<PAGE>


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

                                   FORM 10-QSB


{X}  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended       December 31, 1997
                                     -----------------
                                       or

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

For the transition period from
                               ------------------ to -----------------------
Commission File Number:  0-27700

HBancorporation, Inc.
--------------------------------------------------------------
(Exact name of registrant as specified in its charter)

Delaware
--------------------------------------------------------------
(State or other jurisdiction of incorporation or organization)

37-1351506
--------------------------------------------------------------
(I.R.S. Employer identification No.)

619 12th Street, Lawrenceville, Illinois             62439
--------------------------------------------------------------
(Address of principal executive offices)           (Zip Code)

(618) 943-2515
--------------------------------------------------------------
(Registrant's telephone number, including area code)

         N/A
-----------------------------------------------------------------------
(Former name, former address and former fiscal year,
  if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing for the past 90
days. {X}Yes { }No

As of January 26, 1998, there were 398,100 shares of the Registrant's common
stock issued and outstanding.

Transitional Small Business Disclosure Format (Check One):

{  }   Yes                 {X}   No



<PAGE>


                              HBANCORPORATION, INC.

                                      INDEX


                                                                           PAGE
Part I.  Financial Information

   Item 1.  Financial Statements

   Consolidated Statements of Financial Condition at December 31, 1997       1 
   and June 30, 1997                                                      
                                                                          
   Consolidated Statements of Income for the three and six months         
   ended December 31, 1997 and 1996                                          2
                                                                          
   Consolidated Statement of Changes in Stockholders' Equity for the         3
   six months ended December 31, 1997 and 1996                            
                                                                          
   Consolidated Statements of Cash Flows for the three and six months        4
   ended December 31, 1997 and 1996                                       
                                                                          
   Notes to Consolidated Financial Statements                               5-6
                                                                          
   Item 2.  Management's Discussion and Analysis of Financial Condition    7-11
   and Results of Operations                                              
                                                                          
Part II. Other Information                                                
                                                                          
   Item 1.  Legal Proceedings                                               12
                                                                          
   Item 2.  Exhibits and Reports on Form 8-K                                12
                                                                          
   Signatures                                                               12
                                                                        
















<PAGE>





                              HBANCORPORATION, INC.
                             LAWRENCEVILLE, ILLINOIS
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>

                                                                  (Unaudited)
                                                                  December 31,        June 30,
                                                                      1997              1997
                                                                 ---------------  ---------------
                         ASSETS
<S>                                                              <C>              <C>    
Cash and equivalents:
   Cash                                                          $        95,011  $       357,424
   Interest bearing deposits                                           1,957,200        1,292,870
                                                                 ---------------  ---------------
         Total cash and cash equivalents                               2,052,211        1,650,294

Certificates of deposit with other banks                                  66,579          164,730
Investments available for sale at fair value                           2,031,608        1,098,227
Investments held to maturity at cost                                   1,023,327        1,024,461
Loans receivable, net                                                 14,332,718       13,506,764
Federal Home Loan Bank stock at cost                                      87,500           66,000
Federal Reserve Bank stock at cost                                        67,800           67,800
Accrued interest receivable                                              159,633          167,308
Office property and equipment, net                                        37,785           39,153
Other assets                                                              10,050           17,541
                                                                 ---------------  ---------------
         Total Assets                                            $    19,869,211  $    17,802,278
                                                                 ===============  ===============

    LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
   Passbook savings                                              $     1,959,812  $     1,940,931
   Money market deposit accounts                                         799,232          384,333
   Certificates of deposit                                             6,666,291        6,282,479
   Certificates of deposit $100,000 and over                           1,240,216          635,853
                                                                 ---------------  ---------------
         Total Deposits                                               10,665,551        9,243,596

   Advances from FHLB                                                  1,750,000              -0-

Other Liabilities:                                                       370,240          275,157
                                                                 ---------------  ---------------
         Total Liabilities                                            12,785,791        9,518,753
                                                                 ---------------  ---------------

Stockholders' Equity:
   Common stock, $.01 par value, 2 million shares authorized, 
     408,600 issued and  outstanding at December 31, 1997, and
     491,420 issued and outstanding at June 30, 1997                       4,933            4,933
   Additional paid in capital                                          4,527,343        4,514,279
   Retained earnings                                                   4,097,932        4,015,104
   Treasury stock at cost                                             (1,373,068)         (26,838)
   Net unrealized appreciation on available-for-sale securities
     net of tax of $100,000 at December 31, 1997 and
     $78,500 at June 30, 1997                                            142,000          111,500
   Unearned ESOP compensation                                           (315,720)        (335,453)
                                                                 ---------------  ----------------
         Total Stockholders' Equity                                    7,083,420        8,283,525
                                                                 ---------------  ---------------

         Total Liabilities and Stockholders' Equity              $    19,869,211  $    17,802,278
                                                                 ===============  ===============

</TABLE>

See notes to consolidated financial statements.

                                       -1-


<PAGE>


                              HBANCORPORATION, INC.
                             LAWRENCEVILLE, ILLINOIS
                        CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>


                                                        Three months ended                Six months ended
                                                           December 31,                     December 31,
                                                   -----------------------------    ----------------------------
                                                            (Unaudited)                      (Unaudited)
                                                        1997           1996             1997            1996
                                                   -------------  --------------    -------------  -------------
<S>                                               <C>             <C>               <C>           <C>  
INTEREST INCOME
   Loans receivable                                $     328,284  $      281,185    $     665,528  $     527,818
   Investments                                            79,545          94,833          153,837        195,364
                                                   -------------  --------------    -------------  -------------
         Total Interest Income                           407,829         376,018          819,365        723,182
                                                   -------------  --------------    -------------  -------------

INTEREST EXPENSE
   Interest on deposits                                  123,777         115,522          239,542        227,358
   Interest on FHLB advances                              21,279             -0-           29,379            -0-
                                                   -------------  --------------    -------------  -------------
         Total Interest Expense                          145,056         115,522          268,921        227,358
                                                   -------------  --------------    -------------  -------------

         Net Interest Income                             262,773         260,496          550,444        495,824
   Provision for Loan Losses                                 -0-           5,000              -0-          5,000
                                                   -------------  --------------    -------------  -------------
         Net interest income after provision
           for loan losses                               262,773         255,496          550,444        490,824
                                                   -------------  --------------    -------------  -------------

NONINTEREST INCOME
   Customer service fees and other                        15,634           1,724           21,402          2,366
                                                   -------------  --------------    -------------  -------------
         Total Noninterest Income                         15,634           1,724           21,402          2,366
                                                   -------------  --------------    -------------  -------------

NONINTEREST EXPENSES
   General and administrative
     Compensation and benefits                            78,912          74,432          157,094        137,710
     Occupancy and equipment                              10,262           7,390           19,205         17,188
     Deposit insurance premium                             4,861           8,954            9,641         18,695
     SAIF assessment fee                                     -0-             -0-              -0-         62,144
     Computer expense                                      4,335           3,990            8,368         11,045
     Legal expense                                        18,592          20,565           29,687         34,785
     Other                                                25,777          31,262           50,853         49,902
                                                   -------------  --------------    -------------  -------------
         Total Noninterest Expenses                      142,739         146,593          274,848        331,469
                                                   -------------  --------------    -------------  -------------

INCOME (LOSS) BEFORE INCOME TAX                          135,668         110,627          296,998        161,721

Income Tax Expense                                        68,200          48,450          137,700         66,827
                                                   -------------  --------------    -------------  -------------

NET INCOME (LOSS)                                  $      67,468  $       62,177    $     159,298  $      94,894
                                                   =============  ==============    =============  =============

Earnings per share:
   Primary                                         $        0.16  $         0.14    $        0.36  $        0.21
                                                   =============   =============    =============  =============

   Fully Diluted                                   $        0.16  $         0.14    $        0.35  $        0.21
                                                   =============  ==============    =============  =============
</TABLE>

See notes to consolidated financial statements.

                                       -2-


<PAGE>




                              HBANCORPORATION, INC.
                             LAWRENCEVILLE, ILLINOIS
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (Unaudited)
<TABLE>
<CAPTION>



                                                                                                               
                                                       Common         Paid in       Retained        Treasury   
                                                        Stock         Capital       Earnings          Stock    
                                                   -------------  --------------  -------------  ------------- 
<S>                                                <C>            <C>             <C>            <C>           
BALANCE, June 30, 1996                             $       4,933  $    4,505,471  $   3,954,530  $           0 
Net income for the six months ended
   December 31, 1996                                           0               0         94,894              0 
Cash dividends                                                 0               0        (78,930)             0 
Change in net unrealized gain on securities
   available-for-sale, net of applicable
   deferred income taxes of $62,000                            0               0              0              0 
Effect of contribution to fund ESOP                            0               0              0              0 
                                                   -------------  --------------  -------------  ------------- 

BALANCE, December 31, 1996                         $       4,933  $    4,505,471  $   3,970,494  $           0 
                                                   =============  ==============  =============  ============= 

BALANCE, June 30, 1997                             $       4,933  $    4,514,279  $   4,015,104  $     (26,838)
Net income for the six months ended
   December 31, 1997                                           0               0        159,298              0 
Cash dividends                                                 0               0        (76,470)             0 
Change in unrealized gain on securities
   available-for-sale, net of applicable
   deferred income taxes of $100,000                           0               0              0              0 
Effect of contribution to fund ESOP                            0               0              0              0 
Effect of contribution to fund RRP                             0          13,064              0              0 
Purchase of treasury stock                                     0               0              0     (1,346,230)
                                                   -------------  --------------  -------------  ------------- 

BALANCE, December 31, 1997                         $       4,933  $    4,527,343  $   4,097,932  $  (1,373,068)
                                                   =============  ==============  =============  ============= 

</TABLE>

<PAGE>

<TABLE>
<CAPTION>



                                                       Unrealized      Unearned                       
                                                       Gain (Loss)      Compen-          Total        
                                                       Securities       sation          Equity        
                                                     --------------  -------------  --------------        
<S>                                                  <C>             <C>            <C>               
BALANCE, June 30, 1996                               $       68,000  $    (374,918) $   8,158,016     
Net income for the six months ended                                                                   
   December 31, 1996                                              0              0         94,894     
Cash dividends                                                    0              0        (78,930)    
Change in net unrealized gain on securities                                                           
   available-for-sale, net of applicable                                                              
   deferred income taxes of $62,000                          22,000              0         22,000     
Effect of contribution to fund ESOP                               0         19,733         19,733     
                                                     --------------  -------------  -------------     
                                                                                                      
BALANCE, December 31, 1996                           $       90,000  $    (355,185) $   8,215,713     
                                                     ==============  =============  =============     
                                                                                                      
BALANCE, June 30, 1997                               $      111,500  $    (335,453) $   8,283,525     
Net income for the six months ended                                                                   
   December 31, 1997                                              0              0        159,298     
Cash dividends                                                    0              0        (76,470)    
Change in unrealized gain on securities                                                               
   available-for-sale, net of applicable                                                              
   deferred income taxes of $100,000                         30,500              0         30,500     
Effect of contribution to fund ESOP                               0         19,733         19,733     
Effect of contribution to fund RRP                                0              0         13,064     
Purchase of treasury stock                                        0              0     (1,346,230)    
                                                     --------------  -------------  -------------     
                                                                                                      
BALANCE, December 31, 1997                           $      142,000  $    (315,720) $   7,083,420     
                                                     ==============  =============  =============     
                                                                                                      
</TABLE>                                            





See notes to consolidated financial statements.

                                       -3-


<PAGE>


                              HBANCORPORATION, INC.
                             LAWRENCEVILLE, ILLINOIS
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>


                                                            Three months ended               Six months ended
                                                                December 31,                    December 31,
                                                        --------------------------     ----------------------------
                                                                (Unaudited)                     (Unaudited)
                                                            1997           1996             1997            1996
                                                        -----------     -----------     -----------     -----------
<S>                                                     <C>             <C>             <C>            <C>    
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)                                       $    67,468     $    62,177     $   159,298     $    94,894
Adjustments to reconcile net income to net
   cash provided by operating activities:
     Depreciation                                             3,027           2,724           6,066           5,168
     Decrease in other assets                                 5,652           1,772           7,491           8,360
     (Increase) decrease in interest receivable              54,799          50,396           7,675          (7,382)
     Increase in other liabilities                           19,649          42,561          95,083         133,228
     Provision for loan loss                                    -0-           5,000             -0-           5,000
                                                        -----------     -----------     -----------     -----------
Cash provided by operating activities                       150,595         164,630         275,613         239,268
                                                        -----------     -----------     -----------     -----------

CASH FLOWS FROM INVESTING ACTIVITIES
   Investments in certificates of deposit in other
     financial institutions, net (increase) decrease         (1,849)        188,448          98,151         438,448
   Purchase of Federal Home Loan Bank stock                 (21,500)            -0-         (21,500)            -0-
   Proceeds from maturities of investments
     held to maturity                                           475           2,536           1,134           4,089
   Proceeds from maturities of investments
     available-for-sale                                     110,653             -0-         110,653             -0-
   Purchases of investments available-for-sale                  -0-             -0-      (1,013,534)            -0-
   Purchase of fixed assets                                  (3,442)         (2,803)         (4,698)         (6,333)
   Net (increase) in loans                                 (383,181)       (774,350)       (825,954)     (2,620,847)
                                                        -----------     -----------     -----------     -----------
Cash (used) by investing activities                        (298,844)       (586,169)     (1,655,748)     (2,184,643)
                                                        -----------     -----------     -----------     -----------

CASH FLOWS FROM FINANCING ACTIVITIES
   Advances from FHLB                                       750,000             -0-       1,750,000             -0-
   Payment of dividends                                     (37,002)        (39,465)        (76,470)        (78,930)
   Allocation of ESOP shares                                 13,485             -0-          19,733             -0-
   Allocation of RRP shares                                  13,064             -0-          13,064             -0-
   Net increase (decrease) in demand deposits,
     NOW accounts, savings accounts and
     certificates of deposit                                658,919        (430,656)      1,421,955        (138,002)
   Purchases of treasury stock                             (906,363)            -0-      (1,346,230)            -0-
                                                        -----------     -----------     -----------     -----------
Cash provided (used) by financing activities                492,103        (470,121)      1,782,052        (216,932)
                                                        -----------     -----------     -----------     -----------

   Net increase (decrease) in cash and
     cash equivalents                                       343,854        (891,660)        401,917      (2,162,307)

Cash and Cash Equivalents at Beginning
   of Period                                              1,708,357       2,582,509       1,650,294       3,853,156
                                                        -----------     -----------     -----------     -----------

Cash and Cash Equivalents at End of Period              $ 2,052,211     $ 1,690,849     $ 2,052,211     $ 1,690,849
                                                        ===========     ===========     ===========     ===========

Cash paid for:
   Interest                                             $   133,748     $   109,304     $   246,010     $   224,384
                                                        ===========     ===========     ===========     ===========

   Income taxes                                         $    86,000     $    27,600     $   107,481     $    28,418
                                                        ===========     ===========     ===========     ===========
</TABLE>

See notes to consolidated financial statements.
                                       
                                      -4-


<PAGE>


                              HBANCORPORATION, INC.
                             LAWRENCEVILLE, ILLINOIS

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           DECEMBER 31, 1997 AND 1996



NOTE 1 - BASIS OF PRESENTATION

The unaudited information for the quarters ended December 31, 1997 and 1996,
includes the results of operations of HBancorporation, Inc. (the "Company") and
its wholly owned subsidiary Heritage National Bank (the "Bank"). In the opinion
of management of the Company and the Bank, the financial statements reflect all
adjustments (consisting only of normal recurring adjustments) necessary to
present fairly the consolidated financial statements. These interim financial
statements should be read in conjunction with the Company's most recent annual
financial statements and footnotes included in the annual report of
HBancorporation, Inc. for the fiscal year ended June 30, 1997. The results of
the period presented are not necessarily representative of the results of
operations and cash flows which may be expected for the entire year.

NOTE 2 - PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of the Company and
the Bank. All significant inter-company balances and transactions have been
eliminated in consolidation.

NOTE 3 - STOCK CONVERSION

The Company issued 493,320 shares, $.01 par value common stock, for proceeds of
$4,510,404 net of expenses of approximately $423,000. The Bank converted from a
mutual savings association to a stock savings association and then to a national
bank immediately following the formation of the Company and received proceeds of
$2,255,202 in exchange for all its common stock. This transaction was accounted
for using the pooling of interests method. On April 1, 1996, the Company began
trading as a public company on the OTC Electronic Bulletin Board under the
symbol "HBIN".

Federal regulations require that, upon conversion from a mutual to stock form of
ownership, a "liquidation account" be established by restricting a portion of
net worth for the benefit of eligible savings account holders who maintain their
savings accounts with the Bank after conversion. In the event of complete
liquidation (and only in such event) each savings account holder who continues
to maintain his savings account shall be entitled to receive a distribution from
the liquidation account after payment of all creditors, but before any
liquidation distribution with respect to capital stock. This account will be
proportionately reduced for any subsequent reduction in such holders' savings
account. Federal regulations impose limitations on the payment of dividends and
other capital distributions, including, among others, that the Company may not
declare or pay a cash dividend on any of its capital stock if the effect thereof
would cause the Bank's capital to be reduced below the amount required for the
liquidation account or the capital requirements imposed by the Financial
Institutions Reform, Recovery, and Enforcement Act.









                                       -5-
<PAGE>

                              HBANCORPORATION, INC.
                             LAWRENCEVILLE, ILLINOIS

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           DECEMBER 31, 1997 AND 1996



NOTE 3 - STOCK CONVERSION,CONTINUED

Concurrent with the conversion, the board of directors approved the adoption of
the Company's Employee Stock Ownership Plan (the "ESOP"). The ESOP qualifies
under Sections 401(a) and 501(a) of the Internal Revenue Code, eligibility is
based on hours of service, date of hire, and age. Contributions to the ESOP are
determined by the board of directors, in the form of cash or the Company's
common stock. No employee contributions are accepted. Contributions are
allocated based on the ratio of the participant's compensation to total
compensation of all participants. Participant's account balances are fully
vested after five years of service.

NOTE 4 - EMPLOYEE BENEFIT AND STOCK OPTION PLANS

On April 28, 1997, the stockholders' approved the HBancporation, Inc.
Recognition and Retention Plan ("RRP"). The purpose of this plan is to provide
directors, officers and employees with a proprietary interest in the Company in
a manner designed to encourage such individuals to remain with the Company and
the Bank. The terms of each RRP will be identical, only the participants and the
number of shares awarded to each participant vary. Eligible directors, officers
and other key employees of the Company will earn (i.e., become vested in) shares
of common stock covered by the award at a rate not to exceed 20% per year, with
the first installment vesting April 28, 1997.

On April 28, 1997, the stockholders approved the HBancorporation, Inc. 1997
Stock Option and Incentive Plan. Pursuant to the Stock Option Plan, the Company
will reserve for issuance thereunder either from authorized but unissued shares
or from issued shares reacquired and held as treasury shares, 59,198 shares of
Common Stock (12.0% of the Company's current shares outstanding). Management
currently intends, to the extent practicable and feasible, to fund the Stock
Option Plan from issued shares reacquired by the Company in the open market.
Awards under the plan may be in the form of stock options, stock appreciation
rights or limited stock appreciation rights. Awards made under the plan vest at
a rate of one-fifth of the initial award per year, subject to the participant
maintaining continuous service since the date of grant.

NOTE 5 - EARNINGS PER SHARE

Primary earnings per share amounts for the six months ended December 31, 1997
and 1996 are computed based on the weighted-average number of shares of actually
outstanding, 438,696 in 1997 and 455,836 in 1996. Fully diluted earnings per
share amounts are based on an increased number of shares that would be
outstanding assuming exercise of the stock options and RRP awards. The number of
shares used in the computations of fully diluted earnings per share for the six
months ended December 31, 1997 and 1996 were 458,560 and 455,836, respectively.









                                       -6-
<PAGE>

                              HBANCORPORATION, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATION



General

The Company is incorporated under the laws of Delaware and is generally
authorized to engage in any activity that is permitted for a bank holding
company under federal banking law. The Company owns all the stock of the Bank.
The Company had not engaged in any material operations at December 31, 1997, and
had no significant assets other than its equity investment in the Bank's stock,
cash, investments, and a loan to the Company's ESOP.

Established in 1935, the Bank (formerly named Lawrenceville Federal Savings and
Loan Association) is a community-oriented financial institution offering a
variety of financial services to meet the needs of the communities it serves.
The Bank's primary market area covers Lawrence County, Illinois, and Knox
County, Indiana. The Bank attracts deposits from the general public and uses
such deposits, together with borrowings and other funds, to originate one to
four family residential mortgages, commercial business loans, consumer loans,
and finance leases. The Bank also invests in U.S. government and agency
obligations and may invest in other permissible investments.

The Bank's results of operations are primarily dependent upon its net interest
income, which is the difference between interest earned on loans and investments
and interest paid on deposits and other borrowed funds. Net interest income is
directly affected by the relative amounts of interest earning assets and
interest bearing liabilities and the interest rates earned or paid on such
amounts. The Bank's results of operations are also affected by the provision for
loan losses and the level of noninterest income and expenses. Noninterest income
consists primarily of service charges. Noninterest expense includes salaries and
employee benefits, occupancy expenses, federal deposit insurance premiums, data
processing expenses, and other operating expenses.

The operating results of the Bank are also affected by general economic
conditions, the monetary and fiscal policies of federal agencies, and the
policies of agencies that regulate financial institutions. The Bank's cost of
funds is influenced by interest rates on competing investments and general
market rates of interest. Lending activities are influenced by the demand for
real estate loans and other types of loans, which in turn is affected by the
rates of interest at which loans are offered, general economic conditions
affecting loan demand, and the availability of funds for lending activities.

Financial Condition

For the six months ended December 31, 1997, total assets increased approximately
$2.1 million from $17.8 million to $19.9 million. Assets increased as a result
of an increase in cash, investments, and loans receivable. Deposits increased by
approximately $1.4 million to $10.7 million at December 31, 1997, from $9.2
million at June 30, 1997. Management believes the increase in deposits stems
from higher rates offered by competitors. For the six months ended December 31,
1997, total stockholders' equity decreased approximately $1.2 million from $8.3
million to $7.1 million. The decrease was primarily due to the purchase of
treasury stock and payment of dividends offset by net income.








                                       -7-
<PAGE>

                              HBANCORPORATION, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATION



Results of Operations:

Comparison of the three months ended December 31, 1997 and 1996.

General. Net income increased to $67,000 for the three months ended December 31,
1997, compared to $62,000 for the same period in 1996. The increase was
primarily due to increases in net interest income and noninterest income, and
reductions in deposit insurance premiums and professional fees.

Interest Income. Total interest income increased by $32,000 or 8.5% to $408,000
for the three months ended December 31, 1997, compared to the same period last
year. Income from loans grew by $47,000 for the three months. Investment income
decreased by $15,000 for the three months due primarily to lower amount of
investments at a slightly lower interest rate.

Interest Expense. Total interest expense increased by $29,000 for the three
months ended December 31, 1997, to $145,000 compared to $116,000 in the previous
three month period. The increase was primarily due to interest on FHLB advances.

Net Interest Income. Net interest income before provision for loan losses
increased $3,000 or 1.2% from $260,000 to $263,000 for the recent three month
period compared to the same period a year ago, respectively.

Nonperforming Assets and Provisions for Loan Losses. The provision for loan
losses is a result of management's periodic analysis of the adequacy of the
Bank's allowance for loan losses. During the three month period ended December
31, 1997, the Bank made no addition to the allowance for loan losses and
recorded a provision of $5,000 for the same period in 1996. The Bank continues
to monitor and adjust its allowance for loan losses as management's analysis of
its loan portfolio and economic conditions dictate.

Noninterest Income. Noninterest income was $15,000 for the three month period
ended December 31, 1997, compared to $2,000 for the same period in 1996. This
increase is primarily due to loan fees and fees for issuing travelers' checks
and service charges on checking accounts.

Noninterest Expense. For the three months ended December 31, 1997, the total
noninterest expense was $143,000 compared to $147,000 for the same three months
in 1996. This decrease is due to lower deposit insurance premiums and
professional fees, offset by contributions to the ESOP, costs associated with
the RRP and the cashout of a deceased director's stock options.

Income Tax Expense. Income tax expense increased to $68,000 during the most
recent three months compared to $48,000 for the same period a year ago. Higher
taxes were the result of filing separate tax returns for the Bank and the
holding company, and preparing consolidated financial statements.

Comparison of the six months ended December 31, 1997 and 1996.

General. Net income increased to $159,000 for the six months ended December 31,
1997, compared to $95,000 for the same period in 1996. The increase was
primarily due to a $55,000 increase in net interest income, and lower deposit
insurance premiums, offset by contributions to the ESOP and RRP.



                                       -8-
<PAGE>

                              HBANCORPORATION, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATION



Interest Income. Total interest income increased by $96,000 or 13.3% to $817,000
for the six months ended December 31, 1997, compared to the same period last
year. Income from loans increased by $137,000 for the six months. Investment
income decreased by $42,000 for the six months due primarily to lower amount of
investments at a slightly lower interest rate.

Interest Expense. Total interest expense increased by $42,000 for the six months
ended December 31, 1997, to $269,000 compared to $227,000 in the previous six
month period. The increase was primarily due to interest on FHLB advances.

Net Interest Income. Net interest income before provisions for loan losses
increased $54,000 or 10.9% from $496,000 to $500,000 for the recent six month
period compared to the same period a year ago, respectively.

Nonperforming Assets and Provisions for Loan Losses. The provision for loan
losses is a result of management's periodic analysis of the adequacy of the
Bank's allowance for loan losses. During the six month period ended December 31,
1997 the Bank made no addition to the allowance for loan losses, and recorded a
provision of $5,000 for the same period in 1996. The Bank continues to monitor
and adjust its allowance for loan losses as management's analysis of its loan
portfolio and economic conditions dictate. The Bank believes it has taken an
appropriate approach toward reserve levels, consistent with the Bank's loan
portfolio, the level of the Bank's allowance for loan losses and any change in
the related ratio of the allowance for loan losses to nonperforming loans are
dependent upon the economy, changes in real estate values and interest rates.
Because the Bank has historically experienced low loan losses, management also
considers the loss experience of similar portfolios in comparable lending
markets. In addition, federal regulators may require additional reserves as a
result of their examination of the Bank. Accordingly, the calculation of the
adequacy of the allowance for loan losses is not based directly on the level of
nonperforming assets. The allowance for loan losses reflects what the Bank
currently believes is an adequate level of resources, although there can be no
assurance that future losses will not exceed the estimated amounts, thereby
adversely affecting future results of operations. As of December 31, 1997 and
June 30, 1997, the Bank's allowance for loan losses was $128,000.

The Bank had no nonperforming assets at December 31, 1997 or June 30, 1997.
There was no foreclosed real estate owned by the Bank at December 31, 1997 or
June 30, 1997.

Noninterest Income. Noninterest income was $21,000 for the six month period
ended December 31, 1997, compared to $2,000 for the same period in 1996. This
increase is primarily due to loan fees and fees for issuing traveler's checks
and service charges on checking accounts.

Noninterest Expense. For the six months ended December 31, 1997, the total
noninterest expense was $275,000 compared to $331,000 for the same six months in
1996. Compensation and benefits have increased approximately $19,000 as a result
of contributions to the ESOP,. costs associated with the RRP and the cashout of
a deceased director's stock options. Deposit insurance premiums decreased
approximately $71,000 for the six months ended December 31, 1997, compared with
the same period in 1996. This decrease is primarily due to a one-time FDIC
assessment fee to recapitalize the SAIF insurance fund.

Income Tax Expense. Income tax expense increased to $137,000 during the most
recent six months compared to $67,000 for the same period a year ago. Higher
taxes were the result of filing separate tax returns for the bank and the
holding company, and preparing consolidated financial statements.

                                       -9-

<PAGE>

                              HBANCORPORATION, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATION



Capital Requirements. The Company's main sources of funds are deposits and loan
and investment repayments. Other potential sources would include borrowings from
the Federal Home Loan Bank of Chicago (FHLB). As a national bank, the Bank is
not subject to any prescribed liquidity requirement.

The Bank uses its capital resources 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. The company anticipates it will have sufficient funds to
meet current loan commitments. At December 31, 1997, the Bank had no outstanding
commitments to extend credit. Management believes loan repayments and other
sources of funds will be adequate to meet the Bank's foreseeable liquidity
needs. FHLB advances could be used to take advantage of investment
opportunities, but are not relied upon in the regular course of business.

The Bank is required to maintain specific amounts of regulatory capital pursuant
to federal regulations. The table below presents the capital position at
December 31, 1997 relative to the regulatory capital requirements for the Bank.

                                                               Amount
                                                           (in thousands)
                                                           --------------
         Tier 1 Capital                                   $          6,347
         Tier 1 Capital Requirement                                    592
                                                          ----------------
         Excess                                           $          5,755
                                                          ================

         Total Risk-Based Capital                         $          6,219
         Risk-Based Capital Requirement                              1,096
                                                          ----------------
         Excess                                           $          5,123
                                                          ================

























                                      -10-
<PAGE>


                           PART II. OTHER INFORMATION



Item 1.         Legal Proceedings

                There are no material legal proceedings to which the Company or
                the Bank is a party or of which any of their property is
                subject. From time-to-time, the Bank is a party to legal
                proceedings incident to its business.

Item 2.         Exhibits and Reports on Form 8-K

                None








































                                      -11-
<PAGE>

                                   SIGNATURES



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

                                               HBANCORPORATION, INC.          
                                               Registrant
                                            
                                            
                                            
Date:       January 26, 1998                   /s/  Kevin J. Kavanaugh
       --------------------------              ---------------------------
                                               Kevin J. Kavanaugh, President
                                               and Chief Executive Officer
                                            
                                            
                                            
                                            
Date:      January 26, 1998                    /s/  Cleora Gillespie
       --------------------------              ---------------------------
                                               Cleora Gillespie, Secretary and
                                               Treasurer
                                            
                                    































                                      -12-