1999 ANNUAL REPORT

                          Year ended September 30, 1999

                             Report To Shareholders

                         [GRAPHIC-BANK PICTURE OMITTED]

                                  Home Bancorp

                               Fort Wayne, Indiana


<PAGE>

                                CORPORATE PROFILE

          Home  Bancorp,  Fort  Wayne,  Indiana,  an  Indiana  Corporation,  was
established  March 29, 1995 as a savings bank holding  company for its principal
subsidiary,  Home Loan Bank fsb.  Based on total assets at September 30, 1999 of
$414  million,  Home  Bancorp  is  the  largest  savings  bank  holding  company
headquartered in Fort Wayne, the second largest city in Indiana.

          Originally  founded  on March  22,  1893 by a group of  fellow  German
immigrants representing local business people, the Bank is a dedicated community
oriented financial  institution  offering  traditional  deposit and mortgage and
consumer loan products.  The Bank maintains a ten full-service office network in
Fort Wayne,  Decatur and New Haven and possesses the  distinction  of being Fort
Wayne's oldest bank.

          As a guide for our forthcoming  107th  consecutive year, our challenge
is to continue  the Bank's  solid  reputation  and offer  superior  service with
competitive  prices through  increased  efficiency and close  operating  expense
controls.  Home  Loan  Bank fsb is an equal  opportunity  employer  and an equal
housing lender.

          The common stock of Home  Bancorp  trades under the symbol HBFW on The
Nasdaq National Market.
<PAGE>

                                TABLE OF CONTENTS

Corporate Profile.....................Front Cover Inside

President's Annual Shareholder Report..................1

Selected Consolidated Financial Data...................2

Management's Discussion & Analysis of Financial
     Condition & Results of Operations.................4

Report of Independent Auditors........................15

Consolidated Balance Sheets...........................16

Consolidated Statements of Income.....................17

Consolidated Statements of Changes in
     Shareholders' Equity.............................18

Consolidated Statements of Cash Flows.................19

Notes to Consolidated Financial Statements............20

Corporate & Shareholder Information...................43

Home Loan Bank Office Locations.......................43

Mission Statement.....................................44

Market Makers.........................................44

Directors & Officers..................................45

                     [GRAPHIC-MAP OF BANK LOCATIONS OMITTED]

                       Fort Wayne . . . The Midwest Hub !


<PAGE>
PRESIDENT'S ANNUAL SHAREHOLDER REPORT

Home Loan Bank - the Bank that makes a difference!

With  highly  individualized  service  and a variety  of  banking  products,  we
continue to provide good performance and build shareholder value. With more than
$345  million in loans and other  contributions  throughout  our  community,  we
support the growth of Northeast Indiana, which has been our home since 1893.

As a  leader  in  the  home  loan  industry,  we are  satisfied  not  simply  by
maintaining the standards,  but by raising and setting the standards.  It is our
employees who take pride from mastering new information systems to maintaining a
refreshing,  "can-do"  attitude.  It is our  employees who meet the needs of the
community by giving of their time and talents.  It is our  philosophy of putting
customers and community first. Our continued commitment to customer satisfaction
has resulted in our continued growth and profitability,  fueled by a strong loan
portfolio and excellent  overhead control.  We will never be your ordinary bank.
We will always be the Bank that makes a difference - for our  customers  and our
community.

Since  opening  in 1893,  Home Loan Bank has  built a  history  of safe,  sound,
profitable  growth.  Now in its 106th year,  the Bank  continues  to deliver its
hallmark  customer  service,  while enhancing  shareholder  value. In 1999, this
operating  philosophy helped the Bank exceed $413 million in Total Assets, which
places it in the top 25% of all thrift institutions in Indiana.  The Bank earned
7.90%  Return  on  Average  Equity  and .79%  Return  on  Average  Assets,  both
indicative of a conservative  management style. These achievements represent the
Bank's solid foundation and will facilitate future growth.

Net Income in 1999 was $3.1  million,  a 6.9% increase over 1998's $2.9 million.
1999's Basic Net Income Per Share was $1.56  compared to $1.32 in 1998 and $1.20
in 1997. This consistent earnings growth demonstrates management's commitment to
effectively controlling expenses, while attracting deposits and quality loans.

Total  Deposits  were more than $363 million at September  30, 1999,  with Total
Loans  in  excess  of $345  million,  representing  respectively,  15% and  6.7%
increases over  September 30, 1998.  Total Assets were in excess of $413 million
at September 30, 1999, which represents an 11.2% increase over 1998's figure.

At the core of the Bank's solid  performance  is the continued  soundness of its
loan  portfolio - measured  not by  quantity  of loans but by quality.  Again in
FY1999 the Bank only  recorded  nominal  charge-offs.  The Bank  continues to be
responsive  and flexible in working with its  customers,  while at the same time
maintaining sound credit judgment.

Also of note is the Bank's  exceptional  Efficiency Ratio, which translates into
excellent control of overhead expenses.  The Ratio measures the dollar amount of
overhead expense,  such as salaries and benefits,  building  occupancy and other
noninterest  expense  needed to  generate  one  dollar  of  income.  The  Bank's
Efficiency  Ratio of 50 cents  needed to generate $1 of income is  significantly
below  the  industry  general  benchmark  of 60 cents  for  every $1 of  income.
Reaching  this level of  efficiency  has  required  our  employees to provide an
extraordinary level of service.

As we prepare for the next year of  business,  we have never  deviated  from our
mission:  meeting the financial needs of our customers with an  encouragement of
investments and the promotion of home ownership.  Further,  we shall perform our
obligations  in an ethical  manner in the community as a  responsible  corporate
citizen and  acknowledge  the holding  company's  ultimate  responsible  goal of
shareholder enhancements.
<PAGE>

We continue to concentrate on services that will have the greatest impact on our
customers' success. Our proactive approach to technology and systems, high level
of  service,  competitive  rates,  high  quality  loans  and  low  overhead  all
contribute  to our original  purpose:  raising  deposits.  Doing so takes people
committed  to  achieving   even  higher   levels  of  service  and  success  for
customers....people   who  make  a   difference.   Our  employees  are  the  top
professionals in the banking  industry - the results speak for themselves.  With
your continued support, we are very optimistic about the coming year.

                               Sincerely,

                               /s/Marvin C.  Schumm
                               --------------------
December 1, 1999               Marvin C.  Schumm,  President  & Chief  Executive
                               Officer




                                       1
<PAGE>
                      SELECTED CONSOLIDATED FINANCIAL DATA

         Set forth below are selected  consolidated  financial and other data of
the  Company.  This  financial  data is  derived  in part from the  consolidated
financial  statements  and  related  notes of the  Company  which are  presented
elsewhere in this Annual Report.



<TABLE>
<CAPTION>
                                                                                    At September 30,
                                                      ----------------------------------------------------------------------

                                                           1999            1998          1997           1996         1995
                                                           ----            ----          ----           ----         ----
                                                                                     (In Thousands)

 Summary of Financial Condition:
<S>                                                   <C>            <C>           <C>            <C>           <C>
   Total assets                                       $    413,957   $   372,429   $   346,041    $   322,702   $   313,185
   Loans receivable, net                                   345,999       324,188       283,987        250,306       214,405
   Cash and cash equivalents                                36,313        23,366        16,445         11,923        21,390
   Investment securities and FHLB Stock                     26,333        19,944        40,530         54,842        71,917
   Deposits                                                363,354       315,998       297,493        271,185       256,108
   Federal Home Loan Bank advances                           7,000         9,000             -              -             -
   Shareholders' equity - substantially restricted          37,923        41,038         43,991        46,713        54,060

</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                                                                        Year Ended September 30,
                                                   --------------------------------------------------------------
                                                     1999          1998          1997           1996         1995
                                                     ----          ----          -----          ----         ----
                                                                            (In Thousands)
Summary of Operating Results:
<S>                                                <C>           <C>          <C>          <C>          <C>
  Interest income ............................     $ 27,253      $ 25,979     $ 24,422     $ 22,913     $ 21,120
  Interest expense ...........................       17,204        16,223       14,963       13,787       12,730
                                                   --------      --------     --------     --------     --------
    Net interest income ......................       10,049         9,756        9,459        9,126        8,390
  Provision for loan losses ..................            2             2            2           13           87
                                                   --------      --------     --------     --------     --------
    Net interest income after provision for
      loan losses ............................       10,047         9,754        9,457        9,113        8,303
  Noninterest income:
    Net losses on trading securities .........          (27)         --           --           --           --
    Net gains on sales of securities available
      for sale ...............................           41           108         --              1            1
    Net gains on sales of loans held for sale             4          --           --              2         --
    Other ....................................          390           248          246          227          220
                                                   --------      --------     --------     --------     --------
       Total noninterest income ..............          408           356          246          230          221
  Noninterest expense:
    Employee compensation and benefits .......        3,154         3,088        2,726        2,512        2,088
    Occupancy and equipment ..................          791           729          591          528          584
    Federal deposit insurance premium ........          192           186          251        2,235          582
    Other ....................................        1,049         1,009        1,187        1,151        1,274
                                                   --------      --------     --------     --------     --------
       Total noninterest expense .............        5,186         5,012        4,755        6,426        4,528
                                                   --------      --------     --------     --------     --------
  Income before income taxes and cumulative
    effect of change in accounting principle .        5,269         5,098        4,948        2,917        3,996
  Income tax expense .........................        2,214         2,192        2,055        1,281        1,535
                                                   --------      --------     --------     --------     --------
  Income before cumulative effect of change
    in accounting principle ..................        3,055         2,906        2,893        1,636        2,461
  Cumulative effect of change in accounting
    for derivative instruments and hedging

    activities, net of tax ...................           55          --           --           --           --
                                                   --------      --------     --------     --------     --------

  Net income .................................     $  3,110      $  2,906     $  2,893     $  1,636     $  2,461
                                                   ========      ========     ========     ========     ========

</TABLE>
                                        2


<PAGE>
<TABLE>
<CAPTION>
                                                                        Year Ended September 30,
                                                -----------------------------------------------------------------------
                                                     1999           1998           1997          1996           1995
                                                     ----           ----           -----         ----           ----
 PERFORMANCE RATIOS (Averages)

<S>                                             <C>            <C>           <C>           <C>              <C>
   Return on assets(1).....................            .79%           .82%          .87%          .52%             .83%
   Return on shareholders' equity(2).......           7.90           6.80          6.43          3.21             6.50
   Yield on interest-earning assets........           7.05           7.47          7.53          7.43             7.25
   Cost of interest-bearing liabilities....           5.06           5.30          5.30          5.30             4.99
   Net interest spread(3)..................           1.99           2.17          2.23          2.13             2.26
   Net interest rate margin(4).............           2.60           2.80          2.92          2.96             2.88
   Operating (G&A) expenses to assets(5)(6)           1.31           1.42          1.44          1.52             1.53
   Efficiency ratio (6)(7).................          49.59          49.56         48.99         51.05            52.59
   Net interest income to operating (G&A)
     expenses(6)...........................         193.77         194.65        198.93        190.80           185.29
   Interest-earning assets to interest-bearing
     liabilities...........................         113.63         113.78        114.90        118.63           114.73
   Average assets (dollars in thousands)...     $  395,724     $  353,789    $  331,060     $ 314,645     $    296,221

 CAPITAL RATIOS

   Equity to assets at period end .........           9.16%         11.02%        12.71%        14.48%           17.26%
   Average equity to average assets........           9.95          12.07         13.59         16.21            12.79
   Average tangible equity to average assets          9.95          12.07         13.59         16.21            12.79
   Dividend payout ratio...................          25.17          24.22         16.95         17.54               -

 ASSET QUALITY RATIOS

   Non-performing assets to total assets...            .02%           .08%          .06%          .07%             .03%
   Non-performing loans to total loans.....            .03            .09           .08           .09              .05
   Allowance for loan losses to net loans..            .39            .43           .49           .55              .64
   Allowance for loan losses to non-
     performing loans......................          1,525             476           622           600            1,411
   Net charge-offs to net loans............            .01               -             -             -                -
   Loans to deposits.......................          95.22          102.59         95.46         92.30            83.72
   Loans to assets.........................          83.58           87.05         82.07         77.57            68.46
   Loan originations (dollars in thousands)      $ 113,570      $  114,171    $   81,888     $  83,917     $     51,514

PER COMMON SHARE

   Dividends declared per share............     $      .38      $     0.31    $     0.20     $    0.10     $         -
   Income before cumulative effect of
     change in accounting principle:
     Earnings, basic.......................           1.53            1.32          1.20           .57              .44
     Earnings, diluted.....................           1.48            1.28          1.18           .57              .44
   Net income:

     Earnings, basic.......................           1.56            1.32          1.20          0.57             0.44
     Earnings, diluted.....................           1.51            1.28          1.18          0.57             0.44
   Book value..............................          18.49           18.20         17.83         16.91            16.37
   Tangible book value.....................          18.49           18.20         17.83         16.91            16.37
   Shares outstanding at period end........      2,050,506       2,254,642     2,467,238     2,762,350        3,303,178

Number of full-service offices                          10               9             9             8                8
</TABLE>
<PAGE>
(1)     Net income divided by average total assets.
(2)     Net income divided by average total shareholders' equity.
(3)     Interest  rate spread is determined  by  subtracting  combined  weighted
        average interest rate cost from  combined weighted average interest rate
        earned for the period indicated.
(4)     Net interest income divided by average  interest-earning  assets.
(5)     Other expense divided by average total assets.
(6)     The ratios for 1996 excludes $1.65 million pre-tax on non-recurring SAIF
        special assessment.  Including the said exclusion, operating expenses to
        average  assets would be 2.04%;  efficiency  ratio would be 68.68%;  net
        interest income to operating expenses would be 142.02%.
(7)     Operating  expenses  divided  by  the  sum of net  interest  income  and
        noninterest income.



                                       3
<PAGE>
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

General

         Fiscal  year 1999  marked the  fourth  full year of  operation  of Home
Bancorp (the Company)  since the  conversion of Home Loan Bank fsb (the Bank) on
March 29,  1995  from a mutual  to stock  form of  ownership  (the  Conversion).
Through that  conversion the Company raised $30.1 million,  net of funds used to
purchase  shares  for an  Employee  Stock  Ownership  Plan (the ESOP) and net of
Conversion costs.  During fiscal 1999 and 1998 the Company continued to leverage
those conversion proceeds in sustained growth in its balance sheet.  Through the
origination of first lien residential  mortgages in the Bank's service area, the
Company had  substantive  loan portfolio  growth that was supported by growth in
consumer  deposits,  borrowings  from the Federal Home Loan Bank of Indianapolis
(the FHLB),  and use of  investment  proceeds.  During  fiscal 1999 and 1998 the
Company also  repurchased  250,671 and 234,731  shares of Home Bancorp  stock to
fund stock options and for other general corporate purposes. The leverage of the
Company's capital through the stock  repurchases  enhanced both the earnings per
share and the  return on equity.  The  Company's  net  income  for  fiscal  1999
represents the most profitable year on record for the Company.

Financial Condition

         September 30, 1999 compared to September 30, 1998. The Company's  total
assets  increased  from $372.4  million as of September 30, 1998 to $414.0 as of
September 30, 1999, an increase of $41.6 million or 11.2%.  Shareholders' equity
decreased  from $41.0 as of September  30, 1998 to $37.9 million as of September
30,  1999, a decrease of $3.1  million or 7.6%.  The  decrease in  shareholders'
equity was  primarily  the net result of earnings for the year of  approximately
$3.1 million,  release of shares for benefit  plans,  the  repurchase of 250,671
shares of common stock for $6.9 million, and dividends paid on common stock.

         Total cash and cash  equivalents  increased  from  $23.4  million as of
September  30, 1998 to $36.3  million as of September  30, 1999,  an increase of
approximately   $12.9   million.   Investment   securities,    including   those
held-to-maturity and available-for-sale,  were $23.2 million as of September 30,
1999,  an  increase  of $6.0  million  from the  balance of $17.2  million as of
September  30, 1998.  As of January 1, 1999,  the Company  adopted SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities. In accordance with
provisions in that statement, the Company chose to reclassify certain securities
from held-to-maturity to trading and  available-for-sale.  The amortized cost of
securities  transferred to available-for-sale  was $4,007,930 and the unrealized
net gain was $26,444,  which is included in shareholders'  equity, net of income
tax effect of $10,474.  The  amortized  cost of the  securities  transferred  to
trading  was  $4,015,191  and the  unrealized  net  gain was  $91,060,  which is
reported as the cumulative  effect of a change in accounting  principle,  net of
tax of $36,069.  The Company has no derivative  instruments to account for under
provisions  of this  statement.  The net  increase in liquid  assets  during the
fiscal  year  was used  primarily  to fund  growth  in the  loan  portfolio  and
repurchase common stock.

         Net loans  receivable  increased  $21.8  million or 6.7%,  from  $324.2
million as of September  30, 1998 to $346.0  million as of  September  30, 1999.
This  increase  was  primarily  the  result  of  continued  growth  in  one-  to
four-family residential loan originations in the Company's primary lending area.
Mortgage loan  originations  increased as a result of demand  attributable  to a
continued  stable interest rate  environment and  historically  low unemployment
rates.
<PAGE>

         Total  deposits  were  $363.4  million as of  September  30,  1999,  an
increase of $47.4  million  from $316.0  million as of September  30, 1998.  The
increase in deposits was primarily the result of significant growth in both core
deposits and certificates of deposits. As of September 30, 1999, certificates of
deposit had an increase of $29.1 million from $234.6 million as of September 30,
1998 to $263.7 million as of September 30, 1999. As of September 30, 1999,  core
deposits had an increase of $18.2 million from $81.4 million as of September 30,
1998 to $99.6 million as of September 30, 1999.  Management attributes this fact
to customer  preferences which include higher yielding instruments of deposit of
relatively  short  maturities as well as the liquidity  afforded  lower yielding
transactional accounts. At September 30, 1999, the Company had $186.4 million in
certificates  of deposit  with terms of one year or less as  compared  to $151.8
million for the same period ended  September 30, 1998. The Company's  pricing of
certificates of deposit are consistent with that of its competitors.

         Due to favorable  funding rates and anticipated  liquidity  needs,  the
Bank has borrowed funds from the FHLB. Outstanding FHLB advances as of September
30, 1999 were $7.0 million.  The maturity of these  advances  ranged from 1 to 9
years and were  secured by a blanket  lien  arrangement.  The  Company  had $9.0
million in advances as of September 30, 1998.



                                       4
<PAGE>
Results of Operations

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

         General.  Net  income for the year ended  September  30,  1999 was $3.1
million,  an increase of $204,000  compared to net income  recorded for the year
ended  September  30,  1998.  The  increase  in net  income  for the year  ended
September  30, 1999  compared to the prior year was  primarily  the result of an
increase in net interest income and other noninterest  income that was partially
offset by increased operating expenses and income taxes.

         Interest Income.  Interest income increased $1.3 million, or 5.0%, from
$26.0  million for the year ended  September  30, 1998 to $27.3  million for the
year ended  September 30, 1999.  Interest income on loans  receivable  increased
$1.4 million while  interest  income on investments  and other  interest-earning
assets  decreased  $155,000  during fiscal 1999 as compared to fiscal 1998.  The
increase  in  interest  income  for  fiscal  1999 was  primarily  the  result of
increases in the average balance of outstanding  loans, as yields earned on loan
balances  decreased  during the fiscal year. The average  balance as well as the
yield on investment securities decreased during fiscal 1999. The average balance
of  interest  earning  deposits  increased,  and the  yield  on  these  deposits
decreased when compared to fiscal 1998.

         Interest  Expense.  Interest expense  increased $1.0 million,  or 6.2%,
from $16.2  million for the year ended  September  30, 1998 to $17.2 million for
the year ended  September  30, 1999.  The  increase in interest  expense was the
result of higher average  balances of deposits,  FHLB  advances,  and rate based
savings  preferences of customers  during fiscal 1999. The weighted average rate
paid on  interest-bearing  liabilities  for fiscal 1999 of 5.06%  compared to an
average of 5.30% for fiscal 1998.  See  "Average  Balances,  Interest  Rates and
Yields" and "Rate/Volume Analysis."

         Net Interest Income. Net interest income increased  $293,000,  or 3.0%,
from $9.7 million for the year ended September 30, 1998 to $10.0 million for the
year ended September 30, 1999. This increase was attributable to the increase in
interest  income  which more than offset the  increase  in  interest  expense as
previously  discussed.  The Company's  interest rate spread decreased from 2.17%
during  fiscal 1998 to 1.99% during  fiscal  1999.  The decrease in the interest
rate  spread  during the fiscal  year  reflected  a general  decrease  in market
spreads.

         Provision  For Loan Losses.  The provision for loan losses for the year
ended  September 30, 1999 was $2,400.  This was the same amount  provided for in
fiscal 1998.  The Company's  provision for loan losses was based on, among other
things,  management's  assessment  of the credit risk  inherent in the Company's
loan  portfolio and the current  balance of the  allowance  for loan losses.  At
September 30, 1999, the Company's allowance for loan losses totaled $1.3 million
or .39% of net loans  receivable and 1,525% of total  non-performing  loans.  In
management's  assessment,  continued  growth in the Company's  residential  loan
portfolio has not significantly  raised  anticipated risk exposures nor impaired
the Company's ability to absorb future loan losses.

         In establishing its allowance,  the Company also considers the level of
its classified and non-performing assets and their estimated value, the national
economic  outlook which may tend to inhibit  economic  activity and depress real
estate and other values in the Company's  primary market area,  the  regulators'
view  of  adequate  reserve  levels  for  the  thrift  industry,  the  Company's
historically  low loan losses,  and the levels of the  allowance for loan losses
established by the Company's peers.  Accordingly,  the allowance for loan losses
is not based  solely on the  level of  non-performing  loans.  The  Company  had
$51,000 in net loan charge-offs in fiscal 1999.
<PAGE>
         The Company will  continue to monitor its allowance for loan losses and
make future additions to the allowance  through the provision for loan losses as
economic  conditions  dictate.  Although the Company maintains its allowance for
loan  losses  at a level  which it  considers  to be  adequate  to  provide  for
potential  losses,  there can be no assurance that future losses will not exceed
estimated  amounts or that  additional  provisions  for loan  losses will not be
required in future periods. In addition,  the Company's  determination as to the
amount of its  allowance  for loan  losses is subject to review by the Office of
Thrift  Supervision (the OTS) as part of their  examination  process,  which may
result in the  establishment of additional  allowances based upon their judgment
of the information available to them at the time of their examination.

         Noninterest  Income.  Noninterest  income  increased  from  $356,000 in
fiscal 1998 to $408,000 in fiscal 1999.  This modest  increase was primarily the
result of  increases  in service  charges  and fees  which more than  offset the
decrease in securities gains.

                                       5
<PAGE>
         Noninterest  Expense.   Noninterest  expense  increased   approximately
$174,000,  or 3.5%,  from $5.0  million in fiscal 1998 to $5.2 million in fiscal
1999.  Approximately  $66,000 of this  increase  was  attributable  to  employee
compensation  and  benefits.  Occupancy  and  equipment  expense in fiscal  1999
increased by approximately $62,000 including expenditures and depreciation costs
associated with Year 2000 issues. Some of these costs represented  non-recurring
items  necessary  in the  Company's  readiness  for Year  2000.  See "Year  2000
Compliance."  Other noninterest  expenses  increased $40,000 for the fiscal year
ended 1999 when  compared  to the like period in 1998,  primarily  the result of
increased  data  processing  expenses  partially  offset  by  other  noninterest
expense.

         Income Tax Expense.  Income tax expense increased from $2.19 million in
fiscal  1998 to $2.21  million  in fiscal  1999,  as a result  of higher  pretax
earnings for the period.  The effective  tax rate in fiscal 1999 was  moderately
lower than in 1998  primarily  due to  decreased  market  values of ESOP  shares
relative to cost.

Comparison of the Fiscal Years Ended September 30, 1998 and 1997

         General.  Net  income for the year ended  September  30,  1998 was $2.9
million,  an increase of $13,000  compared to net income  recorded  for the year
ended  September 30, 1997. The modest  increase in net income for the year ended
September  30, 1998  compared to the prior year was  primarily  the result of an
increase in net interest  income and net gains on sales of securities  available
for sale,  that was nearly offset by increased  noninterest  expenses and income
taxes.

         Interest Income.  Interest income increased $1.6 million, or 6.6%, from
$24.4  million for the year ended  September  30, 1997 to $26.0  million for the
year ended  September 30, 1998.  Interest income on loans  receivable  increased
$2.7 million while  interest  income on investments  and other  interest-earning
assets decreased $1.1 million during fiscal 1998 as compared to fiscal 1997. The
increase  in  interest  income  for  fiscal  1998 was  primarily  the  result of
increases in the average balance of outstanding  loans, as yields earned on loan
balances  decreased when compared to fiscal 1997.  Both the average  balances of
investments  and  interest-earning  deposits,  and the  yield  earned  on  those
balances decreased during the year ended September 30, 1998 compared to the year
ending September 30, 1997. See "Average Balances, Interest Rates and Yields" and
"Rate/Volume Analysis."

         Interest  Expense.  Interest expense  increased $1.2 million,  or 8.0%,
from $15.0  million for the year ended  September  30, 1997 to $16.2 million for
the year ended  September  30, 1998.  The  increase in interest  expense was the
result of higher average balances of deposits and FHLB advances,  and rate based
savings  preferences of customers  during fiscal 1998. The weighted average rate
paid on interest-bearing liabilities for fiscal 1998 of 5.30% was the same as in
fiscal 1997. See "Average Balances,  Interest Rates and Yields" and "Rate/Volume
Analysis."

         Net Interest Income. Net interest income increased  $297,000,  or 3.1%,
from $9.5 million for the year ended  September 30, 1997 to $9.8 million for the
year ended September 30, 1998. This increase was attributable to the increase in
interest  income  which more than offset the  increase  in  interest  expense as
previously  discussed.  The Company's  interest rate spread decreased from 2.23%
during  fiscal 1997 to 2.17% during  fiscal  1998.  The decrease in the interest
rate  spread  during the fiscal  year  reflected  a general  decrease  in market
spreads.
<PAGE>
         Provision  For Loan Losses.  The provision for loan losses for the year
ended  September 30, 1998 was $2,400.  This was the same amount  provided for in
fiscal 1997.  The Company's  provision for loan losses was based on, among other
things,  management's  assessment  of the credit risk  inherent in the Company's
loan  portfolio and the current  balance of the  allowance  for loan losses.  At
September 30, 1998, the Company's allowance for loan losses totaled $1.4 million
or .43% of net  loans  receivable  and 476% of total  non-performing  loans.  In
management's  assessment,  continued  growth in the Company's  residential  loan
portfolio has not significantly  raised  anticipated risk exposures nor impaired
the Company's ability to absorb future loan losses.

         In establishing its allowance,  the Company also considers the level of
its classified and non-performing assets and their estimated value, the national
economic  outlook which may tend to inhibit  economic  activity and depress real
estate and other values in the Company's  primary market area,  the  regulators'
view  of  adequate  reserve  levels  for  the  thrift  industry,  the  Company's
historically  low loan losses,  and the levels of the  allowance for loan losses
established by the Company's peers.  Accordingly,  the allowance for loan losses
is not based  solely on the level of  non-performing  loans.  The Company had no
loan charge-offs in fiscal 1998 or 1997.

                                       6
<PAGE>
        Noninterest  Income.  Noninterest  income  increased  from  $246,000 in
fiscal 1997 to $356,000 in fiscal 1998. The increase was the result of net gains
on sales of securities available for sale that were sold to fund liquidity needs
of the Company.  There were no sales of interest  earning  assets  during fiscal
1997.

         Noninterest  Expense.   Noninterest  expense  increased   approximately
$257,000,  or 5.4%,  from $4.7  million in fiscal 1997 to $5.0 million in fiscal
1998.  Approximately  $362,000 of this  increase  was  attributable  to employee
compensation and benefits. Specifically,  increases in the Company's stock price
during the fiscal year impacted expenses  associated with the ESOP and accounted
for most of this  increase.  Occupancy  and  equipment  expense  in fiscal  1998
increased by  approximately  $138,000  including  expenditures  and depreciation
costs  associated  with  Year  2000  issues.  Some of  these  costs  represented
non-recurring  items  necessary in the Company's  readiness  for Year 2000.  See
"Year  2000  Compliance."   Federal  deposit  insurance  premiums  decreased  by
approximately  $65,000  in fiscal  1998  from the prior  year as a result of the
lowering of  premiums  following  the  recapitalization  of the federal  deposit
insurance fund. Other  noninterest  expenses  decreased  $178,000 for the fiscal
year ended 1998 when  compared  to the like period in 1997,  primarily  from the
deferral of loan origination costs.

         Income Tax Expense.  Income tax expense  increased from $2.1 million in
fiscal  1997 to $2.2  million  in fiscal  1998,  as a result  of  higher  pretax
earnings for the period.  The effective  tax rate in fiscal 1998 was  moderately
higher than in 1997  primarily  due to  increased  market  values of ESOP shares
relative to cost.

                                       7
<PAGE>
Average Balances, Interest Rates and Yields
<TABLE>
<CAPTION>
                                                At                                 For the Year Ended September 30,
                                           September 30,       ---------------------------------------------------------------------
                                               1999                            1999                                   1998
                                       ---------------------   -----------------------------------   -------------------------------
                                                                                       (Dollars in Thousands)
<S>                                    <C>             <C>     <C>            <C>            <C>     <C>          <C>          <C>
 Interest-Earning Assets:

  Interest-earning deposits.....       $    34,232     5.22%   $    24,775    $    1,109     4.48%   $    14,122  $     680    4.82%
  Investment securities.........            23,159     5.32         19,992         1,135     5.68         26,044      1,748    6.71
   Loans........................           345,999     7.19        338,585        24,771     7.32        305,218     23,342    7.65
  FHLB stock....................             3,174     8.03          2,978           238     7.99          2,603        209    8.03
                                       -----------             -----------    ----------             -----------  ---------
    Total interest-earning assets          406,564     6.92        386,330        27,253     7.05        347,987     25,979    7.47

  Noninterest-earning assets....             7,393                   9,394                                 5,802
                                       -----------             -----------                           -----------
    Total assets................           413,957                 395,724                               353,789
                                       -----------             -----------                           -----------

 Interest-Bearing Liabilities:

   Savings accounts.............            16,793     2.08         16,179           349     2.16         15,851        405    2.56
  NOW and money market accounts.            75,023     3.71         71,053         2,619     3.69         62,486      2,311    3.70
  Certificates of deposits......           263,735     5.51        245,596        13,853     5.64        225,755     13,415    5.94
  FHLB advances.................             7,000     5.27          7,148           383     5.36          1,750         92    5.26
                                       -----------             -----------    ----------             -----------  ---------
    Total interest-bearing

      liabilities...............           362,551     4.97        339,976        17,204     5.06        305,842     16,223    5.30
                                                                              ----------                          ---------

  Noninterest-bearing liabilities           13,483                  16,383                                 5,231
                                          --------              ----------                           -----------
    Total liabilities...........           376,034                 356,359                               311,073
  Shareholders' equity..........            37,923                  39,365                                42,716
                                       -----------             -----------                           -----------
    Total liabilities and

      shareholders' equity......           413,957                 395,724                               353,789
                                       -----------             -----------                           -----------
 Net interest-earning assets....       $    44,013             $    46,354                           $    42,145
                                       ===========             ===========                           ===========

 Net interest income............                                              $   10,049                          $   9,756
                                                                              ==========                          =========

 Interest rate spread(1)........                       1.95%                                 1.99%                             2.17%
Net yield on weighted average interest-
  earning assets(2).............                                                             2.60%                             2.80%
Average interest-earning assets to
  average interest-bearing liabilities                              113.63%                               113.78%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                For the Year Ended September 30,
                                               ---------------------------------
                                                             1997
                                               ---------------------------------

<S>                                             <C>     <C>             <C>
 Interest-Earning Assets:

  Interest-earning deposits.....                $17,097 $       897      5.25%
  Investment securities.........                 39,153       2,728      6.97
   Loans........................                265,704      20,618      7.76
  FHLB stock....................                  2,252         179      7.95
                                            -----------  ----------
    Total interest-earning assets               324,206      24,422      7.53

  Noninterest-earning assets....                  6,854
                                            -----------
    Total assets................                331,060
                                            -----------

 Interest-Bearing Liabilities:

   Savings accounts.............                 15,939         455      2.85
  NOW and money market accounts.                 43,344       1,374      3.17
  Certificates of deposits......                222,889      13,134      5.89
  FHLB advances.................                      -           -         -
                                            -----------  ----------
    Total interest-bearing

      liabilities...............                282,172      14,963      5.30
                                                         ----------

  Noninterest-bearing liabilities                 3,893
                                             ----------
    Total liabilities...........                286,065
  Shareholders' equity..........                 44,995
                                            -----------
    Total liabilities and

      shareholders' equity......                331,060
                                            -----------
 Net interest-earning assets....                $42,034
                                            ===========

 Net interest income............                           $9,459
                                                           ======

 Interest rate spread(1)........                                         2.23%
Net yield on weighted average interest-
  earning assets(2).............                                         2.92%
Average interest-earning assets to
  average interest-bearing liabilities           114.90%

</TABLE>
----------------
<PAGE>

(1)  Net interest  rate spread is calculated by  subtracting  combined  weighted
     average  interest rate paid from combined  weighted  average  interest rate
     earned  for  the  period  indicated.  Net  interest  rate  spread  must  be
     considered   in  light  of  the   relationship   between   the  amounts  of
     interest-earning  assets  and  interest-bearing   liabilities.   Since  the
     Company's   interest-   earning   assets   exceeded  its   interest-bearing
     liabilities  for each of the three years shown above,  a positive  interest
     rate spread resulted in net interest income.

(2)  The net yield on average  interest-earning assets is calculated by dividing
     net interest income by total average interest-earning assets for the period
     indicated.  No net yield figure is presented at September 30, 1999, because
     the  computation of net yield is applicable  only over a period rather than
     at a specific date.

     Note: All average balances are calculated using monthly balances.


                                       8
<PAGE>
Rate/Volume Analysis

         The following  table  describes the extent to which changes in interest
rates and  changes in volume of  interest-earning  assets  and  interest-bearing
liabilities  have affected the Company's  interest income and expense during the
periods   indicated.   For  each   category  of   interest-earning   assets  and
interest-bearing liabilities, information is provided on changes attributable to
(1) changes in rate  (changes in rate  multiplied by old volume) and (2) changes
in volume (changes in volume  multiplied by old rate).  Changes  attributable to
both  rate  and  volume  that   cannot  be   segregated   have  been   allocated
proportionally to the change due to volume and the change due to rate.

<TABLE>
<CAPTION>
                                                                   Year Ended September 30,
                                              ----------------------------------------------------------------------
                                                        1999 vs. 1998                       1998 vs. 1997
                                              ---------------------------------   ----------------------------------
                                                    Increase                             Increase
                                                   (Decrease)            Total          (Decrease)           Total
                                                     Due to            Increase           Due to           Increase
                                               Volume       Rate     (Decrease)    Volume       Rate      (Decrease)
                                             ---------    --------    --------    --------    ---------   ---------
                                                                     (Dollars in Thousands)
<S>                                          <C>          <C>         <C>         <C>         <C>         <C>
Interest-earning assets:

 Interest-earning deposits...........        $     480    $    (51)   $    429    $   (147)   $     (70)  $    (217)
 Investment securities...............             (369)       (244)       (613)       (883)         (97)       (980)
 Loans...............................            2,473      (1,044)      1,429       3,026         (302)      2,724
 FHLB stock..........................               30          (1)         29          28            2          30
                                             ---------    --------    --------    --------    ---------   ---------

   Total.............................        $   2,614    $ (1,340)   $  1,274    $  2,024    $    (467)  $   1,557
                                             =========    ========    ========    ========    ==========  =========

Interest-bearing liabilities:

 Savings accounts....................        $       8    $    (64)   $    (56)   $     (2)   $     (48)  $     (50)
 NOW and money market accounts.......              316          (8)        308         680          257         937
 Certificates of deposit.............            1,141        (703)        438         170          111         281
 FHLB advances.......................              289           2         291          92            -          92
                                             ---------    --------    --------    --------    ---------   ---------

   Total.............................        $   1,754    $   (773)   $    981    $    940    $     320   $   1,260
                                             =========    ========    ========    ========    =========   =========

Change in net interest income........                                 $    293                            $     297
                                                                      ========                            =========

</TABLE>

Asset/Liability Management and Market Risk

         As described in "Results of Operations", the Company derives its income
primarily from the excess of interest collected over interest paid. The rates of
interest  the  Company  earns on assets and pays on  liabilities  generally  are
<PAGE>
established  contractually  for a period of time.  Market  interest rates change
over time. Accordingly,  the Company's results of operations, like those of many
financial  institution  holding  companies,  are impacted by changes in interest
rates and the interest rate sensitivity of its assets and liabilities.  The risk
associated with changes in interest rates and the Company's ability to adapt and
respond to these changes is known as interest  rate risk.  Interest rate risk is
the Company's significant market risk.

         In attempt to manage the Company's  exposure to interest rate risk, the
Company continually analyzes and manages assets and liabilities based on payment
streams and interest  rates,  the timing of maturities,  and the  sensitivity to
actual or  potential  changes in market  interest  rates.  The Bank,  like other
financial  institutions,  recognizes that it is subject to interest rate risk to
the   extent   that   its   interest-bearing   liabilities   with   short-   and
intermediate-term maturities reprice more rapidly, or on a different basis, than
its interest-earning assets.  Management of the Bank believes it is important to
recognize the  relationship  between interest rates and the effect on the Bank's
net portfolio value (NPV). This approach  calculates the difference  between the
present  value of  expected  cash flows from  assets  and the  present  value of
expected   cash   flows   from   liabilities,   as  well  as  cash   flows  from
off-balance-sheet contracts.  Management of the Bank's assets and liabilities is
done within the context of the market place, but also within limits  established
by the Board of  Directors  on the  amount of change in NPV which is  acceptable
given certain interest rate changes.

         At September  30, 1999, a change in market  interest  rates of positive
200 basis points would have resulted in a 3.17% decrease in the NPV as a percent
of the present  value of the Bank's  assets,  while a change in market  interest
rates of negative 200 basis points  would have  resulted in a 1.24%  increase in
the NPV as a percent of the present value of the Bank's assets.


                                       9
<PAGE>
         Presented  in the  following  table,  as of September  30, 1999,  is an
analysis  of the  Bank's  interest  rate risk as  measured  by changes in NPV as
calculated by the Office of Thrift  Supervision for  instantaneous and sustained
parallel shifts in the yield curve in 100 basis point increments up and down 300
basis points and compared to Board policy  limits.  As illustrated in the table,
NPV is more  sensitive  to  rising  rates  than  declining  rates.  This  occurs
principally  because,  as rates  rise,  the  market  value of  fixed-rate  loans
declines  due to both the rate  increase  and  slowing  prepayments.  When rates
decline,  the Bank does not  experience a  significant  rise in market value for
these loans because  borrowers  prepay at relatively high rates. OTS assumptions
are used in calculating the amounts in this table.
<TABLE>
<CAPTION>

                                                          At September 30, 1999
      Change in                                        -------------------------
    Interest Rate      Board Limit     Estimated          Amount       Percent
   (Basis Points)    Percent Change       NPV             Change       Change
   --------------    --------------       ---             ------       ------
                       (Dollars In Thousands)
<S>                      <C>       <C>                 <C>               <C>
       +300 bp           -45%       $   15,880         $  -22,048        -58%
       +200 bp           -29            23,482            -14,446        -38
       +100 bp           -13            31,061             -6,867        -18
          0 bp             -            37,928                  -          -
       -100 bp           - 2            42,539              4,611        +12
       -200 bp           - 6            44,494              6,566        +17
       -300 bp           -10            45,630              7,702        +20
</TABLE>

         At September  30,  1998, a change in the interest  rate of positive 200
basis points would have resulted in a 1.95%  decrease in the NPV as a percent of
the present value of the Bank's  assets,  while a change in the interest rate of
negative 200 basis points would have resulted in a 0.56%  decrease in the NPV as
a percent of the present value of the Bank's assets.  Under  proposed  Office of
Thrift Supervision regulations,  the Bank's level of interest rate risk exposure
would have been considered normal at September 30, 1998.

         Presented  in the  following  table,  as of September  30, 1998,  is an
analysis  of the  Bank's  interest  rate risk as  measured  by changes in NPV as
calculated by the Office of Thrift  Supervision for  instantaneous and sustained
parallel shifts in the yield curve in 100 basis point increments up and down 300
basis points and compared to Board policy  limits.  As illustrated in the table,
NPV is more  sensitive  to  rising  rates  than  declining  rates.  This  occurs
principally  because,  as rates  rise,  the  market  value of  fixed-rate  loans
declines  due to both the rate  increase  and  slowing  prepayments.  When rates
decline,  the Bank does not  experience a  significant  rise in market value for
these loans because  borrowers  prepay at relatively high rates. OTS assumptions
are used in calculating the amounts in this table.
<PAGE>
<TABLE>
<CAPTION>

                                                          At September 30, 1998
      Change in                                        -------------------------
    Interest Rate      Board Limit     Estimated          Amount       Percent
   (Basis Points)    Percent Change       NPV             Change       Change
   --------------    --------------       ---             ------       ------
                       (Dollars In Thousands)
<S>                      <C>       <C>                 <C>               <C>

       +300 bp           -45%       $   22,251         $  -14,940        -40%
       +200 bp           -29            28,568             -8,623        -23
       +100 bp           -13            33,939             -3,252         -9
          0 bp             -            37,191                  -          -
       -100 bp            -2            36,870               -321         -1
       -200 bp            -6            35,766             -1,425         -4
       -300 bp           -10            35,410             -1,781         -5
</TABLE>

         The Bank has  structured  its assets and  liabilities  in an attempt to
maintain interest rate risk at a level deemed acceptable by the Board. The Board
reviews the OTS  measurements  as well as the Bank's own results  from  modeling
performed on a quarterly basis. In addition to monitoring  selected  measures on
NPV,  management  also monitors  effects on net interest  income  resulting from
increases or decreases in rates.  This measure is used in  conjunction  with NPV
measures  to identify  excessive  interest  rate risk.  A primary  objective  of
asset/liability management is to manage interest rate risk. The Company monitors
its  asset/liability  mix on an ongoing basis and manages  interest rate risk by
applying the following policies:

         Originating 10, 15 and 20 year fixed rate mortgages. By retaining these
mortgages in the loan portfolio,  and selling  mortgages with terms of 30 years,
management  can reduce its interest rate exposure.  Loans with  maturities of 30
years are currently  classified as held for sale by the Company at  origination.
The Company retains the servicing on loans sold in the secondary market.


                                       10
<PAGE>
         Emphasizing long-term deposits. The Company's cost of funds responds to
changes in interest rates due to the relatively short-term nature of its deposit
portfolio.  Consequently, the results of operations are influenced by the levels
of short-term  interest  rates.  The Company offers a range of maturities on its
deposit  products  at  competitive  rates  and  concentrates  a  portion  of its
advertising  and  promotional   campaigns  on  attracting   longer-term  deposit
products. It also monitors the maturities on an ongoing basis.

         Actively managing liquidity  position.  Management actively manages the
Company's liquidity position in anticipation of changing interest rate exposure.
The  primary  objective  of the  Company's  investment  strategy  is to  provide
liquidity necessary to meet funding needs as well as address daily, cyclical and
long-term changes in the asset/liability mix while contributing to profitability
by  providing  a stable  flow of  dependable  earnings.  Generally,  the Company
invests  funds based on its  liquidity  needs and to achieve the proper  balance
between  the  desire  to  minimize  risk  and  maximize  yield  to  fulfill  its
asset/liability management policies.

         Actively marketing short-term home equity loans. Short-term home equity
lines of credit and home  improvement  loans offer higher yields while  lowering
interest rate exposure through their relatively short-term maturities.

         Promoting  adjustable  rate  mortgages.  Adjustable rate mortgages have
been historically  viewed by management as a viable option for managing interest
rate exposure. The Company focuses lending efforts toward offering competitively
priced adjustable rate loan products as an alternative to more traditional fixed
rate mortgage  loans.  The Company offers a wide variety of adjustable rate loan
products  that reprice as frequently as every year or can be fixed for a term of
up to seven years and adjust yearly thereafter.

         In  evaluating  the Bank's  exposure  to  interest  rate risk,  certain
shortcomings inherent in the method of analysis presented in the foregoing table
must be considered.  For example,  although  certain assets and  liabilities may
have similar  maturities for periods of re-pricing,  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.  Furthermore,  in  the  event  of a  change  in  interest  rates,
prepayments and early withdrawal levels would likely deviate  significantly from
those assumed in calculating the table.  Finally,  the ability of many borrowers
to service their debts 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.

Liquidity And Capital Resources

         The  Bank's  primary  sources  of funds are  deposits,  FHLB  advances,
principal and interest  payments on loans and sales and maturities of investment
securities.  While maturities of securities and scheduled amortizations of loans
are a predictable  source of funds,  deposit flows and mortgage  prepayments are
greatly   influenced  by  general  interest  rates,   economic   conditions  and
competition.

         Federal  regulations  require  the Bank to maintain  minimum  levels of
liquid assets.  The required  percentage has varied from time to time based upon
economic  conditions and savings  flows.  As of September 30, 1999, the required
percentage was 4% of net withdrawable savings deposits and borrowings payable on
<PAGE>
demand or in one year or less during the preceding calendar month. Liquid assets
for purposes of this ratio include cash, certain time deposits, U.S. Government,
government  agency  and  other  securities  and  obligations   generally  having
remaining  maturities  of less  than five  years.  The Bank has  maintained  its
liquidity  ratio at levels in excess of those  required.  At September 30, 1999,
the Bank's liquidity ratio was 16.5% compared to 9.7% and 16.0% at September 30,
1998 and 1997.

         Management  structures  the liquid asset  portfolio of the Bank to meet
the cash flow needs of operating, investing and financing activities. Cash flows
provided by operating  activities,  consisting primarily of interest received on
loans and investments less interest paid on deposits and FHLB advances were $7.6
million,  $5.3 million, and $3.9 million for the years ended September 30, 1999,
1998 and 1997,  respectively.  Net cash  flows  used for  investing  activities,
consisting  primarily of  disbursements  for loan  originations  and investments
purchased  offset by principal  collections on loans and proceeds from the sales
and  maturities of  investments,  were $33.4 million,  $19.7 million,  and $19.6
million for the years ended September 30, 1999, 1998 and 1997, respectively. Net
cash  provided by  financing  activities,  consisting  primarily  of net deposit
activity and FHLB advances  that were offset by treasury  stock  purchases,  was
$38.7 million, $21.3 million and $20.2 million for the years ended September 30,
1999, 1998 and 1997, respectively.  If the Bank requires additional funds beyond
its ability to acquire them  locally,  it has borrowing  capability


                                 11

<PAGE>
through the FHLB of  Indianapolis.  At  September  30,  1999,  the Bank had $7.0
million in advances from the FHLB of  Indianapolis.  At September 30, 1998,  the
Bank had $9.0 million in advances from the FHLB of Indianapolis. Prior to fiscal
1998 the Bank had not had advances or other borrowings outstanding since 1983.

         The Bank  uses its  liquidity  resources  principally  to meet  ongoing
commitments,  to fund maturing  certificates of deposit and deposit  withdrawals
and to  meet  operating  expenses.  The  Bank  anticipates  that  it  will  have
sufficient  funds available to meet current loan  commitments.  At September 30,
1999,  the Bank had  outstanding  commitments to extend credit which amounted to
$15.9 million  (including  $12.5 million in unused lines of credit).  Management
believes  that loan  repayments  and other  sources of funds will be adequate to
meet the Bank's foreseeable liquidity needs.

         At September 30, 1999,  the Bank had tangible and core capital of $36.2
million,  or 8.76% of  adjusted  total  assets,  which was  approximately  $30.0
million  and $23.8  million  above the  minimum  requirements  of 1.5% and 3.0%,
respectively,  of the adjusted total assets in effect on that date. The Bank had
risk-based  capital at  September  30, 1999 of $37.6  million  (including  $36.2
million in core capital),  or 18.84% of risk-weighted  assets of $199.6 million.
This amount was $21.6 million above the 8.0% requirement in effect on that date.

         The Company also has a need for, and sources of,  liquidity.  Liquidity
is required to fund operating expenses,  stock repurchase  programs,  as well as
the payments of any dividends to  shareholders.  The primary source of liquidity
for the Company on an ongoing basis is dividends from the Bank. During 1999, the
Bank paid dividends in the amount of $1,332,000 to the Company. In addition, the
Company has access to public debt and equity markets.  The Company currently has
no  significant  liquidity  commitments  as its  operating  costs are modest and
dividends on common stock are discretionary.

Uses and Sources of Funds

         During the year ended  September 30, 1999,  there was a net increase of
$12.9 million in cash and cash equivalents, as major sources of funds offset the
uses of cash.  Primary uses of cash during the fiscal year 1999 included funding
an increase  of $22.1  million in the loan  portfolio,  the  repurchase  of $6.9
million in treasury stock, the purchase of $23.4 million in securities,  and the
repayment of $2.0 million in advances from the FHLB of  Indianapolis.  The major
sources of funds included $17.1 million from the sale or maturity of securities,
and a $47.4 million increase in deposits.  The Company paid a total of $0.38 per
share on common stock, or a total of $802,000 to its shareholders  during fiscal
1999.

         During the year ended  September 30, 1998,  there was a net increase of
$6.9 million in cash and cash equivalents,  as major sources of funds offset the
uses of cash.  Primary uses of cash during the fiscal year 1998 included funding
an increase  of $40.2  million in the loan  portfolio,  the  repurchase  of $6.4
million in treasury stock,  and the purchase of $4.0 million in securities.  The
major  sources of funds  included  $25.3  million  from the sale or  maturity of
securities,  a $18.5 million increase in deposits,  and $9.0 million in advances
from the FHLB of Indianapolis  with  maturities  from 30 days to ten years.  The
Company paid a total of $0.31 per share on common stock,  or a total of $673,000
to its shareholders during fiscal 1998.
<PAGE>
         During the year ended  September 30, 1997,  there was a net increase of
$4.5 million in cash and cash equivalents,  as major sources of funds offset the
uses of cash.  Primary uses of cash during the fiscal year 1997 included funding
an increase  of $33.7  million in the loan  portfolio,  the  repurchase  of $6.1
million in treasury stock, and the purchase of $15.1 million in securities.  The
major sources of funds  included $30.0 million from maturity of securities and a
$26.3 million increase in deposits.  The Company paid a total of $0.20 per share
on common stock, or a total of $477,000 to its shareholders during fiscal 1997.

Year 2000 Compliance

         General.  The Year 2000 (the Y2K)  issue  confronting  the Bank and its
suppliers,  customers,  and  competitors  centers on the  inability  of computer
systems to recognize the Year 2000. Many existing  computer programs and systems
originally  were  programmed with only two digits to identify the calendar year.
With the impending new millennium,  these programs and computers could recognize
"00" as the year 1900 rather than the year 2000.

         Risk. Like most financial institutions, the Bank and its operations may
be  significantly  affected by the Y2K issue due to its dependency on technology
and  date-sensitive  data.  Computer  software and hardware and other equipment,
both  within  and  outside  the  Bank's  direct  control,  including  the Bank's
dependency on data processing  capabilities from NCR Corporation and other third
parties with whom the Bank  electronically  or  operationally  interfaces may be
affected.  If computer  systems are not modified and tested  properly to process
the Year  2000,  many  computer  applications  could  fail or  create  erroneous
results.  As a result,  many calculations which rely on date filled information,


                                       12
<PAGE>
such as  interest,  payment or due dates and other  operating  functions,  could
generate  results  which  are  significantly   misstated,  and  the  Bank  could
experience an inability to process transactions, prepare statements or engage in
similar normal business activities.  Thus if not adequately  addressed,  the Y2K
issue could have an adverse  impact on the Bank's  operations  and, in turn, its
financial condition and results of operations.

         Systematic  Review.   Financial  institution   regulators  have  placed
significant  emphasis  upon  Y2K  readiness  issues  and  have  issued  guidance
concerning the responsibilities of senior management and directors.  The federal
bank regulatory agencies have stressed the adoption of specific steps to achieve
Y2K  readiness.  The Federal  Financial  Institutions  Examination  Council (the
FFIEC), of which the Office of Thrift  Supervision is a member,  has designed an
outline for institutions to use in effectively managing the Y2K challenge. Those
phases include:

         Awareness Phase.  Define the problem and obtain executive level support
for the  resources  necessary  to perform  compliance  work.  Develop an overall
strategy that covers  in-house  systems,  service  bureaus,  vendors,  auditors,
customers, and suppliers.

         Assessment  Phase.  Assess the size and the  complexity of the problem,
including  identifying  all  systems  that will be  affected  by the Year  2000.
Identification of needs and the prioritization of work based upon risk.

         Renovation   Phase.   Undertake   the   reworking,   replacement  ,  or
modification of systems based upon priorities. Monitor servicers' progress.

         Validation  Phase.  Testing  and  verification  of changes to  systems.
Simulate critical date changes. Verification of exchanges of information between
servicers.

         Implementation Phase. Use of renovated systems.  Monitoring of critical
systems and contingency plans.

         State of Readiness.  During December 1997, the Bank formulated its plan
to address the Y2K issue. Since that time, the Bank has established  timeframes,
taken specific steps,  and developed  contingencies in regards to the issue. The
Bank has  explicitly  followed  regulatory  guidance.  The following  paragraphs
summarize  the Bank's  progress to date as  illustrated  by the FFIEC  specified
phases:

         Awareness  Phase.  The Bank  established a formal Y2K plan headed by an
executive officer, and a project team for the management of the issue. A plan of
action was  developed  with the support of the Board of Directors  that included
milestones, budget estimates,  strategies, and methodologies to track and report
the status of the project. As of September 30, 1999, the Bank has completed this
phase.

         Assessment  Phase.  The Bank's  strategies were further  developed with
respect to how the objectives of the Y2K plan would be achieved,  and a business
risk  assessment  was made to quantify the extent of the Bank's Y2K exposure.  A
corporation  inventory  was  developed  to identify  and monitor  readiness  for
information  systems  (hardware,  software,  utilities  and  vendors) as well as
environmental  systems.  Systems were prioritized based upon business impact and
available  alternatives.  A formal plan was  developed  to replace,  repair,  or
upgrade all mission  critical  systems.  As of September 30, 1999,  the Bank has
completed this phase.
<PAGE>
         Because the Bank's loan portfolio is primarily  residential real estate
based and is  diversified  with  individual  borrowers,  and the Bank's  primary
market area is not significantly dependent on one employer or industry, the Bank
does not expect any significant or prolonged Y2K related  difficulties that will
affect  net  earnings  or cash  flow.  As part of the  current  credit  approval
process,  all  residential  loan  applications  over  $300,000 by  self-employed
individuals are evaluated for Y2K risk as are all commercial loan applications.

         Renovation  Phase.  In recognition of potential Y2K problems,  the Bank
delayed significant  hardware and software purchases until fiscal 1998 and 1999.
The Bank has replaced or  renovated  virtually  all of its hardware  systems and
updated or replaced most of its software  systems.  Y2K compliant  equipment and
software has been  delivered and placed into  production.  The Bank has invested
approximately $600,000 in new computers,  communication, and software purchases.
Approximately  $150,000  in charges  associated  with Y2K were also  expensed as
non-recurring  charges  during  fiscal  1999 and  1998.  While the Bank does not
anticipate any additional Y2K related expenses,  it is impossible to predict the
exact expenses associated with the Y2K issue. Therefore, additional funds may be
needed for unknown expenses related to Y2K testing,  training, and education, as
well as system and software replacements.


                                       13
<PAGE>
         Validation and Implementation Phases. These phases are designed to test
the ability of the systems to accurately  process date sensitive  data. The Bank
has  completed  the  process  of  validating  all of the  its  mission  critical
applications.

         Contingency  Plans.  The Bank has also developed a plan that recognizes
that  certain  contingencies  may  undermine  preparations  to  date.  The  plan
addresses the viability of certain  processes,  including  data and  information
processing,  that could be threatened by circumstances  beyond the Bank's direct
or even recognizable  control.  The Bank's  contingency plan attempts to provide
thoughtful  analysis of issues and circumstances,  and provide substantive plans
of action in the event of system failures.

         The  Bank,  as  with  all  financial  institutions,  has  reviewed  the
possibility  of some level of  reduction  in deposits  during the latter part of
1999. Based on its review,  the Bank has determined that alternative  sources of
funds should be available to maintain adequate funding throughout this period.

         While the Bank does not,  nor can it make  representation  that it will
not be susceptible to Y2K problems,  the Bank has expended  tremendous  energies
and resources to the issue. The Bank has attempted to identify its exposures and
to respond to them.

Impact Of Inflation

         The  Consolidated  Financial  Statements  and Notes  thereto  presented
herein have been  prepared in  accordance  with  generally  accepted  accounting
principles,  which require the  measurement of financial  position and operating
results in terms of historical  dollars  without  considering  the change in the
relative  purchasing  power of money over time due to  inflation.  The impact of
inflation is reflected in the increased cost of the Company's operations. Nearly
all the assets  and  liabilities  of the  Company  are  financial,  unlike  most
industrial  companies.  As a  result,  the  Company's  performance  is  directly
impacted  by changes in  interest  rates,  which are  indirectly  influenced  by
inflationary   expectations.   The  Company's  ability  to  match  the  interest
sensitivity of its financial assets to the interest sensitivity of its financial
liabilities in its asset/liability management may tend to minimize the effect of
changes in  interest  rates on the  Company's  performance.  Changes in interest
rates do not necessarily  move to the same extent as do changes in the prices of
goods and services.

Forward-Looking Statements

         The  Company  and the Bank may from time to time make  written  or oral
"forward-looking  statements",  including  statements contained in the Company's
filings  with  the  Securities  and  Exchange  Commission   (including  Exhibits
thereto),  in its reports to  shareholders  and in other  communications  by the
Company,  which are made in good faith by the Company  and the Bank  pursuant to
the "safe harbor" provisions of the Private Securities  Litigation Reform Act of
1995.

         These forward-looking statements include statements with respect to the
Company's  and the  Bank's  beliefs,  plans,  objectives,  goals,  expectations,
anticipations,  estimates and intentions,  that are subject to significant risks
and  uncertainties,  and are subject to change based on various factors (some of
which are beyond the Company's and Bank's  control).  The words "may",  "could",
"should",  "would", "believe",  "anticipate",  "estimate",  "expect",  "intend",
"plan"  and  similar  expressions  are  intended  to  identify   forward-looking
statements.  The following factors,  among others, could cause the Company's and
<PAGE>
the  Bank's  financial   performance  to  differ   materially  from  the  plans,
objectives,   expectations,   estimates   and   intentions   expressed  in  such
forward-looking statements: the strength of the United States economy in general
and the  strength of the local  economies  in which the Company and Bank conduct
operations;  the effects of, and changes in, trade, monetary and fiscal policies
and laws,  including  interest  rate  policies  of the  Federal  Reserve  Board;
inflation,   interest  rate,  market  and  monetary  fluctuations;   the  timely
development  of and  acceptance of new products and services of the Bank and the
perceived overall value of these products and services; the willingness of users
to  substitute  competitors'  products and services for the Bank's  products and
services;  the impact of changes in  financial  services'  laws and  regulations
(including  laws   concerning   taxes,   banking,   securities  and  insurance);
technological  changes;  acquisitions;  changes in consumer  spending and saving
habits;  and the success of the Company and the Bank at managing  risks involved
in the foregoing.

         The foregoing list of important  factors is not exclusive.  The Company
does not undertake to update any forward-looking  statement,  whether written or
oral,  that may be made from time to time by or on behalf of the  Company or the
Bank.

                                       14
<PAGE>
                       [GRAPHIC-CROWE CHIZEK LETTERHEAD]

                         REPORT OF INDEPENDENT AUDITORS

Board of Directors and Shareholders
Home Bancorp
Fort Wayne, Indiana

We have audited the accompanying  consolidated balance sheets of Home Bancorp as
of  September  30,  1999 and 1998 and the  related  consolidated  statements  of
income,  changes in  shareholders'  equity  and cash  flows for the years  ended
September  30,  1999,  1998  and  1997.  These  financial   statements  are  the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  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 consolidated  financial statements referred to above present
fairly, in all material  respects,  the financial position of Home Bancorp as of
September 30, 1999 and 1998 and the results of its operations and its cash flows
for the  years  ended  September  30,  1999,  1998 and 1997 in  conformity  with
generally accepted accounting principles.

As disclosed in Notes 1 and 2, on January 1, 1999 the Company changed its method
of accounting for derivative  instruments and hedging  activities to comply with
new accounting guidance.

                                                /s/Crowe, Chizek and Company LLP
                                                --------------------------------
                                                   Crowe, Chizek and Company LLP

South Bend, Indiana
October 12, 1999

                                       15
<PAGE>
<TABLE>
<CAPTION>

                                                    Home Bancorp

                                            CONSOLIDATED BALANCE SHEETS
                                            September 30, 1999 and 1998


                                                                                    1999                 1998
                                                                             -----------------    -----------------
<S>                                                                          <C>                  <C>
ASSETS

Cash on hand and in other banks                                              $       2,081,354    $       1,643,168
Federal funds sold                                                                  16,000,000           10,000,000
Interest-earning deposits in other banks                                            18,231,528           11,722,658
                                                                             -----------------    -----------------
     Total cash and cash equivalents                                                36,312,882           23,365,826
Securities available for sale                                                       23,159,062            5,137,187
Securities held to maturity (fair value:

  1998 - $12,195,000)                                                                        -           12,024,247
Loans receivable, net of allowance for loan losses:
  1999 -  $1,342,220 and 1998 - $1,390,389                                         345,999,338          324,187,601
Federal Home Loan Bank stock                                                         3,173,700            2,782,500
Accrued interest receivable                                                          2,156,465            1,948,771
Premises and equipment, net                                                          2,916,349            2,804,550
Other assets                                                                           239,004              178,303
                                                                             -----------------    -----------------

     Total assets                                                            $     413,956,800    $     372,428,985
                                                                             =================    =================

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

     Non-interest-bearing demand deposits                                    $       7,803,507    $       5,754,398
     Savings, NOW and MMDA deposits                                                 91,816,212           75,602,517
     Certificates of deposit                                                       263,734,550          234,641,189
         Total deposits                                                            363,354,269          315,998,104

     Federal Home Loan Bank advances                                                 7,000,000            9,000,000
     Advances from borrowers for taxes and insurance                                 2,971,219            2,597,387
     Accrued expenses and other liabilities                                          2,708,221            3,795,215
         Total liabilities                                                         376,033,709          331,390,706

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                                          <C>                  <C>
Shareholders' equity

     Preferred stock, no par value;  5,000,000 shares
       authorized; none issued                                                               -                    -
     Common stock, no par value;  10,000,000 shares
       authorized;  1999 - 3,380,255 shares issued
       and 2,050,506 shares outstanding; 1998 - 3,380,315
       shares issued and 2,254,642 shares outstanding                               34,874,404           34,399,134
     Retained earnings, substantially restricted                                    32,159,378           29,851,665
     Accumulated other comprehensive income (loss),
       net of tax of $(73,357) in 1999 and $33,110 in 1998                            (110,033)              64,273
     Unearned Employee Stock Ownership Plan shares                                  (1,287,963)          (1,536,908)
     Unearned Recognition and Retention Plan shares                                   (232,608)            (466,130)
     Treasury stock at cost, 1,329,749 and 1,125,673 common
       shares at 1999 and 1998, respectively                                       (27,480,087)         (21,273,755)
                                                                             -----------------    -----------------
         Total shareholders' equity                                                 37,923,091           41,038,279
                                                                             -----------------    -----------------

         Total liabilities and shareholders' equity                          $     413,956,800    $     372,428,985
                                                                             =================    =================

</TABLE>
         The  accompanying  notes  are an  integral  part of these  consolidated
financial statements.


                                       16
<PAGE>
<TABLE>
<CAPTION>
                                                    HOME BANCORP
                                          CONSOLIDATED STATEMENTS OF INCOME

                                    Years ended September 30, 1999, 1998 and 1997

                                                                  1999                1998                1997
                                                            ---------------     ---------------    ----------------
<S>                                                         <C>                 <C>                <C>
Interest income
     Loans receivable, including fees
         Mortgage loans                                     $    23,878,385     $    22,407,485    $     19,820,186
         Consumer and other loans                                   892,901             934,504             798,484
     Securities                                                   1,135,069           1,747,735           2,728,399
     Other                                                        1,346,372             889,770           1,075,643
                                                            ---------------     ---------------    ----------------
                                                                 27,252,727          25,979,494          24,422,712
Interest expense
     Deposits                                                    16,821,148          16,130,669          14,963,252
     Federal Home Loan Bank advances                                382,601              92,112                   -
                                                            ---------------     ---------------    ----------------
                                                                 17,203,749          16,222,781          14,963,252

Net interest income                                              10,048,978           9,756,713           9,459,460

Provision for loan losses                                             2,400               2,400               2,400
                                                            ---------------     ---------------    ----------------

Net interest income after provision
  for loan losses                                                10,046,578           9,754,313           9,457,060

Noninterest income
     Net losses on trading securities                               (26,705)                  -                   -
     Net gains on sales of securities available
       for sale                                                      40,719             108,406                   -
     Net gains on sales of loans held for sale                        3,763                   -                   -
     Other                                                          390,527             247,664             246,713
                                                            ---------------     ---------------    ----------------
                                                                    408,304             356,070             246,713
Noninterest expense
     Employee compensation and benefits                           3,154,488           3,087,945           2,725,691
     Occupancy and equipment                                        790,820             729,436             591,127
     Federal deposit insurance premium                              191,537             185,957             251,594
     Other                                                        1,049,384           1,008,989           1,187,017
                                                            ---------------     ---------------    ----------------
                                                                  5,186,229           5,012,327           4,755,429
                                                            ---------------     ---------------    ----------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                         <C>                 <C>                <C>
Income before income taxes and cumulative
  effect of change in accounting principle                        5,268,653           5,098,056           4,948,344

Income tax expense                                                2,213,644           2,192,056           2,055,344
                                                            ---------------     ---------------    ----------------

Income before cumulative effect of change
  in accounting principle                                         3,055,009           2,906,000           2,893,000

Cumulative effect of change in accounting for
  derivative instruments and hedging activities,
  net of tax                                                         54,991                   -                   -
                                                            ---------------     ---------------    ----------------

Net income                                                  $     3,110,000     $     2,906,000    $      2,893,000
                                                            ===============     ===============    ================

Earnings per share
     Basic earnings per common share
         Income before cumulative effect of change
           in accounting principle                                   $ 1.53              $ 1.32             $ 1.20
         Cumulative effect of change in accounting for
           derivative instruments and hedging activities,
           net of tax                                                   .03                   -                   -
                                                                     ------             -------             -------
         Net income                                                  $ 1.56              $ 1.32             $ 1.20
                                                                     ======              ======             ======

     Diluted earnings per common share
         Income before cumulative effect of change
           in accounting principle                                   $ 1.48              $ 1.28             $ 1.18
         Cumulative effect of change in accounting for
           derivative instruments and hedging activities,
           net of tax                                                   .03                   -                   -
                                                                     ------             -------             -------
         Net income                                                  $ 1.51              $ 1.28             $ 1.18
                                                                     ======              ======             ======

</TABLE>
         The  accompanying  notes  are an  integral  part of these  consolidated
financial statements.

                                       17

<PAGE>
<TABLE>
<CAPTION>

                                                            HOME BANCORP
                                     CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                            Years ended September 30, 1999, 1998 and 1997

                                                                                                        Common            Retained
                                                                                                        Stock             Earnings
                                                                                                        -----             --------
<S>                                                                                                 <C>               <C>
Balances at October 1, 1996                                                                         $ 33,758,217      $ 25,203,053
Comprehensive Income:
   Net income for the year ended September 30, 1997                                                         --           2,893,000
   Other comprehensive income:
     Net change in net unrealized gains on securities available for sale, net of
       reclassification adjustments and tax effects                                                         --                --
         Total comprehensive income

Cash dividends declared on common stock - $.20 per share                                                    --            (477,214)
22,590 shares committed to be released under the ESOP                                                    224,687              --
Cancellation of 200 RRP shares                                                                            (3,050)             --
Amortization of RRP contribution                                                                            --                --
Issuance of 14,824 common shares from treasury stock due to exercise of stock options                      5,559              --
Purchase 309,736 shares of treasury stock                                                                   --                --
                                                                                                    ------------      ------------

Balances at September 30, 1997                                                                        33,985,413        27,618,839
Comprehensive income:
   Net income for the year ended September 30, 1998                                                         --           2,906,000
   Other comprehensive income:
     Net change in net unrealized gains on securities available for sale, net of
       reclassification adjustments and tax effects                                                         --                --
         Total comprehensive income
Cash dividends declared on common stock - $.31 per share                                                    --            (673,174)
21,504 shares committed to be released under the ESOP                                                    420,147              --
Cancellation of 990 RRP shares                                                                           (15,098)             --
Amortization of RRP contribution                                                                            --                --
Issuance of 23,125 common shares from treasury stock due to exercise of stock options                      8,672              --
Purchase 234,731 shares of treasury stock                                                                   --                --
                                                                                                    ------------      ------------
Balances at September 30, 1998                                                                        34,399,134        29,851,665
Comprehensive income:
   Net income for the year ended September 30, 1999                                                         --           3,110,000
   Other comprehensive income (loss):
     Net change in net unrealized gains (losses) on securities available for sale, net
       of reclassification adjustments and tax effects                                                      --                --
     Net unrealized gains on securities transferred from the held-to-maturity
       to the available-for-sale category, net of tax of $10,474                                            --                --
          Total other comprehensive income (loss)
         Total comprehensive income
Cash dividends declared on common stock - $.38 per share                                                    --            (802,287)
20,218 shares committed to be released under the ESOP                                                    364,071              --
Cancellation of 60 RRP shares                                                                               (915)             --
Amortization of RRP contribution                                                                            --                --
Issuance of 46,595 common shares from treasury stock due to exercise of stock options                      9,328              --
Tax benefit of employee benefit plans                                                                    102,786              --
Purchase 250,671 shares of treasury stock                                                                   --                --
                                                                                                    ------------      ------------
Balances at September 30, 1999                                                                      $ 34,874,404      $ 32,159,378
                                                                                                    ============      ============

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                                                                      Accumulated       Unearned
                                                                                                         Other          Employee
                                                                                                      Comprehensive       Stock
                                                                                                     Income (Loss),     Ownership
                                                                                                       Net of Tax      Plan Shares
                                                                                                       ----------      -----------
 <S>                                                                                                 <C>               <C>
Balances at October 1, 1996                                                                         $      3,124      $ (2,001,177)
Comprehensive Income:
   Net income for the year ended September 30, 1997                                                         --                --
   Other comprehensive income:
     Net change in net unrealized gains on securities available for sale, net of
       reclassification adjustments and tax effects                                                       47,897              --
         Total comprehensive income
Cash dividends declared on common stock - $.20 per share                                                    --                --
22,590 shares committed to be released under the ESOP                                                       --             231,798
Cancellation of 200 RRP shares                                                                              --                --
Amortization of RRP contribution                                                                            --                --
Issuance of 14,824 common shares from treasury stock due to exercise of stock options                       --                --

Purchase 309,736 shares of treasury stock                                                                   --                --
                                                                                                    ------------      ------------
Balances at September 30, 1997                                                                            51,021        (1,769,379)
Comprehensive income:
   Net income for the year ended September 30, 1998                                                         --                --
   Other comprehensive income:
     Net change in net unrealized gains on securities available for sale, net of
       reclassification adjustments and tax effects                                                       13,252              --
         Total comprehensive income

Cash dividends declared on common stock - $.31 per share                                                    --                --
21,504 shares committed to be released under the ESOP                                                       --             232,471
Cancellation of 990 RRP shares                                                                              --                --
Amortization of RRP contribution                                                                            --                --
Issuance of 23,125 common shares from treasury stock due to exercise of stock options                       --                --

Purchase 234,731 shares of treasury stock                                                                   --                --
                                                                                                    ------------      ------------

Balances at September 30, 1998                                                                            64,273        (1,536,908)
Comprehensive income:
   Net income for the year ended September 30, 1999                                                         --                --
   Other comprehensive income (loss):
     Net change in net unrealized gains (losses) on securities available for sale, net
       of reclassification adjustments and tax effects                                                  (189,876)             --
     Net unrealized gains on securities transferred from the held-to-maturity
       to the available-for-sale category, net of tax of $10,474                                          15,570              --
          Total other comprehensive income (loss)
         Total comprehensive income
Cash dividends declared on common stock - $.38 per share                                                    --                --
20,218 shares committed to be released under the ESOP                                                       --             248,945
Cancellation of 60 RRP shares                                                                               --                --
Amortization of RRP contribution                                                                            --                --
Issuance of 46,595 common shares from treasury stock due to exercise of stock options                       --                --
Tax benefit of employee benefit plans                                                                       --                --
Purchase 250,671 shares of treasury stock                                                                   --                --
                                                                                                    ------------      ------------
 Balances at September 30, 1999                                                                     $   (110,033)     $ (1,287,963)
                                                                                                    ============      ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                                                                       Unearned
                                                                                                      Recognition
                                                                                                     and Retention        Treasury
                                                                                                      Plan Shares          Stock
                                                                                                      -----------          -----
<S>                                                                                                <C>                <C>
Balances at October 1, 1996                                                                        $   (955,589)      $ (9,294,413)
Comprehensive Income:
   Net income for the year ended September 30, 1997                                                        --                --
   Other comprehensive income:
     Net change in net unrealized gains on securities available for sale, net of
       reclassification adjustments and tax effects                                                        --                --
         Total comprehensive income
Cash dividends declared on common stock - $.20 per share                                                   --                --
22,590 shares committed to be released under the ESOP                                                      --                --
Cancellation of 200 RRP shares                                                                            3,050              --
Amortization of RRP contribution                                                                        238,245              --
Issuance of 14,824 common shares from treasury stock due to exercise of stock options                      --             220,507

Purchase 309,736 shares of treasury stock                                                                  --          (6,106,642)
                                                                                                   ------------      ------------

Balances at September 30, 1997                                                                         (714,294)      (15,180,548)
Comprehensive income:
   Net income for the year ended September 30, 1998                                                        --                --
   Other comprehensive income:
     Net change in net unrealized gains on securities available for sale, net of
       reclassification adjustments and tax effects                                                        --                --
          Total comprehensive income
Cash dividends declared on common stock - $.31 per share                                                   --                --
21,504 shares committed to be released under the ESOP                                                      --                --
Cancellation of 990 RRP shares                                                                           15,098              --
Amortization of RRP contribution                                                                        233,066              --

Issuance of 23,125 common shares from treasury stock due to exercise of stock options                      --             343,984

Purchase 234,731 shares of treasury stock                                                                  --          (6,437,191)
                                                                                                   ------------      ------------

Balances at September 30, 1998                                                                         (466,130)      (21,273,755)
Comprehensive income:
   Net income for the year ended September 30, 1999                                                        --                --
   Other comprehensive income (loss):
     Net change in net unrealized gains (losses) on securities available for sale, net
       of reclassification adjustments and tax effects                                                     --                --
     Net unrealized gains on securities transferred from the held-to-maturity
       to the available-for-sale category, net of tax of $10,474                                           --                --
          Total other comprehensive income (loss)
          Total comprehensive income
Cash dividends declared on common stock - $.38 per share                                                   --                --
20,218 shares committed to be released under the ESOP                                                      --                --
Cancellation of 60 RRP shares                                                                               915              --
Amortization of RRP contribution                                                                        232,607              --
Issuance of 46,595 common shares from treasury stock due to exercise of stock options                      --             701,246
 Tax benefit of employee benefit plans                                                                      --                --
Purchase 250,671 shares of treasury stock                                                                  --          (6,907,578)
                                                                                                   ------------      ------------
Balances at September 30, 1999                                                                     $   (232,608)     $(27,480,087)
                                                                                                   ============      ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                                                                      Total
                                                                                                    Shareholders'
                                                                                                      Equity
                                                                                                      ------
<S>                                                                                                <C>
Balances at October 1, 1996                                                                        $ 46,713,215
Comprehensive Income:
   Net income for the year ended September 30, 1997                                                   2,893,000
   Other comprehensive income:
     Net change in net unrealized gains on securities available for sale, net of
       reclassification adjustments and tax effects                                                      47,897
         Total comprehensive income                                                                   2,940,897
Cash dividends declared on common stock - $.20 per share                                               (477,214)
22,590 shares committed to be released under the ESOP                                                   456,485
Cancellation of 200 RRP shares                                                                             --
Amortization of RRP contribution                                                                        238,245
Issuance of 14,824 common shares from treasury stock due to exercise of stock options                   226,066

Purchase 309,736 shares of treasury stock                                                            (6,106,642)
                                                                                                   ------------

Balances at September 30, 1997                                                                       43,991,052
Comprehensive income:
   Net income for the year ended September 30, 1998                                                   2,906,000
   Other comprehensive income:
     Net change in net unrealized gains on securities available for sale, net of
       reclassification adjustments and tax effects                                                      13,252
         Total comprehensive income                                                                   2,919,252
Cash dividends declared on common stock - $.31 per share                                               (673,174)
21,504 shares committed to be released under the ESOP                                                   652,618
Cancellation of 990 RRP shares                                                                             --
Amortization of RRP contribution                                                                        233,066
Issuance of 23,125 common shares from treasury stock due to exercise of stock options                   352,656
Purchase 234,731 shares of treasury stock                                                            (6,437,191)
                                                                                                   ------------

Balances at September 30, 1998                                                                       41,038,279
Comprehensive income:
   Net income for the year ended September 30, 1999                                                   3,110,000
   Other comprehensive income (loss):
     Net change in net unrealized gains (losses) on securities available for sale, net
       of reclassification adjustments and tax effects                                                 (189,876)
     Net unrealized gains on securities transferred from the held-to-maturity
       to the available-for-sale category, net of tax of $10,474                                         15,570
                                                                                                   ------------
          Total other comprehensive income (loss)                                                      (174,306)
         Total comprehensive income                                                                   2,935,694
Cash dividends declared on common stock - $.38 per share                                               (802,287)
20,218 shares committed to be released under the ESOP                                                   613,016
Cancellation of 60 RRP shares                                                                              --
Amortization of RRP contribution                                                                        232,607
Issuance of 46,595 common shares from treasury stock due to exercise of stock options                   710,574
Tax benefit of employee benefit plans                                                                   102,786
Purchase 250,671 shares of treasury stock                                                            (6,907,578)
                                                                                                   ------------
Balances at September 30, 1999                                                                     $ 37,923,091
                                                                                                   ============

</TABLE>
         The  accompanying  notes  are an  integral  part of these  consolidated
financial statements.

                                       18
<PAGE>
<TABLE>
<CAPTION>
                                                   HOME BANCORP
                                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   Years ended September 30, 1999, 1998 and 1997



                                                                       1999             1998              1997
                                                                  ------------      ------------      ------------
<S>                                                               <C>               <C>               <C>
Cash flows from operating activities
   Net income                                                     $  3,110,000      $  2,906,000      $  2,893,000
   Adjustments to reconcile net income
     to net cash from operating activities
     Depreciation                                                      350,224           338,956           208,661
     Provision for loan losses                                           2,400             2,400             2,400
     Net losses on trading securities                                   26,705              --                --
     Net gains on sales of securities available for sale               (40,719)         (108,406)             --
     Net gains on sales of loans held for sale                          (3,763)             --                --
     Proceeds from sales of loans held for sale                        319,474              --                --
     ESOP expense                                                      613,016           652,618           456,485
     Amortization of RRP contribution                                  232,607           233,066           238,245
     Cumulative effect of change in accounting for derivative
       instruments and hedging activities, net of tax                  (54,991)             --                --
     Proceeds from sales of trading securities                       4,077,500              --                --
     Loss on disposal of premises and equipment                            803             8,609               770
     Securities amortization and accretion, net                        143,005          (253,523)          (72,753)
     Change in
       Accrued interest receivable                                    (207,694)          100,793           210,935
       Accrued expenses and other liabilities                       (1,053,884)        1,296,892          (451,160)
       Other assets                                                     79,374           166,790           432,777
                                                                  ------------      ------------      ------------
         Net cash from operating activities                          7,594,057         5,344,195         3,919,360

Cash flows from investing activities
   Proceeds from maturities of securities available for sale         4,000,000              --                --
   Proceeds from maturities of securities held to
     maturity                                                        4,000,000        15,000,000        30,000,000
   Proceeds from sales of securities available for sale              5,027,573        10,286,815              --
   Purchase of securities available for sale                       (23,421,406)       (3,985,125)       (7,084,219)
   Purchase of securities held to maturity                                --                --          (8,063,750)
   Purchase of Federal Home Loan Bank stock                           (391,200)         (333,400)         (394,900)
   Net change in loans                                             (22,129,848)      (40,203,079)      (33,683,676)
   Purchase of premises and equipment                                 (462,826)         (441,623)         (325,006)
                                                                  ------------      ------------      ------------
     Net cash from investing activities                            (33,377,707)      (19,676,412)      (19,551,551)

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                               <C>               <C>               <C>
Cash flows from financing activities
   Net change in deposits                                           47,356,165        18,505,479        26,307,158
   Advances from Federal Home Loan Bank                                   --           9,000,000              --
   Repayments of FHLB advances                                      (2,000,000)             --                --
   Net change in advances from borrowers
     for taxes and insurance                                           373,832           504,975           205,553
   Purchase of treasury stock                                       (6,907,578)       (6,437,191)       (6,106,642)
   Cash dividends paid                                                (802,287)         (673,174)         (477,214)
   Proceeds from exercise of stock options                             710,574           352,656           226,066
                                                                  ------------      ------------      ------------
     Net cash from financing activities                             38,730,706        21,252,745        20,154,921
                                                                  ------------      ------------      ------------

Net change in cash and cash equivalents                             12,947,056         6,920,528         4,522,730
Cash and cash equivalents at beginning of year                      23,365,826        16,445,298        11,922,568
                                                                  ------------      ------------      ------------

Cash and cash equivalents at end of year                          $ 36,312,882      $ 23,365,826      $ 16,445,298
                                                                  ============      ============      ============

Supplemental disclosures of cash flow information

   Cash paid for
     Interest                                                     $ 17,293,757      $ 16,076,559      $ 14,942,651
     Income taxes                                                    2,418,377         1,712,000         1,681,976
   Transfer of securities from held-to-maturity to trading        $  4,015,191      $       --        $       --
   Transfer of securities from held-to-maturity to available-
     for-sale                                                        4,007,930              --                --
   Transfer from loans receivable to loans held for sale               315,711              --                --


</TABLE>
         The  accompanying  notes  are an  integral  part of these  consolidated
financial statements.

                                       19

<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

--------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation:  The accompanying consolidated financial statements
include Home Bancorp (the Company), and its wholly-owned  subsidiary,  Home Loan
Bankfsb (the Bank). All significant  intercompany  transactions and balances are
eliminated in consolidation.

Nature  of  Business,   Concentrations  of  Credit  Risk  and  Industry  Segment
Information:  The primary source of income for the Company is the origination of
residential real estate loans in Fort Wayne,  Indiana and the surrounding areas.
Loans secured by real estate mortgages  comprise  approximately  99% of the loan
portfolio at September 30, 1999. The Company accepts  deposits from customers in
the  normal  course  of  business  primarily  in  Fort  Wayne,  Indiana  and the
surrounding  areas.  The Company operates in the banking industry which accounts
for more  than 90% of its  revenues,  operating  income  and  assets.  While the
Company's  chief  decision  makers  monitor the  revenue  streams of the various
Company products and services,  operations are managed and financial performance
is evaluated on a Company-wide basis. Accordingly,  all of the Company's banking
operations  are  considered by  management  to be  aggregated in one  reportable
operating segment.

Use  of  Estimates  In  Preparing  Financial  Statements:   Preparing  financial
statements in conformity with generally accepted accounting  principles requires
management to make estimates and assumptions that affect the reported amounts of
assets,  liabilities and disclosure of contingent  assets and liabilities at the
date of the  financial  statements  and the  reported  amounts of  revenues  and
expenses  during the  reporting  period,  as well as the  disclosures  provided.
Actual results could differ from those estimates.  Estimates associated with the
allowance for loan losses and the  classification  and fair values of securities
and other financial instruments are particularly  susceptible to material change
in the near term.

Certain  Vulnerability  Due  to  Certain  Concentrations:  Management  is of the
opinion  that the  Company  is not  vulnerable  to  concentrations  which have a
potentially significant short-term impact.

Cash and Cash  Equivalents:  For purposes of reporting cash flows, cash and cash
equivalents is defined to include the Company's cash on hand and in other banks,
federal  funds  sold,   and   interest-earning   deposits  in  other   financial
institutions  with  maturities of 90 days or less. The Company  reports net cash
flows for customer loan  transactions,  deposit  transactions  and advances from
borrowers for taxes and insurance.

Securities:  The Company classifies securities into held to maturity,  available
for sale and trading categories. Held to maturity securities are those which the
Company  has the  positive  intent  and  ability  to hold to  maturity,  and are
reported at amortized cost.  Available for sale securities are those the Company
may decide to sell if needed for liquidity,  asset-liability management or other
reasons.  Available  for sale  securities  are reported at fair value,  with net
unrealized  gains  and  losses  included  as  a  separate   component  of  other
comprehensive  income  (loss)  and  shareholders'  equity,  net of tax.  Trading
securities are bought principally for sale in the near term, and are reported at
fair value with unrealized gains and losses included in earnings.
<PAGE>
Gains and losses on the sale of  securities  are  determined  using the specific
identification  method based on amortized  cost and are  reflected in results of
operations  at the time of sale.  Interest  and  dividend  income,  adjusted  by
amortization  of purchase  premium or discount  over the  estimated  life of the
security using the level yield method, is included in earnings.


                                  (Continued)
                                       20
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Statement of  Financial  Accounting  Standards  (SFAS) No. 133,  Accounting  for
Derivative  Instruments and Hedging  Activities,  requires all derivatives to be
recorded  at fair  value.  Unless  designated  as hedges,  changes in these fair
values will be recorded in the income  statement.  Fair value changes  involving
hedges will  generally be recorded by  offsetting  gains and losses on the hedge
and on the  hedged  item,  even if the  fair  value  of the  hedged  item is not
otherwise  recorded.  As of January 1, 1999, the Company  adopted this statement
and, in accordance with its provisions,  chose to reclassify  certain securities
from held-to-maturity to trading and  available-for-sale.  The amortized cost of
the securities transferred to trading was $4,015,191.  The amortized cost of the
securities  transferred to available-for-sale  was $4,007,930.  The Company does
not have derivative instruments in its portfolio to account for under provisions
of this statement.

Mortgage Banking Activities:  Mortgage loans originated and intended for sale in
the secondary  market are reported as loans held for sale and are carried at the
lower of cost or estimated market value in the aggregate.  Net unrealized losses
are recognized in a valuation allowance by charges to income.

Loan  servicing  fees are  recognized  when  received and the related  costs are
recognized when incurred.  The Bank sells mortgages into the secondary market at
market prices, which includes consideration for normal servicing fees.

Effective  October 1, 1996,  the Company  adopted SFAS No. 122,  Accounting  for
Mortgage  Servicing  Rights.  This Statement changed the accounting for mortgage
servicing  rights  retained by a loan  originator.  Under this standard,  if the
originator sells or securitizes mortgage loans and retains the related servicing
rights,  the total  cost of the  mortgage  loan is  allocated  between  the loan
(without the servicing rights) and the servicing rights, based on their relative
fair values. Under prior practice, all such costs were assigned to the loan. The
costs  allocated  to mortgage  servicing  rights are now  recorded as a separate
asset  and are  amortized  in  proportion  to,  and over  the  life of,  the net
servicing  income.  The  carrying  value of the  mortgage  servicing  rights are
periodically evaluated for impairment.  The effect of adopting the statement was
not material.

Loans Receivable: Loans receivable are stated at unpaid principal balances, less
the allowance for loan losses,  and net of deferred loan origination fees, costs
and discounts.

Interest  income  on loans  is  accrued  over the term of the loan  based on the
amount of unpaid principal,  except where doubt exists as to the  collectibility
of a loan, in which case the accrual of interest is  discontinued.  The carrying
values of impaired  loans are  periodically  adjusted to reflect cash  payments,
revised  estimates of future cash flows,  and  increases in the present value of
expected  cash flows due to the  passage  of time.  Cash  payments  representing
interest  income are  reported  as such.  Other cash  payments  are  reported as
reductions  in carrying  value,  while  increases or decreases due to changes in
estimates  of future  payments  and due to the  passage of time are  reported as
adjustments to the provision for loan losses.

Loan Origination  Fees and Costs:  Loan fees and certain direct loan origination
costs are deferred,  and the net fee or cost is recognized using the level yield
method, as an adjustment to interest income over the life of the loan.

Allowance  for Loan  Losses:  Because  some loans may not be repaid in full,  an
allowance  for loan  losses  is  recorded.  The  allowance  for loan  losses  is
increased  by a provision  for loan losses  charged to expense and  decreased by
charge-offs  (net of recoveries).  Estimating the risk of loss and the amount of
loss on any  loan is  necessarily  subjective.  Accordingly,  the  allowance  is
maintained by management at a level considered adequate to cover losses that are
currently  anticipated.  Management's periodic evaluation of the adequacy of the
allowance is based on past loan loss experience, known and inherent risks in the
portfolio,  adverse  situations that may affect the borrower's ability to repay,
the  estimated  value  of  any  underlying  collateral,   and  current  economic
conditions. While management may periodically allocate portions of the allowance
for specific problem loan  situations,  the whole allowance is available for any
loan charge-offs that occur.

                                  (Continued)
                                       21
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Loans are  considered  impaired if full  principal or interest  payments are not
anticipated in accordance  with the contractual  loan terms.  Impaired loans are
carried at the present  value of expected  future cash flows  discounted  at the
loan's  effective  interest  rate or at the fair value of the  collateral if the
loan is  collateral  dependent.  A portion of the  allowance  for loan losses is
allocated  to impaired  loans if the value of such loans is less than the unpaid
balance.  If these  allocations  cause the  allowance for loan losses to require
increase, such increase is reported in the provision for loan losses.

Smaller-balance  homogeneous  loans are evaluated for impairment in total.  Such
loans include  residential  first mortgage  loans secured by one-to-four  family
residences, residential construction loans, automobile, manufactured homes, home
equity and second mortgage loans. Commercial loans and mortgage loans secured by
other  properties are evaluated  individually  for impairment.  When analysis of
borrower  operating  results and financial  condition  indicates that underlying
cash flows of the  borrower's  business  are not  adequate to meet debt  service
requirements,  the loan is evaluated  for  impairment.  Often this is associated
with a delay or shortfall in payments of 30 days or more.  Nonaccrual  loans are
often also considered impaired. Impaired loans, or portions thereof, are charged
off when deemed  uncollectible.  The nature of disclosures for impaired loans is
considered  generally  comparable to prior nonaccrual and renegotiated loans and
non-performing and past due asset disclosures.

Foreclosed Real Estate:  Real estate properties acquired through, or in lieu of,
loan  foreclosure  are  initially   recorded  at  fair  value  at  the  date  of
acquisition, establishing a new cost basis. Any reduction to fair value from the
carrying  value of the related loan at the time of  acquisition is accounted for
as a loan  loss  and  charged  against  the  allowance  for loan  losses.  After
acquisition,  a valuation  allowance is recorded  through a charge to income for
the amount of selling costs. Valuations are periodically performed by management
and valuation  allowances are adjusted through a charge to income for changes in
fair  value  or  estimated  selling  costs.  There  were no  properties  held as
foreclosed real estate at September 30, 1999 and 1998.

Income  Taxes:  The Company  records  income tax expense  based on the amount of
taxes due on its tax return plus deferred  taxes  computed based on the expected
future tax  consequences of temporary  differences  between the carrying amounts
and tax bases of assets and  liabilities,  using enacted tax rates.  A valuation
allowance,  if needed,  reduces deferred tax assets to the amount expected to be
realized.

Premises  and  Equipment:  Land  and  land  improvements  are  carried  at cost.
Buildings,  leasehold improvements,  and furniture,  fixtures, and equipment are
carried at cost, less accumulated  depreciation and amortization.  Buildings and
furniture,  fixtures,  and equipment  are  depreciated  using the  straight-line
method over the  estimated  useful  lives of the assets.  The cost of  leasehold
improvements is being amortized using the straight-line method over the terms of
the related leases.  These assets are reviewed for impairment under SFAS No. 121
when events indicate the carrying amount may not be recoverable.

Employee  Benefits:  The Company has a  noncontributory  defined benefit pension
plan and a defined  contribution  401(k) plan, each covering  substantially  all
employees.  The pension plan is funded through a multi-employer  defined benefit
plan, on the individual level premium method. The defined contribution plan is a
multi-employer  contributory  profit  sharing plan.  The amount of the Company's
contribution  is at the  discretion  of its Board of Directors and is limited to
the amount deductible for federal income tax purposes.

Employee  Stock  Ownership  Plan:  The Company  accounts for its employee  stock
ownership plan (ESOP) in accordance with AICPA Statement of Position (SOP) 93-6.
Under SOP 93-6,  the cost of shares issued to the ESOP, but not yet allocated to
participants,  is presented in the consolidated balance sheets as a reduction of
shareholders' equity. Compensation expense is recorded based on the market price
of the shares as they are committed to be released for allocation to participant
accounts.  The  difference  between  the  market  price  and the cost of  shares
committed to be released is recorded as an adjustment to common stock. Dividends
on allocated ESOP shares reduce  retained  earnings;  dividends on unearned ESOP
shares reduce debt and accrued interest.

                                  (Continued)
                                       22
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Federal Home Loan Bank Stock: The Bank is a member of the Federal Home Loan Bank
system and is required to invest in capital  stock of the Federal Home Loan Bank
("FHLB"). The amount of the required investment is based upon the balance of the
Bank's  outstanding home mortgage loans or advances from the FHLB and is carried
at cost plus the value assigned to stock dividends.

Financial  Instruments with  Off-Balance-Sheet  Risk: The Company, in the normal
course of business,  makes  commitments to make loans which are not reflected in
the financial  statements.  A summary of these  commitments is disclosed in Note
13.

Earnings Per Share:  Basic  earnings per common share is based on the net income
divided by the weighted average number of common shares  outstanding  during the
period.  ESOP shares are  considered  outstanding  for earnings per common share
calculations  as they are  committed  to be  released;  unearned  shares are not
considered  outstanding.   Recognition  and  retention  plan  (RRP)  shares  are
considered outstanding for earnings per common share calculations as they become
vested.  Diluted  earnings  per  common  share  shows  the  dilutive  effect  of
additional  potential  common shares  issuable under stock options and nonvested
shares  issued  under the RRP.  Earnings  and  dividends  per common  shares are
restated for all stock splits and dividends.

Comprehensive Income (Loss):  Comprehensive income (loss) consists of net income
and  other  comprehensive  income  (loss).  Other  comprehensive  income  (loss)
includes  the net  change  in net  unrealized  gains and  losses  on  securities
available for sale, net of tax, which is also recognized as a separate component
of  shareholders'  equity.  The  accounting  standard  that  requires  reporting
comprehensive  income  (loss)  first  applied for 1999,  with prior  information
restated to be comparable.

Stock Compensation:  Expense for employee  compensation under stock option plans
is based on Accounting  Principles Board (APB) Opinion 25, with expense reported
only if options are granted  below  market price at grant date.  If  applicable,
disclosures  of net income and  earnings  per share are  provided as if the fair
value method of SFAS No. 123 were used for stock-based compensation.



                                  (Continued)
                                       23
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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


NOTE 2 - EARNINGS PER SHARE

A reconciliation  of the numerators and denominators  used in the computation of
the basic  earnings  per common  share and diluted  earnings per common share is
presented below:
<TABLE>
<CAPTION>
                                                                                Year Ended September 30,
                                                                         1999             1998            1997
                                                                     -------------   -------------   --------------
Basic earnings per common share
<S>                                                                  <C>             <C>             <C>
   Numerator
     Income before cumulative effect of change
       in accounting principle                                       $   3,055,009   $   2,906,000   $    2,893,000
     Cumulative effect of change in accounting for
       derivative instruments and hedging activities,
       net of tax                                                           54,991               -                -
                                                                     -------------   -------------   --------------
     Net income                                                      $   3,110,000   $   2,906,000   $    2,893,000
                                                                     =============   =============   ==============

   Denominator
     Weighted average common shares outstanding                          2,161,725       2,396,434        2,642,006
     Less:  Average unallocated ESOP shares                               (141,420)       (162,199)        (184,270)
     Less:  Average non-vested RRP shares                                  (23,500)        (38,842)         (54,765)
                                                                     -------------   -------------   --------------

     Weighted average common shares outstanding
       for basic earnings per common share                               1,996,805       2,195,393        2,402,971
                                                                     =============   =============   ==============

   Basic earnings per common share
     Income before cumulative effect of change
       in accounting principle                                       $        1.53   $        1.32   $         1.20
     Cumulative effect of change in accounting for
       derivative instruments and hedging activities,
       net of tax                                                              .03               -                -
                                                                     -------------   -------------   --------------
     Net income                                                      $        1.56   $        1.32   $         1.20
                                                                     =============   =============   ==============

Diluted earnings per common share
   Numerator
     Income before cumulative effect of change
       in accounting principle                                       $   3,055,009   $   2,906,000   $    2,893,000
     Cumulative effect of change in accounting for
       derivative instruments and hedging activities,
       net of tax                                                           54,991               -                -
                                                                     -------------   -------------   --------------
     Net income                                                      $   3,110,000   $   2,906,000   $    2,893,000
                                                                     =============   =============   ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                                  <C>             <C>             <C>
   Denominator
     Weighted average common shares outstanding
       for basic earnings per common share                               1,996,805       2,195,393        2,402,971
     Add:  Dilutive effects of assumed exercises of
       stock options                                                        56,396          76,588           39,213
     Add:  Dilutive effects of average nonvested RRP
       shares                                                                1,971              37                -
                                                                     -------------   -------------   --------------
     Weighted average common shares and
       dilutive potential common shares outstanding                      2,055,172       2,272,018        2,442,184
                                                                     =============   =============   ==============

   Diluted earnings per common share
     Income before cumulative effect of change
       in accounting principle                                       $        1.48   $        1.28   $         1.18
     Cumulative effect of change in accounting for
       derivative instruments and hedging activities,
       net of tax                                                              .03               -                -
                                                                     -------------   -------------   --------------
     Net income                                                      $       1.51    $        1.28   $        1.18
                                                                     ============    =============   =============
</TABLE>



                                  (Continued)
                                       24
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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

NOTE 3 - SECURITIES

Year end securities available for sale were as follows:
<TABLE>
<CAPTION>
                                                                     Gross             Gross
                                                Amortized         Unrealized        Unrealized           Fair
1999                                              Cost               Gains            Losses             Value
----                                              ----               -----            ------             -----
Debt securities
<S>                                         <C>                 <C>               <C>              <C>
      U.S. Government                       $     23,342,452    $       6,187     $     (189,577)  $     23,159,062
                                            ================    =============     ==============   ================

1998
----
Debt securities
      U.S. Government                       $      5,039,804    $      97,383     $            -   $      5,137,187
                                            ================    =============     ==============   ================
</TABLE>

Year end securities held to maturity were as follows:
<TABLE>
<CAPTION>
                                                                     Gross            Gross
                                                Amortized         Unrealized       Unrealized            Fair
1998                                              Cost               Gains           Losses              Value
----                                              ----               -----            ------             -----
<S>                                         <C>                 <C>               <C>              <C>
Debt securities
      U.S. Government                       $     12,024,247    $     170,753     $            -   $     12,195,000
                                            ================    =============     ==============   ================
</TABLE>

The amortized cost and fair value of debt  securities by  contractual  maturity,
are shown below.  Expected  maturities  may differ from  contractual  maturities
because  borrowers  may have the  right to call or  prepay  obligations  with or
without call or prepayment penalties.
<PAGE>
<TABLE>
<CAPTION>
                                                                                September 30, 1999
                                                                       --------------------------------------
                                                                            Amortized                Fair
                                                                              Cost                   Value
                                                                       ----------------       ---------------
<S>                                                                    <C>                    <C>
           Due in one year or less                                     $      2,018,443       $     2,011,875
           Due after one year through five years                             21,324,009            21,147,187
                                                                       ----------------       ---------------

                                                                       $     23,342,452       $    23,159,062
                                                                       ================       ===============
</TABLE>

Proceeds from the sale of trading securities during the year ended September 30,
1999 were $4,077,500; net holding losses were $26,705. Proceeds from the sale of
securities  available  for sale  during the year ended  September  30, 1999 were
$5,027,573;  gross gains of $40,719 were realized on these sales.  Proceeds from
the sale of securities  available  for sale during the year ended  September 30,
1998 were  $10,286,815;  gross gains of $108,406  were  realized on these sales.
There were no sales of securities  during the year ended  September 30, 1997. No
securities  classified  as held to  maturity  were  transferred  to  trading  or
available-for-sale during the years ended September 30, 1998 or 1997.

                                  (Continued)
                                       25
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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


NOTE 3 - SECURITIES (Continued)

As of January 1, 1999, the Company  adopted SFAS 133,  Accounting for Derivative
Instruments  and Hedging  Activities.  In  accordance  with  provisions  in that
statement,   the  Company   chose  to   reclassify   certain   securities   from
held-to-maturity  to  trading  and  available-for-sale.  The  amortized  cost of
securities  transferred to available-for-sale  was $4,007,930 and the unrealized
net gain was $26,444,  which is included in shareholders'  equity, net of income
tax effect of $10,474.  The  amortized  cost of the  securities  transferred  to
trading  was  $4,015,191  and the  unrealized  net  gain was  $91,060,  which is
reported as the cumulative  effect of a change in accounting  principle,  net of
tax of $36,069.  The Company has no derivative  instruments to account for under
provisions of this statement.

NOTE 4 - LOANS RECEIVABLE

Loans receivable at year end are summarized as follows:
<TABLE>
<CAPTION>

                                                                            1999                 1998
                                                                       ----------------     ----------------
<S>                                                                    <C>                  <C>
     Mortgage loans
         Principal balances
              Secured by one to four family residences                 $    328,202,931     $    308,626,708
              Secured by other properties                                     2,060,556            1,715,486
              Construction loans                                             14,492,827           11,511,693
                                                                       ----------------     ----------------
                                                                            344,756,314          321,853,887
         Less
              Undisbursed portion of construction loans                      (6,048,678)          (5,687,860)
              Net deferred loan origination fees                               (413,267)            (392,456)
                                                                       ----------------     ----------------
                  Total first mortgage loans                                338,294,369          315,773,571

     Consumer and other loans
         Principal balances

              Home equity and second mortgage                                 7,903,640            8,789,814
              Other                                                           1,544,157            1,259,950
                                                                       ----------------     ----------------
                  Total consumer and other loans                              9,447,797           10,049,764

     Less
         Allowance for loan losses                                           (1,342,220)          (1,390,389)
         Loans in process                                                      (400,608)            (245,345)
                                                                       ----------------     ----------------

                                                                       $    345,999,338     $    324,187,601
                                                                       ================     ================
</TABLE>
<PAGE>

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

<TABLE>
<CAPTION>
                                                               1999               1998                1997
                                                          --------------    ----------------     --------------
<S>                                                       <C>               <C>                  <C>
           Balance at beginning of period                 $    1,390,389    $      1,387,989     $    1,385,589
           Provision charged to income                             2,400               2,400              2,400
           Net charge-offs                                       (50,569)                  -                  -
                                                          --------------    ----------------     --------------

           Balance at end of period                       $    1,342,220    $      1,390,389     $    1,387,989
                                                          ==============    ================     ==============
</TABLE>

At  September  30, 1999,  1998 and 1997,  no portion of the  allowance  for loan
losses was  allocated to impaired  loan  balances as the Company had no loans it
considered to be impaired loans as of or for the years ended September 30, 1999,
1998 and 1997.



                                  (Continued)
                                       26

<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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


NOTE 5 - LOAN SERVICING

Mortgage loans serviced for others are not included in the accompanying  balance
sheets. The unpaid principal balances at September 30 are as follows:
<TABLE>
<CAPTION>
                                                                                  1999               1998
                                                                                  ----               ----
<S>                                                                          <C>                <C>
     Mortgage loans serviced for FNMA                                        $     1,571,134    $    1,955,651
                                                                             ===============    ==============
</TABLE>

Custodial escrow balances  maintained for this loan servicing were approximately
$23,000 and $24,000 at September 30, 1999 and 1998, respectively.

NOTE 6 - PREMISES AND EQUIPMENT, NET

Premises and equipment at September 30 are as follows:
<TABLE>
<CAPTION>

                                                                                  1999              1998
                                                                                  ----              ----
<S>                                                                          <C>                <C>
           Land and land improvements                                        $       770,475    $      643,350
           Buildings                                                               2,610,674         2,557,674
           Furniture, fixtures and equipment                                       1,575,874         1,297,483
           Leasehold improvements                                                    291,005           291,005
                                                                             ---------------    --------------
                                                                                   5,248,028         4,789,512

           Less accumulated depreciation and amortization                         (2,331,679)       (1,984,962)
                                                                             ---------------    --------------

                                                                             $     2,916,349    $    2,804,550
                                                                             ===============    ==============
</TABLE>
NOTE 7 - DEPOSITS

The aggregate amount of deposits with a minimum denomination of $100,000 or more
was  approximately  $66,871,000  and $62,518,000 at September 30, 1999 and 1998.
Depositors  have their accounts  insured up to applicable  limits  ($100,000 per
depositor, as defined) by the Federal Deposit Insurance Corporation.
<PAGE>

At September 30, 1999, the scheduled  maturities of  certificates of deposit are
as follows for the years ended September 30:

                           2000                              $186,428,969
                           2001                                33,024,985
                           2002                                12,571,844
                           2003                                 6,490,298
                           2004                                 4,864,897
                           Thereafter                          20,353,557
                                                             ------------

                                                             $263,734,550
                                                             ============

                                  (Continued)
                                       27

<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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


NOTE 8 - FEDERAL HOME LOAN BANK ADVANCES

At September  30,  1999,  advances  from the FHLB with fixed rates  ranging from
5.04% to 5.84% are  required  to be repaid in the year  ending  September  30 as
follows:


                         2000                                $    5,000,000
                         2001                                             -
                         2002                                             -
                         2003                                             -
                         2004                                             -
                         Thereafter                               2,000,000
                                                             --------------

                                                             $    7,000,000
                                                             ==============

In addition to Federal Home Loan Bank stock,  these advances were required to be
collateralized  by pledged  securities  with an amortized cost of  approximately
$23,342,000  and  a  fair  value  of  approximately  $23,159,000.  In  addition,
qualifying  mortgage  loans of  approximately  $327,899,000  were  available  as
collateral under a blanket lien arrangement at September 30, 1999.

NOTE 9 - EMPLOYEE BENEFITS

Employee   Pension  Plan:  The  pension  plan  is  part  of  a   noncontributory
multi-employer   defined-benefit   pension  plan  covering   substantially   all
employees.  As a  multi-employer  plan,  there is no separate  valuation of plan
benefits nor segregation of plan assets  specifically  for the Company.  For the
year ended  September 30, 1999, the fund was fully funded.  There was no expense
under this plan for the years ended September 30, 1999, 1998 and 1997.

401(k) Plan: The Company  maintains a 401(k) salary  reduction plan which covers
substantially  all employees.  Participants may make deferrals from 1% to 15% of
compensation,  however,  the Company does not provide any match of such elective
deferrals.   Expenses  attributable  to  the  plan  for  discretionary  employer
contributions were approximately  $2,000,  $4,000 and $4,000 for the years ended
September 30, 1999, 1998 and 1997.

Recognition and Retention Plan (RRP): In October,  1995, the Company established
the RRP as a method of providing directors,  officers and other key employees of
the Company with a proprietary  interest in the Company in a manner  designed to
encourage  such persons to remain with the  Company.  The terms of each grant of
stock pursuant to the RRP are identical; only the participants and the number of

<PAGE>

shares awarded to each participant  vary. The Bank contributed  funds to the RRP
for the purchase of 78,327 shares of Company common stock at an average price of
$15.25 per share.  On October 10,  1995,  awards of grants for these shares were
issued to various  directors,  officers and other key  employees of the Company.
These awards generally are to vest and be earned by the recipient at the rate of
20% per year,  commencing  October 10, 1996. The unearned portion of these stock
awards  is  presented  as  a  reduction  of  shareholders'  equity.  Expense  of
approximately $233,000,  $233,000 and $238,000 was recorded for the Plan for the
years ended September 30, 1999, 1998 and 1997.

                                  (Continued)
                                       28
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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

NOTE 9 - EMPLOYEE BENEFITS (Continued)

Employee  Stock  Ownership  Plan  (ESOP):  The Company has an ESOP for  eligible
employees.  Employees with 1,000 hours of employment  with the Bank and who have
attained age 21 are eligible to participate.  The ESOP borrowed  $2,312,090 from
the  Company  to  purchase  231,209  shares of the  common  stock  issued in the
conversion at $10 per share.  Collateral for the loan is the unearned  shares of
common  stock  purchased  with the loan  proceeds by the ESOP.  The loan will be
repaid principally from the Bank's discretionary  contributions to the ESOP over
a period of twelve years.  The interest rate for the loan is a variable  monthly
rate equal at all times to the Applicable  Federal Rate. Shares purchased by the
ESOP are held in a suspense  account for allocation  among  participants  as the
loan is repaid.  Expense of  approximately  $566,000,  $636,000 and $451,000 was
recorded  relative to the ESOP for the years ended  September 30, 1999, 1998 and
1997.  Contributions  of $260,000,  $283,000 and $302,000  were made to the ESOP
during the years ended September 30, 1999, 1998 and 1997.  Dividends on unearned
shares are used to reduce the accrued interest and principal amount of the ESOPs
loan payable to the Company.

Contributions  to the ESOP and shares  released from the suspense  account in an
amount  proportional  to the repayment of the ESOP loan are allocated among ESOP
participants on the basis of  compensation  in the year of allocation.  Benefits
generally  become 100% vested after five years of credited  service.  Credit for
vesting  purposes is given for years of service prior to the  effective  date of
the  ESOP.  Prior  to the  completion  of five  years  of  credited  service,  a
participant  who  terminates  employment  for reasons  other than death,  normal
retirement,  or  disability  does  not  receive  any  benefit  under  the  ESOP.
Forfeitures are reallocated among remaining participating employees, in the same
proportion as  contributions.  Benefits are payable in the form of stock or cash
upon termination of employment.  The Company's contributions to the ESOP are not
fixed, so benefits payable under the ESOP cannot be estimated.

ESOP participants are entitled to receive distributions from their ESOP accounts
only upon termination of service.  A participant  entitled to a distribution may
require the Company to  repurchase  the stock in the event that the stock is not
readily tradable on an established  market  (referred to as the put option).  In
general,  participants  are  entitled to exercise the put option for a period of
not more than 60 days following the date of  distribution  of the stock.  As the
Company's  common stock is traded on the NASDAQ National Market under the symbol
"HBFW", the provisions of the put option currently have no effect.

For the years ended September 30, 1999, 1998 and 1997, 20,218, 21,504 and 22,590
shares  with an  average  fair  value of  $28.01,  $29.56  and $19.96 per share,
respectively, were committed to be released.
<PAGE>

The ESOP shares as of September 30 were as follows:
<TABLE>
<CAPTION>

                                            1999           1998           1997
                                        ----------     ----------     ----------

<S>                                     <C>            <C>            <C>
Allocated shares                            99,899         79,681         58,177

Unearned shares                            131,310        151,528        173,032
                                        ----------     ----------     ----------

Total ESOP shares                          231,209        231,209        231,209
                                        ==========     ==========     ==========

Fair value of unearned shares           $3,578,198     $4,129,138     $4,196,026
                                        ==========     ==========     ==========

</TABLE>
                                  (Continued)
                                       28

<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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


NOTE 9 - EMPLOYEE BENEFITS (Continued)

Stock  Option  Plan:  The Board of  Directors  of the  Company  adopted the Home
Bancorp 1995 Stock Option and Incentive  Plan (the Plan).  The number of options
authorized under the Plan is 330,317 shares of common stock. Officers, directors
and  key  employees  of  the  Company  and  its  subsidiaries  are  eligible  to
participate in the Plan. The option  exercise price must be at least 100% of the
market  value (as  defined in the Plan) of the  common  stock on the date of the
grant,  and the  option  term  cannot  exceed 10 years.  Eligible  officers  and
directors of the Company are able to exercise  options awarded to them at a rate
of 20% per year, October 10, 1996 being the first possible exercise date.

The Company  applied APB Opinion 25,  Accounting  for Stock Issued to Employees,
and  related  interpretations  in  accounting  for  its  Plan.  Accordingly,  no
compensation  expense has been recognized for the Plan. SFAS No. 123, Accounting
for Stock-Based Compensation,  requires disclosures for stock-based compensation
for companies that do not adopt its fair value accounting method for stock-based
compensation.  Accordingly,  the  following  proforma  information  presents the
effects on the Company's income before cumulative effect of change in accounting
principle,  net income and earnings per share under the  provisions  of SFAS No.
123 for the years ended  September 30, 1999,  1998 and 1997. In future years, as
additional options are granted,  the effect on net income and earnings per share
may increase.
<TABLE>
<CAPTION>

                                                      1999                     1998                     1997
                                                      ----                     ----                     ----
<S>                                               <C>                      <C>                     <C>
Income before cumulative effect of
  change in accounting principle
     Dollar amount reported                       $  3,055,009             $  2,906,000            $  2,893,000
     Dollar amount proforma                          2,914,958                2,770,033               2,747,825
     Basic EPS reported                           $       1.53             $       1.32            $       1.20
     Basic EPS proforma                                   1.46                     1.26                    1.14
     Diluted EPS reported                                 1.48                     1.28                    1.18
     Diluted EPS proforma                                 1.42                     1.22                    1.13

Net income
     Dollar amount reported                       $  3,110,000             $  2,906,000            $  2,893,000
     Dollar amount proforma                          2,969,949                2,770,033               2,747,825
     Basic EPS reported                           $       1.56             $       1.32            $       1.20
     Basic EPS proforma                                   1.49                     1.26                    1.14
     Diluted EPS reported                                 1.51                     1.28                    1.18
     Diluted EPS proforma                                 1.45                     1.22                    1.13
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                    Available                 Options             Weighted-Average
                                                    For Grant               Outstanding            Exercise Price
                                                    ---------               -----------            --------------

<S>                                                 <C>                      <C>                <C>
     Balance - October 1, 1996                         101,813                  228,504            $      15.25
     Granted                                                 -                        -
     Exercised                                               -                  (14,824)                  15.25
     Forfeited                                               -                        -
                                                  ------------             ------------
     Balance - September 30, 1997                      101,813                  213,680                   15.25

     Granted                                                 -                        -
     Exercised                                               -                  (23,125)                  15.25
     Forfeited                                           3,789                   (3,789)                  15.25
                                                  ------------             ------------
     Balance - September 30, 1998                      105,602                  186,766                   15.25

     Granted                                                 -                        -
     Exercised                                               -                  (46,595)                  15.25
     Forfeited                                             635                     (635)                  15.25
                                                  ------------             ------------
     Balance - September 30, 1999                      106,237                  139,536                   15.25
                                                  ============             ============
</TABLE>

At year end 1999, options outstanding had a weighted-average remaining life of 6
years and an exercise price of $15.25.

                                  (Continued)
                                       30
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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


NOTE 9 - EMPLOYEE BENEFITS (Continued)

Options exercisable at year end are as follows.

                                       Number              Weighted-Average
                                     of Options             Exercise Price
                                     ----------             --------------

     1999                              50,996                $ 15.25
     1998                              53,476                  15.25
     1997                              30,877                  15.25


NOTE 10 - INCOME TAXES

The  Company  and the Bank file a  consolidated  federal  income tax return on a
fiscal year basis.  Prior to fiscal year 1997, if certain conditions were met in
determining  taxable income as reported on the  consolidated  federal income tax
return,  the Bank was allowed a special bad debt deduction based on a percentage
of taxable income (8.00% through 1996) or on specified experience formulas.  The
Bank  used the  percentage  of  taxable  income  method  for the tax year  ended
September 30, 1996. Tax legislation  passed in August 1996 now requires the Bank
to  deduct a  provision  for bad  debts for tax  purposes  based on actual  loss
experience  and recapture the excess bad debt reserve  accumulated  in tax years
beginning after September 30, 1987. The related amount of deferred tax liability
which must be  recaptured  is  approximately  $625,000 and is payable over a six
year period beginning with the tax year ending September 30, 1999.

Income tax expense for the years ended September 30 is:
<TABLE>
<CAPTION>

                                   1999              1998               1997
                                   ----              ----               ----
<S>                           <C>                <C>               <C>
Federal
     Current                  $    1,858,863     $    1,808,251    $       978,879
     Deferred                       (133,219)           (91,695)           630,214
                              --------------     ---------------   ---------------
                                   1,725,644          1,716,556          1,609,093
State
     Current                         495,897            475,916            284,219
     Deferred                         (7,897)              (416)           162,032
                              --------------     ---------------   ---------------
                                     488,000            475,500            446,251
                              --------------     --------------    ---------------

Income tax expense            $    2,213,644     $    2,192,056    $     2,055,344
                              ==============     ==============    ===============

</TABLE>
                                  (Continued)
                                       31

<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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


NOTE 10 - INCOME TAXES (Continued)

The differences between the provision for income taxes shown on the consolidated
statements  of income and amounts  computed by applying  the  statutory  federal
income tax rate of 34% to income before income taxes are as follows:
<TABLE>
<CAPTION>
                                                                    1999              1998               1997
                                                               --------------     --------------    ---------------
<S>                                                            <C>                <C>               <C>
     Income taxes at statutory rate                            $    1,791,342     $    1,733,339    $     1,682,437
     Tax effect of:
         ESOP expense (market value in excess
           of cost of related shares)                                 123,784            142,850             76,394
         State tax, net of federal income tax effect                  322,080            313,830            294,526
         Other                                                        (23,562)             2,037              1,987
                                                               --------------     --------------    ---------------

         Income tax expense                                    $    2,213,644     $    2,192,056    $     2,055,344
                                                               ==============     ==============    ===============

         Effective tax rate                                            42.0%              43.0%             41.5%
                                                                   ========           ========           =======
</TABLE>
Components of the net deferred tax asset (liability) as of September 30 are:
<TABLE>
<CAPTION>
                                                                    1999              1998                1997
                                                               --------------     --------------    ---------------
<S>                                                            <C>                <C>               <C>
     Deferred tax assets:
         Deferred loan fees                                    $      163,695     $      155,452    $       133,687
         Recognition and retention plan                                41,884             41,703             94,673
         Net unrealized losses on
           securities available for sale                               73,357                  -                  -
         Bad debts                                                     10,058                  -                  -
         Other                                                          6,312             13,798             18,602
                                                               --------------     --------------    ---------------
              Total deferred tax assets                               295,306            210,953            246,962

     Deferred tax liabilities:
         Bad debts                                                          -            (75,181)           (76,133)
         Discount accretion                                                 -            (54,939)          (182,107)
         Net unrealized gains on securities
           available for sale                                               -            (33,110)           (26,284)
                                                               --------------     --------------    ---------------
              Total deferred tax liabilities                                -           (163,230)          (284,524)
     Valuation allowance                                                    -                  -                  -
                                                               --------------     --------------    ---------------

     Net deferred tax asset (liability)                        $      295,306     $       47,723    $       (37,562)
                                                               ==============     ==============    ===============
</TABLE>
<PAGE>

Federal  income  tax  laws  provided  savings  banks  with  additional  bad debt
deductions  through  September  30,  1987,  totaling  $7,600,000  for the  Bank.
Accounting  standards do not require a deferred tax  liability to be recorded on
this amount,  which liability otherwise would total approximately  $2,600,000 at
September 30, 1999 and 1998. If the Bank were liquidated or otherwise  ceases to
be a bank or if tax laws were to change,  the  $2,600,000  would be  recorded as
expense.


                                  (Continued)
                                       32
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1999, 1998 and 1997

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


NOTE 11 - REGULATORY MATTERS

Savings  institutions  insured by the FDIC must meet various  regulatory capital
requirements. If a requirement is not met, regulatory authorities may take legal
or administrative action,  including restrictions on growth or operations or, in
extreme cases, seizure.

As of September 30, 1999 and 1998, the Bank was categorized as well capitalized.
The Bank's actual and required capital amounts and ratios are presented below:
<TABLE>
<CAPTION>
                                                                                                   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>
1999
----
Total Capital (to risk
  weighted assets)               $  37,590        18.84%       $  15,961         8.00%       $ 19,951       10.00%
Tier I (Core) Capital
  (to risk weighted
  assets)                        $  36,248        18.17%       $   7,980         4.00%       $ 11,970        6.00%
Tier I (Core) Capital
  (to adjusted total
  assets)                        $  36,248         8.76%       $  16,543         4.00%       $ 20,679        5.00%

1998
----
Total Capital (to risk
  weighted assets)               $  35,232        18.97%       $  14,855         8.00%       $ 18,569       10.00%
Tier I (Core) Capital
  (to risk weighted
  assets)                        $  33,841        18.22%       $   7,428         4.00%       $ 11,141        6.00%
Tier I (Core) Capital
  (to adjusted total
  assets)                        $  33,841         9.23%       $  14,668         4.00%       $ 18,335         5.00%

</TABLE>
                                  (Continued)
                                       33

<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        September 30, 1999, 1998 and 1997

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

NOTE 11 - REGULATORY MATTERS (Continued)

The Qualified Thrift Lender (QTL) test requires that approximately 65% of assets
be maintained in  housing-related  finance and other specified areas. If the QTL
test is not met, limits are placed on growth,  branching, new investments,  FHLB
advances and dividends,  or the Bank must concert to a commercial  bank charter.
Management believes that the QTL test has been met.

Under  OTS   regulations,   limitations   have  been  imposed  on  all  "capital
distributions" by savings institutions, including cash dividends. The regulation
establishes a three-tiered system of restrictions, with the greatest flexibility
afforded  to  thrifts  which  are  both  well-capitalized  and  given  favorable
qualitative examination ratings by the OTS. For example, a thrift which is given
one of the two highest  examination ratings and has "capital" equal to its fully
phased-in  regulatory  capital  requirements  (a tier 1 institution)  could make
capital  distributions  in any year of 100% of its  retained  net income for the
calendar  year-to-date plus net income for the previous two calendar years (less
any  dividends  previously  paid)  as  long  as  the  Bank  would  remain  "well
capitalized",  following  the  proposed  distribution.  Other  thrifts  would be
subject to more stringent  procedural  and  substantive  requirements,  the most
restrictive being prior OTS approval of any capital distribution.  The Bank is a
tier one  institution.  At  September  30,  1999,  none of the  Bank's  retained
earnings was  potentially  available for  distribution  to the Company,  without
obtaining prior regulatory approval.

The Bank established a liquidation  account of $21,370,000 which is equal to its
total net worth as of the date of the latest audited  balance sheet appearing in
the final  conversion  prospectus for the Company's  stock  offering  related to
converting from a mutual to a stock ownership structure. The liquidation account
is maintained  for the benefit of eligible  depositors  who continue to maintain
their  accounts at the Bank after the  conversion.  The  liquidation  account is
reduced  annually to the extent that  eligible  depositors  have  reduced  their
qualifying  deposits.  Subsequent increases will not restore an eligible account
holder's  interest  in the  liquidation  account.  In the  event  of a  complete
liquidation,  each eligible depositor will be entitled to receive a distribution
from the liquidation account in an amount  proportionate to the current adjusted
qualifying  balances for accounts then held. The Bank may not pay dividends that
reduce shareholders' equity below the required liquidation account balance.
<PAGE>
NOTE 12 - OTHER NONINTEREST INCOME AND EXPENSE

Other  noninterest  income and  expenses  for the years ended  September  30 are
summarized as follows:
<TABLE>
<CAPTION>

                                                                    1999              1998               1997
                                                               --------------     --------------    ---------------
<S>                                                            <C>                <C>               <C>
Other noninterest income
     Service charges and fees                                  $      217,681     $      155,615    $       147,890
     Late charges                                                      53,721             41,263             48,088
     Other                                                            119,125             50,786             50,735
                                                               --------------     --------------    ---------------

                                                               $      390,527     $      247,664    $       246,713
                                                               ==============     ==============    ===============
Other noninterest expenses

     Advertising and promotion                                 $      183,280     $      203,694    $       201,798
     Data processing                                                  397,075            309,994            252,750
     Professional fees                                                120,398            151,880            165,230
     Telephone, postage and supplies                                  224,475            181,532            154,751
     Other                                                            124,156            161,889            412,488
                                                               --------------     --------------    ---------------

                                                               $    1,049,384     $    1,008,989    $     1,187,017
                                                               ==============     ==============    ===============

</TABLE>
                                  (Continued)
                                       34
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        September 30, 1999, 1998 and 1997

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



NOTE 13 - COMMITMENTS AND CONTINGENCIES

In the  ordinary  course  of  business,  the  Company  has  various  outstanding
commitments   and  contingent   liabilities   that  are  not  reflected  in  the
accompanying  consolidated  financial  statements.  The  principal  commitments,
excluding loans in process, of the Company are as follows at September 30, 1999:
<TABLE>
<CAPTION>

                                                                     Fixed          Variable
                                                                     Rate             Rate               Total
                                                               --------------     --------------    ---------------
<S>                                                            <C>                <C>               <C>
     Mortgage loans                                            $    2,256,100     $      774,050    $     3,030,150
     Consumer and other loans                                         108,000            191,000            299,000
                                                               --------------     --------------    ---------------

                                                               $    2,364,100     $      965,050    $     3,329,150
                                                               ==============     ==============    ===============
</TABLE>

The principal  commitments,  excluding  loans in process,  of the Company are as
follows at September 30, 1998:
<TABLE>
<CAPTION>

                                                                     Fixed          Variable
                                                                     Rate             Rate               Total
                                                               --------------     --------------    ---------------
<S>                                                            <C>                <C>               <C>
     Mortgage loans                                            $    8,420,100     $    1,105,650    $     9,525,750
     Consumer and other loans                                         242,000            379,550            621,550
                                                               --------------     --------------    ---------------

                                                               $    8,662,100     $    1,485,200    $    10,147,300
                                                               ==============     ==============    ===============
</TABLE>

The majority of loan  commitments  have  commitment  periods up to 90 days, loan
terms ranging from 10 years to 30 years and  contractual  interest rates ranging
from 6.35% to 9.50%.

The Company has commitments for unused lines of credit  aggregating  $12,527,000
at September 30, 1999.

Since certain commitments to make loans and to fund lines of credit and loans in
process  expire without being used,  the amount does not  necessarily  represent
future cash  commitments.  In addition,  commitments  used to extend  credit are
agreements  to  lend to a  customer  as long as  there  is no  violation  of any
<PAGE>
condition established in the contract.  The Company's exposure to credit loss in
the event of nonperformance by the other party to these financial instruments is
represented by the contractual amount of these instruments.  The Company follows
the same credit policy to make such  commitments  as is followed for those loans
recorded on the consolidated balance sheet.

At September 30, 1999, the Company has an approved line of credit of $15,000,000
with the Federal Home Loan Bank of  Indianapolis.  In the event the Company were
to draw on the line,  the Company  would pledge as  collateral,  securities  and
qualifying mortgage loans under a blanket lien arrangement.

The Company has  long-term  leases for premises  which  expire at various  dates
through 2001. The Company pays taxes,  insurance and  maintenance  costs on such
premises.  Total  lease  expense  related to these  premises  was  approximately
$80,000 for each of the years ended September 30, 1999, 1998 and 1997.

The Company and the Bank are subject to certain claims and legal actions arising
in the  ordinary  course  of  business.  In the  opinion  of  management,  after
consultation  with legal counsel,  the ultimate  disposition of these matters is
not expected to have a material  adverse  effect on the  consolidated  financial
position or operations of the Company.

                                  (Continued)
                                       35
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        September 30, 1999, 1998 and 1997

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



NOTE 14 - SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK

The Company grants real estate and consumer loans including home improvement and
other consumer  loans  primarily in Allen and Adams  counties.  Loans secured by
residential  real  estate  mortgages  comprise  approximately  99% of  the  loan
portfolio.  The  Company  is also  involved  in the sale of  mortgage  loans and
servicing of these loans for secondary market agencies. The Company's policy for
collateral on mortgage loans allows  borrowings up to 95% of the appraised value
of the property as established by appraisers  approved by the Company's Board of
Directors,  provided  that private  mortgage  insurance is obtained in an amount
sufficient  to reduce the Company's  exposure to or below the 80%  loan-to-value
level. The percentage and  documentation  guidelines are designed to protect the
Company's  interest in the  collateral as well as to comply with  guidelines for
sale in the secondary market.

NOTE 15 - PARENT COMPANY FINANCIAL STATEMENTS

Presented below are condensed financial statements for the parent company,  Home
Bancorp:
<TABLE>
<CAPTION>

                                             CONDENSED BALANCE SHEETS
                                           September 30, 1999 and 1998

                                                                                   1999                1998
                                                                             ----------------    ---------------
<S>                                                                          <C>                 <C>
ASSETS

Cash and cash equivalents                                                    $        629,440    $     1,012,023
Investment in subsidiary bank                                                      36,138,255         33,840,543
Securities available for sale                                                               -          5,137,187
Loan receivable from ESOP                                                           1,287,963          1,536,908
Other assets                                                                           86,788             31,347
                                                                             ----------------    ---------------

     Total assets                                                            $     38,142,446    $    41,558,008
                                                                             ================    ===============

LIABILITIES

Accrued expenses                                                             $        219,355    $       519,729

SHAREHOLDERS' EQUITY                                                               37,923,091         41,038,279
                                                                             ----------------    ---------------

     Total liabilities and shareholders' equity                              $     38,142,446    $    41,558,008
                                                                             ================    ===============

</TABLE>

                                   (Continued)
                                       36
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        September 30, 1999, 1998 and 1997

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


NOTE 15 - PARENT COMPANY FINANCIAL STATEMENTS (Continued)
<TABLE>
<CAPTION>

                                                    CONDENSED STATEMENTS OF INCOME

                                                                                 Year ended September 30,
                                                                      1999               1998               1997
                                                               --------------     --------------    ---------------
<S>                                                            <C>                <C>               <C>
Interest income                                                $      236,257     $      500,331    $       459,166
Dividends from subsidiary bank                                      1,332,000          2,714,000          8,383,000
Net gains on sales of securities
  available for sale                                                   40,719                  -                  -
                                                               --------------     --------------    ---------------
                                                                    1,608,976          3,214,331          8,842,166

Operating expenses                                                    147,598            140,186            127,287
                                                               --------------     --------------    ---------------

Income before income taxes and equity in
  undistributed earnings of subsidiary bank                         1,461,378          3,074,145          8,714,879

Equity in undistributed (excess distributed)
  earnings of subsidiary bank                                       1,700,000            (25,000)        (5,690,000)
                                                               --------------     --------------    ---------------

Income before income taxes                                          3,161,378          3,049,145          3,024,879

Income tax expense                                                     51,378            143,145            131,879
                                                               --------------     --------------    ---------------


Net income                                                     $    3,110,000     $    2,906,000    $     2,893,000
                                                               ==============     ==============    ===============
</TABLE>


                                  (Continued)
                                       37
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        September 30, 1999, 1998 and 1997

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


NOTE 15 - PARENT COMPANY FINANCIAL STATEMENTS (Continued)
<TABLE>
<CAPTION>
                                                  CONDENSED STATEMENTS OF CASH FLOWS

                                                                                Year ended September 30,
                                                                      1999                1998              1997
                                                               --------------     --------------    ---------------
<S>                                                            <C>                <C>               <C>
Cash flows from operating activities
     Net income                                                $    3,110,000     $    2,906,000    $     2,893,000
     Adjustments to reconcile net income to net
       cash provided by operating activities
         Equity in (undistributed) excess distributed
           income of subsidiary bank                               (1,700,000)            25,000          5,690,000
         Amortization and accretion, net                              293,614            197,337            226,069
         Net gains on sales of securities
           available for sale                                         (40,719)                 -                  -
         Net change in other assets                                   (55,441)           178,489            (55,035)
         Net change in accrued expenses                              (267,264)           458,198              8,454
                                                               --------------     --------------    ---------------
              Net cash provided by operating activities             1,340,190          3,765,024          8,762,488

Cash flows from investing activities
     Proceeds from sales of securities available
       for sale                                                     5,027,573                  -                  -
     Proceeds from maturities of securities held
       to maturity                                                          -          1,000,000          3,000,000
     Purchase of securities available for sale                              -                  -         (5,078,125)
     Repayments on loan receivable from ESOP                          248,945            232,471            231,798
                                                               --------------     --------------    ---------------
         Net cash provided by (used in) investing
           activities                                               5,276,518          1,232,471         (1,846,327)

Cash flows from financing activities
     Purchase of treasury stock                                    (6,907,578)        (6,437,191)        (6,106,642)
     Cash dividends paid                                             (802,287)          (673,174)          (477,214)
     Proceeds from exercise of stock options                          710,574            352,656            226,066
                                                               --------------     --------------    ---------------
         Net cash used in financing activities                     (6,999,291)        (6,757,709)        (6,357,790)
                                                               --------------     --------------    ---------------

     Net change in cash and cash equivalents                         (382,583)        (1,760,214)           558,371

Cash and cash equivalents at beginning of period                    1,012,023          2,772,237          2,213,866
                                                               --------------     --------------    ---------------

Cash and cash equivalents at end of period                     $      629,440     $    1,012,023    $     2,772,237
                                                               ==============     ==============    ===============
</TABLE>
<PAGE>

The extent to which the  Company may pay cash  dividends  to  shareholders  will
depend on the cash  currently  available at the  Company,  as well as the Bank's
ability to pay dividends to the Company (see Note 11).



                                  (Continued)
                                       38
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        September 30, 1999, 1998 and 1997

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


NOTE 16 - FAIR VALUES OF FINANCIAL INSTRUMENTS

The  following  table shows the  estimated  fair value and the related  carrying
amounts of the Company's  financial  instruments at September 30, 1999 and 1998.
Items which are not financial instruments are not included.
<TABLE>
<CAPTION>

                                                       1 9 9 9                                1 9 9 8
                                                       -------                                -------
                                            Carrying             Estimated           Carrying            Estimated
                                             Amount              Fair Value            Amount            Fair Value
                                             ------              ----------            ------            ----------

<S>                                     <C>                 <C>                 <C>                <C>
Cash and cash equivalents               $    36,312,882     $    36,313,000     $    23,365,826    $     23,366,000
Securities available for sale                23,159,062          23,159,000           5,137,187           5,137,000
Securities held to maturity                           -                   -          12,024,247          12,195,000
Loans receivable, net                       345,999,338         347,304,000         324,187,601         338,857,000
Federal Home Loan Bank
  stock                                       3,173,700           3,174,000           2,782,500           2,783,000
Demand and savings deposits                 (99,619,719)        (99,620,000)        (81,356,915)        (81,357,000)
Certificates of deposit                    (263,734,550)       (264,859,000)       (234,641,189)       (237,578,000)
FHLB advances                                (7,000,000)         (7,000,000)         (9,000,000)         (9,000,000)
Advances from borrowers for
  taxes and insurance                        (2,971,219)         (2,971,000)         (2,597,387)         (2,597,000)
</TABLE>

For purposes of the above  disclosures  of estimated  fair value,  the following
assumptions  were used as of September  30, 1999 and 1998.  The  estimated  fair
value for cash and cash  equivalents,  Federal Home Loan Bank stock,  demand and
savings  deposits  and  advances  from  borrowers  for  taxes and  insurance  is
considered to approximate cost. The estimated fair value for securities is based
on quoted market values for the individual securities or equivalent  securities.
The  estimated  fair value for loans is based on  estimates of the rate the Bank
would charge for similar such loans at September 30, 1999 and 1998,  applied for
the time period until the loans are assumed to reprice or be paid.  In addition,
when computing the estimated fair value for loans receivable,  the allowance for
loan losses was subtracted from the calculated fair value for  consideration  of
credit issues.  The estimated fair value for certificates of deposit is based on
estimates of the rate the Bank would pay on such  deposits at September 30, 1999
and 1998,  applied for the time period until maturity.  The estimated fair value
for FHLB  advances is estimated by discounted  cash flow analysis  using current
market rates for the estimated life and credit risk. The estimated fair value of
other financial instruments and off-balance-sheet  loan commitments  approximate
cost and are not considered significant for this presentation.
<PAGE>

While these  estimates of fair value are based on  management's  judgment of the
most  appropriate  factors,  there is no assurance that were the Company to have
disposed of such items at September 30, 1999 and 1998, the estimated fair values
would  necessarily  have been  achieved at that date,  since  market  values may
differ  depending  on  various  circumstances.  The  estimated  fair  values  at
September  30, 1999 and 1998 should not  necessarily  be  considered to apply at
subsequent dates.

In addition, other assets and liabilities of the Company that are not defined as
financial  instruments  are  not  included  in the  above  disclosures,  such as
premises and equipment. Also, non-financial instruments typically not recognized
in financial statements  nevertheless may have value but are not included in the
above  disclosures.  These included,  among other items, the estimated  earnings
power of core deposit  accounts,  the trained work force,  customer goodwill and
similar items.


                                  (Continued)
                                       39
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        September 30, 1999, 1998 and 1997

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

NOTE 17 - OTHER COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss) components and related taxes were as follows:
<TABLE>
<CAPTION>

                                                                    1999          1998           1997
                                                                 ---------      ---------      ---------
<S>                                                              <C>            <C>            <C>
Net change in net  unrealized  gains  (losses) on securities
 available for sale
        Unrealized gains (losses) arising
           during the year                                       $(266,498)     $ 128,484      $  72,573


         Reclassification adjustments for transfers
           from securities held to maturity to
           securities available for sale upon
           adoption of SFAS No. 133                                 26,444           --             --

         Reclassification adjustments for gains
           included in net income                                  (40,719)      (108,406)          --
                                                                 ---------      ---------      ---------

         Net change in net unrealized gains
           (losses) on securities available for sale              (280,773)        20,078         72,573

Tax effects                                                        106,467         (6,826)       (24,676)
                                                                 ---------      ---------      ---------

         Total other comprehensive income (loss)                 $(174,306)     $  13,252      $  47,897
                                                                 =========      =========      =========

</TABLE>



                                  (Continued)
                                       40



<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        September 30, 1999, 1998 and 1997

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


NOTE 18 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
<TABLE>
<CAPTION>

                                                           --------------Year Ended September 30, 1999--------------
                                                                1st            2nd             3rd            4th
(In thousands, except per share data)                       Quarter        Quarter         Quarter        Quarter
                                                          -----------    -----------    -----------     -----------

<S>                                                       <C>            <C>            <C>             <C>
Interest income                                           $     6,653    $     6,718    $     6,868     $     7,014

Interest expense                                                4,250          4,260          4,316           4,378
                                                          -----------    -----------    -----------     -----------


Net interest income                                             2,403          2,458          2,552           2,636

Provision for loan losses                                           1              -              1               -
                                                          -----------    -----------    -----------     -----------


Net interest income after provision for loan                    2,402          2,458          2,551           2,636
  losses

Noninterest income                                                114             56            107             131

Noninterest expense                                             1,172          1,283          1,312           1,419
                                                          -----------    -----------    -----------     -----------


Income before income taxes and cumulative

  effect of change in accounting principle                      1,344          1,231          1,346           1,348

Income tax expense                                                579            497            570             568
                                                          -----------    -----------    -----------     -----------


Income before cumulative effect of change

  in accounting principle                                         765            734            776             780

Cumulative effect of change in accounting
  for derivative instruments and hedging

  activities, net of tax                                            -             55              -               -
                                                          -----------    -----------    -----------     -----------


Net income                                                $       765    $       789    $       776     $       780
                                                          ===========    ===========    ===========     ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                       <C>            <C>            <C>             <C>
Earnings per share

     Income before cumulative effect of
       change in accounting principle:
         Basic                                            $       .37    $       .36    $       .39     $       .41
                                                          ===========    ===========    ===========     ===========
         Diluted                                          $       .35    $       .34    $       .37     $       .41
                                                          ===========    ===========    ===========     ===========

     Net income:
         Basic                                            $       .37    $       .39    $       .39     $       .41
                                                          ===========    ===========    ===========     ===========
         Diluted                                          $       .35    $       .37    $       .37     $       .41
                                                          ===========    ===========    ===========     ===========
</TABLE>


                                  (Continued)
                                       41
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        September 30, 1999, 1998 and 1997

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


NOTE 18 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued)
<TABLE>
<CAPTION>

                                                           --------------Year Ended September 30, 1998--------------
                                                                1st            2nd             3rd            4th
(In thousands, except per share data)                       Quarter        Quarter         Quarter        Quarter
                                                          -----------    -----------    -----------     -----------
<S>                                                       <C>            <C>            <C>             <C>
Interest income                                           $     6,476    $     6,429    $     6,466     $     6,608

Interest expense                                                4,122          3,988          4,003           4,110
                                                          -----------    -----------    -----------     -----------


Net interest income                                             2,354          2,441          2,463           2,498

Provision for loan losses                                           1              -              1               -
                                                          -----------    -----------    -----------     -----------

Net interest income after provision for loan                    2,353          2,441          2,462           2,498
  losses

Noninterest income                                                108            139             84              25

Noninterest expense                                             1,226          1,158          1,257           1,371
                                                          -----------    -----------    -----------     -----------


Income before income taxes and cumulative
  effect of change in accounting principle                      1,235          1,422          1,289           1,152

Income tax expense                                                570            583            540             499
                                                          -----------    -----------    -----------     -----------

Income before cumulative effect of change
  in accounting principle                                         665            839            749             653
                                                          -----------    -----------    -----------     -----------

Net income                                                $       665    $       839    $       749     $       653
                                                          ===========    ===========    ===========     ===========

Earnings per share
     Net income:

         Basic                                            $       .29    $       .38    $       .34     $       .31
                                                          ===========    ===========    ===========     ===========
         Diluted                                          $       .28    $       .37    $       .33     $       .30
                                                          ===========    ===========    ===========     ===========
</TABLE>
                                  (Continued)
                                       42
<PAGE>
                      CORPORATE AND SHAREHOLDER INFORMATION




Company and Bank Address
         132 East Berry Street
         P. O. Box 989
         Fort Wayne, Indiana 46801-0989
         Telephone:      (219) 422-3502
         Facsimile:        219.426.7027

Stock Price Information

The  Company's  stock is traded on The Nasdaq  National  Market under the symbol
"HBFW."  The  table  below  shows  the  range of high and low bid  prices of the
Company's  common  stock for fiscal years 1998 and 1999 and  dividends  declared
during such periods.  The  information set forth in the table below was provided
by The Nasdaq  Stock  Market.  Such  information  reflects  interdealer  prices,
without retail mark-up,  mark-down or commission,  and may not represent  actual
transactions for fiscal years:

Fiscal           1998                             1999
Quarter  Div.    High         Low       Div.      High      Low
    I    .05    $29.50     $24.00      .08      $29.75     $26.50
   II    .05    $37.875    $28.50      .10      $33.50     $27.50
  III    .08    $35.375   $29.125      .10      $28.25     $27.00
   IV    .08    $30.00    $26.625      .10      $30.50     $27.00

Stock Price

September 30th:           $27.25                $27.25



The sixteenth  quarterly  dividend  (Div.) of $.10 was declared on the Company's
common stock,  payable  January 13, 2000 to  shareholders of record December 28,
1999. For information  regarding  restrictions on dividends,  see Note 11 to the
Consolidated Financial Statement.

As of December 1, 1999,  the Company had  approximately  1,352  shareholders  of
record and 2,011,652 outstanding shares of common stock.

Investor Relations

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

         Marvin C. Schumm, President & CEO
         Home Bancorp
         132 East Berry Street
         P. O. Box 989
         Fort Wayne, IN  46801-0989
         (219) 422-3502
<PAGE>
Annual Report on Form 10-K

Copies of Home Bancorp's Annual Report for year ended September 30, 1999 on Form
10-K filed with the  Securities and Exchange  Commission  are available  without
charge to shareholders upon written request to:

         Investor Relations
         Home Bancorp
         P. O. Box 989
         Fort Wayne, IN 46801-0989

Annual Meeting

The annual  meeting of  shareholders  of Home Bancorp will be held at 2:00 p.m.,
local time, on Tuesday,  January 25, 2000, at the Holiday Inn Downtown, 300 East
Washington Boulevard, Fort Wayne, Indiana. Your attendance is appreciated.

Stock Transfer Agent and Registrar

Home Bancorp's  transfer agent,  Registrar and Transfer  Company,  maintains all
shareholder records and can assist with stock transfer and registration  address
changes, changes or corrections in social security or tax identification numbers
and 1099 tax reporting  questions.  If you have  questions,  please  contact the
stock transfer agent at the address below:

         Registrar and Transfer Company

         10 Commerce Drive
         Cranford, New Jersey 07016
         Toll Free (800) 368-5948

Stock Listing

Home  Bancorp  stock is traded on The Nasdaq  National  Market  under the symbol
HBFW. The following newspaper stock tables list the Company as:

         The Journal Gazette...HmeBc
         The News-Sentinel.....HmeBc
         Indianapolis Star.....HmeBc
         New York Times........HmeBc
         USA Today.............HmeBc
         Chicago Tribune.......HomeBnc
         Wall Street Journal...HmBcp

Home Loan Bank   o    Banking Offices
   (year established)

Corporate                    132 E. Berry St. (46802)
   1893                        (219) 422-3502

Southtown                      1110 E. Tillman Rd. (46816)
   1971                        (219) 447-3531

Marketplace of Canterbury    5611 Saint Joe Rd. (46835)
   1975                        (219) 485-1619

Covington/Time Corners       6128 Covington Rd. (46804)
   1977                        (219) 432-0606
<PAGE>
Northwest                      926 W. State Blvd. (46808)
   1987                        (219) 482-6391

Georgetown North             6411 E. State Blvd. (46815)
   1992                        (219) 486-0646

Dupont Crossing              720 E. Dupont Rd. (46825)
   1996                        (219) 490-4663

Decatur                      101 N. Second St.
   1973                      Decatur, Indiana (46733)
                               (219) 728-2155

Decatur North                334 N. Second St.
   1999                      Decatur, Indiana (46733)
                               (219) 728-2155

New Haven                    1230 E. Lincoln Hwy.
   1987                      New Haven, Indiana (46774)
                               (219) 749-1780



                                       43


<PAGE>
                                Mission Statement

The  mission  statement  of Home  Loan  Bank fsb,  subsidiary  of Home  Bancorp,
reflects a chartered  course for meeting the  financial  needs of our  customers
with an encouragement of investments and the promotion of home ownership. We are
committed to providing the highest quality financial  services for all customers
in our operating  areas,  while  maintaining a conservative,  well  capitalized,
liquid and profitable financial institution.

Further,  we shall perform our obligations in an ethical manner in the community
as a  responsible  corporate  citizen  and  acknowledge  the  holding  company's
ultimate responsible goal of shareholder enhancements.




                         [GRAPHIC-PHOTO OF BANK OMITTED]



                     MARKET MAKERS AS OF SEPTEMBER 30, 1999

                          ABN AMRO Chicago Corporation
                             Capital Resources, Inc.

                     Friedman, Billings, Ramsey & Co., Inc.
                           Herzog, Heine, Geduld, Inc.
                           J.J.B. Hilliard, W.L. Lyons

                          Keefe, Bruyette & Woods, Inc.
                            McDonald Investments Inc.

                        Stifel, Nicolaus & Company, Inc.
                                Wheat First Union



                                       44

<PAGE>
                                    DIRECTORS

                                       and

                                    OFFICERS

Board of Directors
(Home Bancorp and Home Loan Bank)                 (Year appointed to Bank Board)

W. Paul Wolf Chairman of the Board, President and CEO                1961
Rod M. Howard   Retired, Howard's Graphic Supply                     1969
Walter A. McComb, Jr.   McComb Funeral Homes                         1982
Richard P. Hormann   DeHayes Group, Inc.                             1987
C. Philip Andorfer   CPA                                             1988
Luben Lazoff Lazoff & Associates                                     1991
Daniel F. Fulkerson  McMahon Paper Company                           1993
Matthew P. Forrester Senior Vice President and
  Chief Financial Officer                                            1994
Donald E. Thornton   Vice President of Lending                       1997


Officers of
Home Bancorp

W. Paul Wolf
Chairman, President and
Chief Executive Officer

Matthew P. Forrester
Senior Vice-President and
Chief Financial Officer

Gary L. Hemrick
Vice President/Secretary

Timothy A. Sheppard
Treasurer

Luben Lazoff
Assistant Secretary


                                  Home Bancorp

                                      HBFW

132 East Berry St. o  P.O. Box 989
Fort Wayne, Indiana 46801-0989

Telephone        (219) 422-3502
Facsimile         219.426.7027

Officers of Home Loan Bank fsb

W. Paul Wolf
Chairman, President and CEO
Matthew P. Forrester
Senior Vice President/CFO
Donald E. Thornton
Vice President of Lending/Secretary
Gary L. Hemrick
Vice President/Operations
John E. Fitzgerald
Vice President/CRA
Barbara J. Boyd
Vice President/Retail Banking
Gladys A. (Jo) Thomas
Vice President/Decatur Operations
Timothy A. Sheppard
Treasurer
Paul N. Lewark
Assistant Vice President
James M. Turner
Assistant Vice President
Robert P. Norton
Assistant Vice President
Robert V. Earl
Assistant Vice President
Stanley J. Amstutz
Assistant Vice President
Linda M. DeGroff
Assistant Vice President
Ruth A. Marburger
Assistant Vice President
Jody J. Morrissey
Assistant Vice President
Joseph M. Hayes
Assistant Vice President
Matthew L. Level
Assistant Vice President
Michael J. Jones
Assistant Vice President
Penny S. Parrish
Assistant Vice President
Todd A. Hall
Assistant Vice President
Doris G. Hall
Assistant Vice President
Cathy S. Stidham
Assistant Vice President
Luben Lazoff
Assistant Secretary
Jerry W. Gump
Internal Auditor/Compliance
John C. Monroe
Assistant Internal Auditor
Randal L. Hockemeyer
Loan Officer
J. Scott Lancaster
Loan Officer
Lupka Baloski
Personnel
Carol A. Tait
Administrative Assistant



                                       45
<PAGE>
                        [GRAPHIC-PHOTO OF W. PAUL WOLF OMITTED]

                                  W. Paul Wolf

                        Ninth President of Home Loan Bank

W. Paul Wolf, at the age of twenty-eight,  joined Home Loan Bank July 1, 1960 as
Assistant Secretary  Treasurer.  Within a year he was elected to take a place on
the board.  In 1963 Mr. Wolf became  Secretary  Treasurer.  From the position of
Managing  Officer,  he was elected President and Chief Executive Officer in 1970
and in 1991 he became Chairman of the Board.  Thirty-nine years and three months
later, Mr. Wolf  transferred his energies to an active  retirement that includes
grandchildren, golf and travel coupled with community and church activities.

During Mr. Wolf's tenure, Home Loan Bank's assets have grown from $13 million to
$413.8  million,  as of September  30, 1999,  with ten (10) banking  offices now
serving  customers.  Chairman C. Philip Andorfer stated, "On behalf of the Board
of Directors,  we have all had the opportunity and pleasure of working with Paul
Wolf for many years. Paul has demonstrated administrative leadership in both the
growth of the Bank and the  maintenance,  safety and solvency of Home Loan Bank.
We appreciate his years of dedicated service and know that he has positioned the
organization to grow stronger and more progressive into the future.  We wish him
the very best in his retirement."