Exhibit 13

                        Annual Report to Security Holders




<PAGE>



                               1996 ANNUAL REPORT







                                     [LOGO]








                                  HOME BANCORP
                               Fort Wayne, Indiana


<PAGE>


                                CORPORATE PROFILE



           Home Bancorp,  Fort Wayne,  Indiana, an Indiana Corporation,
      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, 1996 of $322.7  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,  Home Loan
      Bank  is a  community  oriented  financial  institution  offering
      traditional deposit and mortgage and consumer loan products.  The
      Bank maintains a nine full-service  office network in Fort Wayne,
      Decatur and New Haven.



           As a guide for our forthcoming  104th  consecutive year, our
      challenge is to offer  superior  service and  competitive  prices
      through   increased   efficiency  and  close  operating   expense
      controls.  Home Loan Bank 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

               President's Message to Shareholders

               Selected Consolidated Financial Information

               Management's Discussion & Analysis of Financial Condition &
                    Results of Operation

               Report of Independent Auditors

               Consolidated Balance Sheets

               Consolidated Statements of Income

               Consolidated Statements of Changes in Shareholders' Equity

               Consolidated Statements of Cash Flows

               Notes to Consolidated Financial Statements

               Corporate & Shareholder Information

               Home Loan Bank Office Locations

               Mission Statement

               Market Makers

               Directors & Officers

<PAGE>

                          Fort Wayme...The Midwest Hub!


PRESIDENT'S MESSAGE TO OUR SHAREHOLDERS:

Fiscal year ended  September 30, 1996  completed our first full year as a public
company,  as result of the March 29, 1995 conversion,  with positive results for
shareholders.  We have reported successively higher outstanding loan balances in
all six  quarters  of Home  Bancorp's  existence.  Equally  important,  after an
eighteen-month  battle,   legislation  was  passed  on  September  30,  1996  to
recapitalize the Savings Association Insurance Fund (SAIF).

The price  Home Loan Bank  must pay for the  resolution  of the SAIF  issue is a
special assessment of 65.7 basis points (0.657%) on the insured deposits held as
of March 31, 1995.  This one-time after tax charge on September 30, 1996 of $1.0
million, or $0.35 per share, will somewhat distort the 1996 fiscal year earnings
as of September 30, 1996. We now have a more competitive  parity with commercial
banks in terms of deposit insurance premiums and the interest rates which we can
pay to our depositors.  With the reduced  deposit  insurance  premiums,  we will
realize an after tax savings of approximately  $220,000,  or $0.08 per share, in
fiscal year 1997.

Fiscal year 1996  earnings,  excluding  the one-time  SAIF $1.0 million  special
deposit  premium  assessment,  would  have  increased  by 7% over the prior year
earnings.  As a result of SAIF's $1.0 million charge, the actual 1996 yearly net
income  was  $1,636,000,  as  compared  to  $2,461,000  for the prior year ended
September 30, 1995.

Total  deposits grew by $15.1  million or 5.9% to $271.2  million in fiscal 1996
from  $256.1  million in fiscal  year 1995.  The assets at  September  30,  1996
increased to $322.7 million from $313.2 million at fiscal 1995 year end.

During fiscal 1996, mortgage  originations  increased from prior year levels due
to stable interest rates and a strong housing market; the majority of loans were
of residential  construction and purchase  classifications.  The Bank originated
historical  high annual loan volume of $83.5 million,  a 17.3% increase over the
previous record year of $71.2 million loans in 1994. Total loans net of unearned
income at September 30, 1996 were $250.3 million, compared with $214.4 million a
year ago, an increase of 16.7%.

Asset   quality   continues  to  be   excellent.   As  of  September  30,  1996,
non-performing  loans 90 days or more  delinquent  totaled  $231,000 or 0.09% of
total loans,  compared to $97,000 or 0.05% of total loans on September 30, 1995.
Non- performing  assets,  consisting solely of loans 90 days or more delinquent,
totaled  $231,000 or 0.07% of total  assets at September  30, 1996,  compared to
$97,000 or 0.03% of assets on September 30, 1995.

The Company's loan to deposit ratio,  following the stock  conversion,  stood at
81.5% on March 31, 1995 has reflected an 18-month increase to 92.3% at September
30, 1996.  This loan growth  consisted  mainly of local 1-4 family dwelling loan
originations.
<PAGE>
"Quality" and "Efficiency" continue as corporate guidelines for our Company. The
1996 fiscal year operating (general and administrative) expenses (excluding SAIF
one-time  charge) to average assets was 1.52% compared to 1.53% for fiscal 1995.
The efficiency  ratio  [non-interest  operating  expenses to net interest income
plus  non-interest  income  (excluding SAIF one-time charge)] for the year ended
September  30,  1996 was 51.1%  compared  to 52.4%  for the  fiscal  year  ended
September 30, 1995. Historically,  the Company's operating costs and ratios have
ranked among the most  efficient in the thrift  industry.  These  controls  will
continue to have high priority going forward in the ever-increasing  competitive
banking environment.

We have  completed  construction  of our  eighth  branch  office  at the  Dupont
Crossing  (neighborhood)  Shopping  Center,  eight miles north of our  corporate
downtown  office.  The Dupont Banking Office  centrally  located within numerous
residential  subdivisions,  ideal for retail deposits and  residential  lending,
opened officially November 1996.

The initial  quarterly  dividend of $0.05 per share on common stock  declared by
the Board of Directors was paid June 20, 1996 to  shareholders of record May 31,
1996.  The third  quarterly  dividend  of $0.05 per  share was  declared  on the
Company's  common stock,  payable  December 19, 1996 to  shareholders  of record
November 29, 1996.

To our shareholders, we extend our sincere thanks for your financial confidence.
The  directors,  officers  and  talented  staff  take  seriously  our  fiduciary
responsibility to optimize shareholder value.

                                                         Cordially,

 
                                                         W. Paul Wolf
                                                         Chairman, President
                                                         Chief Executive Officer
<PAGE>
                             SELECTED FINANCIAL DATA 

Set forth  below are  selected  financial  and other data of the  Company.  This
financial  data is derived in part from the  financial  statements  and  related
notes of the Company which are presented elsewhere in this Annual Report.
<TABLE>
<CAPTION>
                                                                             At September 30,  
                                                       ------------------------------------------------------------- 
                                                         1996         1995          1994         1993         1992   
                                                         ----         ----          ----         ----         ----   
                                                                             (In Thousands)
<S>                                                    <C>          <C>           <C>          <C>          <C>
Summary of Financial Condition:
  Total assets....................................     $322,702     $313,185      $275,210     $238,632     $199,299
  Loans receivable, net(1)........................      250,306      214,405       200,678      171,529      141,426
  Cash and cash equivalents.......................       11,923       21,390        19,695       36,255       27,269
  Investment securities and FHLB Stock............       54,842       71,917        49,995       26,862       24,306
  Deposits........................................      271,185      256,108       251,340      217,310      179,865
  Shareholders' equity - substantially restricted.       46,713       54,060        21,370       19,020       17,405

</TABLE>
(1)Includes  loans held for sale of: $0 at September 30, 1996,  1995,  and 1994;
$139,000 at September 30, 1993; and $55,000 at September 30, 1992.
<PAGE>
<TABLE>
<CAPTION>
                                                                         Year Ended September 30, 
                                                       ------------------------------------------------------------- 
                                                         1996          1995         1994          1993         1992   
                                                         ----          ----         ----          ----         ----   
                                                                              (In Thousands)
<S>                                                    <C>          <C>           <C>          <C>          <C>
Summary of Operating Results:
  Interest income................................     $ 22,913      $ 21,120      $17,625       $15,824      $15,598
  Interest expense...............................       13,787        12,730       10,247         9,241        9,907
                                                      --------      --------      -------       -------      -------
    Net interest income..........................        9,126         8,390        7,378         6,583        5,691
  Provision for loan losses......................           13            87           45           437          520
                                                      --------      --------      -------       -------      -------
    Net interest income after provision for
     loan losses.................................        9,113         8,303        7,333         6,146        5,171
  Noninterest income:
    Gains on sales of interest-earning assets,
      net........................................            3             1           14            32           19
    Other........................................          227           220          250           198          184
                                                      --------      --------      -------       -------      -------
      Total noninterest income...................          230           221          264           230          203
  Noninterest expense:
    Compensation and benefits....................        2,512         2,088        1,806         1,540        1,293
    Occupancy and equipment......................          528           584          559           498          340
    SAIF deposit insurance premium.......                2,235           582          517           376          361
    Conversion costs.............................          ---           ---          486           ---          ---
    Other........................................        1,151         1,274          970         1,098          757
                                                      --------      --------      -------       -------      -------
      Total noninterest expense..................        6,426         4,528        4,338         3,512        2,751
                                                      --------      --------      -------       -------      -------
  Income before income taxes and cumulative
   effect of change in accounting principle......        2,917         3,996        3,259         2,864        2,623
  Income tax expense.............................        1,281         1,535        1,233         1,249        1,184
                                                      --------      --------      -------       -------      -------
  Income before cumulative effect of change
   in accounting principle.......................        1,636         2,461        2,026         1,615        1,439
  Cumulative effect of change in accounting
   for income taxes..............................          ---           ---          324           ---          ---
                                                      --------      --------      -------       -------      -------
  Net income.....................................     $  1,636      $  2,461      $ 2,350       $ 1,615      $ 1,439
                                                      ========      ========      =======       =======      =======     
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                                         Year Ended September 30, 
                                                       ------------------------------------------------------------- 
                                                         1996         1995        1994         1993         1992   
                                                         ----          ----       ----         ----         ----   
                                                                            (In Thousands)
<S>                                                    <C>           <C>        <C>          <C>          <C>
Performance Ratios:
  Return on average assets(1).......................      .52%         .83%        .88%         .74%         .77%
  Return on average shareholders' equity(2).........     3.21         6.50       11.47         8.79         8.55
  Interest rate spread(3)...........................     2.13         2.26        2.56         2.74         2.63
  Net yield on interest-earning assets(4)...........     2.96         2.88        2.84         3.07         3.10
  Operating expenses to average assets(5)(6)........     1.52         1.53        1.63         1.64         1.50
  Net interest income to operating expenses(6)......   190.80       185.61      170.06       187.50       206.87
  Average interest-earning assets to average
    interest-bearing liabilities....................   118.63       114.73      106.99       107.80       108.76

Capital Ratios:
  Shareholders' equity to assets(7).................    14.48        17.26        7.76         7.97         8.73
  Average shareholders' equity to average assets....    16.21        12.79        7.70         8.37         8.96

Asset Quality Ratios:
  Non-performing assets to total assets.............      .07          .03         .05          .11          .14
  Non-performing loans to total loans...............      .09          .05         .04          .15          .19
  Allowance for loan losses to net loans............      .55          .64         .64          .72          .59
  Allowance for loan losses to non-
    performing loans................................   599.57     1,410.71     1,431.11      489.76       308.03
  Net charge-offs to average loans..................      ---          ---          ---         .02          ---

  Number of full-service offices....................        8            8            8           8            7

</TABLE>
(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%;  net  interest  income to
         operating expenses would be 141.81%.
(7)      Total shareholders' equity divided by total assets.
<PAGE>
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


General

         The financial  performance of Home Bancorp (the "Company") was impacted
by a special assessment on all thrift institutions, including Home Loan Bank fsb
(the "Bank"), at September 30, 1996 by the Federal Deposit Insurance Corporation
("FDIC") to  capitalize  the Savings  Association  Insurance  Fund ("SAIF") at a
congressionally  mandated  level  of 1.25  percent  of  insured  deposits.  This
one-time assessment of 65.7 basis points, based upon the insured deposit base of
the Bank as of March 31, 1995, resulted in a $1.65 million expense before tax in
the current fiscal year. The after tax cost of this assessment  amounted to $1.0
million.  The actual  assessment will be remitted in the first quarter of fiscal
1997.

         Fiscal 1996 was the first full year of operation  of the Company  since
the  conversion  of the Bank on March 29,  1995 from the mutual to stock form of
ownership (the "Conversion").  On that date, the Company issued 3,303,178 shares
of common stock at $10.00 per share, raising $30.1 million, net of funds used by
the newly formed  Employee Stock  Ownership Plan (the "ESOP") to purchase shares
in the Conversion and net of the costs of the Conversion.  Concurrently with the
issuance of the shares, the Bank converted from a mutual savings bank to a stock
savings  bank,  and the  Company  acquired  100% of the stock of the  Bank.  All
references  to the  Company  prior to March 29,  1995,  except  where  otherwise
indicated, are to the Bank.

Financial Condition

         September 30, 1996 compared to September 30, 1995. The Company's  total
assets  increased  from $313.2  million as of September 30, 1995 to $322.7 as of
September  30, 1996, an increase of $9.5 million or 3.0%.  Shareholders'  equity
decreased  from $54.1 as of September  30, 1995 to $46.7 million as of September
30,  1996, a decrease of $7.4  million or 13.7%.  The decrease in  shareholders'
equity was primarily the net result of earnings for the year less the repurchase
of 619,155  shares of common stock for $9.3  million,  dividends  paid on common
stock and payments on benefit plans.

         Total cash and cash  equivalents  decreased  from  $21.4  million as of
September 30, 1995 to $11.9 million as of September 30, 1996, a decrease of $9.5
million.  Investment securities,  including those held to maturity and available
for sale, decreased from $69.9 million as of September 30, 1995 to $52.8 million
as of  September  30,  1996.  The  decreases  in  cash,  cash  equivalents,  and
investment  securities  were used primarily to fund growth in the loan portfolio
and the repurchase of common stock.

         Net loans  receivable  increased  $35.9  million or 16.7%,  from $214.4
million as of September  30, 1995 to $250.3  million as of  September  30, 1996.
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
stable interest rate environment and employment base.
<PAGE>
         Total deposits  increased $15.1 million or 5.9%, from $256.1 million as
of  September  30, 1995 to $271.2 as of  September  30,  1996.  The  increase in
deposits  was the result of an  increase  of $16.1  million in  certificates  of
deposit,  less a decrease of $1.0 million in transaction and passbook  accounts.
Management  attributes growth in certificates of deposit to customer preferences
for higher yielding  instruments of deposit as opposed to the liquidity afforded
lower yielding transactional  accounts. The Company's pricing of certificates of
deposit are consistent with that of its  competitors.  At September 30, 1996 the
Company had $132.5 million in  certificates of deposit with terms of one year or
less as compared to $127.7 million for the same period ended September 30, 1995.

         September 30, 1995 compared to September 30, 1994. The Company's  total
assets  increased from $275.2 million as of September 30, 1994 to $313.2 million
as of September 30, 1995,  an increase of $38.0 million or 13.8%.  Shareholders'
equity increased from $21.4 million as of September 30, 1994 to $54.1 million as
of September  30,  1995,  an increase of $32.7  million.  These  increases  were
primarily the result of the proceeds received in the stock conversion.

         Total cash and cash  equivalents  increased  from  $19.7  million as of
September  30, 1994 to $21.4  million as of September  30, 1995,  an increase of
$1.7 million or 8.6%.  Investment  securities increased $21.8 million, or 45.3%,
from $48.1 million as of September 30, 1994 to $69.9 million as of September 30,
1995 as a result of the deployment of funds received from the stock  conversion.
The  Company's  purchase  of  investment   securities   consisted  primarily  of
short-term  laddered U.S.  Treasury  Obligations  and  investments  in overnight
accounts  which  afforded  management  the  opportunity  to enhance yields while
maintaining a high liquidity level.

         Loans  receivable  increased  $13.7  million  from  $200.7  million  at
September 30, 1994 to $214.4 million at September 30, 1995,  primarily due to an
increase in one- to  four-family  residential  mortgage loan  originations  as a
result of the falling  long-term  interest  rate  environment  prevalent  during
fiscal  1995.  The  increase  in loan  originations  was funded  primarily  with
conversion proceeds and increased deposits.

         Total deposits  increased $4.8 million or 1.9%,  from $251.3 million as
of  September  30, 1994 to $256.1  million as of September  30,  1995.  Deposits
increased despite the approximately $9.9 million of funds withdrawn by customers
to purchase the Company's stock in the Conversion.  The increase in deposits was
the  result of an $8.1  million  increase  in  certificates  of  deposit,  while
transaction and passbook accounts decreased $3.4 million.  Management attributes
the increase in certificates  of deposit to customer  preferences for the higher
rates paid on such deposits  relative to the liquidity  advantage of transaction
accounts.  Furthermore,  as rates have fallen on  certificates of deposit during
fiscal 1995,  customers have invested in longer term certificates of deposits to
preserve  the higher  yields.  At  September  30,  1995,  the Company had $127.7
million in certificates of deposit with terms of one year or less as compared to
$131.7 million at September 30, 1994,  while  certificates of deposit with terms
greater than three years have  increased  from $42.5 million as of September 30,
1994 to $52.7 million.
<PAGE>
Results of Operations

Comparison of the Fiscal Years Ended September 30, 1996 and 1995

         General.  Net  income for the year ended  September  30,  1996 was $1.6
million,  a decrease of $825,000  compared to net income of $2.4 million for the
year ended September 30, 1995. Net income for fiscal 1996 was impacted by a $1.0
million after tax special  assessment by the FDIC to capitalize  the SAIF to its
statutory reserve level of at least 1.25%. The assessment on September 30, 1996,
was 0.657% of Home Loan Bank's insured deposits as of March 31, 1995.  Beginning
January  1, 1997,  the  legislation  provides  that the  Bank's  annual  deposit
insurance premium will be reduced from .23% to .064% of insured deposits.

         Interest  Income.  Interest income increased $1.8 million or 8.5%, from
$21.1  million for the year ended  September  30, 1995 to $22.9  million for the
year ended September 30, 1996.  Interest income on mortgage loans increased $2.0
million while interest income on investments and other  interest-earning  assets
decreased  $171,000  during fiscal 1996 as compared to fiscal 1995. The increase
in interest  income for fiscal 1996 was  primarily  the result of an increase in
the average balance of  interest-earning  assets and a modest improvement in the
yield of those balances.  See "Average Balances,  Interest Rates and Yields" and
"Rate/Volume Analysis."

         Interest Expense. Interest expense increased $1.1 million or 8.7%, from
$12.7  million for the year ended  September  30, 1995 to $13.8  million for the
year ended  September 30, 1996. The increase in interest  expense was the result
of  the  higher  rate  paid  on and  an  increase  in  the  average  balance  of
certificates  of deposit during fiscal 1996.  The weighted  average rate paid on
deposits  for  fiscal  1996  increased  31 basis  points to 5.30% from 4.99% for
fiscal 1995. See "Average Balances,  Interest Rates and Yields" and "Rate/Volume
Analysis."

         Net Interest Income.  Net interest income  increased  $735,000 or 8.8%,
from $8.4 million for the year ended  September 30, 1995 to $9.1 million for the
year ended September 30, 1996. 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 2.26%
during  fiscal 1995 to 2.13% during  fiscal 1996 and was 2.14% at September  30,
1996. The narrowing of the interest rate spread during the fiscal year reflected
the  customer's  preference  for term deposits in a period when market  interest
rates stabilized.

         Provision  for Loan Losses.  The provision for loan losses for the year
ended  September  30, 1996 was $13,200  compared to $87,000 in the prior year, a
decrease of $73,800.  The decrease in the  provision  for loan losses for fiscal
1996 was based on, among other  things,  the continued low levels of credit risk
inherent  in the  Company's  loan  portfolio  and  the  current  balance  of the
allowance for loan losses.  At September  30, 1996 the  Company's  allowance for
loan losses totaled $1.4 million or .55% of net loans  receivable and 599.57% of
total non-performing loans. In management's assessment,  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.
<PAGE>
         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,  and the  Company's
historically  low loan  losses and the levels of the  allowance  for loan losses
established  by the  Company's  peers in assessing the adequacy of the loan loss
allowance.  Accordingly,  the  calculation  of the adequacy of the allowance for
loan losses is not based  directly  on the level of  non-performing  loans.  The
Company had no loan losses in fiscal 1996.

         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 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  $221,000 in
fiscal 1995 to $231,000 in fiscal 1996. The increase was primarily the result of
increases in service  charges and fees, and a modest  increase in gains from the
sale of loans in the secondary market.

         Noninterest  Expense.  Noninterest  expense  increased  $1.9 million or
42.2%,  from $4.5 million in fiscal 1995 to $6.4 million in fiscal 1996.  Of the
increase,  $1.65 million was  attributable to the special SAIF assessment by the
FDIC.  Noninterest  expense without the foregoing  non-recurring item would have
increased  approximately  $250,000 or 5.5%, from fiscal 1995 to fiscal 1996. The
increase  in  noninterest  expense  was  primarily  the result of  increases  in
compensation   and  employee   benefit   expenses,   while  other   general  and
administrative expenses decreased during the comparable period.

         Increased  compensation  and benefit  expenses of $423,000  from fiscal
1995 to 1996 were  primarily due to a full year's  expense for costs  associated
with the ESOP, the shareholder  approved Recognition and Retention Plan ("RRP"),
and general cost of living increases.  Fiscal year 1995 included only six months
of expense  associated with the ESOP. The RRP program was not ratified until the
1996 fiscal year.  Net  occupancy  and equipment  expense  decreased  $56,000 in
fiscal  1996   primarily   due  to  decreases  in   depreciation   expenses  and
non-recurring expenses incurred in fiscal 1995. Other general and administrative
expenses  decreased by $123,000 in the current  fiscal year  primarily from cost
containment and efficiency initiatives.
 
         Income Tax Expense.  Income tax expense  decreased from $1.5 million in
fiscal 1995 to $1.3 million in fiscal 1996, as a result of lower pretax earnings
for the  period.  Included in the tax expense for fiscal 1996 is the tax benefit
associated  with the special  SAIF  assessment,  which  effectively  lowered the
Company's tax liability by $650,000.
<PAGE>
Comparison of the Fiscal Years Ended September 30, 1995 and 1994

         General.  Net  income for the year ended  September  30,  1995 was $2.4
million,  an  increase  of  $111,000  compared  to net income for the year ended
September 30, 1994. Net income for fiscal 1994 included $324,000  resulting from
the cumulative  effect of a change in the method of accounting for income taxes,
as required by Statement of Accounting  Standards ("SFAS") No. 109,  "Accounting
for Income  Taxes."  Net income  before the  cumulative  effect of the change in
accounting  principle  increased  $435,000  or 21.4% from  fiscal 1994 to fiscal
1995.  The  increase  in net income for the year ended  September  30,  1995 was
primarily  the  result  of a  $1.0  million  increase  in net  interest  income,
partially  offset  by  a  decrease  in  noninterest   income  and  increases  in
noninterest expenses and income taxes as more fully described below.

         Interest Income.  Interest income increased $3.5 million or 19.9%, from
$17.6 million to $21.1 million for the year ended  September 30, 1995.  Interest
income  on  mortgage  loans  increased  $1.5  million  and  interest  income  on
investment securities and other  interest-earning  assets increased $1.8 million
during fiscal 1995 as compared to fiscal 1994.  The increase in interest  income
was the result of an increase in both the average  balance of interest-  earning
assets from the investment of the  conversion  proceeds and higher yields earned
on those  balances.  See  "Average  Balances,  Interest  Rates and  Yields"  and
"Rate/Volume Analysis."

         Interest  Expense.  Interest  expense  increased $2.5 million or 24.5%,
from $10.2 million to $12.7 million for the year ended  September 30, 1995.  The
increase  in  interest  expense was the result of the higher rate paid on and an
increase in the average  balance of  certificates of deposit during fiscal 1995.
The weighted  average  rate paid on deposits for fiscal 1995  increased 77 basis
points to 4.99% from 4.22% for fiscal  1994,  a result of an  increase in market
interest rates generally. See "Average Balances,  Interest Rates and Yields" and
"Rate/Volume Analysis."

         Net Interest  Income.  Net interest  income  increased  $1.0 million or
13.7%,  from $7.3 million to $8.3 million for the year ended September 30, 1995.
This  increase was  attributable  to the increase in interest  income which more
than offset the increase in interest  expense as discussed  above. The Company's
interest  rate spread  decreased  from 2.56% during  fiscal 1994 to 2.26% during
fiscal 1995 and was 1.89% at September  30, 1995.  The narrowing of the interest
rate spread  occurred due to  increasing  short-term  rates of  interest,  while
long-term  rates  remained  flat  or  decreased,   resulting  in  the  Company's
interest-bearing  liabilities  repricing upward faster than its interest-earning
assets.

         Provision  for Loan Losses.  The provision for loan losses for the year
ended  September 30, 1995 was $87,000  compared to $45,000 in the prior year, an
increase of $42,000.  The increase in the  provision  for loan losses for fiscal
1995 was based on, among other  things,  the  increased  growth in the Company's
residential  loan portfolio.  At September 30, 1995 the Company's  allowance for
loan losses totaled $1.4 million or .64% of net loans receivable and 1410.71% of
total  non-performing  loans.  The  allowance  for loan losses  increased by the
amount of the provision less  approximately  $2,600 of charge-offs  for the year
ended September 30, 1995.
<PAGE>
         Noninterest  Income.  Noninterest  income  decreased  from  $264,000 in
fiscal 1994 to $221,000 in fiscal 1995. The decrease was primarily the result of
a decline in prepayment penalties on loans and a decline in gains from the sales
of loans in the  secondary  market,  partially  offset by  increases  in service
charges and fees. The decline in income derived from prepayment  penalties was a
result  of  the  Company's  decision  to  phase-out   prepayment   penalties  on
residential  mortgage  loans  consistent  with the  practice of other  financial
institutions  in its  market  place.  Gains on the sale of 30 year  loans in the
secondary market declined due to a decline in volume.

         Noninterest  Expense.  Noninterest  expense increased $190,000 or 4.4%,
from $4.3  million in fiscal 1994 to $4.5  million in fiscal  1995.  Noninterest
expense for fiscal 1994 included $486,000 resulting from the Bank's unsuccessful
attempt  to  convert  from a  state  chartered  mutual  savings  bank to a state
chartered stock savings bank. See Note 16 of the Notes to Consolidated Financial
Statements.  Noninterest expense without the foregoing non- recurring item would
have  increased  $676,000 or 15.7% from fiscal 1994 to fiscal 1995. The increase
in noninterest  expense was primarily the result of a $304,000 or 31.3% increase
in other noninterest  expenses, a $282,000 or 15.6% increase in compensation and
benefits and a $65,000 or 12.5% increase in federal deposit  insurance  premiums
as a result of a larger deposit base.

         Increased  compensation  and benefit  expenses were  primarily due to a
$174,000  expense  associated  with the ESOP as well as  general  cost of living
increases.  Increases in other noninterest  expenses consisted  primarily of the
following:  an $82,000 increase in professional fees, primarily  supervisory and
regulatory  fees  related  to the  Bank's  change  from a  state-chartered  to a
federally-chartered  institution  during  fiscal 1995 and a $62,000  increase in
advertising and promotional  expenses as the Company responded to competition in
the market area.

         Income Tax Expense.  Income tax expense  increased from $1.2 million in
fiscal  1994 to $1.5  million  in fiscal  1995,  as a result  of  higher  pretax
earnings for the period.
<PAGE>
<TABLE>
<CAPTION>
Average Balances, Interest Rates and Yields


                                                     At
                                                 September 30,                        For the Year Ended September 30, 
                                            -------------------    -----------------------------------------------------------------
                                                    1996                           1996                               1995      
                                            -------------------    ---------------------------------   -----------------------------
                                                                                           (Dollars in Thousands)
<S>                                         <C>           <C>      <C>           <C>           <C>     <C>        <C>          <C>
Interest-Earning Assets:
 Interest-earning deposits..................$ 10,716      5.22%    $ 17,927      $ 1,009       5.63%   $  17,361  $    968     5.58%
 Investment securities......................  52,788      6.37       57,479        3,627       6.31       65,034     3,852     5.92 
 Loans...................................... 250,306      7.69      231,047       18,119       7.84      206,913    16,156     7.81 
 FHLB stock.................................   2,054      7.85        2,008          158       7.87        1,896       145     7.65 
                                            --------               --------      -------                --------   -------
   Total interest-earning assets............ 315,864      7.38      308,461       22,913       7.43      291,204    21,121     7.25 
                                                                                 =======                           =======     
Noninterest-earning assets..................   6,838                  6,184                                5,017  
                                            --------               --------                             --------                  
   Total assets............................. 322,702                314,645                              296,221                    
                                            ========               ========                             ========      
Interest-Bearing Liabilities:                                                                                                       
 Savings accounts...........................  16,523      2.76       16,981          482       2.84       19,832       586     2.95 
 NOW and money market accounts..............  20,888      1.64       20,819          382       1.83       21,631       409     1.89 
 Certificates of deposits................... 233,774      5.74      222,219       12,923       5.82      213,663    11,735     5.49 
                                            --------               --------      -------                --------   -------
   Total interest-bearing liabilities....... 271,185      5.24      260,019       13,787       5.30      255,126    12,730     4.99 
                                                                                 -------                           -------    
 Noninterest-bearing liabilities............   4,804                  3,606                                3,208 
                                            --------              ---------                            ---------                   
   Total liabilities........................ 275,989                263,625                              258,334                    
 Shareholders' equity.......................  46,713                 51,020                               37,887 
                                            --------              ---------                            ---------  
   Total liabilities and retained earnings   322,702                314,645                              296,221 
                                            --------              ---------                            --------- 
Net interest-earning assets.................$ 44,679              $  48,442                            $  36,078  
                                            ========              =========                            =========                  
Net interest income.........................                                     $ 9,126                          $  8,391 
                                                                                 -------                          --------  
Interest rate spread(1).....................              2.14%                                2.13%                           2.26%
Net yield on weighted average interest-                                                                                             
 earning assets(2)..........................                                                   2.96%                           2.88%
Average interest-earning assets to                                                                                                  
 average interest-bearing liabilities.......                         118.63%                              114.14%                   
________________                                                                                                                    
<PAGE>                                                                                                                              
<CAPTION>                                                                                                                    
                                                       For the Year Ended September 30, 
                                                     ----------------------------------- 
                                                                     1994
                                                     -----------------------------------
<S>                                                  <C>           <C>             <C>
Interest-Earning Assets:                    
 Interest-earning deposits..................         $  32,141     $  1,146        3.57%    
 Investment securities......................            36,134        1,930        5.34     
 Loans......................................           190,094       14,465        7.61     
 FHLB stock.................................             1,606           84        5.23 
                                                     ---------     --------    
   Total interest-earning assets............           259,975       17,625        6.78     
                                                                   --------                   
Noninterest-earning assets..................             6,140  
                                                     ---------                             
   Total assets.............................           266,115                               
                                                     ---------                                                                      
Interest-Bearing Liabilities:                                                          
 Savings accounts...........................            24,443          694        2.84     
 NOW and money market accounts..............            22,330          437        1.96     
 Certificates of deposits...................           196,197        9,116        4.65  
                                                     ---------     -------- 
   Total interest-bearing liabilities.......           242,970       10,247        4.22     
                                                                   --------                      
 Noninterest-bearing liabilities............             2,657 
                                                     ---------                              
   Total liabilities........................           245,627                               
 Shareholders' equity.......................            20,488 
                                                     ---------                              
   Total liabilities and retained earnings             266,115
                                                     ---------                               
Net interest-earning assets.................         $  17,005 
                                                     ---------                              
Net interest income.........................                       $  7,378  
                                                                   --------                   
Interest rate spread(1).....................                                       2.56%       
Net yield on weighted average interest-                                                
 earning assets(2)..........................                                       2.84%       
Average interest-earning assets to                                                     
 average interest-bearing liabilities.......            107.00%                                 
________________                                                                       
</TABLE>

(1) Net interest  rate spread is  calculated by  subtracting  combined  weighted
average  interest rate cost 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  interest-earning  assets for the period indicated.
No net yield figure is presented at September 30, 1996,  because the computation
of net yield is applicable only over a period rather than at a specific date.
<PAGE>
Rate/Volume Analysis

The following  table describes the extent to which changes in interest rates and
changes in volume of  interest-related  assets and 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, 
                                   --------------------------------------------------------------------------    
                                               1996 vs. 1995                          1995 vs. 1994   
                                   -----------------------------------        -------------------------------  
                                           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 ...     $    32      $     9      $    41      $  (661)     $   483      $  (178)
 Investment securities .......        (466)         241         (225)       1,692          230        1,922
 Loans .......................       1,892           71        1,963        1,306          385        1,691
 FHLB stock ..................           9            4           13           17           44           61
                                   -------      -------      -------      -------      -------      -------
   Total .....................     $ 1,467      $   325        1,792      $ 2,354      $ 1,142        3,496
                                   =======      =======      -------      =======      =======      -------
Interest-bearing liabilities:
 Savings accounts ............     $   (82)     $   (22)        (104)     $  (135)     $    27         (108)
 NOW and money market accounts         (15)         (12)         (27)         (13)         (15)         (28)
 Certificates of deposit .....         481          707        1,188          860        1,759        2,619
                                   -------      -------      -------      -------      -------      -------
   Total .....................     $   384      $   673        1,057      $   712      $ 1,771        2,483
                                   =======      =======      -------      =======      =======      -------
Change in net interest income                                $   735                                $ 1,013
                                                             =======                                =======
</TABLE>     

Asset/Liability Management

         The Bank,  like other  financial  institutions,  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
manage 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.
<PAGE>
         OTS  regulations  provide  a NPV  approach  to  the  quantification  of
interest rate risk.  Under OTS regulations,  an institution's  "normal" level of
interest  rate risk,  in the event of an assumed  change in interest  rate, is a
decrease in the  institution's NPV in an amount not exceeding two percent of the
present  value of its  assets.  Thrift  institutions  with  greater  than normal
interest rate exposure, as defined above, must take a deduction from their total
capital  available to meet their risk based capital  requirement.  The amount of
that  deduction  is one-half  of the  difference  between (a) the  institution's
actual  calculated  exposure to the 200 basis point  interest  rate  increase or
decrease  (whichever  results in the greater pro-forma  decrease in NPV) and (b)
its normal  level of exposure  which is two percent of the present  value of its
assets.  The  regulation,  however,  will not  become  effective  until  the OTS
evaluates the process by which savings  associations may appeal an interest rate
risk deduction determination.  It is uncertain as to when this evaluation may be
completed.
 
         At September  30,  1996, a change in the interest  rate of positive 200
basis points would have resulted in a 2.53%  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 0.66%  increase in the NPV as
a percent of the present value of the Bank's assets. Accordingly, a deduction to
risk-based  capital  would have been  required as of  September  30, 1996 if the
regulation were in effect. The Bank,  however,  would still have been considered
"well capitalized" under current regulatory guidelines.

         Presented below, as of September 30, 1996, is an analysis of the Bank's
interest rate risk as measured by changes in NPV for instantaneous and sustained
parallel shifts in the yield curve in 100 basis point increments up and down 400
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>
    Change in                                              At September 30, 1996 
  Interest Rate        Board Limit         Estimated         Amount    Percent
  (Basis Points)      Percent Change         NPV             Change    Change  
  --------------      --------------         ---             ------    ------  
                                  (Dollars In Thousands)
     <S>                  <C>              <C>              <C>         <C>
     +400 bp              -34%             $25,606          $-21,015    -45%
     +300 bp              -27               30,993           -15,627    -34
     +200 bp              -20               36,462           -10,158    -22
     +100 bp              -12               41,820            -4,800    -10
        0 bp              ---               46,620              ---     ---
     -100 bp              - 9               50,076             3,456      7
     -200 bp              -12               50,485             3,865      8
     -300 bp              -19               48,030             1,410      3
     -400 bp              -23               45,786              -835     -2
</TABLE>
<PAGE>
         As indicated in the table above, 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 percentage  change of NPV in rising interest rates
of +200 bp and above  exceeds  approved  Board limits due to upward  pressure on
interest rates during the period.  The Board reviews the OTS  measurements  on a
quarterly  basis and has chosen to  monitor  and adjust  exposures  rather  than
limits.  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:

         Promoting adjustable rate mortgages. Adjustable rate mortgages ("ARMs")
are viewed by management  as the most 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  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.

         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.
There were no loans held for sale at September 30, 1996. The Company retains the
servicing on loans sold in the secondary market.

         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.
<PAGE>
         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 level 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,  principal  and
interest  payments  on loans 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 and is currently 5% of net  withdrawable
savings deposits and borrowings  payable on 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, 1996, the Bank's liquidity ratio was 22.9%.

         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,  were $4.3 million,  $2.5
million and $2.5 million for the years ended  September 30, 1996, 1995 and 1994,
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 maturity of  investments,
were  $19.4  million,  $35.8  million  and $53.1  million  for the  years  ended
September 30, 1996, 1995 and 1994, respectively.  Net cash provided by financing
activities,  consisting  primarily of net deposit  activity and cash provided by
the Conversion,  was $5.6 million, $35.0 million and $34.0 million for the years
ended  September  30, 1996,  1995 and 1994,  respectively.  If the Bank requires
additional  funds beyond its ability to acquire them  locally,  it has borrowing
capability through the FHLB of Indianapolis. At September 30, 1996, the Bank had
no advances from the FHLB of  Indianapolis or other  borrowings  outstanding and
has not had any such 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,
1996,  the Bank had  outstanding  commitments to extend credit which amounted to
$14.2  million  (including  $8.4 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.
<PAGE>
         At September 30, 1996,  the Bank had tangible and core capital of $38.5
million,  or 12.13% of adjusted  total  assets,  which was  approximately  $33.7
million  and $28.9  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, 1996 of $39.8  million  (including  $38.5
million in core capital),  or 27.12% of risk-weighted  assets of $146.8 million.
This amount was $28.1 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 1996, the
Bank paid dividends in the amount of $907,000 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, 1996,  there was a net decrease of
$9.5  million in cash and cash  equivalents,  as uses  offset  sources of funds.
Primary uses of cash during the fiscal year 1996 included funding an increase of
$35.9 million in the loan portfolio,  the repurchase of $9.3 million in treasury
shares,  and the  purchase of $6.1  million in  securities.  The major source of
funds  included  $23.0 million from the maturity and sales of  securities  and a
$15.0 million increase in deposits.  The Company paid a total of $0.10 per share
on common stock, or a total of $264,000 to its shareholders during fiscal 1996.

         During the year ended  September 30, 1995,  there was a net increase of
$1.7 million in cash and cash equivalents,  as major sources of funds offset the
uses of cash. Major uses of cash during the fiscal year 1995 included funding an
increase  of $13.9  million  in the loan  portfolio  and the  purchase  of $41.8
million  in  investment  securities.  A major  source  of cash  during  the year
included the proceeds from the stock issuance, net of conversion costs and stock
acquired by the ESOP, of $30.1  million.  Other sources of funds included a $4.8
million  increase in deposits and proceeds from the maturity of $20.0 million in
investment securities.

         During the year ended  September 30, 1994,  there was a net decrease of
$16.6  million in cash and cash  equivalents.  Major uses of cash during  fiscal
1994  included  funding an  increase  of $29.3  million  in the loan  portfolio,
purchasing  $44.3 million in investment  securities and originating $1.2 million
of loans to be sold in the  secondary  market.  Major sources of cash during the
year, which partially offset the uses of cash, included a $34.0 million increase
in deposits,  proceeds from maturities of investment securities of $21.0 million
and proceeds from the sale of loans of $1.3 million.
<PAGE>
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.
<PAGE>
                                  HOME BANCORP
                               Fort Wayne, Indiana

                        CONSOLIDATED FINANCIAL STATEMENTS









                                    CONTENTS









               REPORT OF INDEPENDENT AUDITORS


               CONSOLIDATED FINANCIAL STATEMENTS

               CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 1996 AND 1995

               CONSOLIDATED STATEMENTS OF INCOME YEARS ENDED SEPTEMBER 30, 1996,
                    1995 AND 1994

               CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'  EQUITY YEARS
                    ENDED SEPTEMBER 30, 1996, 1995 AND 1994

               CONSOLIDATED  STATEMENTS OF CASH FLOWS YEARS ENDED  SEPTEMBER 30,
                    1996, 1995 AND 1994

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



<PAGE>

                         REPORT OF INDEPENDENT AUDITORS 
 


Board of Directors and Shareholders
  of Home Bancorp:


We have audited the accompanying  consolidated balance sheets of Home Bancorp as
of  September  30,  1996 and 1995 and the  related  consolidated  statements  of
income,  changes in  shareholders'  equity  and cash  flows for the years  ended
September  30,  1996,  1995  and  1994.  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, 1996 and 1995 and the results of its operations and its cash flows
for the  years  ended  September  30,  1996,  1995 and 1994 in  conformity  with
generally accepted accounting principles.

As discussed in Note 1 to the  consolidated  financial  statements,  the Company
changed its method of accounting  for securities  effective  October 1, 1994 and
its method of accounting for income taxes  effective  October 1, 1993 to conform
to new accounting guidance.





                                                   Crowe, Chizek and Company LLP

South Bend, Indiana
October 23, 1996
<PAGE>













                                  HOME BANCORP
                              FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994



<PAGE>
                                  HOME BANCORP

              The accompanying  notes are an integral part of these consolidated
financial statements.
<TABLE>
<CAPTION>
                                      CONSOLIDATED BALANCE SHEETS
                                      September 30, 1996 and 1995

                                                                            1996              1995
                                                                            ----              ----
<S>                                                                  <C>                <C>
ASSETS
Cash on hand and in other banks ................................     $   1,206,753      $   1,029,598
Federal funds sold .............................................         6,100,000         17,000,000
Interest-earning deposits in other banks .......................         4,615,815          3,360,129
                                                                     -------------      -------------
     Total cash and cash equivalents ...........................        11,922,568         21,389,727
Securities available for sale ..................................         3,969,375               --
Securities held to maturity (fair value:  1996 - $49,273,000
  and 1995 - $70,622,000) ......................................        48,818,448         69,949,107
Loans receivable, net of allowance for loan losses
  of $1,385,589 in 1996 and $1,372,357 in 1995 .................       250,305,646        214,404,753
Federal Home Loan Bank stock, at cost ..........................         2,054,200          1,967,500
Accrued interest receivable ....................................         2,260,499          2,681,613
Premises and equipment, net ....................................         2,594,917          2,331,986
Other assets ...................................................           776,261            460,197
                                                                     -------------      -------------

     Total assets ..............................................     $ 322,701,914      $ 313,184,883
                                                                     =============      =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
     Non-interest-bearing demand deposits ......................     $   5,032,975      $   4,647,886
     Savings, NOW and MMDA deposits ............................        32,378,241         33,831,941
     Certificates of deposit ...................................       233,774,251        217,628,228
                                                                     -------------      -------------
         Total deposits ........................................       271,185,467        256,108,055

     Advances from borrowers for taxes and insurance ...........         1,886,859          1,798,345
     Accrued expenses and other liabilities ....................         2,916,373          1,218,031
                                                                     -------------      -------------
         Total liabilities .....................................       275,988,699        259,124,431
                                                                     -------------      -------------
<PAGE>
<CAPTION>
                                      CONSOLIDATED BALANCE SHEETS
                                      September 30, 1996 and 1995
                                              (continued)

                                                                            1996              1995
                                                                            ----              ----
<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;  3,381,505 shares issued and 2,762,350 shares
       outstanding at September 30, 1996; 3,303,178 shares
       issued and outstanding at September 30, 1995 ............        33,758,217         32,445,205
     Retained earnings, substantially restricted ...............        25,203,053         23,831,000
     Net unrealized appreciation on securities
       available for sale, net of tax of $1,608 ................             3,124               --
     Unearned Employee Stock Ownership Plan shares .............        (2,001,177)        (2,215,753)
     Unearned Recognition and Retention Plan shares ............          (955,589)              --
     Treasury stock at cost, 619,155 common shares .............        (9,294,413)              --
                                                                     -------------      -------------
         Total shareholders' equity ............................        46,713,215         54,060,452
                                                                     -------------      -------------

         Total liabilities and shareholders' equity ............     $ 322,701,914      $ 313,184,883
                                                                     =============      =============

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                CONSOLIDATED STATEMENTS OF INCOME
                          Years ended September 30, 1996, 1995 and 1994

                                                        1996            1995            1994
                                                        ----            ----            ----
<S>                                                 <C>             <C>             <C>
Interest income
     Loans receivable, including fees
         Mortgage loans .......................     $17,463,746     $15,585,034     $14,085,182
         Consumer and other loans .............         655,700         570,534         379,591
     Securities ...............................       3,626,283       3,852,449       2,290,033
     Other interest and dividend income .......       1,167,304       1,112,607         870,324
                                                    -----------     -----------     -----------
                                                     22,913,033      21,120,624      17,625,130

Interest expense
     Deposits .................................      13,787,143      12,730,160      10,246,628
                                                    -----------     -----------     -----------

Net interest income ...........................       9,125,890       8,390,464       7,378,502

Provision for loan losses .....................          13,200          87,000          44,914
                                                    -----------     -----------     -----------

Net interest income after provision
  for loan losses .............................       9,112,690       8,303,464       7,333,588

Noninterest income
     Gains on sales of interest-earning
       assets, net ............................           3,550           1,310          14,475
     Net gain on sale of foreclosed real estate            --              --             2,898
     Other ....................................         227,024         219,352         246,722
                                                    -----------     -----------     -----------
                                                        230,574         220,662         264,095

Noninterest expenses
     Compensation and employee benefits .......       2,511,718       2,088,256       1,806,542
     Occupancy and equipment ..................         528,360         584,010         558,751
     Federal deposit insurance premium ........       2,235,132         582,117         517,122
     Conversion costs .........................            --              --           486,388
     Other ....................................       1,150,883       1,273,814         969,958
                                                    -----------     -----------     -----------
                                                      6,426,093       4,528,197       4,338,761
<PAGE>
<CAPTION>
                                CONSOLIDATED STATEMENTS OF INCOME
                          Years ended September 30, 1996, 1995 and 1994
                                           (continued)

                                                        1996            1995            1994
                                                        ----            ----            ----
<S>                                                 <C>             <C>             <C>
Income before income taxes and cumulative
  effect of change in accounting principle ....       2,917,171       3,995,929       3,258,922

Income tax expense ............................       1,281,171       1,534,929       1,232,922
                                                    -----------     -----------     -----------

Income before cumulative effect of change in
  accounting principle ........................       1,636,000       2,461,000       2,026,000

Cumulative effect of change in accounting for
  income taxes ................................            --              --           324,000
                                                    -----------     -----------     -----------
Net income ....................................     $ 1,636,000     $ 2,461,000     $ 2,350,000
                                                    ===========     ===========     ===========
Earnings per common share subsequent
  to conversion ...............................     $       .57     $       .44             N/A
                                                    ===========     ===========      


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

                                                            HOME BANCORP
                                     CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                            Years ended September 30, 1996, 1995 and 1994


                                                                                           Net Unrealized
                                                                                            Appreciation           Unearned        
                                                                                            on Securities       Employee Stock    
                                                            Common           Retained      Available For Sale     Ownership      
                                                             Stock           Earnings         Net of Tax         Plan Shares     
                                                             -----           --------         ----------          -----------    
<S>                                                       <C>              <C>               <C>                 <C>  
Balances at October 1, 1993 .........................                      $ 19,020,000

Net income for the year ended September 30, 1994 ....                         2,350,000
                                                                           ------------

Balances at September 30, 1994 ......................                        21,370,000

Proceeds from the sale of 3,303,178 shares of
  common stock, net of conversion costs .............     $ 32,400,000             --                            $ (2,312,090)

12,350 shares committed to be released under the
  Employee Stock Ownership Plan (ESOP) ..............           45,205             --                                  96,337

Net income for the year ended September 30, 1995 ....             --          2,461,000                                 --   
                                                          ------------     ------------                          ------------

Balances at September 30, 1995 ......................       32,445,205       23,831,000                            (2,215,753)

Cash dividends declared on common stock -
  $.10 per share ....................................             --           (263,947)                                --   

23,237 shares committed to be released under the
  Employee Stock Ownership Plan (ESOP) ..............          118,525             --                                 214,576

78,327 shares issued under the RRP ..................        1,194,487             --                                   --       

Amortization of RRP contribution ....................             --               --                                   --       

Purchase 619,155 shares of treasury stock ...........             --               --                --                 --   

Net change in unrealized appreciation on
  securities available for sale, net of tax of $1,608             --               --        $      3,124               --      
                                                                                                                               

Net income for the year ended September 30, 1996 ....             --          1,636,000              --                 --      
                                                          ------------     ------------      ------------        ------------    

Balances at September 30, 1996 ......................     $ 33,758,217     $ 25,203,053      $      3,124        $ (2,001,177)   
                                                          ============     ============      ============        ============    

<PAGE>
<CAPTION>
                                                            HOME BANCORP
                                     CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                            Years ended September 30, 1996, 1995 and 1994
                                                            (continued)

                                                        Unearned       
                                                       Recognition                               Total                      
                                                      and Retention           Treasury       Shareholders'            
                                                       Plan Shares              Stock           Equity                
                                                       -----------              -----           ------   
<S>                                                       <C>               <C>             <C>
Balances at October 1, 1993..........................                                       $ 19,020,000        
                                                                                                                  
Net income for the year ended September 30, 1994.....                                           2,350,000        
                                                                                             ------------         
                                                                                                                  
Balances at September 30, 1994.......................                                          21,370,000        
                                                                                                                  
Proceeds from the sale of 3,303,178 shares of                                                                    
  common stock, net of conversion costs..............                                          30,087,910        
                                                                                                                  
12,350 shares committed to be released under the                                                                 
  Employee Stock Ownership Plan (ESOP)...............                                             141,542        
                                                                                                                  
Net income for the year ended September 30, 1995.....                                           2,461,000        
                                                                                             ------------         
                                                                                                                  
Balances at September 30, 1995.......................                                          54,060,452        
                                                                                                                  
Cash dividends declared on common stock -                                                                        
  $.10 per share.....................................                                            (263,947)       
                                                                                                                  
23,237 shares committed to be released under the                                                                 
  Employee Stock Ownership Plan (ESOP)...............                                             333,101        
                                                                                           
78,327 shares issued under the RRP ..................     $ (1,194,487)

Amortization of RRP contribution ....................          238,898                            238,898

Purchase 619,155 shares of treasury stock............            --         $ (9,294,413)      (9,294,413)
                                                                
Net change in unrealized appreciation on
  securities available for sale, net of tax of $1,608            --                --               3,124
                                                                            
                                                                                                     
Net income for the year ended September 30, 1996.....            --                --           1,636,000            
                                                                 
                                                          ------------      ------------      ------------
Balances at September 30, 1996.......................     $   (955,589)     $ (9,294,413)   $  46,713,215
                                                          ============      ============    =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                  HOME BANCORP
                                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 Years ended September 30, 1996, 1995 and 1994


                                                                   1996              1995              1994
                                                                   ----              ----              ----
<S>                                                            <C>              <C>               <C>
Cash flows from operating activities
     Net income .........................................     $  1,636,000      $  2,461,000      $  2,350,000
     Adjustments to reconcile net income to net cash
       from operating activities
         Cumulative effect of change in accounting
           principle ....................................             --                --            (324,000)
         Depreciation ...................................          181,463           230,196           239,737
         Provision for loan losses ......................           13,200            87,000            44,914
         Gain on sale of securities .....................           (1,438)             --                --
         Gain on sale of loans ..........................           (2,112)           (1,310)          (14,475)
         Gain on sale of foreclosed real estate .........             --                --              (2,898)
         Loans originated for sale ......................         (123,500)         (142,500)       (1,155,697)
         Proceeds from loan sales .......................          125,612           143,810         1,308,876
         ESOP expense ...................................          333,101           141,542              --
         Amortization of RRP contribution ...............          238,898              --                --
         Loss on disposal of premises and equipment .....             --                --               1,121
         Amortization of premiums and accretion of
           discounts, net ...............................          127,892           (96,539)          162,232
         Change in
              Accrued interest receivable ...............          421,114          (897,037)         (255,876)
              Other liabilities .........................        1,698,342           333,386           240,287
              Other assets ..............................         (317,673)          206,274           (96,605)
                                                              ------------      ------------      ------------
                  Net cash from operating activities ....        4,330,899         2,465,822         2,497,616

Cash flows from investing activities
     Proceeds from maturities of securities held-to-
       maturity .........................................       21,000,000        20,000,000              --
     Proceeds from investment securities ................             --                --          21,000,000
     Proceeds from sales of securities available for sale        2,032,376              --                --
     Purchase of securities available for sale ..........       (5,992,813)             --                --
     Purchase of securities held to maturity ............             --         (41,682,500)             --
     Purchase of investment securities ..................             --                --         (43,855,820)
     Purchase of Federal Home Loan Bank stock ...........          (86,700)         (142,100)         (439,500)
     Net change in loans ................................      (35,914,093)      (13,859,388)      (29,281,798)
     Purchase of premises and equipment .................         (444,394)         (126,554)         (523,223)
                                                              ------------      ------------      ------------
         Net cash from investing activities .............      (19,405,624)      (35,810,542)      (53,100,341)
<PAGE>
<CAPTION>
                                                     HOME BANCORP
                                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    Years ended September 30, 1996, 1995 and 1994
                                                     (continued)

                                                                  1996             1995             1994
                                                                  ----             ----             ----
<S>                                                          <C>              <C>              <C>
Cash flows from financing activities
     Net change in deposits ...........................       15,077,412         4,767,771       34,030,677
     Increase in advance payments by
       borrowers for taxes and insurance ..............           88,514           183,423           12,022
     Purchase of treasury stock .......................       (9,294,413)             --               --
     Cash dividends paid ..............................         (263,947)             --               --
     Proceeds from stock issue, net of conversion costs
       and stock acquired by ESOP .....................             --          30,087,910             --
                                                            ------------      ------------     ------------
         Net cash from financing activities ...........        5,607,566        35,039,104       34,042,699
                                                            ------------      ------------     ------------

Net change in cash and cash equivalents ...............       (9,467,159)        1,694,384      (16,560,026)

Cash and cash equivalents at beginning of year ........       21,389,727        19,695,343       36,255,369
                                                            ------------      ------------     ------------
Cash and cash equivalents at end of year ..............     $ 11,922,568      $ 21,389,727     $ 19,695,343
                                                            ============      ============     ============

Supplemental disclosures of cash flow information
     Cash paid for
         Interest on deposits .........................     $ 13,763,931      $ 12,449,902     $  9,975,229
         Income taxes .................................        1,586,000         1,130,500        1,251,000
Noncash investing activities
     Transfer from investment securities to securities
       held to maturity ...............................     $       --        $ 48,170,068     $       --


</TABLE>
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994


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
Bank (the Bank).  All  significant  intercompany  transactions  and balances are
eliminated in consolidation.

Nature of Business  and  Concentrations  of Credit Risk:  The primary  source of
income for the Company is 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, 1996.

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  revenue  and
expenses during the reporting period, as well as the disclosures provided. Areas
involving  the use of estimates and  assumptions  include the allowance for loan
losses, fair values of securities and other financial instruments, determination
and carrying value of impaired  loans,  the  realization of deferred tax assets,
and the determination of depreciation of premises and equipment.  Actual results
could differ from those estimates.  Estimates  associated with the allowance for
loan losses and the fair values of securities  and other  financial  instruments
are particularly susceptible to material change in the near term.

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 advance payments
by borrowers for taxes and insurance.

Securities:  On October 1, 1994, the Company adopted the provisions of Statement
of  Financial  Accounting  Standards  (SFAS) No.  115,  "Accounting  for Certain
Investments  in  Debt  and  Equity   Securities."  The  Company  now  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 unrealized gains and losses included
as a separate component of 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.  Adoption of SFAS No. 115
on October 1, 1994 had no effect on shareholders' equity.

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.
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Loans Held for Sale:  Mortgage loans  intended for sale in the secondary  market
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.

Loans:  Loans  receivable that management has the intent and ability to hold for
the  foreseeable  future or until  maturity  or pay-off  are  reported  at their
outstanding principal balances adjusted for charge-offs,  the allowance for loan
losses,  deferred fees or costs on originated loans, and unamortized premiums or
discounts on purchased loans.

Premiums or  discounts  on mortgage  loans are  amortized to income on the level
yield method over the remaining  period to  contractual  maturity,  adjusted for
anticipated prepayments.

Loan fees and certain direct loan  origination  costs are deferred,  and the net
fee or cost is recognized as an adjustment to interest income using the interest
method.

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.

SFAS No. 114,  "Accounting  by Creditors for  Impairment of a Loan," as amended,
was  adopted  effective  October  1,  1995  and  requires  recognition  of  loan
impairment. 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. The effect
of adopting  these  standards  was not  material to the  consolidated  financial
statements.
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

                                   
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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.

Income  Taxes:  Effective  October 1, 1993,  the Company  adopted  SFAS No. 109,
Accounting for 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.
Previously,  the Company  computed  deferred taxes for the tax effects of timing
differences between financial reporting and tax return income. The effect of the
adoption of SFAS No. 109 as of October 1, 1993, which was $324,000,  is shown as
the  cumulative  effect  of an  accounting  change  in the  September  30,  1994
statement of income.

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.
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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 statements of financial condition
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.

ESOP shares are considered  outstanding  for earnings per share  calculations as
they  are  committed  to  be  released;   unearned  shares  are  not  considered
outstanding.

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
12.

Earnings  Per Share:  Earnings  per common  share were  computed by dividing net
income by the weighted  average number of common shares  outstanding  and common
share  equivalents  which would arise from  considering  dilutive stock options,
less ESOP shares not committed to be released.  The weighted  average  number of
shares outstanding for the calculation of earnings per common share for the year
ended  September 30, 1996 was 2,858,551.  Earnings per common share for the year
ended  September 30, 1995 was computed by dividing net income  subsequent to the
Bank's  conversion from mutual to stock form (the  "conversion") by the weighted
average  number of shares  outstanding  less ESOP  shares  not  committed  to be
released.  Net  income  subsequent  to the  conversion  was  $1,366,000  and the
weighted average number of shares outstanding was 3,084,319 for the period ended
September 30, 1995.

Reclassifications:  Certain  amounts in the 1995 and 1994  financial  statements
have been reclassified to conform with the 1996 presentation.


NOTE 2 - SECURITIES

Information for securities available for sale is as follows:
<TABLE>
<CAPTION>
                                                        September 30, 1996
                                ---------------------------------------------------------------------- 
                                                                         Gross               Gross
                                 Amortized         Unrealized          Unrealized             Fair
                                    Cost              Gains              Losses               Value
                                    ----              -----              ------               -----
<S>                             <C>                  <C>              <C>                  <C>
Debt securities           
      U.S. Government           $ 3,964,641          $ 4,734          $    -               $ 3,969,375
                                ===========          =======          ===========          =========== 
</TABLE>
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

 
NOTE 2 - SECURITIES (Continued)

Information for securities held to maturity is as follows:
<TABLE>
<CAPTION>
                                                        September 30, 1996
                                ---------------------------------------------------------------------- 
                                                                         Gross               Gross
                                 Amortized         Unrealized          Unrealized             Fair
                                    Cost              Gains              Losses               Value
                                    ----              -----              ------               -----
<S>                             <C>                  <C>              <C>                  <C>
Debt securities
      U.S. Government           $  48,818,448        $ 473,354        $ (18,802)           $49,273,000
                                =============        =========        =========            =========== 

<CAPTION>
                                                        September 30, 1996
                                ---------------------------------------------------------------------- 
                                                                         Gross               Gross
                                 Amortized         Unrealized          Unrealized             Fair
                                    Cost              Gains              Losses               Value
                                    ----              -----              ------               -----
<S>                             <C>                  <C>              <C>                  <C>
Debt securities
      U.S. Government           $  69,949,107        $  837,211       $ (164,318)          $70,622,000
                                =============        ==========       ==========           =========== 
</TABLE>
The amortized cost and fair value of debt  securities by  contractual  maturity,
are shown below.  Expected  maturities will differ from  contractual  maturities
because  borrowers  may have the  right to call or  prepay  obligations  with or
without call or prepayment penalties.
<TABLE>
<CAPTION>
                                                          September 30, 1996
                                                     ---------------------------
                                                       Amortized         Fair
                                                         Cost            Value
                                                     -----------     -----------
<S>                                                  <C>             <C>      
           Due  in one year or less .............    $30,056,103     $30,099,375
           Due after one year through five years.     22,820,986      23,143,000
                                                     -----------     -----------
                                                     $52,783,089     $53,242,375
                                                     ===========     ===========
</TABLE>
<PAGE>

                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 2 - SECURITIES (Continued)

Proceeds from securities  available for sale during the year ended September 30,
1996 were $2,032,376.  Gross gains of $1,438 were realized on these sales. There
were no sales of securities  available for sale during the years ended September
30, 1995 and 1994.  No  securities  classified  as held to maturity were sold or
transferred to  available-for-sale  during the years ended September 30, 1996 or
1995.

There were no sales of investment securities during the year ended September 30,
1994.


NOTE 3 - LOANS RECEIVABLE

Loans receivable at September 30, 1996 and 1995 are summarized as follows:
<TABLE>
<CAPTION>
                                                            1996            1995
                                                            ----            ----
<S>                                                    <C>              <C>
Mortgage loans
    Principal balances
         Secured by one to our family residences .     $238,102,033     $204,885,871
         Secured by other properties .............        1,357,340        1,312,827
         Construction loans ......................       12,406,540        8,814,615
                                                       ------------     ------------
                                                        251,865,913      215,013,313
    Less
         Undisbursed portion of construction loans        6,878,538        5,105,521
         Net deferred loan origination fees ......          392,800          453,787
                                                       ------------     ------------
             Total first mortgage loans ..........      244,594,575      209,454,005

Consumer and other loans
    Principal balances
         Home equity and second mortgage .........        6,338,940        5,662,878
         Other ...................................        1,067,032          879,994
                                                       ------------     ------------
             Total consumer and other loans ......        7,405,972        6,542,872

Less
    Allowance for loan losses ....................        1,385,589        1,372,357
    Loans in process .............................          309,312          219,767
                                                       ------------     ------------
                                                       $250,305,646     $214,404,753
                                                       ============     ============

</TABLE>
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 3 - LOANS RECEIVABLE (Continued)

Activity in the allowance for loan losses for the years ended September 30 is as
follows:
<TABLE>
<CAPTION>
                                       1996            1995             1994
                                       ----            ----             ----
<S>                                <C>             <C>              <C>

Balance at beginning of period     $ 1,372,357     $ 1,287,969      $ 1,243,745
Provision charged to income ..          13,200          87,000           44,914
Net recoveries (charge-offs) .              32          (2,612)            (690)
                                   -----------     -----------      -----------
Balance at end of period .....     $ 1,385,589     $ 1,372,357      $ 1,287,969
                                   ===========     ===========      ===========
</TABLE>

At September 30, 1996, 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 year ended September 30, 1996.


NOTE 4 - 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>

                                              1996            1995
                                              ----            ----
     <S>                                  <C>             <C>
     Mortgage loans serviced for FNMA     $ 2,860,554     $ 3,036,794
                                          ===========     ============ 
</TABLE>

Custodial escrow balances  maintained for this loan servicing were approximately
$30,000 and $29,000 at September 30, 1996 and 1995, respectively.
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994


NOTE 5 - PREMISES AND EQUIPMENT

Premises and equipment at September 30 are as follows:
<TABLE>
<CAPTION>
                                                        1996             1995
                                                        ----             ----
<S>                                                <C>              <C>
Land and land improvements ...................     $   643,350      $   643,350
Buildings ....................................       2,355,480        2,039,996
Furniture, fixtures and equipment ............       1,245,455        1,116,545
Leasehold improvements .......................         291,005          291,005
                                                   -----------      -----------
                                                     4,535,290        4,090,896
Less accumulated depreciation and amortization      (1,940,373)      (1,758,910)
                                                   -----------      -----------
                                                   $ 2,594,917      $ 2,331,986
                                                   ===========      ===========

</TABLE>
NOTE 6 - DEPOSITS

The aggregate amount of deposits with a minimum denomination of $100,000 or more
was  approximately  $47,590,000  and $37,775,000 at September 30, 1996 and 1995,
respectively.  Depositors  have their accounts  insured up to applicable  limits
($100,000  per  depositor,   as  defined)  by  the  Federal  Deposit   Insurance
Corporation.

At September 30, 1996, the scheduled  maturities of  certificates of deposit are
as follows for the years ended September 30:
<TABLE>
<CAPTION>
           <S>                            <C>
           1997                           $  132,505,081
           1998                               40,018,440
           1999                               11,480,549
           2000                                8,885,580
           2001                                5,210,211
           Thereafter                         35,674,390
                                          -------------- 
                                          $  233,774,251
                                          ==============

</TABLE>

NOTE 7 - EMPLOYEE BENEFITS

Employee   Pension  Plan:  The  pension  plan  is  part  of  a   noncontributory
multi-employer   defined-benefit   pension  plan  covering   substantially   all
employees. The plan, Financial Institutions Retirement Fund, is a multi-employer
plan and there is no separate valuation of plan benefits nor segregation of plan
assets  specifically for the Company.  Expense under this plan was approximately
$49,000,  $67,000 and $73,000 for the years ended  September 30, 1996,  1995 and
1994, respectively.
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 7 - EMPLOYEE BENEFITS (Continued)

401(k) Plan: The Company  maintains a 401(k) salary  reduction plan which covers
substantially  all  employees.  Participants  made  deferrals  from 1% to 15% of
compensation  and the Company matched 50% of elective  deferrals on the first 6%
of the participants' compensation through March 31, 1995. Between March 31, 1995
and  November  30,  1995,  participants  made  deferrals  on  the  first  2%  of
compensation,  however,  the Company did not provide any match of such  elective
deferrals.  After November 30, 1995,  participants may make deferrals from 1% to
15% of  compensation,  however,  the Company  does not provide any match of such
elective deferrals.  The Company provided  discretionary  contributions of 1% of
compensation  for the year ended September 30, 1995.  Contributions  and related
expense attributable to the plan were approximately $4,000,  $30,000 and $49,000
for the years ended September 30, 1996, 1995 and 1994, respectively.

Recognition  and  Retention  Plans  ("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 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.  An
expense of  approximately  $239,000  was  recorded  for these Plans for the year
ended September 30, 1996.

Employee Stock Ownership Plan (ESOP):  In conjunction with the stock conversion,
the Company  established  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  $352,000,  $169,000 and $0 was recorded  relative to the ESOP for
the years ended September 30, 1996, 1995 and 1994,  respectively.  Contributions
of  $310,000,  $167,000  and $0 were made to the ESOP  during  the  years  ended
September 30, 1996,  1995 and 1994,  respectively.  Dividends on unearned shares
are used to reduce the accrued  interest and principal  amount of the ESOPs loan
payable to the Company.
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 7 - EMPLOYEE BENEFITS (Continued)

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 Small-Cap market under the symbol
"HBFW", the provisions of the put option currently have no effect.

For the years ended  September 30, 1996 and 1995,  23,237 shares with an average
fair value of $15.07 and 12,350  shares with an average fair value of $13.66 per
share, respectively, were committed to be released.

The ESOP shares as of September 30 are as follows:
<TABLE>
<CAPTION>
                                                             1996           1995
                                                             ----           ----
<S>                                                    <C>            <C>
Allocated shares .................................         35,587         12,350

Unearned shares ..................................        195,622        218,859
                                                       ----------     ----------
Total ESOP shares ................................        231,209        231,209
                                                       ==========     ==========

Fair value of unearned shares at September 30 ....     $3,105,499     $3,447,029
                                                       ==========     ==========
</TABLE>
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 7 - 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") in  conjunction  with
the stock conversion.  The number of options authorized under the Plan is 10% or
330,317 shares of common stock issued in the conversion. 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.

A summary of plan transactions is:
<TABLE>
<CAPTION>

                                                                       Effective Price
                                                                          Per Share
                                              Available       Options      at Date
                                              For Grant     Outstanding    Granted
                                              ---------     -----------    -------
<S>                                           <C>           <C>           <C>                                   
Balance at October 10, 1995 ...........       330,317          --
Granted (expire October 10, 2005) .....       228,504       228,504       $   15.25
                                              -------       -------
Balance at September 30, 1996 .........       101,813       228,504
                                              =======       =======

</TABLE>
NOTE 8 - INCOME TAXES

Income tax expense for the years ended September 30 is:
<TABLE>
<CAPTION>
                                     1996              1995              1994
                                     ----              ----              ----
<S>                             <C>                <C>               <C>
Federal
     Current ............       $ 1,410,864        $ 1,119,220       $   887,738
     Deferred ...........          (390,632)            61,709            58,184
                                -----------        -----------       -----------
                                  1,020,232          1,180,929           945,922
State
     Current ............           422,380            335,613           275,762
     Deferred ...........          (161,441)            18,387            11,238
                                -----------        -----------       -----------
                                    260,939            354,000           287,000
                                -----------        -----------       -----------

Income tax expense ......       $ 1,281,171        $ 1,534,929       $ 1,232,922
                                ===========        ===========       ===========

</TABLE>
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 8 - INCOME TAXES (Continued)

The  differences  between the provision for income taxes shown on the 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>
                                                             1996              1995               1994
                                                             ----              ----               ----
<S>                                                      <C>               <C>               <C>
     Income taxes at statutory rate ................     $   991,838       $ 1,358,616       $ 1,108,033
     Increase (decrease) in taxes resulting from:
         Other .....................................         117,113           (57,327)          (64,531)
         State tax, net of federal income tax effect         172,220           233,640           189,420
                                                         -----------       -----------       -----------

         Income tax expense ........................     $ 1,281,171       $ 1,534,929       $ 1,232,922
                                                         ===========       ===========       ===========

         Effective tax rate ........................            43.9%             38.4%             37.8%
                                                         ===========       ===========       ===========
</TABLE>

Components of the net deferred tax asset as of
     September 30 are:
<TABLE>
<CAPTION>

                                                             1996              1995
                                                             ----              ---- 
     <S>                                                 <C>               <C>
     Deferred tax assets:
         SAIF assessment ...........................     $   652,686       $      --
         Bad debts .................................            --              60,995
         Deferred loan fees ........................         155,588           179,700
         Other .....................................         125,953            88,458
                                                         -----------       -----------
              Total deferred tax assets ............         934,227           329,153
     Deferred tax liabilities:
         Bad debts .................................         (41,936)             --
         Discount accretion ........................        (111,323)         (100,258)
         Net unrealized appreciation on securities
           available for sale ......................          (1,608)             --
                                                         -----------       -----------
              Total deferred tax liabilities .......        (154,867)         (100,258)
     Valuation allowance ...........................            --                --
                                                         -----------       -----------

     Net deferred tax asset ........................     $   779,360       $   228,895
                                                         ===========       ===========
</TABLE>
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 8 - INCOME TAXES (Continued)

Retained  earnings at September 30, 1996 includes  approximately  $7,600,000 for
which no deferred federal income tax liability has been recognized.  This amount
represents an allocation of income to bad debt deductions for tax purposes only.
Reduction  of amounts so allocated  for purposes  other than tax bad debt losses
would  create  income  for tax  purposes  only,  which  would be  subject to the
then-current  corporate  income tax rate.  The  unrecorded  deferred  income tax
liability  on the above amount was  approximately  $2,584,000  at September  30,
1996.

NOTE 9 - CAPITAL STANDARDS

The Bank is subject to various regulatory capital requirements.  Failure to meet
minimum capital  requirements  can initiate  certain  mandatory or discretionary
actions by  regulators  that could have a direct  material  effect on the Bank's
financial  statements.  Under capital  adequacy  guidelines  and the  regulatory
framework for prompt  corrective  action,  the Bank must meet  specific  capital
guidelines using the Bank's assets,  liabilities,  and certain off-balance-sheet
items  as  calculated  under  regulatory   accounting   practices.   The  Bank's
requirements  are also subject to qualitative  judgments by the regulators about
components, risk weightings and other factors.

The Bank's actual capital and required  capital amounts and ratios are presented
below:
<TABLE>
<CAPTION>
                                                                                         Requirement
                                                                                         To Be Well
                                                              Requirement             Capitalized Under
                                                              For Capital             Prompt Corrective
                                     Actual                Adequacy Purposes          Action Provisions
                              -------------------         -------------------        -------------------
                              Amount        Ratio         Amount        Ratio        Amount        Ratio
                              ------        -----         ------        -----        ------        -----
                                                        (Dollars in thousands)
<S>                          <C>            <C>          <C>            <C>         <C>            <C>
As of September 30, 1996
  Tangible Capital .....     $38,450        12.13%       $ 4,754        1.50%       $ 9,508         3.00%
  Core Capital .........      38,450        12.13%         9,508        3.00%        19,016         6.00%
  Risk-Based Capital ...      39,833        27.12%        11,743        8.00%        14,680        10.00%

As of September 30, 1995
  Tangible Capital .....     $37,570        12.56%       $ 4,487        1.50%       $ 8,975         3.00%
  Core Capital .........      37,570        12.56%         8,975        3.00%        17,950         6.00%
  Risk-Based Capital ...      38,942        31.24%         9,974        8.00%        12,465        10.00%
</TABLE>
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 9 - CAPITAL STANDARDS (Continued)

Regulations  of the Office of Thrift  Supervision  limit the amount of dividends
and  other  capital  distributions  that  may be paid by a  savings  institution
without  prior  approval  of the Office of Thrift  Supervision.  The  regulatory
restriction  is based on a  three-tiered  system with the  greatest  flexibility
being afforded to well-capitalized (Tier 1) institutions.  The Bank is currently
a Tier 1 institution.  Accordingly,  the Bank can make, without prior regulatory
approval,  distributions  during a calendar year up to 100% of its net income to
date during the  calendar  year plus an amount that would reduce by one-half its
"surplus  capital  ratio"  (the excess  over its  capital  requirements)  at the
beginning of the calendar year. Accordingly, at September 30, 1996 approximately
$14,498,000  of the  Bank's  retained  earnings  is  potentially  available  for
distribution to the Company.

In addition to the restriction  described above, the Bank may not declare or pay
cash  dividends  or  repurchase  any if its shares of common stock if the effect
thereof  would  reduce the Bank's  capital  level  below the  aggregate  balance
required for the liquidation account (as described in Note 16.)

NOTE 10 - FEDERAL DEPOSIT INSURANCE PREMIUM

The deposits of savings associations such as the Bank are insured by the Savings
Association  Insurance Fund ("SAIF"). A recapitalization plan signed into law on
September  30,  1996  provide  for a one-time  assessment  of 65.7 basis  points
applied to all SAIF deposits as of March 31, 1995.  Based on the Bank's deposits
as of this date, a one-time assessment of approximately  $1,648,000 was recorded
as a noninterest expense for the year ended September 30, 1996.

NOTE 11 - OTHER NONINTEREST INCOME AND EXPENSE

Other  noninterest  income and  expenses  for the years ended  September  30 are
summarized as follows:
<TABLE>
<CAPTION>
                                             1996           1995          1994
                                             ----           ----          ----
<S>                                      <C>            <C>            <C>
Other noninterest income
     Service charges and fees ......     $  129,656     $  125,405     $  113,358
     Late charges ..................         42,270         48,776         42,458
     Other .........................         55,098         45,171         90,906
                                         ----------     ----------     ----------
                                         $  227,024     $  219,352     $  246,722
                                         ==========     ==========     ==========
Other noninterest expenses
     Advertising and promotion .....     $  187,176     $  244,498     $  182,649
     Data processing ...............        250,114        263,583        237,061
     Professional fees .............        164,765        161,572         79,358
     Telephone, postage and supplies        172,657        188,456        199,131
     Other .........................        376,171        415,705        271,759
                                         ----------     ----------     ----------
                                         $1,150,883     $1,273,814     $  969,958
                                         ==========     ==========     ==========
</TABLE>
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994


NOTE 12 - 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, 1996:
<TABLE>
<CAPTION>

                                        Fixed          Variable
                                         Rate            Rate            Total
                                      ----------      ----------      ----------
<S>                                   <C>             <C>             <C>
Mortgage loans .................      $3,308,775      $2,327,200      $5,635,975
Consumer and other loans .......          20,000         274,500         294,500
                                      ----------      ----------      ----------
                                      $3,328,775      $2,601,700      $5,930,475
                                      ==========      ==========      ==========

</TABLE>
The principal  commitments,  excluding  loans in process,  of the Company are as
follows at September 30, 1995:
<TABLE>
<CAPTION>
                                        Fixed          Variable
                                         Rate            Rate            Total
                                      ----------      ----------      ----------
<S>                                   <C>             <C>             <C>
Mortgage loans .................      $5,795,200      $  719,200      $6,514,400
Consumer and other loans .......          57,000         110,200         167,200
                                      ----------      ----------      ----------
                                      $5,852,200      $  829,400      $6,681,600
                                      ==========      ==========      ==========
</TABLE>

The majority of loan commitments have commitment periods up to six months,  loan
terms ranging from 10 years to 30 years and  contractual  interest rates ranging
from 7.50% to 10.875%.

The Company has commitments for unused lines of credit aggregating $8,385,000 at
September 30, 1996.

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
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.
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994


NOTE 12 - COMMITMENTS AND CONTINGENCIES (Continued)

At September 30, 1996, the Company has an approved line of credit of $10,000,000
with the Federal Home Loan Bank of  Indianapolis.  In the event the Company were
to draw on the  line,  the  Company  would  pledge  specific  mortgage  loans as
collateral.

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, 1996, 1995 and 1994.

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 of the Company.

NOTE 13 - 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.
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994


NOTE 14 - PARENT COMPANY FINANCIAL STATEMENTS

Presented below are condensed financial statements for the parent company,  Home
Bancorp:
<TABLE>
<CAPTION>
                            CONDENSED BALANCE SHEETS
                           September 30, 1996 and 1995

                                                         1996            1995
                                                         ----            ----
<S>                                                  <C>             <C>
ASSETS
Cash and cash equivalents ......................     $ 2,213,886     $ 6,186,815
Investment in subsidiary bank ..................      38,449,564      37,570,452
Securities held to maturity ....................       3,974,088       7,957,514
Loan receivable from ESOP ......................       2,001,177       2,215,753
Other assets ...................................          94,467         150,748
                                                     -----------     -----------

     Total assets ..............................     $46,733,182     $54,081,282
                                                     ===========     ===========

LIABILITIES
Accrued expenses ...............................     $    19,967     $    20,830

SHAREHOLDERS' EQUITY ...........................      46,713,215      54,060,452
                                                     -----------     -----------

     Total liabilities and shareholders' equity      $46,733,182     $54,081,282
                                                     ===========     ===========

</TABLE>
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994


NOTE 14 - PARENT COMPANY FINANCIAL STATEMENTS (Continued)

<TABLE>
<CAPTION>

                         CONDENSED STATEMENTS OF INCOME

                                                                          For the period
                                                             For the      March 29, 1995
                                                            year ended       through
                                                           September 30,   September 30,
                                                               1996            1995
                                                               ----            ----
<S>                                                        <C>            <C>
Interest income ......................................     $  727,979     $  505,842
Dividends from subsidiary bank .......................        907,000           --
Net realized gains on sales of securities
  available for sale .................................          1,438           --
                                                           ----------     ----------
                                                            1,636,417        505,842

Operating expenses ...................................        384,354         25,012
                                                           ----------     ----------

Income before income taxes and equity in undistributed
  earnings of subsidiary bank ........................      1,252,063        480,830

Equity in undistributed earnings of subsidiary bank ..        521,000      1,076,000
                                                           ----------     ----------

Income before income taxes ...........................      1,773,063      1,556,830

Income tax expense ...................................        137,063        190,830
                                                           ----------     ----------

Net income ...........................................     $1,636,000     $1,366,000
                                                           ==========     ==========

</TABLE>
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 14 - PARENT COMPANY FINANCIAL STATEMENTS (Continued)

                       CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                   For the period
                                                                    For the         March 29, 1995
                                                                   year ended          through
                                                                  September 30,     September 30,
                                                                      1996              1995
                                                                      ----              ----
<S>                                                              <C>               <C>
Cash flows from operating activities
     Net income ............................................     $  1,636,000      $  1,366,000
     Adjustments to reconcile net income to net
       cash provided by operating activities
         Equity in undistributed income of subsidiary bank .         (521,000)       (1,076,000)
         Amortization, net of accretion ....................          200,417              --
         Accretion, net of amortization ....................             --             (14,001)
         Net realized gains on sales of securities
           available for sale ..............................           (1,438)             --
         Net change in other assets ........................           56,281          (150,748)
         Net change in accrued expenses ....................             (863)           20,830
                                                                 ------------      ------------
              Net cash provided by operating activities ....        1,369,397           146,081

Cash flows from investing activities
     Proceeds from sales of securities available for sale ..        2,032,376              --
     Proceeds from maturities of securities held to maturity        4,000,000              --
     Purchase of securities available for sale .............       (2,030,938)             --
     Purchase of securities held to maturity ...............             --          (7,943,513)
     Origination of loan receivable from ESOP ..............             --          (2,312,090)
     Repayments on loan receivable from ESOP ...............          214,576            96,337
     Purchase of stock in subsidiary bank ..................             --         (16,200,000)
                                                                 ------------      ------------
         Net cash provided by (used in) investing activities        4,216,014       (26,359,266)

Cash flows from financing activities
     Proceeds from issuance of common stock, net of
       conversion costs ....................................             --          32,406,000
     Purchase of treasury stock ............................       (9,294,413)             --
     Cash dividends paid ...................................         (263,947)             --
                                                                 ------------      ------------
         Net cash provided by (used in) financing activities       (9,558,360)       32,400,000

Net change in cash and cash equivalents ....................       (3,972,949)        6,186,815

Cash and cash equivalents at beginning of period ...........        6,186,815              --
                                                                 ------------      ------------

Cash and cash equivalents at end of period .................     $  2,213,866      $  6,186,815
                                                                 ============      ============
</TABLE>
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 9).
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 15 - 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, 1996 and 1995.
Items which are not financial instruments are not included.

<TABLE>
<CAPTION>
                                                1996                                   1995
                                                ----                                   ---- 
                                      Carrying           Estimated          Carrying          Estimated
                                       Amount           Fair Value           Amount           Fair Value
                                       ------           ----------           ------           ----------
<S>                               <C>                <C>                <C>                <C>
Cash and cash equivalents ...     $  11,922,568      $  11,923,000      $  21,389,727      $  21,390,000
Securities available for sale         3,969,375          3,969,000               --                 --
Securities held to maturity .        48,818,448         49,273,000         69,949,107         70,622,000
Loans receivable, net .......       250,305,646        245,046,000        214,404,753        213,272,000
Federal Home Loan Bank
  stock .....................         2,054,200          2,054,000          1,967,500          1,968,000
Demand and savings deposits .       (37,411,216)       (37,411,000)       (38,479,827)       (38,480,000)
Certificates of deposit .....      (233,774,251)      (233,575,000)      (217,628,228)      (219,083,000)
Advances from borrowers for
  taxes and insurance .......        (1,886,859)        (1,887,000)        (1,798,345)        (1,798,000)
</TABLE>
For purposes of the above  disclosures  of estimated  fair value,  the following
assumptions  were used as of September  30, 1996 and 1995.  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, 1996 and 1995,  applied for
the time period until the loans are assumed to reprice or be paid. 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, 1996 and 1995,  applied for the
time  period  until  maturity.  The  estimated  fair  value of  other  financial
instruments and off-balance sheet loan commitments  approximate cost and are not
considered significant for this presentation.

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, 1996 and 1995, 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, 1996 and 1995 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 earnings potential of loan servicing rights,
the trained work force, customer goodwill and similar items.
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996, 1995 and 1994

NOTE 16 - CHANGE IN CHARTER AND CONVERSION TO STOCK FORM OF OWNERSHIP

The Indiana Department of Financial Institutions ("DFI") and the Federal Deposit
Insurance  Corporation  ("FDIC") approved the Bank's application for a change in
charter,  effective  December 23, 1994,  from an Indiana  mutual  savings  bank,
supervised by the DFI and FDIC, to a federally  chartered  mutual  savings bank,
supervised by the Office of Thrift Supervision ("OTS").

On December 13, 1994, the Board of Directors of the Bank,  subject to regulatory
approval and approval by the members of the Bank,  adopted a Plan of  Conversion
to  convert  from a  federally  chartered  mutual  savings  bank to a  federally
chartered stock savings bank with the concurrent formation of the Company as the
Bank's holding  company.  The  conversion  was  consummated on March 29, 1995 by
amending the Bank's federal  charter and the sale of the Company's  common stock
in an amount  equal to the  proforma  market  value of the Company  after giving
effect to the conversion. A subscription offering of the shares of the Company's
common stock was offered  initially to the Bank's  depositors and  tax-qualified
employee plans of the Bank and the Company, then to other members and Directors,
officers  and  employees  of the  Bank,  then  to  the  general  public,  with a
preference to people residing in Allen County, Indiana.  Proceeds of $32,400,000
were  received  from the sale of 3,303,178  common  shares,  after  deduction of
conversion  costs of $631,780.  With the conversion,  the Company issued 231,209
shares for the ESOP in exchange for a note  receivable  from the ESOP.  Upon the
closing of the stock  offering,  the Company used 50% of the net proceeds of the
conversion to purchase 100% of the common shares of the Bank.  The Bank is now a
wholly-owned   subsidiary  of  the  Company.  The  conversion  was  an  internal
reorganization with historical balances carried forward without adjustment.

At the time of the conversion,  the Company established a liquidation account in
an amount  equal to its total  net  worth as of the date of the  latest  balance
sheet appearing in the final prospectus ($21,370,000 at September 30, 1994). The
liquidation  account will be maintained  for the benefit of eligible  depositors
who continue to maintain  their accounts at the Bank after the  conversion.  The
liquidation  account  will be  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 the accounts  then held.  The
liquidation  account balance is not available for payment of dividends.  This is
less restrictive than the divided limitation discussed in Note 9.

In December  1993, the Board of Directors of the Bank adopted an initial Plan of
Conversion  to convert  from a state  chartered  mutual  savings bank to a state
chartered stock savings bank. The initial Plan of Conversion was not approved by
the FDIC and, therefore,  the costs of conversion were charged to expense during
the year ended September 30, 1994.
<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 year 1996. 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.
<TABLE>
<CAPTION>
Fiscal Year                                   1995                     1996                         
                                       High         Low          High         Low
                                       ----         ---          ----         ---
<S>                                <C>          <C>          <C>          <C>
First Quarter ..............                                 $   16.00    $   14.50
Second Quarter(1) ..........       $   13.00    $   10.00    $   15.25    $   13.75
Third Quarter ..............       $   14.50    $   12.50    $   15.25    $   14.25
Fourth Quarter .............       $   15.75    $   12.50    $   16.50    $   14.75
</TABLE>
 
(1)  Reflects the period from March 29, 1995 through March 31, 1995.
------------------------
The third  quarterly  $0.05 per share  dividend  was  declared on the  Company's
common stock,  payable  December 19, 1996 to shareholders of record November 29,
1996. For information  regarding  restrictions  on dividends,  see Note 9 to the
Consolidated Financial Statements.

As of November 25, 1996, the Company had  approximately  1,672  shareholders  of
record and 2,762,350 outstanding shares of Common Stock. There were an estimated
973 beneficial owners of shares held by brokers and fiduciaries.

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

         W. Paul Wolf, CEO
         Home Bancorp
         132 East Berry Street
         P. O. Box 989
         Fort Wayne, IN  46801-0989
         (219) 422-3502

Annual Report on Form 10-K
Copies of Home Bancorp's Annual Report for year ended September 30, 1996 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
<PAGE>
Annual Meeting
The annual  meeting of  shareholders  of Home Bancorp will be held at 2:00 p.m.,
local time, on Tuesday,  January 28, 1997, at the Holiday Inn Downtown,  located
at 300 East Washington Boulevard, Fort Wayne, Indiana.
 
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:
<TABLE>
<CAPTION>
         <S>                                                       <C>
         The Journal Gazette.......................................HmeBc
         The News-Sentinel.........................................HmeBc
         Indianapolis Star.........................................HmeBc
         New York Times............................................HmeBc
         USA Today.................................................HmeBc
         Chicago Tribune...........................................HomeBnc
         Wall Street Journal.......................................HomeBcp

</TABLE>
<PAGE>
Home Loan Bank   -   Banking Offices

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

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

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

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

Covington/Time Corners       6128 Covington Rd. (46804)
                             (219) 432-0606

Northwest                    926 W. State Blvd. (46808)
                             (219) 482-6391

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

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

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

<PAGE>
                                Mission Statement 

      The mission statement of Home Loan Bank, 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 will strive to provide
     our employees with a pleasant and challenging environment in which they
     are motivated to achieve outstanding performance as individuals and as
        a team, and to obtain a sense of personal growth and achievement.

<PAGE>


                     MARKET MAKERS AS OF SEPTEMBER 30, 1996                     



                             Capital Resources, Inc.
                             The Chicago Corporation
                             Everen Securities, Inc.
                     Friedman, Billings, Ramsey & Co., Inc.
                           Herzog, Heine, Geduld, Inc.
                          Howe Barnes Investments, Inc.
                           J.J.B. Hilliard, W.L. Lyons
                          Keefe, Bruyette & Woods, Inc.
                       McDonald & Company Securities, Inc.
                                Ryan, Beck & Co.
                        Sandler O'Neill & Partners, L.P.
                        Stifel, Nicolaus & Company, Inc.

<PAGE>
                             DIRECTORS AND OFFICERS 
<TABLE>
<CAPTION>


Board of Directors                                            (Year appointed  
(Home Bancorp and Home Loan Bank)                              to Bank Board)
---------------------------------                              --------------
<S>                     <C>                                         <C>
W. Paul Wolf            Chairman of the Board and President         1961
Rod M. Howard           Retired, Howard's Graphic Supply            1969
Walter A. McComb, Jr.   McComb Funeral Homes                        1982
Richard P. Hormann      Hoffman & Co., Inc.                         1987
C. Philip Andorfer      CPA                                         1988
Luben Lazoff            Lazoff & Associates                         1991
Daniel F. Fulkerson     McMahon Paper Company                       1993
Matthew P. Forrester    Vice President and Treasurer                1994
--------------------
</TABLE>

Officers of
Home Bancorp

W. Paul Wolf
Chairman, President and
Chief Executive Officer

Matthew P. Forrester
Vice President/Treasurer

Gary L. Hemrick
Vice President/Secretary

Luben Lazoff
Assistant Secretary


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

                                  Home Bancorp

 
 

 
 
                                  Home Bancorp

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

                            Telephone (219) 422-3502
                             Facsimile 219-426-7027


<PAGE>
                                                       


Officers of
Home Loan Bank fsb

W. Paul Wolf                                 Robert V. Earl                    
Chairman, President and CEO                  Assistant Vice President          
                                                                           
Donald E. Thornton                           Stanley J. Amstutz         
Vice President of Lending/Secretary          Assistant Vice President      
                                                                           
Gary L. Hemrick                              Shirley A. Brincefield       
Vice President of Operations                 Assistant Vice President      
                                                                           
Matthew P. Forrester                         Helen E. Roscoe           
Vice President/Treasurer/CFO                 Assistant Vice President      
                                                                           
Donald P. Tuszynski                          Linda M. DeGroff          
Vice President/Decatur Lending               Assistant Vice President      
                                                                           
John E. Fitzgerald                           Timothy A. Sheppard         
Vice President/CRA Officer                   Assistant Treasurer         
                                                                        
Barbara J. Boyd                              Luben Lazoff            
Vice President of Retail Banking             Assistant Secretary         
                                                                               
Paul N. Lewark                               Jerry W. Gump                      
Assistant Vice President                     Internal Auditor/Compliance Officer
                                                                                
James M. Turner                              Lupka Baloski            
Assistant Vice President                     Personnel Director         
                                                                                
Robert P. Norton                             Sue A. Rossi            
Assistant Vice President                     Branch Manager           
                                                                                
Betty A. Schlensker                          Ruth A. Marburger          
Assistant Vice President                     Branch Manager           
                                                                                
Irene A. Thain                               Jody J. Morrissey              
Assistant Vice President                     Processing Manager     
                                                                                
Gladys A. Thomas                             Mark R. Freudenberg         
Assistant Vice President                     Branch Manager