 at September  30, 2000,  which  represented a
$5,000  increase from the  allowance for loan losses at September 30, 1999.  The
ratio of the  allowance  for loan losses as a percent of total  loans  decreased
from .67% at September 30, 1999 to .61% at September 30, 2000,  primarily due to
the increase in total loans  receivable at September 30, 2000. The allowance for
loan  losses as a percent  of  non-performing  loans  increased  from  30.99% at
September  30, 1999 to 57.86% at  September  30,  2000,  due to the  decrease in
non-performing loans at September 30, 2000. At September 30, 2000, the Company's
non-performing loans were comprised primarily of one- to four-family residential
loans.

     The  allowance  for loan losses is  determined  based upon an evaluation of
pertinent  factors  underlying  the types and quality of our loans.  We consider
such factors as the repayment  status of a loan,  the  estimated net  realizable
value of the underlying  collateral,  the borrower's  ability to repay the loan,
current and anticipated  economic  conditions  which might affect the borrower's
ability  to  repay  the  loan  and  our  past  statistical   history  concerning
charge-offs.

<PAGE>

Results of Operations

     Average Balances,  Interest Rates and Yields.  The following table presents
for the  periods  indicated  the total  dollar  amount of  interest  income from
average  interest-earning  assets and related  yields,  as well as the  interest
expense on average interest-bearing  liabilities,  expressed both in dollars and
rates. No tax equivalent adjustments were made. All average balances are monthly
average  balances.  The use of monthly  averages rather than daily averages does
not have a  significant  effect upon our results.  Non-accruing  loans have been
included in the table as loans carrying a zero yield.

<TABLE>

                                                                  Year Ended September 30,
                                  --------------------------------------------------------------------------------------------------
                                             2000                            1999                                1998
                                  --------------------------------- -----------------------------  ---------------------------------
                                    Average       Interest          Average     Interest           Average      Interest
                                    Outstanding   Earned/  Yield/   Outstanding Earned/  Yield/    Outstanding  Earned/   Yield/
                                    Balance       Paid     Rate     Balance     Paid     Rate      Balance      Paid      Rate
                                  -------------   -------- -------- ----------- -------- --------  -----------  --------  --------
                                                                    (Dollars in Thousands)
<S>                                <C>             <C>      <C>       <C>       <C>      <C>        <C>         <C>        <C>
Interest-earning assets:
  Loans receivable (1)              $120,198      $ 9,776   8.13%    $106,176   $ 8,551  8.05%     $ 85,966     $7,032     8.18%
  Mortgage-backed securities           9,709          646   6.65       13,188       779  5.90        20,596      1,354     6.57
  Investment securities                8,813          568   6.44        6,170       393  6.37         7,315        462     6.32
  Federal Home Loan Bank stock         1,758          134   7.64        1,808       125  6.94         1,443        110     7.60
  Federal funds sold                     325           17   5.29        4,050       199  4.91         1,679         90     5.37
  Other                                  848           45   5.26        1,025        54  5.28           435         27     6.23
                                    --------      -------            --------   -------            --------     ------
    Total interest-earning assets    141,651       11,186   7.90      132,417    10,101  7.63       117,434      9,075     7.72
                                    --------      -------            --------   -------            --------     ------


Interest-bearing liabilities:
  Demand and NOW deposits             32,490        1,333   4.10       30,524     1,162  3.81        26,079      1,083     4.15
  Savings deposits
    and certificates                  61,931        3,219   5.20       61,451     3,227  5.25        54,209      2,928     5.40
  Federal Home Loan Bank advances     34,975        2,010   5.75       29,217     1,600  5.48        26,492      1,545     5.83
                                    --------      -------            --------   -------            --------     ------
    Total interest-bearing
      liabilities                    129,396        6,562   5.07      121,192     5,989  4.94       106,780      5,556     5.20
                                    --------      -------            --------   -------            --------     ------
Net interest income                               $ 4,624                       $ 4,112                         $3,519
                                                  =======                       =======                         ======
Net interest rate spread                                    2.83%                        2.69%                             2.52%
                                                            ====                         ====                              ====
Net earning assets                  $12,255                          $ 11,225                      $10,654
                                    =======                          ========                      =======
Net yield on average
  interest-earning assets                                   3.26%                        3.11%                             2.99%
                                                            ====                         ====                              ====

Average interest-earning
  assets to average interest-
  bearing liabilities                             109.47%                        109.26%                        109.98%
                                                  ======                         ======                         ======
</TABLE>
-----------------------

(1)    Calculated net of deferred loan fees,  loan  doscounts,  loans in process
       and loss reserves.

<PAGE>

Rate/Volume Analysis of Net Interest Income

       The following  schedule presents the dollar amount of changes in interest
income and interest expense for major components of interest-earning  assets and
interest-bearing  liabilities.  For each category of interest-earning assets and
interest-bearing liabilities, information is provided on changes attributable to
(i) changes in volume (i.e.,  changes in volume multiplied by old rate) and (ii)
changes in rate (i.e.,  changes in rate multiplied by old volume).  For purposes
of this table,  changes  attributable  to both rate and volume,  which cannot be
segregated,  have been allocated proportionately to the change due to volume and
the change due to rate.

<TABLE>
                                                                   Year Ended September 30,
                                            ------------------------------------------------------------------------
                                                     2000 vs. 1999                        1999 vs. 1998
                                            ---------------------------------  -------------------------------------
                                                        Increase                             Increase
                                                       (Decrease)                           (Decrease)
                                                         Due to                               Due to
                                            ---------------------------------  -------------------------------------
                                                                     Total                                  Total
                                                                    Increase                               Increase
                                              Volume      Rate    (Decrease)     Volume       Rate       (Decrease)
                                             ---------  ------- -------------  ---------   ----------  -------------
                                                                     (Dollars in Thousands)
<S>                                           <C>         <C>         <C>        <C>         <C>             <C>
Interest-earning assets:
  Loans receivable                            $1,140      $ 85        $1,225     $1,629      $  (110)         $1,519
  Mortgage-backed securities                    (223)       90          (133)      (448)        (127)           (575)
  Investment securities                          171         4           175        (73)           4             (69)
  Federal Home Loan Bank stock                    (4)       13             9         25          (10)             15
  Federal funds sold                            (196)       14          (182)       117           (8)            109
  Other                                           (9)        0            (9)        32           (5)             27
                                              ------      ----        ------     ------      -------          ------
   Total interest-earning assets                 879       206         1,085      1,282         (256)          1,026
                                              ------      ----        ------     ------      -------          ------

Interest-bearing liabilities:
  Demand and NOW deposits                         78        93           171        173          (94)             79
  Savings deposits and certificates               24       (32)           (8)       382          (83)            299
  Federal Home Loan Bank advances                328        82           410        152          (97)             55
                                              ------      ----        ------     ------      -------          ------
    Total interest-bearing liabilities        $  430      $143           573     $  707      $  (274)            433
                                              ======      ====        ------     ======      =======          ------
 Net interest income                                                  $  512                                  $  593
                                                                      ======                                  ======
</TABLE>

     The  following  table  sets  forth  the  weighted  average  yields  on  our
interest-earning assets, the weighted average interest rates on interest-bearing
liabilities and the interest rate spread between the weighted average yields and
rates at the dates indicated. Non-accruing loans have been included in the table
as carrying a zero yield.
<TABLE>
                                                                                     At September 30,
                                                                         -------------------------------
                                                                         ---------  -------   ----------
                                                                           2000       1999       1998
                                                                         ---------  -------   ----------
<S>                                                                       <C>         <C>        <C>
Weighted average yield on:
  Loans receivable                                                        8.00%       7.68%      7.80%
  Mortgage-backed securities                                              7.08        6.14       6.34
  Investment securities                                                   6.62        6.48       6.38
  Federal funds sold                                                      6.38        5.04       5.36
  Other interest-earning assets                                           ----        4.82       5.51
  Combined weighted average yield on interest-earning assets              7.83        7.45       7.48

Weighted average rate paid on:
  Savings deposits and certificates                                       5.35        5.12       5.44
  Demand and NOW deposits                                                 4.05        3.86       4.04
  Federal Home Loan Bank advances                                         6.12        5.58       5.74
  Combined weighted average rate paid on interest-bearing liabilities     5.24        4.87       5.19
Spread                                                                    2.59        2.58       2.29
</TABLE>

<PAGE>

FINANCIAL CONDITION

     Total assets  increased  $11.0  million,  or 8.0%,  from $138.1  million at
September  30, 1999 to $149.1  million at  September  30,  2000.  This  increase
consisted primarily of increases in net loans receivable of $12.2 million,  cash
and cash  equivalents  of $500,000,  Federal  Home Bank stock of $500,000,  real
estate  acquired  through  foreclosure  of $300,000,  premises and  equipment of
$100,000 and accrued interest receivable of $100,000. These increases in assets,
along with  reductions  in savings  deposits  of $1.4  million,  were  funded by
increases in advances  from the Federal  Home Loan Bank of Topeka of $11.6,  and
the redeployment of funds received from  mortgage-backed  securities maturing of
$2.2 million and investment securities maturing of $500,000.

                           [OMITTED TOTAL ASSETS GRAPH
                                 (in thousands)
   1996-$108,539; 1997-$112,523; 1998-$124,337; 1999-$138,131; 2000-$149,130]

     Total loans  receivable  increased  $12.2  million  from $112.9  million at
September  30, 1999, to $125.1  million at September 30, 2000.  The increase was
primarily due to construction loan originations at our loan production office in
Lawrence,  Kansas.  These construction loans generally have terms of nine months
or less and  interest  rates tied to the prime rate plus a margin.  Construction
loans reduce  interest rate risk and improve  earnings due to their shorter term
and higher rate when compared to permanent one- to four-family  loans.  However,
construction  loans also increase  credit quality risk. To a lesser extent,  the
increase was also due to originations in our market area consisting primarily of
15- and 30-year fixed-rate loans, mortgage loans with a fixed rate for the first
five years of the loan term that  automatically  convert to one-year  adjustable
rate  loans  during the sixth  year of the loan term and  mortgage  loans with a
fixed rate for the first three years of the loan term that automatically convert
to one-year adjustable rate loans during the fourth year of the loan term.

                              [OMITTED LOANS GRAPH
      One-to Four-family-66.90%; Multi-family-0.25%; Non-residential-8.15%;
          Construction-20.72%; Home Equity-0.68%; Other Consumer-3.30%]

     Total  deposits  decreased $1.4 million from $95.5 million at September 30,
1999,  to $94.1  million at September  30,  2000.  The outflow of deposits was a
result of competition from local financial  institutions  which are aggressively
seeking public unit deposits by offering  relatively  high interest  rates;  and
competition from other investment  products that offer the potential of a higher
rate of return, but also represent a higher risk to the investor.

     Total  borrowed  funds  increased  $11.6  million  from  $27.5  million  at
September 30, 1999 to $39.1 million at September 30, 2000. The increase was from
advances  obtained  from the  Federal  Home Loan Bank of  Topeka.  The  advances
allowed  us to invest  the funds  borrowed  in loans  receivable  at a  positive
spread.

     Total  stockholders'  equity  increased  $657,000  from  $13.1  million  at
September  30, 1999 to $13.8  million at September  30,  2000.  The increase was
primarily  due to net earnings from  operations  of $1.4  million,  repayment of
employee stock  ownership debt of $93,000,  fair value  adjustment of $68,000 on
ESOP shares committed for release and common stock options exercised of $49,000.
These  increases  were  partially  offset by the use of $532,000  to  repurchase
53,187 shares of common stock, dividends of $390,000 paid to stockholders, and a
decrease in the unrealized gains on securities available for sale of $7,000.

              [OMITTED STOCKHOLDERS' EQUITY to TOTAL ASSETS GRAPH
         1996-11.98%; 1997-10.25%; 1998-9.73%; 1999-9.49%; 2000-9.23%]

<PAGE>
   Comparison of Fiscal Years Ended September 30, 2000 and September 30, 1999

       General.  Net earnings for the fiscal year ended  September 30, 2000 were
$1,376,000  as compared to  $1,143,000  for the fiscal year ended  September 30,
1999,  an increase of  $233,000,  or 20.4%.  The  increase in net  earnings  was
primarily due to increases in net interest  income of $512,000 and  non-interest
income of  $62,000.  These  increases  were  partially  offset by  increases  in
non-interest  expense of $210,000,  income tax expense of $98,000 and  provision
for loan losses of $33,000.

                          [OMITTED NET EARNINGS GRAPH
                                 (in thousands)
           1996-$815; 1997-$712; 1998-$901; 1999-$1,143; 2000-$1,376]

     Net Interest Income. Net interest income increased $512,000,  or 12.5%, for
the fiscal  year ended  September  30, 2000 as compared to the fiscal year ended
September  30, 1999.  This increase was due primarily to an increase in interest
income of $1.1 million,  or 10.7%;  offset  partially by an increase in interest
expense of $573,000,  or 9.6%. Interest income increased primarily due to a $9.2
million  increase in the average  balance of  interest-earning  assets and, to a
lesser   extent,   a  27  basis  point   increase   in  the  average   yield  on
interest-earning  assets.  Interest expense  increased  primarily due to an $8.2
million increase in the average balance of interest-bearing  liabilities and, to
a  lesser  extent,  a 13  basis  point  increase  in the  average  rate  paid on
interest-bearing  liabilities.  The  average  yield on  interest-earning  assets
increased  primarily due to construction  loan originations at the Lawrence loan
production office and an increase in market interest rates.  These  construction
loans  generally  have terms of nine  months or less and carry  higher  rates of
interest than loans originated for the purchase of single-family residences. The
average  yield on  interest-bearing  liabilities  increased  primarily due to an
increase in market interest rates.

     Interest  Income.  Interest  income for the fiscal year ended September 30,
2000,  increased to $11.2  million from $10.1  million for the fiscal year ended
September  30,  1999.  This  increase  was caused  primarily  by a $9.2  million
increase in the average outstanding amount of interest-earning assets during the
fiscal  year ended  September  30,  2000,  as  compared to the fiscal year ended
September  30,  1999 due to assets  acquired  in The  Neodesha  Savings and Loan
merger  conversion in January 1999. To a lesser extent,  the increase was due to
an increase in the average yield on  interest-earning  assets. The average yield
on  interest-earning  assets increased by 27 basis points to 7.90% during fiscal
2000,  from 7.63% during fiscal 1999.  This  increase was caused  primarily by a
change in the mix of  interest-earning  assets to a higher  percentage  of loans
receivable  due  to an  increase  in  the  construction  loan  portfolio.  These
construction loans carry a higher rate of interest than other loans,  therefore,
the average yield of loans  receivable  increased from 8.05% during fiscal 1999,
to 8.13% during  fiscal 2000.  To a lesser  extent,  the increase in the average
yield on  interest-earning  assets  was due to an  increase  in market  interest
rates.

     Interest Expense.  Interest expense for the fiscal year ended September 30,
2000,  increased by $573,000 to $6.6 million as compared to $6.0 million for the
fiscal year ended September 30, 1999. This increase in interest  expense was due
primarily  to an $8.2  million  increase  in the average  outstanding  amount of
interest-bearing  liabilities during the fiscal year ended September 30, 2000 as
compared to the fiscal year ended  September 30, 1999. To a lesser  extent,  the
increase  was  due  to an  increase  in  the  average  interest  rates  paid  on
interest-bearing   liabilities.  The  average  rates  paid  on  interest-bearing
liabilities  increased  by 13 basis  points.  The  increase in  interest-bearing
liabilities  was  primarily due to a $5.8 million  increase in average  advances
obtained  from the Federal Home Loan Bank of Topeka and, to a lesser  extent,  a
$2.4  million  increase  in the  average  outstanding  balance of  deposits  due
primarily  to  savings   deposits   acquired  in  the  Neodesha  Savings  merger
conversion.

     Provision  for Loan  Losses.  The  provision  for loan losses  represents a
charge to  earnings  to  maintain  the  allowance  for loan losses at a level we
believe  is  adequate  to absorb  potential  losses in the loan  portfolio.  The
provision  for loan  losses  amounted  to  $99,000  for the  fiscal  year  ended
September  30, 2000 as  compared  to $66,000  for the same period in 1999.  This
increase  in  provision  for loan  losses was in  recognition  of the  increased
balance of construction loans in our loan portfolio.  We believe we use the best
information  available in providing for probable loan losses and we believe that
the  allowance is adequate at  September  30, 2000.  Future  adjustments  to the
allowance  could be necessary,  however,  and net earnings  could be affected if
circumstances   and/or  economic   conditions  differ   substantially  from  the
assumptions used in making the initial determinations.

<PAGE>

     Non-interest  Income.  Non-interest  income  increased  $62,000 to $451,000
during the fiscal year ended  September 30, 2000 as compared to $389,000 for the
fiscal  year ended  September  30,  1999.  The  increase  was  primarily  due to
increased  checking and deposit account fees as a result of accounts acquired in
the Neodesha Savings merger conversion. To a lesser extent, the increase was due
to a $24,000 increase in amortization  related to negative  goodwill acquired in
the Neodesha Savings merger conversion and increased late charges and other fees
associated with mortgage loans.

     Non-interest Expense.  Total non-interest expense increased to $2.8 million
for the fiscal year ended  September  30, 2000 from $2.6  million for the fiscal
year ended  September 30, 1999, an increase of $210,000,  or 8.1%.  The increase
was  primarily  due to  increases  in  compensation  and  employee  benefits  of
$198,000,  occupancy  and  equipment of $38,000 and other  operating  expense of
$17,000.  These increases were partially offset by a decrease in data processing
fees of $32,000. The increases were primarily due to the acquisition of Neodesha
Savings in January 1999, resulting in additional staff, occupancy and equipment,
stationery,  printing and office  supplies  expense.  The current year  includes
twelve  months of Neodesha  operations  compared  to nine  months in 1999.  To a
lesser extent,  the increase in  compensation  expense was the result of normal,
annual cost of living  increases in salaries and bonuses,  offset partially by a
decrease in compensation expense associated with the ESOP due to the decrease in
our stock price.

     Income Tax  Expense.  Income tax expense was  $787,000  for the fiscal year
ended  September  30,  2000  compared  to  $688,000  for the  fiscal  year ended
September 30, 1999,  an increase of $99,000.  This increase was primarily due to
an increase in pre-tax  earnings  during the 2000 period as compared to the 1999
period.  Our effective tax rates were 36.4% and 37.6% for the fiscal years ended
September 30, 2000 and September 30, 1999, respectively.

   Comparison of Fiscal Years Ended September 30, 1999 and September 30, 1998

     General.  Net  earnings for the fiscal year ended  September  30, 1999 were
$1,143,000 as compared to $901,000 for the fiscal year ended September 30, 1998,
an increase of $242,000,  or 26.8%.  The increase in net earnings was  primarily
due to increases in net interest income of $593,000 and  non-interest  income of
$197,000.  These  increases were partially  offset by increases in  non-interest
expense of $443,000, provision for loan losses of $66,000 and income tax expense
of $39,000.

     Net Interest Income. Net interest income increased $593,000,  or 16.9%, for
the fiscal  year ended  September  30, 1999 as compared to the fiscal year ended
September  30, 1998.  This increase was due primarily to an increase in interest
income of $1.0 million,  or 11.3%;  offset  partially by an increase in interest
expense of $433,000, or 7.8%. Interest income increased primarily due to a $15.0
million  increase  in the average  balance of  interest-earning  assets,  offset
partially by a 9 basis point  decrease in the average yield on  interest-earning
assets.  Interest expense increased primarily due to a $14.4 million increase in
the average balance of  interest-bearing  liabilities,  offset partially by a 26
basis point decrease in the average rate paid on  interest-bearing  liabilities.
The average balance of interest-earning assets and interest-bearing  liabilities
increased primarily due to The Neodesha Savings and Loan merger conversion.  The
average  rate  earned on  interest-earning  assets and paid on  interest-bearing
liabilities  decreased primarily due to a decrease in market interest rates. The
variance  in the  decrease  was due  primarily  to  interest-earning  assets and
interest-bearing  liabilities  acquired in The Neodesha  Savings and Loan merger
conversion   having  a  greater   spread   than   interest-earning   assets  and
interest-bearing liabilities on First Federal's balance sheet.

<PAGE>


     Interest  Income.  Interest  income for the fiscal year ended September 30,
1999,  increased  to $10.1  million  from $9.1 million for the fiscal year ended
September  30,  1998.  This  increase was caused  primarily  by a $15.0  million
increase in the average outstanding amount of interest-earning assets during the
fiscal  year ended  September  30,  1999,  as  compared to the fiscal year ended
September  30,  1998 due to assets  acquired  in The  Neodesha  Savings and Loan
merger conversion.  To a lesser extent, the increase in interest-earning  assets
was due to an increase in the average balance of loans receivable from increased
construction loan originations at our Lawrence,  Kansas loan production  office.
This  increase  was  partially  offset by a  decrease  in the  average  yield on
interest-earning  assets. The average yield on interest-earning assets decreased
9 basis points to 7.63% for the fiscal year ended September 30, 1999, from 7.72%
for the fiscal year ended September 30, 1998. This decrease was caused primarily
by the general  decline in interest  rates  resulting in a reduction in yield on
our loan  portfolio  from 8.18% to 8.05%.  The average rate on  interest-earning
assets  went down less than it would have if there had been no  increase  in the
average  balance  of loans,  since  they have a higher  rate  earned  than other
assets.  Therefore,  the change in mix of interest-earning assets to more higher
earning assets, reduced the decrease due to market rates of interest going down.
To a lesser extent,  the decrease in yield was due to a decrease in yield on our
mortgage-backed  securities  portfolio  from 6.57% to 5.90% for the fiscal  year
ended  September  30, 1999,  as compared to the same period in fiscal 1998.  The
decreased  yield was  caused by  accelerated  amortization  of  premiums  on the
mortgage-backed securities due to an increase in prepayment speeds.

     Interest Expense.  Interest expense for the fiscal year ended September 30,
1999,  increased by $433,000 to $6.0 million as compared to $5.6 million for the
fiscal year ended September 30, 1998. This increase in interest  expense was due
primarily  to a $14.4  million  increase  in the average  outstanding  amount of
interest-bearing  liabilities during the fiscal year ended September 30, 1999 as
compared  to the  fiscal  year ended  September  30,  1998.  This  increase  was
partially  offset by a 26 basis point decrease in average interest rates paid on
interest-bearing  liabilities,  caused by decreases in market interest rates and
the addition of deposits from The Neodesha Savings and Loan merger conversion at
a lower average  interest rate than First  Federal's  deposits.  The increase in
interest-bearing  liabilities was primarily due to an $11.7 million  increase in
the average  outstanding  balance of deposits due primarily to savings  deposits
acquired in The  Neodesha  Savings and Loan merger  conversion  and, to a lesser
extent, an increase in average advances obtained from the Federal Home Loan Bank
of Topeka.

     Provision  for Loan  Losses.  The  provision  for loan losses  represents a
charge to  earnings  to  maintain  the  allowance  for loan losses at a level we
believe  is  adequate  to absorb  potential  losses in the loan  portfolio.  The
provision  for loan  losses  amounted  to  $66,000  for the  fiscal  year  ended
September 30, 1999 as compared to no provision for the same period in 1998. This
increase  in  provision  for loan  losses was in  recognition  of the  increased
balance  of  construction  loans  in our  loan  portfolio  and the  increase  in
non-performing  loans. It is also reflective of the loan loss allowance obtained
in the merger  conversion  with Neodesha  Savings and Loan.  Although we believe
that we use the best information available in providing for possible loan losses
and we believe  that the  allowance is adequate at  September  30, 1999,  future
adjustments  to the  allowance  could be  necessary  and net  earnings  could be
affected if circumstances  and/or economic conditions differ  substantially from
the assumptions used in making the initial determinations.

     Non-interest  Income.  Non-interest  income increased  $197,000 to $389,000
during the fiscal year ended  September 30, 1999 as compared to $192,000 for the
fiscal  year ended  September  30,  1998.  The  increase  was  primarily  due to
increased  checking and deposit account fees as a result of accounts acquired in
The  Neodesha  Savings  and Loan  merger  conversion.  To a lesser  extent,  the
increase  was due to  amortization  of  $71,000  related  to  negative  goodwill
acquired in The Neodesha  Savings and Loan merger  conversion and increased late
charges and other fees associated with mortgage loans.

<PAGE>

     Non-interest Expense.  Total non-interest expense increased to $2.6 million
for the fiscal year ended  September  30, 1999 from $2.2  million for the fiscal
year ended September 30, 1998, an increase of $443,000,  or 20.5%.  The increase
was  primarily  due to  increases  in  compensation  and  employee  benefits  of
$186,000,  other  expense of  $103,000,  data  processing  fees of $68,000,  and
occupancy and equipment of $52,000.  These  increases  were primarily due to the
merger conversion with Neodesha Savings and Loan, resulting in additional staff,
occupancy and equipment,  stationery, printing and office supplies expense. To a
lesser extent,  the increase in  compensation  expense was the result of normal,
annual cost of living  increases in salaries and bonuses,  offset partially by a
decrease in compensation expense associated with the ESOP due to the decrease in
our stock price.

     Income Tax  Expense.  Income tax expense was  $688,000  for the fiscal year
ended  September  30,  1999  compared  to  $649,000  for the  fiscal  year ended
September 30, 1998,  an increase of $39,000.  This increase was primarily due to
an increase in pre-tax  earnings  during the 1999 period as compared to the 1998
period.  Our effective tax rates were 37.6% and 41.9% for the fiscal years ended
September 30, 1999 and September 30, 1998, respectively. Rates exceeded expected
rates for the September 30, 1998 period due  primarily to  compensation  expense
associated  with the ESOP which is not deductible  for income tax purposes.  The
non-deductible ESOP compensation  expense was partially offset for the September
30, 1999  period by  negative  goodwill  amortization  which is not  included in
income for income tax calculation  purposes,  resulting in a lower effective tax
rate.

Liquidity and Capital Resources

     The Office of Thrift Supervision requires First Federal to maintain minimum
levels of liquid  assets.  At September 30, 2000,  Office of Thrift  Supervision
regulations  required  First  Federal to  maintain an average  daily  balance of
investments  in an amount equal to at least 4.0% of the sum of its average daily
balance of net withdrawable  deposit accounts and borrowings payable in one year
or less.  These  requirements  may be changed from time to time by the Office of
Thrift Supervision to reflect changing economic conditions. Such investments are
intended to provide a source of relatively liquid funds upon which First Federal
may rely if necessary to fund deposit  withdrawals and other short-term  funding
needs. First Federal's  regulatory liquidity at September 30, 2000 was 7.89%, as
compared  to 9.66% at  September  30,  1999.  This  decrease  in  liquidity  was
primarily  due to liquid  investments  acquired in the Neodesha  Savings  merger
conversion being invested in higher yielding  mortgage loan  originations  which
reduced our  liquidity  ratio to a more normal  level.  First  Federal  normally
attempts to maintain liquidity between 7% and 9%.

     Our  primary  sources  of funds  are loan  and  mortgage-backed  securities
repayments,  borrowings  from the Federal Home Loan Bank of Topeka and deposits.
We use our liquid  resources  principally to meet ongoing  commitments,  to fund
maturing  certificates of deposit and deposit  withdrawals,  to invest,  to fund
existing  and  future  loan  commitments,  to  maintain  liquidity,  and to meet
operating  expenses.  We  believe  that our  existing  sources  of funds will be
adequate to meet our foreseeable liquidity needs.

<PAGE>
     Our primary investing activity is the origination of mortgage loans and the
purchase  of  mortgage-backed  and other  securities.  At  September  30,  2000,
mortgage  loans  and  mortgage-backed  securities  accounted  for 89.8% of total
assets. We have been able to generate sufficient cash through the retail deposit
market, our traditional  funding source, and through short-term  borrowings,  to
provide the cash  utilized in  investing  activities.  A line of credit has also
been in place with the  Federal  Home Loan Bank of Topeka  since  1995.  Line of
credit draws, as with all other credit transactions,  are subject to the maximum
amount of credit  available  under the Federal Home Loan Bank of Topeka's credit
policy.  The line of credit is scheduled to mature on February 2, 2001, and will
be renewed for another one-year term at that time. The line of credit is subject
to various  conditions,  including  the  pledge of  acceptable  collateral.  The
primary  purpose  of the  line of  credit  is to serve  as a  back-up  liquidity
facility,  however,  we also  utilize the line of credit to purchase  investment
securities and fund other commitments.

     Liquidity  management  is  both a daily  and  long-term  responsibility  of
management. We adjust our investments in liquid assets based upon our assessment
of (i) expected loan demand, (ii) expected deposit flows, (iii) yields available
on  interest-bearing  deposits,  and (iv) the objectives of its  asset/liability
management  program.  Excess liquidity is invested generally in interest-bearing
overnight deposits and other short-term government and agency obligations. If we
require  additional  funds,  beyond our internal  ability to  generate,  we have
additional borrowing capacity with the Federal Home Loan Bank of Topeka.

     We anticipate that we will have sufficient  funds available to meet current
loan  commitments.  At September 30, 2000,  we had  outstanding  commitments  to
extend  credit  which  amounted  to  $2.2  million,   including  commitments  on
construction  loans.  We are not aware of any  trends,  events or  uncertainties
which will have or that are reasonably  likely to have a material  effect on our
liquidity, capital resources or operations.

     Certificates  of  deposit  scheduled  to  mature  in one  year  or  less at
September  30, 2000  totaled  approximately  $34.6  million.  We believe  that a
significant portion of these deposits will remain with First Federal.  There can
be no assurance, however, that we can retain all of these deposits. At September
30, 2000,  we had $39.1  million in advances  from the Federal Home Loan Bank of
Topeka with $11.1 million maturing in one year or less.

     First Federal has minimum capital  standards  which  generally  require the
maintenance of regulatory  capital  sufficient to meet each of three tests:  the
tangible capital requirement,  the core capital requirement,  and the risk-based
capital  requirement.  The  tangible  capital  requirement  provides for minimum
tangible capital (defined as retained earnings less all intangible assets) equal
to 1.5% of adjusted  total  assets.  The core capital  requirement  provides for
minimum core capital (tangible capital plus supervisory  goodwill) equal to 3.0%
of assets.  The risk-based capital  requirement  provides for the maintenance of
core  capital  plus  general loss  allowances  (less a specified  percentage  of
certain equity investments) equal to 8.0% of risk-weighted  assets. In computing
risk-weighted  assets,  we multiply  the book value of each asset on our balance
sheet by a defined risk-weighting factor (e.g., one- to four-family  residential
loans carry a  risk-weighted  factor of 50%).  We have  reviewed  these  capital
standards  and  determined  that we are in  compliance  with  each of the  three
requirements.  As of September 30, 2000, our tangible capital, core capital, and
risk-based capital of $12.5 million,  $12.5 million,  and $13.3 million exceeded
the applicable  minimum  requirements by $10.3 million,  $8.0 million,  and $7.4
million, respectively.

<PAGE>

The  following  table  sets  forth  our  compliance  with such  requirements  at
September 30, 2000.
<TABLE>

                                         Office of Thrift                      First Federal's capital level
                                     Supervision requirement                        at September 30, 2000
                                     -----------------------             ------------------------------------------
                                       % of                               % of                              Amount
Capital standard                      Assets           Amount             Assets           Amount         of Excess
                                      ------           ------             ------          -------         ---------
                                                                    (Dollars in Thousands)
<S>                                    <C>             <C>                  <C>            <C>               <C>

Tangible capital                       1.50%          $2,238               8.39%          $12,522           $10,284
Core capital (1)                       3.00            4,476               8.39            12,522             8,046
Risk-based capital                     8.00            5,846              18.17            13,280             7,434
</TABLE>

-----------------------
(1) Based on current core capital requirement of 3%.

     See Note L of Notes to Consolidated Financial Statements for additional
information.

     We have  reviewed  our  regulatory  restrictions  relating  to loans to one
borrower,  qualification as a qualified thrift lender, and other restrictions on
lending and investment,  and have determined that, based on our capital position
and lending and investment policies,  these restrictions have not had a material
impact on our operations.

Impact of Inflation and Changing Prices

     The  financial  statements  and  related  data  presented  herein have been
prepared in accordance  with generally  accepted  accounting  principles,  which
require the measurement of financial position and results of operations in terms
of historical  dollars without  considering  changes in the relative  purchasing
power of money over time because of inflation.  As a result, interest rates have
a more significant  impact on our performance than the effects of general levels
of inflation. Interest rates do not necessarily move in the same direction or in
the same magnitude as the prices of goods and services.

Effect of New Accounting Standards

     In June 1998, the Financial  Accounting Standards Board issued Statement of
Financial Accounting  Standards No. 133, "Accounting for Derivative  Instruments
and Hedging  Activities."  Statement of Financial  Accounting  Standards No. 133
requires  companies  to record  derivatives  on the  balance  sheet as assets or
liabilities,  measured at fair value.  Gains or losses resulting from changes in
the values of those  derivatives  would be accounted for depending on the use of
the derivative and whether it qualifies for hedge accounting.  The key criterion
for hedge accounting is that the hedging  relationship  must be highly effective
in  achieving  offsetting  changes in fair  value or cash  flows.  Statement  of
Financial  Accounting  Standards  No.  133 does not allow  hedging of a security
which is classified as held to maturity. Accordingly, upon adoption of Statement
of Financial Accounting Standards No. 133, companies may reclassify any security
from held to maturity to available for sale if they wish to be able to hedge the
security in the future.  This  Statement,  as amended by  Statement of Financial
Accounting Standards No. 137, is effective for fiscal years beginning after June
15, 2000 with early adoption encouraged for any fiscal quarter beginning July 1,
1998 or later, with no retroactive application. The Company adopted Statement of
Financial  Accounting  Standards  No. 133 as of October  1, 2000,  as  required,
without material effect on financial condition or results of operations.

<PAGE>
                        [GRANT THORNTON LLP LETTERHEAD]


               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

Board of Directors
First Independence Corporation and Subsidiary

We  have  audited  the  accompanying   consolidated   balance  sheets  of  First
Independence  Corporation  and Subsidiary as of September 30, 2000 and 1999, and
the  related  consolidated   statements  of  earnings,   comprehensive   income,
stockholders' equity and cash flows for the years then ended. These consolidated
financial statements are the responsibility of the Corporation's management. Our
responsibility  is  to  express  an  opinion  on  these  consolidated  financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the consolidated financial position of First Independence
Corporation  and  Subsidiary  as  of  September  30,  2000  and  1999,  and  the
consolidated  results of their operations and their  consolidated cash flows for
the years then ended in conformity with accounting principles generally accepted
in the United States of America.



/s/ Grant Thornton LLP

Wichita, Kansas
October 20, 2000


<PAGE>


                  First Independence Corporation and Subsidiary

                           CONSOLIDATED BALANCE SHEETS

                                  September 30,

<TABLE>
                                                           ASSETS

                                                                                        2000                1999
                                                                                        ----                ----
<S>                                                                               <C>                  <C>
Cash and due from banks                                                           $    449,960          $  1,064,794
Federal funds sold                                                                     700,000                   ---
Other interest-bearing deposits                                                        771,082               375,201
                                                                                     ---------            ----------
      Cash and cash equivalents                                                      1,921,042             1,439,995




Investment securities held to maturity (estimated
   fair value of $6,416,450 in 2000 and $6,957,733
   in 1999)                                                                          6,496,147             7,005,279
Investment securities available for sale                                             1,992,200             1,999,800
Mortgage-backed securities held to maturity
   (estimated fair value of $8,671,665 in 2000
   and $10,852,983 in 1999)                                                          8,746,988            10,912,279
Loans receivable                                                                   125,118,716           112,893,406
Premises and equipment                                                               1,449,403             1,322,128
Federal Home Loan Bank stock, at cost                                                1,955,000             1,441,600
Accrued interest receivable                                                            959,973               887,465
Real estate acquired through foreclosure                                               423,360               109,579
Other                                                                                   67,537               119,809
                                                                                  ------------          ------------
      Total assets                                                                $149,130,366          $138,131,340
                                                                                  ============          ============
</TABLE>


The accompanying notes are an integral part of these statements.



<PAGE>

<TABLE>
                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                                                        2000                1999
                                                                                        ----                ----
<S>                                                                                    <C>                 <C>
Deposits                                                                           $ 94,127,537        $ 95,452,864
Advances from borrowers for taxes and
   insurance                                                                            887,080             825,330
Deferred income taxes                                                                    10,773                  -
Advances from Federal Home Loan Bank                                                 39,100,000          27,500,000
Accrued expenses and other                                                            1,240,631           1,246,538
                                                                                   ------------        ------------
               Total liabilities                                                    135,366,021         125,024,732

Stockholders' equity
   Preferred stock, $.01 par value, 500,000 shares
      authorized; none issued                                                                -                   -
   Common stock, $.01 par value, 2,500,000 shares
      authorized; 1,649,288 shares issued                                                16,493              16,493
   Additional paid-in capital                                                         8,190,682           8,132,391
   Retained earnings - substantially restricted                                      11,863,034          10,876,339
   Accumulated other comprehensive income (loss),
      net of related taxes                                                               (4,692)              2,316
   Required contributions for shares acquired by
      Employee Stock Ownership Plan (ESOP)                                             (106,632)           (199,680)
   Treasury stock, 630,927 shares in 2000 and
      587,458 shares in 1999 - at cost                                               (6,194,540)         (5,721,251)
                                                                                   ------------        ------------
               Total stockholders' equity                                            13,764,345          13,106,608
                                                                                   ------------        ------------
               Total liabilities and stockholders' equity                          $149,130,366        $138,131,340
                                                                                   ============        ============
</TABLE>



<PAGE>


                  First Independence Corporation and Subsidiary

                       CONSOLIDATED STATEMENTS OF EARNINGS

                            Year ended September 30,
<TABLE>

                                                                                          2000             1999
                                                                                          ----             ----
<S>                                                                                    <C>               <C>
Interest income
   Loans                                                                              $ 9,776,440       $ 8,550,856
   Mortgage-backed securities                                                             645,802           778,763
   Investment securities                                                                  567,588           393,202
   Interest-bearing deposits and other                                                    196,139           378,469
                                                                                      -----------       -----------

      Total interest income                                                            11,185,969        10,101,290

Interest expense
   Deposits                                                                             4,551,694         4,389,547
   Borrowed funds                                                                       2,009,857         1,599,633
                                                                                      -----------       -----------

      Total interest expense                                                            6,561,551         5,989,180
                                                                                      -----------       -----------

Net interest income                                                                     4,624,418         4,112,110
Provision for loan losses                                                                  99,000            66,000
                                                                                      -----------       -----------

Net interest income after provision for loan losses                                     4,525,418         4,046,110

Noninterest income
   Service charges                                                                        228,087           202,057
   Other                                                                                  223,080           186,885
                                                                                      -----------       -----------

                                                                                          451,167           388,942

Noninterest expense
   Employee compensation and benefits                                                   1,619,315         1,421,077
   Occupancy and equipment                                                                324,598           286,758
   Data processing fees                                                                   232,943           264,800
   Foreclosed assets, net                                                                  22,676            34,725
   Other operating                                                                        614,051           596,297
                                                                                      -----------       -----------

                                                                                        2,813,583         2,603,657
                                                                                      -----------       -----------
Earnings before income taxes                                                            2,163,002         1,831,395
Income tax expense                                                                        786,639           688,307
                                                                                      -----------       -----------

               NET EARNINGS                                                           $ 1,376,363       $ 1,143,088
                                                                                      ===========       ===========

Earnings per share
   Basic                                                                                  $1.36            $1.13
   Diluted                                                                                $1.30            $1.07
</TABLE>

The accompanying notes are an integral part of these statements.


<PAGE>


                  First Independence Corporation and Subsidiary

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                            Year ended September 30,
<TABLE>

                                                                                           2000            1999
                                                                                           ----            ----
<S>                                                                                      <C>             <C>
Net earnings                                                                            $1,376,363      $1,143,088

Other comprehensive loss, net of tax
   Unrealized losses on securities available
      for sale arising during the period, net
      of tax benefit of $4,295 in 2000 and
      $30,757 in 1999                                                                       (7,008)        (50,181)
                                                                                        ----------      ----------
Comprehensive income                                                                    $1,369,355      $1,092,907
                                                                                        ==========      ==========
</TABLE>


The accompanying notes are an integral part of these statements.



<PAGE>




                  First Independence Corporation and Subsidiary

                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

                     Years ended September 30, 2000 and 1999


<TABLE>
                                                                                               Required
                                                                              Accumulated      contri-
                                                                                 other         butions
                                                     Additional               comprehensive    for shares
                                            Common   paid-in      Retained    income (loss),   acquired      Treasury
                                            stock    capital      earnings        net          by ESOP       stock        Total
                                            ------   -------      --------    -------------    ----------    ---------    -----

<S>                                          <C>     <C>          <C>           <C>            <C>          <C>           <C>
Balance at October 1, 1998                  $14,984  $7,239,207  $10,077,091   $52,497        $(145,475)  $(5,139,263   $12,099,041
Net earnings for the year                       ---         ---    1,143,088       ---              ---           ---     1,143,088
Cash dividends of $.3375 per share              ---         ---     (343,840)      ---              ---           ---      (343,840)
Issuance of 150,896 shares of common stock    1,509     817,968          ---       ---         (142,176)          ---       677,301
Common stock options exercised                  ---      (3,987)         ---       ---              ---        46,831        42,844
Depreciation of securities available
 for sale                                       ---         ---          ---   (50,181)             ---           ---       (50,181)
ESOP loan repayments                            ---         ---          ---       ---           87,971           ---        87,971
Fair value adjustment on ESOP
 shares committed for release                   ---      79,203          ---       ---              ---           ---        79,203
Purchase of 55,885 shares of
 treasury stock                                 ---         ---          ---       ---              ---      (628,819)     (628,819)
                                            -------  ----------  -----------   -------        ---------   -----------   -----------

Balance at September 30, 1999                16,493   8,132,391   10,876,339     2,316         (199,680)   (5,721,251)   13,106,608
Net earnings for the year                       ---         ---    1,376,363       ---              ---           ---     1,376,363
Cash dividends of $.3875 per share              ---         ---     (389,668)      ---              ---           ---      (389,668)
Common stock options exercised                  ---      (9,653)         ---       ---              ---        58,581        48,928
Depreciation of securities available
 for sale                                       ---         ---          ---    (7,008)             ---           ---        (7,008)
ESOP loan repayments                            ---         ---          ---       ---           93,048           ---        93,048
Fair value adjustment on ESOP
 shares committed for release                   ---      67,944          ---       ---              ---           ---        67,944
Purchase of 53,187 shares of
 treasury stock                                 ---         ---          ---       ---              ---      (531,870)     (531,870)
                                            -------  ----------  -----------   -------        ---------   -----------   -----------

Balance at September 30, 2000               $16,493  $8,190,682  $11,863,034   $(4,692)       $(106,632)  $(6,194,540)  $13,764,346
                                            =======  ==========  ===========   =======        =========   ===========   ===========
</TABLE>


The accompanying notes are an integral part of these statements.


<PAGE>





                 First Independence Corporation and Subsidiary

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                            Year ended September 30,
<TABLE>

                                                                                      2000         1999
                                                                                      ----         ----
<S>                                                                              <C>            <C>
Cash flows from operating activities
  Net earnings                                                                 $  1,376,363    $  1,143,088
  Adjustments to reconcile net earnings to net cash
    provided by operating activities
       Provision for loan losses                                                     99,000          66,000
       Depreciation                                                                 125,705         112,234
       Amortization of premiums and discounts on
         investments and mortgage-backed securities                                  42,360         104,186
       Amortization of deferred loan origination fees                              (232,290)       (238,920)
       Amortization of expense related to employee
         benefit plans                                                              160,992         167,174
       Amortization of negative goodwill                                            (94,058)        (70,544)
       Gain on sale of real estate acquired
         through foreclosure, net                                                   (58,539)        (23,834)
       Deferred income taxes                                                          6,558          47,614
       Increase (decrease) in cash due to changes, net of
         effects of acquisition
           Accrued interest receivable                                              (72,508)        (36,996)
           Other assets                                                              29,097         (19,608)
           Accrued expenses and other liabilities                                   118,821        (304,948)
           Income taxes payable                                                       4,456         (57,256)
                                                                               ------------    ------------
             Net cash provided by operating activities                            1,505,957         888,190

Cash flows from investing activities
  Proceeds from sale of investment security                                             ---         355,053
  Proceeds from maturities and repayment of securities
    Available for sale                                                                  ---       1,000,000
    Held to maturity                                                              2,628,359       2,463,166
  Purchase of securities
    Available for sale                                                                  ---          (8,452)
    Held to maturity                                                                    ---      (6,000,000)
  Net increase in loans                                                         (12,660,937)    (10,156,916)
  Purchase of Federal Home Loan Bank stock                                         (513,400)       (271,300)
  Proceeds from redemption of Federal Home Loan Bank stock                              ---         507,300
  Capital expenditures                                                             (284,550)       (124,729)
  Proceeds from sale of real estate acquired through
    foreclosure                                                                     341,805          70,074
  Cash acquired in acquisition                                                          ---       2,114,968
                                                                               ------------    ------------
             Net cash used in investing activities                              (10,488,723)        (50,836)
</TABLE>

<PAGE>

<TABLE>
                                             First Independence Corporation and Subsidiary

                                           CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

                                                       Year ended September 30,


                                                                                      2000                1999
                                                                                      ----                ----
<S>                                                                             <C>                 <C>
Cash flows from financing activities
   Net increase (decrease) in deposits                                          $ (1,325,327)    $     2,208,774
   Net increase in advances from borrowers
      for taxes and insurance                                                         61,750              58,176
   Advances from Federal Home Loan Bank                                           49,300,000          27,700,000
   Repayment of Federal Home Loan Bank advances                                  (37,700,000)        (30,300,000)
   Cash dividends paid                                                              (389,668)           (343,840)
   Purchase of treasury stock                                                       (531,870)           (628,819)
   Stock issuance costs                                                                  ---            (327,338)
   Stock options exercised                                                            48,928              42,844
   Net proceeds from sale of stock                                                       ---           1,279,264
                                                                                ------------     ---------------

         Net cash provided by (used in) financing activities                       9,463,813            (310,939)
                                                                                ------------     ---------------

Net increase in cash and cash equivalents                                            481,047             526,415
Cash and cash equivalents at beginning of year                                     1,439,995             913,580
                                                                                ------------     ---------------

Cash and cash equivalents at end of year                                        $  1,921,042     $     1,439,995
                                                                                ============     ===============

Supplemental disclosures of cash flow information
   Cash paid during the year for
      Income taxes                                                              $    789,239     $       697,949
      Interest                                                                     6,436,004           6,032,114

   Noncash investing and financing activities
      Transfer from loans to real estate acquired
         through foreclosure                                                         873,038             186,283
      Issuance of loans receivable in connection with
         the sale of real estate acquired through
         foreclosure                                                                 227,000             111,250
      Liabilities assumed in conjunction with acquisition                                ---          13,700,846
</TABLE>

The accompanying notes are an integral part of these statements.


<PAGE>


                  First Independence Corporation and Subsidiary

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           September 30, 2000 and 1999


NOTE A - SUMMARY OF ACCOUNTING POLICIES

     FirstIndependence  Corporation  (the  "Corporation")  is a savings and loan
     holding company whose activities are primarily limited to holding the stock
     of  First  Federal  Savings  and  Loan  Association  of  Independence  (the
     "Association"). Future references to the Corporation or the Association are
     utilized herein as the context requires. The Association conducts a general
     banking  business in  southeastern  Kansas  which  consists  of  attracting
     deposits  from  the  general   public  and  applying  those  funds  to  the
     origination of loans for residential,  consumer and nonresidential purposes
     and  the  purchase  of  investment  and  mortgage-backed   securities.  The
     Association's  profitability  is  significantly  dependent  on net interest
     income,  which is the difference  between  interest  income  generated from
     interest-earning  assets  (i.e.,  loans and  investments)  and the interest
     expense paid on interest-bearing  liabilities (i.e.,  customer deposits and
     borrowed funds).  Net interest income is affected by the relative amount of
     interest-earning  assets and interest-bearing  liabilities and the interest
     received or paid on these  balances.  The level of  interest  rates paid or
     received by the Association can be significantly  influenced by a number of
     environmental  factors,  such as  governmental  monetary  policy,  that are
     outside of management's control.

     The consolidated  financial  information presented herein has been prepared
     in accordance with accounting  principles  generally accepted in the United
     States of America (" US GAAP") and general accounting  practices within the
     financial services industry. In preparing consolidated financial statements
     in accordance  with US GAAP,  management is required to make  estimates and
     assumptions  that affect the reported amounts of assets and liabilities and
     the  disclosure of  contingent  assets and  liabilities  at the date of the
     financial statements and revenues and expenses during the reporting period.
     Actual results could differ from such estimates.

     The  following  is a summary of the  Corporation's  significant  accounting
     policies  which have been  consistently  applied in the  preparation of the
     accompanying consolidated financial statements.

     1.  Principles of consolidation

     The  consolidated  financial  statements  include  the  accounts  of  First
     Independence  Corporation and its  wholly-owned  subsidiary,  First Federal
     Savings and Loan Association of Independence.  All significant intercompany
     balances and transactions have been eliminated.

     2.  Cash equivalents

     For purposes of reporting  cash flows,  cash and cash  equivalents  include
     cash, due from banks, federal funds sold and other overnight deposits.

     3.  Investment securities and mortgage-backed securities

     Investment  securities  and  mortgage-backed  securities  are classified in
     three categories and accounted for as follows: (a) debt securities that the
     Corporation  has the  positive  intent and ability to hold to maturity  are
     classified as  held-to-maturity  securities and reported at amortized cost,
     (b) debt and equity securities that are bought and held principally for the
     purpose  of  selling  them in the  near  term  are  classified  as  trading
     securities  and reported at fair value,  with  unrealized  gains and losses
     included in earnings and (c) debt and equity  securities  not classified as
     either held-to-maturity  securities or trading securities are classified as
     available-for-sale  securities and reported at fair value,  with unrealized
     gains and losses  excluded from earnings and reported as the sole component
     of accumulated other comprehensive income in stockholders' equity.

     Premiums and discounts on investment securities are amortized to operations
     over the term of the security  using the level yield  method.  Premiums and
     discounts  on  mortgage-backed  securities  are  amortized  and accreted to
     operations  using the level  yield  method over the  estimated  life of the
     underlying loans  collateralizing  the securities.  Gains and losses on the
     sale of securities  designated as available for sale are recorded using the
     specific identification method.



<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued

     4.  Loans receivable

     Loans  receivable  that management has the intent and ability to hold until
     maturity or pay-off are reported at their  outstanding  principal  balance,
     adjusted for any  charge-offs,  the  allowance  for loan  losses,  unearned
     discounts and net deferred loan origination fees.

     The  allowance  for loan losses is increased by charges to  operations  and
     decreased  by  charge-offs  (net  of  recoveries).   Management's  periodic
     evaluation of the adequacy of the  allowance is based on the  Association's
     past  loan loss  experience,  known and  inherent  risks in the  portfolio,
     adverse  situations  that may  affect  the  borrower's  ability  to  repay,
     estimated  value  of  any  underlying   collateral  and  current   economic
     conditions.

     Specific reserves are established for any impaired  nonresidential loan for
     which the recorded investment in the loan exceeds the measured value of the
     loan. Loans subject to impairment valuation are defined as nonaccrual loans
     or any other loan where it is probable  that all amounts due  according  to
     the contractual  terms will not be collected,  exclusive of smaller balance
     homogenous loans such as home equity,  consumer and 1-4 family  residential
     real estate loans. The values of loans subject to impairment  valuation are
     determined  based on the present value of expected  future cash flows,  the
     market price of the loans, or the fair values of the underlying  collateral
     if the loan is collateral dependent.

     Uncollectible  interest on loans that are contractually past due is charged
     off  or  an  allowance  is  established  based  on  management's   periodic
     evaluation.  The allowance is  established  by a charge to interest  income
     equal to all interest previously accrued. Income is subsequently recognized
     only to the extent  cash  payments  are  received  until,  in  management's
     judgment,  the borrower's  ability to make periodic  interest and principal
     payments  is back to normal,  in which case the loan is returned to accrual
     status. If the collection of principal in whole or in part is in doubt, all
     payments  received on nonaccrual loans are credited to principal until such
     doubt is eliminated.

     5.  Loan origination fees and related costs

     Loan origination fees received, net of certain direct origination costs are
     deferred on a loan-by-loan  basis and amortized to interest income over the
     contractual  life of the loan using the interest  method,  giving effect to
     actual loan prepayments. Loan origination costs are considered to be direct
     costs attributable to originating a loan.

     6.  Real estate acquired through foreclosure

     Real estate properties  acquired  through,  or in lieu of, loan foreclosure
     are to be sold  and are  initially  recorded  at fair  value at the date of
     foreclosure  establishing  a new cost  basis.  Subsequent  to  foreclosure,
     valuations are periodically  performed by management and the real estate is
     carried  at the lower of  carrying  amount or fair value less cost to sell.
     Revenue and expenses from operations and changes in the valuation allowance
     are included in real estate operations.

     7.  Premises and equipment

     Premises and equipment are carried at cost less  accumulated  depreciation.
     Depreciation is included in occupancy and equipment expense and is provided
     by the straight-line method over the following estimated useful lives:
<TABLE>
                                                                        Years
                                                                       -------
         <S>                                                             <C>
         Building                                                        8-50
         Furniture, fixtures and equipment                               5-20
         Automobiles                                                        5
</TABLE>



<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued

     The costs of maintenance and repairs are charged to operations as incurred.
     The costs of significant additions, renewals and betterments to depreciable
     properties are capitalized  and depreciated  over the remaining or extended
     estimated  useful lives of the properties.  Gains and losses on disposition
     of property and equipment are included in operations.

     8.  Employee stock ownership plan

     The Corporation  sponsors a leveraged employee stock ownership plan (ESOP).
     The ESOP holds company stock which serves as collateral  for the ESOP debt.
     As  shares  are  released  from   collateral,   the   Corporation   reports
     compensation  expense equal to the current market price of the shares,  and
     the shares become outstanding for earnings-per-share  ("EPS") computations.
     Dividends on released and allocated ESOP shares are recorded as a reduction
     of retained earnings;  dividends on unallocated ESOP shares are recorded as
     compensation cost.

     9.  Stock-based compensation

     The Company uses the intrinsic  value based method of accounting  for stock
     options. Under the intrinsic method, compensation cost for stock options is
     measured as the excess, if any, of the quoted market price of the Company's
     stock over the exercise price at the measurement date.

     10. Income taxes

     First  Independence  Corporation  and its  subsidiary  file a  consolidated
     federal  income  tax  return.  Deferred  tax  assets  and  liabilities  are
     determined  based on the differences  between the financial  accounting and
     tax basis of assets and liabilities.  Deferred tax assets or liabilities at
     the end of each period are determined using the currently  enacted tax rate
     expected to apply to taxable  income in the  periods in which the  deferred
     tax asset or liability is expected to be settled or realized.

     11. Earnings per share

     Basic  earnings  per share is  computed  by  dividing  net  earnings by the
     weighted average number of common shares outstanding during the year.

     Diluted  earnings  per share is computed by  dividing  net  earnings by the
     weighted average number of common shares  outstanding  during the year plus
     the common share equivalents related to outstanding stock options. Weighted
     average common shares  outstanding  and diluted  shares deemed  outstanding
     were as follows:
<TABLE>
                                                                                              Year ended
                                                                                              September 30,
                                                                                          --------------------
                                                                                           2000            1999
                                                                                           ----            ----
<S>                                                                                    <C>              <C>
     Weighted average common shares outstanding                                         1,013,315       1,015,212
     Common share equivalents related to outstanding stock options                         43,633          51,003
                                                                                        ---------       ---------

     Adjusted weighted average common shares
      deemed to be outstanding                                                          1,056,948       1,066,215
                                                                                        =========       =========
</TABLE>


     Common shares outstanding  exclude unallocated and committed shares held by
     the ESOP trust.



<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE B - INVESTMENT SECURITIES

     The amortized cost, gross  unrealized  gains,  gross unrealized  losses and
     estimated fair value of investment securities are as follows:
<TABLE>
                                                                            September 30, 2000
                                                     --------------------------------------------------------------
                                                                           Gross           Gross         Estimated
                                                         Amortized       unrealized      unrealized        fair
             Held to maturity                              cost            gains          losses           value
             ----------------                            ---------       ----------      ----------      ---------
<S>                                                         <C>              <C>             <C>             <C>
   U.S. Government and agency obligations               $6,300,076       $   ---         $(77,406)       $6,222,670
   Municipal securities                                    196,071           ---           (2,291)          193,780
                                                        ----------       -------         --------        ----------

                                                        $6,496,147       $   ---         $(79,697)       $6,416,450
                                                        ==========       =======         ========        ==========

             Available for sale
             ------------------
   U.S. Government agency obligations                   $1,999,767       $   ---         $ (7,567)       $1,992,200
                                                        ==========       =======         ========        ==========
</TABLE>

<TABLE>
                                                                            September 30, 1999
                                                       -------------------------------------------------------------
                                                                           Gross           Gross         Estimated
                                                         Amortized       unrealized      unrealized        fair
             Held to maturity                              cost            gains          losses           value
            -----------------                            ---------       ---------       ----------      ----------
<S>                                                      <C>               <C>             <C>             <C>
   U.S. Government and agency obligations               $6,400,258       $ 1,352         $(45,570)       $6,356,040
   Municipal securities                                    605,021           676           (4,004)          601,693
                                                        ----------       -------         --------        ----------

                                                        $7,005,279       $ 2,028         $(49,574)       $6,957,733
                                                        ==========       =======         ========        ==========

             Available for sale
            --------------------
   U.S. Government agency obligations                   $1,996,064       $ 6,521         $ (2,785)       $1,999,800
                                                        ==========       =======         ========        ==========
</TABLE>



<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE B - INVESTMENT SECURITIES - Continued

     The  amortized  cost and estimated  fair value of investment  securities at
     September 30, 2000, by term to maturity are as follows:
<TABLE>
                                                                                                       Estimated
                                                                                        Amortized        fair
           Held to maturity                                                               cost           value
           ----------------                                                             --------      ---------
     <S>                                                                                 <C>             <C>
    Due in less than one year                                                        $  300,076      $  299,770
    Due in two to five years                                                          6,000,000       5,922,900
    Due in five to ten years                                                            196,071         193,780
                                                                                     ----------      ----------

                                                                                     $6,496,147      $6,416,450
                                                                                     ==========      ==========
         Available for sale
         ------------------
    Due in less than one year                                                        $  998,008      $  995,000
    Due in one to two years                                                           1,001,759         997,200
                                                                                     ----------      ----------

                                                                                     $1,999,767      $1,992,200
                                                                                     ==========      ==========
</TABLE>

     Investment  securities  with an  estimated  fair  value of  $4,257,857  and
     $3,384,340  at September  30, 2000 and 1999,  respectively,  are pledged to
     secure government deposits.


NOTE C - MORTGAGE-BACKED SECURITIES

     The amortized cost, gross  unrealized  gains,  gross unrealized  losses and
     estimated  fair  value of  mortgage-backed  securities  are  summarized  as
     follows:
<TABLE>
                                                                         September 30, 2000
                                                       ----------------------------------------------------
                                                                        Gross        Gross       Estimated
                                                     Amortized       unrealized   unrealized      fair
         Held to maturity                              cost            gains       losses        value
         ----------------                            ----------      -----------   ----------    ---------
     <S>                                               <C>             <C>            <C>         <C>
   GNMA certificates                                 $   28,460      $ 1,451     $     ---      $    29,911
   FHLMC certificates                                 3,137,732       19,573       (10,263)       3,147,042
   FNMA certificates                                  2,328,466       26,730       (20,644)       2,334,552
   Collateralized mortgage obligations
      FHLMC                                           1,076,514          ---       (56,278)       1,020,236
      FNMA                                            2,175,816          ---       (35,892)       2,139,924
                                                     ----------      -------     ---------       ----------

                                                     $8,746,988      $47,754     $(123,077)      $8,671,665
                                                     ==========      =======     =========       ==========

</TABLE>

<TABLE>
                                                                         September 30, 1999
                                                       ------------------------------------------------------
                                                                        Gross        Gross       Estimated
                                                       Amortized      unrealized   unrealized      fair
         Held to maturity                                cost            gains       losses        value
         ----------------                             -----------     ----------   ----------    ------------
     <S>                                               <C>            <C>            <C>         <C>

   GNMA certificates                                   $    28,952      $ 2,280     $     ---    $    31,232
   FHLMC certificates                                    4,109,413       40,753       (16,725)     4,133,441
   FNMA certificates                                     2,920,861       28,257       (33,324)     2,915,794
   Collateralized mortgage obligations
      FHLMC                                              1,120,538          ---       (44,898)     1,075,640
      FNMA                                               2,732,515          ---       (35,639)     2,696,876
                                                       -----------      -------     ---------    -----------
                                                       $10,912,279      $71,290     $(130,586)   $10,852,983
                                                       ===========      =======     =========    ===========
</TABLE>


<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE C - MORTGAGE-BACKED SECURITIES - Continued

    Mortgage-backed securities generally mature ratably over the 30-year term of
    the underlying loans collateralizing the securities.  Expected maturities on
    mortgage-backed  securities will differ from contractual  maturities because
    borrowers may have the right to call or prepay  obligations  with or without
    call or prepayment penalties.

     Mortgage-backed  securities  with an estimated fair value of $8,271,606 and
     $10,384,130  at September 30, 2000 and 1999,  respectively,  are pledged to
     secure government and other deposits.


NOTE D - LOANS RECEIVABLE

    Loans receivable at September 30 are summarized as follows:
<TABLE>
                                                                                      2000               1999
                                                                                      ----               ----
<S>                                                                                <C>               <C>
    First mortgage loans
      One-to-four family residences                                              $ 90,927,666       $ 84,052,872
      Multi-family residences                                                         339,161            914,016
      Nonresidential                                                               11,080,483          9,075,464
      Construction                                                                 28,151,825         25,051,558
                                                                                 ------------       ------------

         Total first mortgage loans                                               130,499,135        119,093,910

    Consumer and other loans
      Savings                                                                         980,159            373,042
      Automobile                                                                    2,577,640          2,866,956
      Home equity and second mortgages                                                927,317            911,015
      Unsecured home improvement                                                      122,722            217,005
      Other                                                                           806,080            967,753
                                                                                 ------------       ------------

         Total consumer and other loans                                             5,413,918          5,335,771

    Less
      Allowance for loan losses                                                      (758,333)          (752,650)
      Loans in process                                                             (9,664,974)       (10,429,123)
      Unearned discounts                                                               (1,793)            (3,041)
      Deferred loan origination fees                                                 (369,237)          (351,461)
                                                                                 ------------       ------------

                                                                                  (10,794,337)       (11,536,275)
                                                                                 ------------       ------------

         Net loans receivable                                                    $125,118,716       $112,893,406
                                                                                 ============       ============
</TABLE>


<PAGE>


                 First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999

NOTE D - LOANS RECEIVABLE - Continued

     Activity in the  allowance for loan losses is summarized as follows for the
     years ended September 30:

                                                            2000        1999
                                                            ----        ----

     Balance at beginning of year                         $752,650    $655,745
     Acquisition transfer                                      ---      83,834
     Provision                                              99,000      66,000
     Loans charged off                                     (93,317)    (52,929)
                                                          --------    --------

     Balance at end of year                               $758,333    $752,650
                                                          ========    ========

     The Association's  lending efforts have historically focused on one-to-four
     family  residential  real estate loans,  which comprise  approximately  67%
     (2000) and 68% (1999) of the total loan portfolio.  Approximately 2% (2000)
     and 3% (1999) of the  Association's  one-to-four  family  residential  real
     estate  loans are  collateralized  by  properties  located  outside  of the
     primary  lending  area  of  Montgomery  and  surrounding  Kansas  counties.
     Generally,  such  loans have been  underwritten  on the basis of 80% to 90%
     loan-to-value ratio or mortgage insurance was required. The Association, as
     with any  lending  institution,  is  subject  to the risk that real  estate
     values could  deteriorate  in its primary  lending  area thereby  impairing
     collateral values. Management believes, however, that real estate values in
     the Association's primary lending area are currently stable or increasing.

     During the year ended September 30, 1998 the Association  began originating
     construction  loans at its new loan production office in Lawrence,  Kansas.
     These  construction loans generally are to builders and individuals for the
     construction  of  residences  and have  terms of nine  months  or less with
     permanent financing provided by other lenders.  Construction loans comprise
     approximately  21% (2000) and 20%  (1999) of the  Association's  total loan
     portfolio.

     Approximately  8% (2000 and 1999) of the loan  portfolio  is  comprised  of
     nonresidential  and  multi-family  real estate loans with  approximately 5%
     (2000) and 9% (1999) of this total  collateralized  by  properties  located
     outside the Association's primary lending area.

     Serviced  loans,  primarily  under a County  Mortgage  Revenue  Bond,  were
     $1,272,803 and $1,551,660 at September 30, 2000 and 1999, respectively.

     In the normal course of business, the Association makes loans to directors,
     executive  officers and related  entities.  An analysis of  aggregate  loan
     activity with this group is as follows:
<TABLE>

          <S>                                             <C>
         Loans outstanding at October 1, 1999             $ 478,699
           New loans                                        202,700
           Repayments                                      (157,001)
                                                          ---------

         Loans outstanding at September 30, 2000          $ 524,398
                                                          =========
</TABLE>


     Loan  impairment is measured by estimating  the expected  future cash flows
     and  discounting  them  at the  respective  effective  interest  rate or by
     valuing the underlying  collateral.  The recorded investment in these loans
     and the  valuation  allowance  for  losses  related to loan  impairment  at
     September 30 are as follows:
<TABLE>
                                                                  2000             1999
                                                                  ----             ----
          <S>                                                    <C>             <C>
           Principal amount of impaired loans                   $187,059        $330,129
           Less valuation allowance                               (3,741)        (21,302)
                                                                --------        --------
                                                                $183,318        $308,827
                                                                ========        ========
           Average investment in impaired loans                 $258,594        $232,426
                                                                ========        ========
</TABLE>


<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE D - LOANS RECEIVABLE - Continued

     The  Association  has provided an allowance for loan losses on all impaired
     loans.  Interest  income of $7,577 and $20,345 was recognized and collected
     on  impaired  loans  during the years  ended  September  30, 2000 and 1999,
     respectively.  The Association is not committed to make additional loans to
     borrowers whose loans have been modified.


NOTE E - ACCRUED INTEREST RECEIVABLE

     Accrued interest receivable at September 30 is summarized as follows:
<TABLE>
                                                          2000         1999
                                                          ----         ----
     <S>                                                 <C>          <C>
   Loans receivable                                     $785,212     $696,175
   Investment securities                                 111,259      116,983
   Mortgage-backed securities                             63,502       74,307
                                                        --------     --------
                                                        $959,973     $887,465
                                                        ========     ========
</TABLE>



NOTE F - PREMISES AND EQUIPMENT

     Premises and equipment at September 30 are summarized as follows:
<TABLE>
                                                        2000          1999
                                                        ----          ----
   <S>                                                 <C>           <C>
   Land                                              $   74,958     $   74,958
   Building                                           1,430,708      1,362,870
   Furniture, fixtures and equipment                    635,649        539,804
   Automobiles                                           50,168         43,579
                                                     ----------     ----------

                                                      2,191,483      2,021,211
   Less accumulated depreciation                        742,080        699,083
                                                     ----------     ----------

                                                     $1,449,403     $1,322,128
                                                     ==========     ==========
</TABLE>


NOTE G - FORECLOSED ASSETS

     A summary of expenses applicable to foreclosed assets is as follows for the
     years ended September 30:
<TABLE>
                                                        2000          1999
                                                        ----          ----
     <S>                                                <C>           <C>
   Gain on sale of real estate acquired
      through foreclosure, net                        $ 58,539      $ 23,834
   Operating expenses                                  (81,215)      (58,559)
                                                      --------      --------

   Foreclosed asset expense, net                      $(22,676)     $(34,725)
                                                      ========      ========
</TABLE>

     Operating expenses on foreclosed assets consist primarily of property taxes
     and general maintenance expenses on the properties held.



<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE H - DEPOSITS

     Deposits at September 30 are summarized as follows:
<TABLE>

                                    Weighted
                                 average rate at
                                  September 30,                  2000                        1999
                              --------------------      ------------------------    -----------------------
                              2000           1999       Amount           Percent    Amount          Percent
                              -----          ----       ------           -------    ------          -------
     <S>                      <C>            <C>       <C>                 <C>       <C>               <C>
   NOW accounts               2.05%          2.05%     $ 4,915,842         5.22%   $ 4,341,228        4.55%
   First Super NOW
      accounts                2.30           2.30        2,265,758         2.41      2,161,533        2.26
   First Money Fund
      accounts                4.91           4.47       24,729,145        26.27     26,541,536       27.81
                                                       -----------        -----    -----------       -----

      Total demand
         deposits             4.38           4.05       31,910,745        33.90     33,044,297       34.62

   Passbook savings
      accounts                2.89           2.89        4,527,159         4.81      4,582,574        4.80

    Certificates of
      deposit
         3.00% to
             3.99%             ---           3.90              ---          ---        212,257         .22
         4.00% to
             4.99%            4.93           4.82        2,518,517         2.68     15,802,592       16.56
         5.00% to
             5.99%            5.55           5.49       44,596,340        47.38     36,767,612       38.52
         6.00% to
             6.99%            6.34           6.28       10,574,776        11.23      5,029,865        5.27
         7.00% to
             7.99%             ---           7.00              ---          ---         13,667         .01
                                                       -----------       ------    -----------       -----

    Total certificates
       of deposit             5.67           5.37       57,689,633        61.29     57,825,993       60.58
                                                       -----------       ------    -----------       -----

    Total savings             5.47           5.19       62,216,792        66.10     62,408,567       65.38
                                                        ----------       ------    -----------       -----

    Total deposits            5.10           4.79      $94,127,537       100.00%   $95,452,864      100.00%
                                                       ===========       ======    ===========      ======
</TABLE>


     The aggregate  amount of certificates of deposit and savings with a minimum
     denomination  of $100,000 was  $6,211,979  and  $5,532,226 at September 30,
     2000 and 1999, respectively.

<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999

NOTE H - DEPOSITS - Continued

     Scheduled maturities of certificates of deposit are as follows:
<TABLE>
     September 30, 2000
     ------------------
                                               Less than            One to            Three to
                                               one year           three years        five years           Total
                                            --------------      -------------      -------------     --------------
<S>                                          <C>                 <C>                 <C>               <C>
   4.00% to 4.99%                           $    2,518,517      $          -        $         -      $    2,518,517
   5.00% to 5.99%                               28,627,293         13,028,707          2,940,340         44,596,340
   6.00% to 6.99%                                3,452,327          5,540,247          1,582,202         10,574,776
                                            --------------      -------------       ------------     --------------

                                            $   34,598,137      $  18,568,954       $  4,522,542     $   57,689,633
                                            ==============      =============       ============     ==============
</TABLE>

   September 30, 1999
   ------------------
<TABLE>
                                               Less than            One to            Three to
                                               one year           three years        five years           Total
                                            --------------      -------------      -------------     --------------
     <S>                                       <C>               <C>                 <C>                <C>
   3.00% to 3.99%                           $      212,257      $          -        $         -      $      212,257
   4.00% to 4.99%                               13,258,844          2,543,748                 -          15,802,592
   5.00% to 5.99%                               13,478,106         20,179,839          3,109,667         36,767,612
   6.00% to 6.99%                                2,267,548          2,151,544            610,773          5,029,865
   7.00% to 7.99%                                   13,667                 -                  -              13,667
                                            --------------      -------------       ------------     --------------
                                            $   29,230,422      $  24,875,131       $  3,720,440     $   57,825,993
                                            ==============      =============       ============     ==============
</TABLE>

     Interest expense on deposits for the years ended September 30 is summarized
     as follows:
<TABLE>
                                                                                          2000             1999
                                                                                          ----             ----
     <S>                                                                              <C>                <C>
   NOW accounts                                                                      $     80,631      $     89,392
   First Super NOW and First Money Fund accounts                                        1,252,637         1,072,719
   Certificates of deposit and passbook savings accounts                                3,218,426         3,227,436
                                                                                     ------------      ------------
                                                                                     $  4,551,694      $  4,389,547
                                                                                     ============      ============
</TABLE>


NOTE I - ADVANCES FROM FEDERAL HOME LOAN BANK

     Advances  from the Federal  Home Loan Bank at  September  30 consist of the
     following:
<TABLE>
                                                           2000                                  1999
                                            --------------------------------       --------------------------------
                                                Rates              Amount             Rates              Amount
                                                -----              -----              -----              ------
  <S>                                           <C>                 <C>                <C>                 <C>
   Variable rates                                  6.90%       $   8,100,000                 -%      $           -
   Fixed rates                              5.65 - 7.06            9,000,000       5.65 - 7.06            9,000,000
   Fixed rate convertible*                  4.63 - 6.34           22,000,000       4.63 - 5.08           18,500,000
                                                               -------------                         --------------
                                                               $  39,100,000                         $   27,500,000
                                                               =============                         ==============
</TABLE>

   *The Federal Home Loan Bank has the option to convert $15,000,000 in the year
    ending  2001  and  $7,000,000  in the  year  ending  2003  to  its  variable
    short-term  rate.  These  advances  are  due in  2008  through  2010  unless
    converted,  at which  time the  Corporation  has the  option to  prepay  the
    advances.

<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE I - ADVANCES FROM FEDERAL HOME LOAN BANK - Continued

     The Association can borrow a maximum of approximately  $59,000,000 from the
     Federal Home Loan Bank at September 30, 2000.

     Assets of the  Association  are subject to a blanket  pledge  agreement  to
     collateralize the advances.

     Aggregate  maturities  for the years  following  September  30, 2000 are as
     follows:

           2001                                         $  11,100,000
           2002                                             5,000,000
           2003                                             1,000,000
           2008                                             1,000,000
           2009                                             6,000,000
           2010                                            15,000,000
                                                        -------------
                                                        $  39,100,000
                                                        =============


NOTE J - EMPLOYEE BENEFITS

     The Corporation sponsors a leveraged employee stock ownership plan ("ESOP")
     that covers all full-time  employees.  All employees of the Corporation are
     eligible to  participate  in the ESOP after they attain age 21 and complete
     one year of  service  during  which  they work at least  1,000  hours.  The
     Corporation makes annual contributions to the ESOP equal to the ESOP's debt
     service.  All dividends received by the ESOP are credited to the employee's
     stock  ownership  account.  The  unallocated  ESOP  shares  are  pledged as
     collateral  for its debt.  As the debt is repaid,  shares are released from
     collateral  and allocated to active  employees,  based on the proportion of
     debt service paid in the year.  Accordingly,  unpaid ESOP debt is reflected
     as a deduction from  stockholders'  equity.  ESOP compensation  expense was
     $169,346  and  $178,905  for the years ended  September  30, 2000 and 1999,
     respectively.

     The ESOP shares as of September 30, 2000 were as follows:
<TABLE>
             <S>                                                         <C>
             Allocated shares                                            102,290
             Unreleased shares                                            11,320
                                                                         -------
               Total ESOP shares                                         113,610
                                                                         =======
             Fair value of unreleased shares at September 30, 2000      $114,615
                                                                        ========
</TABLE>


<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE J - EMPLOYEE BENEFITS - Continued

     The  Corporation  has adopted a Stock Option and  Incentive  Plan (SOP) for
     designated  participants.  The SOP  provides  for up to  145,474  shares of
     common stock to be issued to participants.  The option price of any options
     granted  may not be less than the market  value of the common  stock on the
     date of the grant and unless  otherwise  specified,  the options expire ten
     years from the date of the grant.  All options  outstanding are exercisable
     except  3,909  options  which vest equally over five years from the date of
     the grant. A summary of the Corporation's stock option plan as of September
     30, 2000 and 1999 and  changes  during the years ended as of those dates is
     presented below:

<TABLE>
                                                                                                         Weighted
                                                                                                         average
                                                                                                        exercise
                                                                                         Shares           price
                                                                                      ----------       ----------
     <S>                                                                                 <C>              <C>
    Outstanding at October 1, 1998                                                       106,538        $  5.25
       Issued                                                                             13,409          10.06
       Exercised                                                                          (7,500)          5.71
       Forfeited                                                                          (3,000)         10.06
                                                                                       ---------

    Outstanding at September 30, 1999                                                    109,447           5.68
       Exercised                                                                          (9,718)          5.03
                                                                                       ---------

    Outstanding at September 30, 2000                                                     99,729           5.74
                                                                                       =========

   Exercisable
      September 30, 1999                                                                 105,538        $  5.52
      September 30, 2000                                                                  96,602           5.60
</TABLE>

     Options outstanding at September 30, 2000 are summarized as follows:
<TABLE>
                                                 Exercise                   Remaining
                      Shares                      price                       life
                     --------                   ---------                 -------------
<S>                    <C>                       <C>                         <C>
                      79,384                     $  5.00                    3 years
                       7,136                        6.19                    3 years 4 months
                       1,800                        6.69                    3 years 10 months
                       1,000                       14.63                    7 years 1 month
                      10,409                       10.06                    8 years 4 months
                    --------
                      99,729
                    ========
</TABLE>

   The stock  option  plan is  accounted  for under APB  Opinion 25 and  related
   interpretations.  Accordingly,  no compensation  cost has been recognized for
   the plan. Had  compensation  cost for the plan been  determined  based on the
   fair value of the options at the grant dates  consistent  with the fair value
   method of Statement of Financial  Accounting  Standards  123,  Accounting for
   Stock-Based  Compensation (SFAS 123), the Company's net earnings and earnings
   per share for the years ended September 30 would have been reduced to the pro
   forma amounts indicated below.
<TABLE>
                                                                                  2000               1999
                                                                                  ----               ----
         <S>                                                                   <C>                <C>
         Net earnings - as reported                                          $  1,376,363        $ 1,143,088
         Net earnings - pro forma                                               1,373,212          1,104,803
         Earnings per share
             Basic - as reported                                                  $1.36              $1.13
             Basic - pro forma                                                     1.36               1.09
             Diluted - as reported                                                 1.30               1.07
             Diluted - pro forma                                                   1.30               1.04
</TABLE>


<PAGE>
                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999

NOTE J - EMPLOYEE BENEFITS - Continued

     The fair value of each option grant is estimated on the date of grant using
     the Black-Scholes options-pricing model with the following weighted-average
     assumptions used for the year ended September 30, 1999:
<TABLE>
          <S>                                                           <C>
         Dividend yield                                                 3.48%
         Expected volatility                                              37%
         Risk-free interest rate                                         5.1%
         Expected life                                                 10 years
</TABLE>


     The Association  participates in a defined benefit  multi-employer  pension
     plan.  Substantially  all  employees are eligible and benefits are based on
     the employee's  salary and years of service.  No  contribution  was made or
     required to be made by the  Association  for the years ended  September 30,
     2000 and 1999  due to the  plan's  overfunded  status.  Separate  actuarial
     disclosure   information   is  not  available  due  to  the  plan  being  a
     multi-employer pension plan.


 NOTE K - INCOME TAXES

     Income  tax  expense  for the years  ended  September  30  consists  of the
     following:
<TABLE>
                                                        2000            1999
                                                        ----            ----
    <S>                                                <C>            <C>
   Current                                             $780,081       $640,693
   Deferred                                               6,558         47,614
                                                       --------       --------
                                                       $786,639       $688,307
                                                       ========       ========
</TABLE>

     Reconciliation of income tax expense computed at the federal statutory rate
     of 34% and  income  tax  expense  for the years  ended  September  30 is as
     follows:
<TABLE>
                                                                  2000           1999
                                                                  ----           ----

     <S>                                                         <C>              <C>
     Income tax expense at statutory rate                       $735,421        $622,674
     Kansas privilege tax, net of federal tax benefit             60,642          50,747
     Nondeductible ESOP fair value adjustment                     24,599          28,675
     Other                                                       (34,023)        (13,789)
                                                                --------        --------
                                                                $786,639        $688,307
                                                                ========        ========
</TABLE>
     The tax  effects of  temporary  differences  that give rise to  deferred
     tax assets and liabilities at September 30 are as follows:
<TABLE>
                                                                                          2000           1999
                                                                                          ----           ----
    <S>                                                                                  <C>             <C>
     Deferred tax assets
      Allowance for loan losses                                                         $275,274       $285,601
      Accrued bonuses                                                                     15,540         11,100
      Depreciation of property and equipment                                              88,280         95,389
      Securities available for sale                                                        2,800            ---
                                                                                        --------       --------

        Total deferred tax assets                                                        381,894        392,090
                                                                                        --------       --------

     Deferred tax liabilities
      Securities available for sale                                                          ---          1,420
      Federal Home Loan Bank stock dividends                                             348,318        337,588
      Other                                                                               44,349         53,082
                                                                                        --------       --------

        Total deferred tax liabilities                                                   392,667        392,090
                                                                                        --------       --------

        Net deferred tax liability                                                      $ 10,773       $    ---
                                                                                        ========       ========
</TABLE>

<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE K - INCOME TAXES - Continued

     Prior to 1997 the  Association  was allowed a special  bad debt  deduction,
     generally  limited to 8% of  otherwise  taxable  income  subject to certain
     limitations  based on aggregate loans and deposit  account  balances at the
     end of the year. If the amounts that  qualified as  deductions  for federal
     income  taxes are later used for  purposes  other than for bad debt losses,
     including distributions in liquidation,  such distributions will be subject
     to federal  income  taxes at the then  current  corporate  income tax rate.
     Retained  earnings at  September  30,  2000,  includes  approximately  $2.9
     million for which federal income taxes have not been  provided.  The amount
     of unrecognized  deferred tax liability relating to the cumulative bad debt
     deduction at September 30, 2000, is approximately $1,000,000.


NOTE L - STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL

     The  Association  is  subject to various  regulatory  capital  requirements
     administered  by the Office of Thrift  Supervision  (OTS).  Failure to meet
     minimum capital  requirements can initiate  certain  mandatory and possibly
     additional  discretionary actions by regulators that, if undertaken,  could
     have a direct material effect on the  Association's  financial  statements.
     Under capital adequacy  guidelines and the regulatory  framework for prompt
     corrective  action,  the Association must meet specific capital  guidelines
     that involve quantitative measures of the Association's assets, liabilities
     and  certain   off-balance-sheet   items  as  calculated  under  regulatory
     accounting practices.  The Association's capital amounts and classification
     are  also  subject  to  qualitative   judgments  by  the  regulators  about
     components, risk weightings, and other factors.

     Quantitative  measures established by regulation to ensure capital adequacy
     require the  Association to maintain  minimum amounts and ratios (set forth
     in the table below) of total and Tier 1 capital to risk-weighted assets and
     of Tier 1 (core)  capital and tangible  capital to adjusted  total  assets.
     Management  believes,  as of September 30, 2000, that the Association meets
     all capital adequacy requirements to which it is subject.

     As of  September  30,  2000,  the  most  recent  notification  from the OTS
     categorized  the  Association  as well  capitalized  under  the  regulatory
     framework for prompt corrective  action.  There are no conditions or events
     since  that  notification   that  management   believes  have  changed  the
     Association's   category.   To  be  categorized  as  well  capitalized  the
     Association must maintain minimum total  risk-based,  Tier 1 risk-based and
     Tier 1  (core)  ratios  as  set  forth  in  the  table  below.


<TABLE>
                                                                                               To be well
                                                                                            capitalized under
                                                                         For capital        prompt corrective
                                                 Actual               adequacy purposes     action provisions
                                       ------------------------    ---------------------    -------------------
                                          Amount       Ratio         Amount      Ratio        Amount     Ratio
                                       -----------    ---------    -----------  --------    ----------  --------
                                                                      (Dollars in thousands)
     <S>                                   <C>         <C>            <C>        <C>           <C>        <C>
   As of September 30, 2000
     Total risk-based capital           $   13,280      18.17%      $  5,846      >8.0%      $   7,308    >10.0%
                                                                                  -                       -
     Tier 1 risk-based capital              12,522      17.13          2,923      >4.0           4,385     >6.0
                                                                                  -                        -
     Core capital                           12,522       8.39          4,476      >3.0           7,459     >5.0
                                                                                  -                        -
     Tangible capital                       12,522       8.39          2,238      >1.5             N/A      N/A
                                                                                  -

   As of September 30, 1999
      Total risk-based capital          $   12,845      19.2%       $  5,354      >8.0%      $   6,693    >10.0%
                                                                                   -                       -
      Tier 1 risk-based capital             12,092      18.1           2,677      >4.0           4,016     >6.0
                                                                                  -                        -
      Core capital                          12,092       8.8           4,142      >3.0           6,904     >5.0
                                                                                  -                        -
      Tangible capital                      12,092       8.8           2,071      >1.5             N/A      N/A
                                                                                  -
</TABLE>


<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999

NOTE L - STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL - Continued

     Regulations  of the OTS impose  limitations on the payment of dividends and
     other capital distributions by savings associations. Under such regulations
     a savings  association that immediately  prior to and on a pro forma basis,
     after giving effect to a proposed capital  distribution,  has total capital
     (as defined by OTS regulation)  that is equal to or greater than the amount
     of its fully phased-in capital  requirement is generally  permitted without
     OTS  approval  (but  subsequent  to 30 days prior  notice to the OTS of the
     planned dividend) to make capital  distributions  during a calendar year in
     the  amount of up to the  greater of (1) 100% of its net  earnings  to date
     during the year plus an amount equal to one-half of the amount by which its
     total  capital to assets  ratio  exceeded  its fully  phased-in  capital to
     assets ratio at the  beginning of the year or (2) 75% of its net income for
     the most recent four quarters.  Pursuant to such OTS dividend  regulations,
     the  Association  had  the  ability  to  pay  dividends  of   approximately
     $4,200,000 to First Independence Corporation at September 30, 2000.


NOTE M - COMMITMENTS

     The Association is a party to financial  instruments with off-balance sheet
     risk in the normal  course of business to meet the  financing  needs of its
     customers including commitments to extend credit. Such commitments involve,
     to varying degrees,  elements of credit and interest-rate risk in excess of
     the amount recognized in the consolidated  balance sheets.  The contract or
     notional amounts of the commitments reflect the extent of the Association's
     involvement in such financial instruments.

     The Association's exposure to credit loss in the event of nonperformance by
     the other  party to the  financial  instrument  for  commitments  to extend
     credit  is  represented  by  the  contractual   notional  amount  of  those
     instruments.  The  Association  uses the same  credit  policies  in  making
     commitments  and  conditional  obligations as those utilized for on-balance
     sheet  instruments.  The  Association's  commitments  to  extend  credit at
     September  30, 2000  include  loans in process as  disclosed  in Note D and
     first  mortgage  loans  with  fixed  rates  ranging  from  8.00% to  10.50%
     aggregating  $2,115,950  and  $51,551  of  variable  rate  loans at  7.25%.
     Collateral for loans in process and  commitments  are the same as for other
     Association loans. The commitment period is generally for forty-five days.


NOTE N - ACQUISITION

     On January 6, 1999,  the  Corporation  and The  Neodesha  Savings  and Loan
     Association,  FSA  (Neodesha)  completed the  conversion of Neodesha from a
     federally-chartered    mutual   savings   and   loan   association   to   a
     federally-chartered stock savings and loan association and its simultaneous
     merger with the Association.  Neodesha  conducts a general banking business
     in  southeastern  Kansas.  In connection with this merger  conversion,  the
     Corporation sold 150,896 shares of its common stock at $9.42 per share. The
     transaction  was accounted for under the purchase  method of accounting for
     business  combinations.  Accordingly,  the acquired  assets and liabilities
     have  been  recorded  at  their  fair  value  at  acquisition  date and the
     operating  results of the  acquisition  are  included in the  Corporation's
     consolidated  statement of earnings from the date of acquisition.  The fair
     value of the net  assets  acquired  in  excess  of the  purchase  price was
     determined to be $1,172,848.  In accordance with purchase accounting rules,
     $232,264 of the excess  value has been used to reduce to zero the  carrying
     value of the acquired property and equipment with the remaining $940,583 of
     excess value  recognized  as negative  goodwill.  The negative  goodwill is
     being  amortized  to  income  on  a  ten-year   straight-line   basis.  The
     amortization period approximates the average life of the acquired long-term
     interest-bearing  assets.  Amortization of negative goodwill of $94,058 and
     $70,544  was  recorded  in the years  ended  September  30,  2000 and 1999,
     repsectively.  The net unamortized balance of negative goodwill of $775,981
     and $870,039 is included in other  liabilities  at  September  30, 2000 and
     1999, respectively.

     At the date of conversion, the merged association established a liquidation
     account equal to the amount of Neodesha's  retained  earnings  contained in
     the  offering  circular.  The  liquidation  account is  maintained  for the
     benefit of Neodesha  eligible  savings account holders existing at the date
     of  conversion  who  maintain  deposit  accounts in the  Association  after
     conversion.


<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE N - ACQUISITION - Continued

     The following summarized unaudited pro forma financial  information assumes
     the acquisition had occurred on October 1 of the acquisition year:
<TABLE>
                                                                                                  1999
                                                                                            ----------------
        <S>                                                                                    <C>
         Total interest income                                                                 $10,341,414
         Net earnings                                                                            1,195,162

         Earnings per share
           Basic                                                                               $      1.18
           Diluted                                                                                    1.12
</TABLE>

     In the  event of a  complete  liquidation  (and only in such  event),  each
     eligible  savings  account  holder  will be  entitled to receive a pro rata
     liquidation  distribution from the liquidation account in the amount of the
     then  current  adjusted  balance  of  deposit  accounts  held,  before  any
     liquidation  distribution may be made with respect to common stock.  Except
     for the repurchase of stock and payment of dividends,  the existence of the
     liquidation  account  will  not  restrict  the use or  application  of such
     retained earnings by the Association.

     Subsequent to  consummation  of the  transaction,  the  Association may not
     declare or pay a cash dividend on or repurchase any of its common stock, if
     the effect  thereof  would cause  stockholders'  equity to be reduced below
     either the amount  required  for the combined  liquidation  accounts or the
     regulatory capital requirements for insured institutions.


NOTE O - FAIR VALUE OF FINANCIAL INSTRUMENTS

     The following  methods and assumptions were used to estimate the fair value
     of each class of financial instruments at September 30, 2000 and 1999.

     Cash and cash equivalents:  The balance sheet carrying amounts for cash and
     short-term  instruments  approximate  the  estimated  fair  values  of such
     assets.

     Investment  securities  and  mortgage-backed  securities:  Fair  values for
     investment  securities and  mortgage-backed  securities are based on quoted
     market  prices,  if available.  If quoted market prices are not  available,
     fair values are based on quoted market prices of comparable instruments.

     Loans receivable: For variable rate loans that reprice frequently and which
     entail no significant  change in credit risk,  fair values are based on the
     carrying  values.  The  estimated  fair  values  of fixed  rate  loans  are
     estimated  based  on  discounted   cash  flow  analyses  using   prepayment
     assumptions  and interest  rates  currently  offered for loans with similar
     terms to borrowers of similar credit quality.  Nonperforming loans have not
     been  discounted.  The  carrying  amount  of  accrued  interest  receivable
     approximates its fair value.

     Commitments to extend  credit:  No premium or discount was ascribed to loan
     commitments  because when funded  virtually  all funding will be at current
     market rates.

     Federal  Home  Loan  Bank  stock:   The  balance  sheet   carrying   amount
     approximates the stock's fair value.


<PAGE>


                  First Independence Corporation and Subsidiary

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                           September 30, 2000 and 1999


NOTE O - FAIR VALUE OF FINANCIAL INSTRUMENTS - Continued

     Deposit  liabilities:  The fair values estimated for demand  deposits,  NOW
     accounts,  savings  and  certain  types of money  market  accounts  are, by
     definition,  equal to the amount  payable on demand at the  reporting  date
     (i.e.,  their  carrying  amounts).  The carrying  amounts of variable rate,
     fixed-term  money market accounts and  certificates of deposit  approximate
     their  fair  values  at the  reporting  date.  Fair  values  of fixed  rate
     certificates  of  deposit  are  estimated  using  a  discounted  cash  flow
     calculation  that  applies  interest  rates  currently  being  offered to a
     schedule of  aggregated  expected  monthly  time  deposit  maturities.  The
     carrying amount of accrued interest payable approximates its fair value.

     Advances  from Federal  Home Loan Bank:  For variable  rate  advances  fair
     values are considered  equal to their carrying  values.  The estimated fair
     value of fixed rate  advances are estimated  based on discounted  cash flow
     analysis using interest rates  currently  offered for advances with similar
     terms.

     The  following  table  provides  summary  information  on the fair value of
     financial  instruments.  Such information does not purport to represent the
     aggregate  net  fair  value of the  Corporation.  Further,  the fair  value
     estimates are based on various  assumptions,  methodologies  and subjective
     considerations,  which vary widely among different  financial  institutions
     and which are subject to change.  The  carrying  amounts are the amounts at
     which the financial instruments are reported in the consolidated  financial
     statements.
<TABLE>
                                                                                                2000
                                                                                 ----------------------------------
                                                                                  Carrying             Estimated
                                                                                  amount of           fair value
                                                                                 assets and          of assets and
                                                                                (liabilities)        (liabilities)
                                                                                --------------      --------------
     <S>                                                                          <C>                 <C>
   Cash and cash equivalents                                                    $  1,921,042         $  1,921,042
   Investment securities held to maturity                                          6,496,147            6,416,450
   Investment securities available for sale                                        1,992,200            1,992,200
   Mortgage-backed securities held to maturity                                     8,746,988            8,671,665
   Loans                                                                         125,877,049          124,240,049
   Federal Home Loan Bank stock                                                    1,955,000            1,955,000
   Deposits                                                                      (94,127,537)         (93,713,537)
    Advances from Federal Home Loan Bank                                         (39,100,000)         (38,656,000)
</TABLE>


<TABLE>
                                                                                               1999
                                                                                 ----------------------------------
                                                                                  Carrying             Estimated
                                                                                  amount of            fair value
                                                                                 assets and          of assets and
                                                                                (liabilities)        (liabilities)
                                                                                --------------       -------------
     <S>                                                                          <C>                 <C>
   Cash and cash equivalents                                                    $  1,439,995        $  1,439,995
   Investment securities available for sale                                        1,999,800           1,999,800
   Investment securities held to maturity                                          7,005,279           6,957,733
   Mortgage-backed securities held to maturity                                    10,912,279          10,852,983
   Loans                                                                         113,646,056         113,489,056
   Federal Home Loan Bank stock                                                    1,441,600           1,441,600
   Deposits                                                                      (95,452,864)        (95,463,864)
    Advances from Federal Home Loan Bank                                         (27,500,000)        (26,986,000)
</TABLE>

<PAGE>
                             STOCKHOLDER INFORMATION


Stock Listing Information
First Federal  Savings and Loan  Association  of  Independence  converted from a
mutual to a stock savings and loan  association  effective  October 5, 1993, and
formed First  Independence  Corporation  (the  "Company")  to act as its holding
company.  The  Company's  Common  Stock  (the  "Common  Stock") is traded on the
National  Association  of  Securities  Dealers  Automated  Quotation  ("NASDAQ")
Small-Cap Market under the symbol "FFSL."

Stock Price Information and Dividends
As of December 4, 2000, there were  approximately  213 shareholders of record of
the Company's Common Stock, not including those shares held in nominee or street
name through various brokerage firms or banks.

The  following  table sets forth the high and low bid prices of the Common Stock
and dividends  declared for each fiscal quarter since October 1, 1998. The stock
price information was provided by the NASD, Inc.

                                                               Dividends
Quarter Ended                         High           Low        Declared
-------------                       --------        ------      --------
December 31, 1998                   $ 11.000        $9.500      $0.0750
March 31, 1999                        11.000         9.000       0.0875
June 30, 1999                         11.000         9.625       0.0875
September 30, 1999                    10.750        10.125       0.0875

December 31, 1999                     10.563         9.625       0.0875
March 31, 2000                         9.875         7.625       0.1000
June 30, 2000                         10.000         8.000       0.1000
September 30, 2000                    10.250         9.250       0.1000

The Company has paid a cash  dividend on its Common Stock for each quarter since
the Association's  conversion to stock form.  Future dividends,  if any, will be
dependent upon the results of operations and financial condition of the Company,
tax considerations,  industry standards,  economic conditions,  general business
practices and other factors. The Company's ability to pay dividends is dependent
on the dividend payments it receives from the Association,  which are subject to
regulations  and the  Association's  continued  compliance  with all  regulatory
capital  requirements.  See  Note  L of  the  Notes  to  Consolidated  Financial
Statements for a discussion of regulations  governing the Association's  ability
to pay dividends.

<PAGE>

Annual Report on Form 10-KSB and Investor Information
A copy of the Company's annual report on Form 10-KSB,  filed with the Securities
and Exchange Commission, is available without charge by writing:

   Gary L. Overfield
   Senior Vice President and Secretary
   First Independence Corporation
   Myrtle and Sixth
   Independence, Kansas  67301

Stock Transfer Agent
Inquiries regarding stock transfer,  registration,  lost certificates or changes
in name and address should be directed to the stock transfer agent and registrar
by writing:

   Registrar and Transfer Company
   10 Commerce Drive
   Cranford, New Jersey  07016
   (800) 368-5948

Investor Information
Stockholders,  investors,  and analysts interested in additional information may
contact:

   James B. Mitchell,
   Vice President and Chief Financial Officer

Corporate Office
First Independence Corporation
Myrtle and Sixth
Independence, Kansas  67301
(316) 331-1660

Special Counsel
Silver, Freedman & Taff, L.L.P.
7th Floor - East Tower
1100 New York Avenue, NW
Washington, DC  20005

Independent Auditor
Grant Thornton, LLP
8300 Thorn Drive, Suite 300
Wichita, Kansas  67226

First Federal Savings and Loan Association of Independence
Myrtle and Sixth
Independence, Kansas  67301
(316) 331-1660

<PAGE>


                        DIRECTORS AND EXECUTIVE OFFICERS
                         FIRST INDEPENDENCE CORPORATION



OFFICERS

Lavern W. Strecker
Chairman of the Board

Larry G. Spencer
President and Chief Executive Officer

Gary L. Overfield
Senior Vice President and Secretary

James B. Mitchell
Vice President and Chief Financial Officer


BOARD OF DIRECTORS

Lavern W. Strecker
Chairman of the Board
   First Independence Corporation and
   First Federal Savings and Loan Association of Independence
Retired - Former Manager of Accounting and Control
   Arco Pipe Line Company

Larry G. Spencer
President and Chief Executive Officer
   First Independence Corporation
President and Chief Executive Officer
   First Federal Savings and Loan Association of Independence

William T. Newkirk II
Agent
   Newkirk, Dennis & Buckles Insurance Co.

Robert A. Johnson
Human Resource Manger
   Cobalt Boats

Harold L. Swearingen
Retired - Former Telecommunications Manager
   Arco Pipe Line Company

Joseph M. Smith
Retired - Former County Extension Agent
Agriculture and Coordinator
   Montgomery County Extension Council

E. JoVonnah Boecker
City Clerk
   Neodesha, Kansas



<PAGE>


           FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF INDEPENDENCE


OFFICERS

Lavern W. Strecker
Chairman of the Board

Larry G. Spencer
President and Chief Executive Officer

Gary L. Overfield
Senior Vice President and Secretary

James B. Mitchell
Vice President and Chief Financial Officer

Jim L. Clubine
Vice President and Asset Manager

Gregg S. Webster
Vice President

C. Alan Hoggatt
Vice President

Lori L. Kelley
Vice President of Operations and Technology

Phyllis A. Johnson
Assistant Vice President

Diane K. Holmquist
Assistant Vice President


BOARD OF DIRECTORS

Lavern W. Strecker

Larry G. Spencer

William T. Newkirk II

Harold L. Swearingen

Joseph M. Smith

Robert A. Johnson

E. JoVonnah Boecker