Exhibit 13

                        Annual Report to Security Holders


 



<PAGE>
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                               1997 ANNUAL REPORT
                          Year ended September 30, 1997

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                             Report To Shareholders




























                                  Home Bancorp
                               Fort Wayne, Indiana


<PAGE>
                                CORPORATE PROFILE

          Home  Bancorp,  Fort  Wayne,  Indiana,  an  Indiana  Corporation,  was
established  March 29, 1995 as a savings bank holding  company for its principal
subsidiary,  Home Loan Bank fsb.  Based on total assets at September 30, 1997 of
$346  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 dedicated
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  and  possesses  the
distinction of being Fort Wayne's oldest financial institution.

          As a guide for our forthcoming  105th  consecutive year, our challenge
is to continue  the Bank's  solid  reputation  and offer  superior  service with
competitive  prices through  increased  efficiency and close  operating  expense
controls.  Home Loan Bank 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.

                                TABLE OF CONTENTS


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

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

Selected Consolidated Financial Information................          2

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

Report of Independent Auditors.............................         14

Consolidated Balance Sheets................................         15

Consolidated Statements of Income..........................         16

Consolidated Statements of Changes in Shareholders' Equity.         17
      
Consolidated Statements of Cash Flows......................         18

Notes to Consolidated Financial Statements.................         19

Corporate & Shareholder Information........................         38

Home Loan Bank Office Locations............................         38

Mission Statement..........................................         39

Market Makers..............................................         39

Directors & Officers.......................................         40

                       Fort Wayne . . . The Midwest Hub !
<PAGE>
PRESIDENT'S ANNUAL SHAREHOLDER REPORT

Fiscal year ended September 30, 1997 (FY 1997) completed our second full year as
a public  company,  as result of the March 29, 1995  conversion,  with continued
positive results for shareholders.  All ten quarters of Home Bancorp's existence
have reported successively higher outstanding loan balances.  The conversion net
proceeds  of $30.1  million  were  rapidly  invested in  thirteen  short  months
resulting  in a  net  increase  in  loans  through  community  residential  loan
originations.   The  Company's  loan  to  deposit  ratio,  following  the  stock
conversion,  stood at 81.5% on March 31, 1995, has reflected a 30-month increase
to 95.5% at September 30, 1997.

Total net loans  receivable at September 30, 1997 were $284.0  million  compared
with  outstanding  loans following the conversion of $204.0 million at March 31,
1995,  an increase of 39.2% in ten  quarters.  During this period of high volume
community loan originations, the non-performing assets to total assets increased
nominally to 0.06% at September 30, 1997 from 0.04% at March 31, 1995.

For FY 1997 Home Bancorp  reported net income of  $2,893,000  or $1.20 per share
compared to $1,636,000  or $0.57 per share for FY 1996.  Had it not been for the
one-time  Federal  Deposit   Insurance   Corporation   special   assessment  (to
recapitalize  SAIF) after-tax  charge of $1.0 million the prior year, net income
would have been  $2,636,000 in FY 1996,  representing a 9.75% increase in the FY
1997 net income, or $257,000.

The total deposits at September 30, 1997 grew by $26.3 million or 9.7% to $297.5
million from $271.2  million at September 30, 1996. The September 30, 1997 total
assets  increased by $23.3 million or 7.2% to $346.0 million from $322.7 million
at September 30, 1996.

During fiscal 1997,  mortgage  originations  decreased  2.5% from prior year (FY
1996) historical high annual loan volume of $83.5 million. The majority of loans
were  residential  classification.  Total net loans at  September  30, 1997 were
$284.0  million,  compared with $250.3  million a year ago, an increase of $33.7
million or 13.5% which was less than prior year (FY 1996) 16.7% loan growth.

Asset  quality  continued on course.  As of September  30, 1997,  non-performing
loans 90 days or more  delinquent  totaled  $223,000  or  0.08% of total  loans,
compared  to  $231,000  or  0.09%  of  total  loans  at   September   30,  1996.
Non-performing  assets,  consisting  solely of loans 90 days or more delinquent,
totaled  0.06% of total  assets at September  30, 1997,  compared to $231,000 or
0.07% of assets on September 30, 1996.

The FY 1997 operating  (general and  administrative)  expenses to average assets
was 1.44% compared to 1.52%  (excluding  SAIF one-time  charge) for FY 1996. The
efficiency ratio  (non-interest  operating  expenses to net interest income plus
non-interest income) for the year ended September 30, 1997 was 49.0% compared to
51.1%  (excluding SAIF one-time  charge) for the fiscal year ended September 30,
1996.

To preserve our community oriented banking identity, the board approved a by-law
amendment that requires  directors to have an intimate knowledge of the counties
in which  Home Loan Bank  offices  are  located,  in order to serve the needs of
those  communities.  That means all  directors be  domiciled  in, have a primary
residence in or have their  primary  place of business  located in the Company's
primary  market area.  This has been the Bank's policy for years,  but had never
been put in written  form and adopted to preserve  the welfare and growth of the
Bank and the Company.  A director with a community  following enhances growth of
deposits and loans.
<PAGE>
During FY 1997, the Company repurchased a total of 309,736 shares.  These shares
were  repurchased  at an average  price of $19.72.  Since the  inception  of the
Company's  stock  repurchase  programs,  a total of  928,891  shares  have  been
repurchased  as of  September  30,  1997.  The Bank  remains a  well-capitalized
institution, exceeding all current minimum regulatory capital requirements.

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 seventh  quarterly  dividend  of $0.05 per share was  declared on the
Company's  common stock,  payable  November 25, 1997 to  shareholders  of record
November 4, 1997.

To our  shareholders,  we value your  confidence and  appreciate  your financial
referrals.  The  directors,  officers  and staff take  seriously  our  fiduciary
responsibility to enhance shareholder value. Sincere thanks to everyone involved
for their hard work, dedication and commitment to our Company.

                                                         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,
                                                      ------------------------------------------------------------  
                                                        1997         1996         1995         1994         1993
                                                        ----         ----         ----         ----         ----
                                                                              (In Thousands)
<S>                                                   <C>          <C>          <C>          <C>          <C>
Summary of Financial Condition:
  Total assets ..................................     $346,041     $322,702     $313,185     $275,210     $238,632
  Loans receivable, net(1) ......................      283,987      250,306      214,405      200,678      171,529
  Cash and cash equivalents .....................       16,445       11,923       21,390       19,695       36,255
  Investment securities and FHLB Stock ..........       40,530       54,842       71,917       49,995       26,862
  Deposits ......................................      297,493      271,185      256,108      251,340      217,310
  Shareholders' equity - substantially restricted       43,991       46,713       54,060       21,370       19,020

<CAPTION>
                                                                         Year Ended September 30,
                                                      ------------------------------------------------------------  
                                                         1997         1996         1995         1994          1993
                                                         ----         ----         ----         ----          ----
                                                                            (In Thousands)
<S>                                                   <C>          <C>          <C>          <C>          <C>
Summary of Operating Results:
  Interest income ...............................     $ 24,422     $ 22,913     $ 21,120     $ 17,625     $ 15,824
  Interest expense ..............................       14,963       13,787       12,730       10,247        9,241
                                                      --------     --------     --------     --------     --------
    Net interest income .........................        9,459        9,126        8,390        7,378        6,583
  Provision for loan losses .....................            2           13           87           45          437
                                                      --------     --------     --------     --------     --------
    Net interest income after provision for
     loan losses ................................        9,457        9,113        8,303        7,333        6,146
  Noninterest income:
    Gains on sales of interest-earning assets,
      net .......................................         --              3            1           14           32
    Other .......................................          246          227          220          250          198
                                                      --------     --------     --------     --------     --------
      Total noninterest income ..................          246          230          221          264          230
  Noninterest expense:
    Compensation and benefits ...................        2,726        2,512        2,088        1,806        1,540
    Occupancy and equipment .....................          591          528          584          559          498
    SAIF deposit insurance premium ..............          251        2,235          582          517          376
    Conversion costs ............................         --           --           --            486         --
    Other .......................................        1,187        1,151        1,274          970        1,098
                                                      --------     --------     --------     --------     --------
      Total noninterest expense .................        4,755        6,426        4,528        4,338        3,512
                                                      --------     --------     --------     --------     --------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                   <C>          <C>          <C>          <C>          <C>
  Income before income taxes and cumulative
   effect of change in accounting principle .....        4,948        2,917        3,996        3,259        2,864
  Income tax expense ............................        2,055        1,281        1,535        1,233        1,249
                                                      --------     --------     --------     --------     --------
  Income before cumulative effect of change
   in accounting principle ......................        2,893        1,636        2,461        2,026        1,615
  Cumulative effect of change in accounting
   for income taxes .............................         --           --           --            324         --
                                                      --------     --------     --------     --------     --------

  Net income ....................................     $  2,893     $  1,636     $  2,461     $  2,350     $  1,615
                                                      ========     ========     ========     ========     ========
</TABLE>

(1)  Includes loans held for sale of: $0 at September 30, 1997,  1996, 1995, and
     1994; and $139,000 at September 30, 1993.



                                       2
<PAGE>
<TABLE>
<CAPTION>
                                                                                        Year Ended September 30,
                                                                 -------------------------------------------------------------------
                                                                    1997           1996           1995          1994          1993
                                                                    ----           ----           ----          ----          ----
<S>                                                              <C>           <C>           <C>           <C>           <C>
PERFORMANCE RATIOS (Averages)

  Return on assets(1) ...................................               .87%          .52%          .83%          .88%          .74%
  Return on shareholders' equity(2) .....................              6.43          3.21          6.50         11.47          8.79
  Yield on interest-earning assets ......................              7.53          7.43          7.25          6.78          7.39
  Cost of interest-bearing liabilities ..................              5.30          5.30          4.99          4.22          4.65
  Net interest spread(3) ................................              2.23          2.13          2.26          2.56          2.74
  Net interest rate margin(4) ...........................              2.92          2.96          2.88          2.84          3.07
  Operating (G&A) expenses to assets(5)(6) ..............              1.44          1.52          1.53          1.63          1.64
  Efficiency ratio (6)(7) ...............................             48.99         51.05         52.59         57.36         51.56
  Net interest income to operating (G&A)expenses(6) .....            198.87        190.80        185.61        170.06        187.50
  Interest-earning assets to interest-bearing liabilities            114.92        118.63        114.73        106.99        107.80
  Average assets (dollars in thousands) .................        $  331,060    $  314,645    $  296,221    $  266,115    $  219,503

CAPITAL RATIOS
  Shareholders' equity to assets(8) .....................             12.71         14.48         17.26          7.76          7.97
  Average shareholders' equity to average assets ........             13.59         16.21         12.79          7.70          8.37
  Average tangible equity to average assets .............             13.59         16.21         12.79          7.70          8.37

ASSET QUALITY RATIOS
  Non-performing assets to total assets .................               .06           .07           .03           .05           .11
  Non-performing loans to total loans ...................               .08           .09           .05           .04           .15
  Allowance for loan losses to net loans ................               .49           .55           .64           .64           .72
  Allowance for loan losses to non-
        performing loans ................................            622.88        599.57      1,410.71      1,431.11        489.76
  Net charge-offs to net loans ..........................                --            --            --            --           .02
  Loans to deposits .....................................             95.46         92.30         83.72         79.84         78.93
  Loans to assets .......................................             82.07         77.57         68.46         72.92         71.88

PER COMMON SHARE
  Net income.............................................        $     1.20    $     0.57    $     0.44            --            -- 
  Book value.............................................        $    17.83    $    16.91    $    16.37            --            -- 
  Tangible book value....................................        $    17.83    $    16.91    $    16.37            --            -- 
                                                        

Number of full-service offices                                            9             8             8             8             8
</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%;  efficiency  ratio  would be  68.68%;  net
     interest income to operating expenses would be 141.81%.
(7)  Operating   expenses  divided  by  the  sum  of  net  interest  income  and
     noninterest income. (8) Total shareholders' equity divided by total assets.

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


General

         Fiscal  year 1997  marked the  second  full year of  operation  of Home
Bancorp (the " Company") since the conversion of Home Loan Bank fsb (the "Bank")
on March 29, 1995 from a mutual to stock form of ownership  (the  "Conversion").
Through that  conversion the Company raised $30.1 million,  net of funds used to
purchase  shares for an Employee  Stock  Ownership  Plan (the "ESOP") and net of
Conversion  costs.  During  fiscal  1997  the  Company  further  utilized  those
conversion proceeds in continued growth in the Company's loan portfolio. Through
the origination of first lien residential  mortgages in the Bank's service area,
the Company had sustained loan portfolio  growth that was supported by growth in
consumer deposits and use of investment proceeds. During fiscal 1997 the Company
also  repurchased  approximately  310,000 in  additional  shares of Home Bancorp
stock held as treasury shares for ongoing  business needs.  Improving  yields on
assets along with the stock repurchases enhanced both the earnings per share and
the return on equity.  The Company's net income for fiscal 1997  represents  the
most profitable year on record for either the Company or the Bank.

Financial Condition

         September 30, 1997 compared to September 30, 1996. The Company's  total
assets  increased  from $322.7  million as of September 30, 1996 to $346.0 as of
September 30, 1997, an increase of $23.3 million or 7.2%.  Shareholders'  equity
decreased  from $46.7 as of September  30, 1996 to $44.0 million as of September
30,  1997, a decrease of $2.7  million or 5.8%.  The  decrease in  shareholders'
equity  was  primarily  the net result of  earnings  for the year,  payments  on
benefit  plans,  less the  repurchase of 309,736 shares of common stock for $6.1
million, and dividends paid on common stock.

         Total cash and cash  equivalents  increased  from  $11.9  million as of
September  30, 1996 to $16.4  million as of September  30, 1997,  an increase of
$4.5  million.  Investment  securities,  including  those held to  maturity  and
available  for sale,  was $38.1  million as of September 30, 1997, a decrease of
$14.7 million from the balance of $52.8  million as of September  30, 1996.  The
net decrease in liquid assets during the fiscal year was used  primarily to fund
growth in the loan portfolio and repurchase common stock.

         Net loans  receivable  increased  $33.7  million or 13.5%,  from $250.3
million as of September  30, 1996 to $284.0  million as of  September  30, 1997.
This  increase  was  primarily  the  result  of  continued  growth  in  one-  to
four-family residential loan originations in the Company's primary lending area.
Mortgage loan  originations  increased as a result of demand  attributable  to a
continued  stable interest rate  environment and  historically  low unemployment
rates.

         Total  deposits  were  $297.5  million as of  September  30,  1997,  an
increase of $26.3  million  from $271.2  million as of September  30, 1996.  The
increase  in deposits  was  primarily  the result of growth in savings,  NOW and
money market accounts.  During fiscal year 1997, the Bank restructured its 7 day
certificates of deposit accounts so as to qualify as money market accounts.  The
increased balances in core deposits and a corresponding decrease in certificates
of deposit balances primarily reflect this technical change. As of September 30,
1997, the balance in savings,  demand  checking,  NOW and money market funds was
$76.9  million an increase of $39.5  million from $37.4  million  recorded as of
<PAGE>
September  30, 1996.  Conversely,  as of September  30,  1997,  certificates  of
deposit had a net decrease of $13.2 million from $233.8  million as of September
30,  1996 to $220.6  million  as of  September  30,  1997.  If not for the shift
resulting  from the  qualifications  as money  market  accounts,  the  amount in
certificates  of  deposit  would  have shown an  increase  for the fiscal  year.
Management  attributes  this fact 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, 1997 the Company had
$140.1  million in  certificates  of  deposit  with terms of one year or less as
compared to $132.5 million for the same period ended September 30, 1996.

         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


                                       4
<PAGE>
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,  payments  on
benefit  plans,  less the  repurchase of 619,155 shares of common stock for $9.3
million, and dividends paid on common stock.

         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.

         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.

Results of Operations

Comparison of the Fiscal Years Ended September 30, 1997 and 1996

         General.  Net  income for the year ended  September  30,  1997 was $2.9
million,  an increase of $1.3 million compared to net income of $1.6 million for
the year ended  September 30, 1996. Net income for fiscal 1996 was impacted by a
$1.0  million  after tax special  assessment  by the Federal  Deposit  Insurance
Corporation  ("FDIC") to  capitalize  the  Savings  Association  Insurance  Fund
("SAIF") to its statutory reserve level of at least 1.25%.  Comparing net income
for  fiscal  1997 to fiscal  1996  after  adjusting  for the  effect of the FDIC
special assessment would yield an increase of approximately  $257,000,  or 9.8%,
for the period. The increase in net income for the year ended September 30, 1997
compared to the year ended  September  30, 1996 was  primarily the result of the
decrease in operating  expenses of $1.6 million  primarily  attributable  to the
gross amount of the 1996 FDIC special assessment,  and an approximately $334,000
increase in net interest income,  partially offset by an associated  increase in
income taxes as more fully described below.

         Interest  Income.  Interest income increased $1.5 million or 6.6%, from
$22.9  million for the year ended  September  30, 1996 to $24.4  million for the
year ended  September 30, 1997.  Interest income on loan  receivables  increased
$2.5 million while  interest  income on investments  and other  interest-earning
assets decreased $1.0 million during fiscal 1997 as compared to fiscal 1996. The
<PAGE>
increase  in  interest  income  for  fiscal  1997 was  primarily  the  result of
increases  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 $1.2 million or 8.7%, from
$13.8  million for the year ended  September  30, 1996 to $15.0  million for the
year ended  September 30, 1997. The increase in interest  expense was the result
of higher  average  balances of deposits and rate based savings  preferences  of
customers  during  fiscal 1997.  The weighted  average rate paid on deposits for
fiscal  1997 of 5.30% was the same as in fiscal  1996.  See  "Average  Balances,
Interest Rates and Yields" and "Rate/Volume Analysis."

         Net  Interest  Income.  Net  interest  income  increased  approximately
$334,000 or 3.7%,  from $9.1  million for the year ended  September  30, 1996 to
$9.5  million  for  the  year  ended  September  30,  1997.  This  increase  was
attributable  to 


                                       5
<PAGE>
the increase in interest  income which more than offset the increase in interest
expense as previously  discussed.  The Company's  interest rate spread increased
from 2.13% during fiscal 1996 to 2.23% during  fiscal 1997.  The increase in the
interest  rate  spread  during the fiscal year  reflected a general  increase in
market spreads.

         Provision  for Loan Losses.  The provision for loan losses for the year
ended  September  30, 1997 was $2,400  compared to $13,200 in the prior year,  a
decrease of $10,800.  The decrease in the  provision  for loan losses for fiscal
1997 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, 1997 the  Company's  allowance for
loan losses totaled $1.4 million or .49% of net loans  receivable and 622.88% of
total non-performing loans. In management's assessment,  continued growth in the
Company's  residential loan portfolio has not significantly  raised  anticipated
risk exposures nor impaired the Company's ability to absorb future loan losses.

         In establishing its allowance,  the Company also considers the level of
its classified and non-performing assets and their estimated value, the national
economic  outlook which may tend to inhibit  economic  activity and depress real
estate and other values in the Company's  primary market area,  the  regulators'
view of  adequate  reserve  levels for the thrift  industry,  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  solely on the  level of  non-performing  loans.  The
Company had no loan losses in fiscal 1997.

         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  $231,000 in
fiscal 1996 to $247,000 in fiscal 1997. The increase was primarily the result of
increases in service charges and fees.  There were no sales of interest  earning
assets during fiscal 1997.

         Noninterest  Expense.  Noninterest  expense  decreased  $1.6 million or
25.0%,  from $6.4 million in fiscal 1996 to $4.8 million in fiscal 1997.  Of the
decrease,  $1.6  million was  attributable  in fiscal  1996 to the special  SAIF
assessment by the FDIC. Noninterest expense without the foregoing  non-recurring
item would have  increased  approximately  $23,000 or 0.3%,  from fiscal 1996 to
fiscal 1997.

         Increased  compensation  and benefit  expenses of $214,000  from fiscal
1996 to 1997 were primarily due to costs  associated  with the fair market value
expense on ESOP shares and general cost of living  increases.  Net occupancy and
equipment  expense increased $63,000 in fiscal 1997 primarily due to the opening
of the  Bank's  ninth  office  in late  1996 and the  associated  operating  and
depreciation expenses incurred in the fiscal year. Other expenses increased by a
modest $36,000 in the current fiscal year.
<PAGE>
         Income Tax Expense.  Income tax expense  increased from $1.3 million in
fiscal  1996 to $2.1  million  in fiscal  1997,  as a result  of  higher  pretax
earnings for the period. Included in the tax expense for fiscal 1996 was the tax
benefit associated with the special SAIF assessment,  which effectively  lowered
the Company's tax liability by $650,000.


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 $2.5 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.



                                       6
<PAGE>
         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. The Company had no loan losses in fiscal 1996.

         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,  $1.6 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
<PAGE>
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.


                                       7
<PAGE>
Average Balances, Interest Rates and Yields
<TABLE>
<CAPTION>
                                                       At
                                                   September 30,                  For the Year Ended September 30,
                                               -----------------   -----------------------------------------------------------  
                                                       1997                      1997                          1996    
                                                       ----                      ----                          ----       
                                                                                       (Dollars in Thousands)
<S>                                            <C>         <C>     <C>       <C>         <C>       <C>       <C>         <C>
Interest-Earning Assets:
 Interest-earning deposits..................   $ 15,162    5.50%   $ 17,097  $    897    5.25%     $17,927   $ 1,009     5.63%  
 Investment securities......................     38,081    6.75      39,153     2,728    6.97       57,479     3,627     6.31   
 Loans......................................    283,987    7.69     265,704    20,618    7.76      231,047    18,119     7.84   
 FHLB stock.................................      2,449    8.25       2,252       179    7.95        2,008       158     7.87   
                                                      
   Total interest-earning assets............    339,679    7.49     324,206    24,422    7.53      308,461    22,913     7.43   
                                                                                               
Noninterest-earning assets..................      6,362               6,854                          6,184                      
                                             
   Total assets.............................    346,041             331,060                        314,645                      
                                                               
Interest-Bearing Liabilities:
 Savings accounts...........................     15,866    2.96      15,939       455    2.85       16,981       482     2.84   
 NOW and money market accounts..............     61,060    3.86      43,344     1,374    3.17       20,819       382     1.83   
 Certificates of deposits...................    220,567    6.03     222,889    13,134    5.89      222,219    12,923     5.82   
                                                      
   Total interest-bearing liabilities.......    297,493    5.42     282,172    14,963    5.30      260,019    13,787     5.30   
                                                                                                                              
 Noninterest-bearing liabilities............      4,557               3,893                          3,606                      
                                                        
   Total liabilities........................    302,050             286,065                        263,625                      
 Shareholders' equity.......................     43,991              44,995                         51,020                      
                                             
   Total liabilities and retained earnings      346,041             331,060                        314,645                      
                                                             
Net interest-earning assets.................   $ 42,186            $ 46,255                       $ 48,442                      
                                               ========            ========                       ========                      
Net interest income.........................                                 $ 9,459                         $ 9,126            
                                                                             =======                         =======            
Interest rate spread(1).....................               2.07%                         2.23%                           2.13%  
Net yield on weighted average interest-
 earning assets(2)..........................                                             2.92%                           2.96%  
Average interest-earning assets to
 average interest-bearing liabilities.......                         114.92%                        118.63%                     
----------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                 For the Year Ended September 30,
                                                 -------------------------------
                                                                1995
                                                                ----
<S>                                              <C>         <C>         <C>
Interest-Earning Assets:                     
 Interest-earning deposits..................     $  17,361   $    968    5.58%  
 Investment securities......................        65,034      3,852    5.92   
 Loans......................................       206,913     16,156    7.81   
 FHLB stock.................................         1,896        145    7.65   
                                                                                
   Total interest-earning assets............       291,204     21,121    7.25   
                                                                                
Noninterest-earning assets..................         5,017                      
                                                                                
   Total assets.............................       296,221                      
                                                                                
Interest-Bearing Liabilities:                                                   
 Savings accounts...........................        19,832        586    2.95   
 NOW and money market accounts..............        21,631        409    1.89   
 Certificates of deposits...................       213,663     11,735    5.49   
                                                                                
   Total interest-bearing liabilities.......       255,126     12,730    4.99   
                                                                                
 Noninterest-bearing liabilities............         3,208                      
                                                                                
   Total liabilities........................       258,334                      
 Shareholders' equity.......................        37,887                      
                                                                                
   Total liabilities and retained earnings         296,221                      
                                                                                
Net interest-earning assets.................     $  36,078                      
                                                 =========                      
Net interest income.........................                 $  8,391           
                                                             ========           
Interest rate spread(1).....................                             2.26%  
Net yield on weighted average interest-                                         
 earning assets(2)..........................                             2.88%  
Average interest-earning assets to                                              
 average interest-bearing liabilities.......       114.14%                      
----------------                                                                
</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, 1997, because
     the  computation of net yield is applicable  only over a period rather than
     at a specific date.

                                       8
<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,
                                    -------------------------------------------------------------------------------
                                                   1997 vs. 1996                             1996 vs. 1995    
                                    -------------------------------------     -------------------------------------     
                                            Increase                                Increase
                                           (Decrease)                              (Decrease)                
                                             Due to              Total              Due  to                Total
                                    ---------------------       Increase      ---------------------       Increase                
                                     Volume         Rate       (Decrease)      Volume         Rate       (Decrease)
                                                               (Dollars in Thousands)
<S>                                 <C>           <C>           <C>           <C>           <C>           <C>
Interest-earning assets:
 Interest-earning deposits ...      $   (45)      $   (67)      $  (112)      $    32       $     9       $    41
 Investment securities .......       (1,247)          348          (899)         (466)          (241)        (225)  
 Loans .......................        2,691          (192)        2,499         1,892            71         1,963
 FHLB stock ..................           19             2            21             9             4            13

   Total .....................      $ 1,418       $    91       $ 1,509       $ 1,467       $   325         1,792

Interest-bearing liabilities:
 Savings accounts ............      $   (30)      $     3       $   (27)      $   (82)      $   (22)         (104)
 NOW and money market accounts          593           399           992           (15)          (12)          (27)
 Certificates of deposit .....           39           172           211           481           707         1,188

   Total .....................      $   602       $   574       $ 1,176       $   384       $   673         1,057


Change in net interest income.                                  $   333                                   $   735
                                                                =======                                   =======
</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>
         At September  30,  1997, a change in the interest  rate of positive 200
basis points would have resulted in a 2.62%  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 0.10%  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, 1997 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, 1997, is an analysis of the Bank's
interest rate risk as measured by 


                                       9
<PAGE>
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>
                                                              
                                                             At September 30, 1997 
   Change in                                                 ---------------------
  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%                  $19,255          $-22,960    -54%
      +300 bp            -27                    25,338           -16,877    -40
      +200 bp            -20                    31,471           -10,744    -25
      +100 bp            -12                    37,334            -4,882    -12
         0 bp            ---                    42,215               ---    ---
      -100 bp            - 9                    44,801             2,586      6
      -200 bp            -12                    43,688             1,473      3
      -300 bp            -19                    41,362              -854     -2
      -400 bp            -23                    40,254            -1,962     -5
</TABLE>

         The Bank has  structured  its assets and  liabilities  in an attempt to
maintain  interest  rate risk at a level  deemed  acceptable  by the  Board.  As
indicated in the table above,  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 and increased sensitivity from mismatches in
asset/liability repricing. 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 a wide variety of adjustable rate loan
products  that reprice as frequently as every year or can be fixed for a term of
up to seven years and adjust yearly thereafter.

         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, 1997. The Company retains the
servicing on loans sold in the secondary market.
<PAGE>
         Emphasizing long-term deposits. The Company's cost of funds responds to
changes in interest rates due to the relatively short-term nature of its deposit
portfolio.  Consequently, the results of operations are influenced by the levels
of short-term  interest  rates.  The Company offers a range of maturities on its
deposit  products  at  competitive  rates  and  concentrates  a  portion  of its
advertising  and  promotional   campaigns  on  attracting   longer-term  deposit
products. It also monitors the maturities on an ongoing basis.

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


                                       10
<PAGE>
         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.

         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 on September 30, 1997, was 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, 1997, the Bank's liquidity ratio was
16.0% compared to 22.9% and 31.7% at September 30, 1996 and 1995.

         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 $3.9 million,  $4.3
million, and $2.5 million for the years ended September 30, 1997, 1996 and 1995,
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  $19.6  million,  $19.4  million,  and $35.8  million  for the years  ended
September 30, 1997, 1996 and 1995, respectively.  Net cash provided by financing
activities,  consisting  primarily of net deposit  activity and cash provided by
the  Conversion,  was $20.2 million,  $5.6 million,  $35.0 million for the years
ended  September  30, 1997,  1996 and 1995,  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, 1997, 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.
<PAGE>
         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,
1997,  the Bank had  outstanding  commitments to extend credit which amounted to
$15.6  million  (including  $9.8 million in unused lines of credit).  Management
believes  that loan  repayments  and other  sources of funds will be adequate to
meet the Bank's foreseeable liquidity needs.

         At September 30, 1997,  the Bank had tangible and core capital of $33.2
million,  or 9.85% of  adjusted  total  assets,  which was  approximately  $28.2
million  and $23.1  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, 1997 of $34.6  million  (including  $33.2
million in core capital),  or 21.38% of risk-weighted  assets of $161.8 million.
This amount was $21.7 million above the 8.0% requirement in effect on that date.


                                       11
<PAGE>
         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 1997, the
Bank paid  dividends in the amount of $8,383,000  to the Company.  The dividends
paid in 1997 represent a capital  distribution  of $5,700,000 in addition to the
transfer of 100 percent of the Bank's net income.  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, 1997,  there was a net increase of
$4.5 million in cash and cash equivalents,  as major sources of funds offset the
uses of cash.  Primary uses of cash during the fiscal year 1997 included funding
an increase  of $33.7  million in the loan  portfolio,  the  repurchase  of $6.1
million in treasury shares, and the purchase of $15.1 million in securities. The
major source of funds included $30.0 million from the maturity of securities and
a $26.3  million  increase in  deposits.  The Company  paid a total of $0.20 per
share on common stock, or a total of $477,000 to its shareholders  during fiscal
1997.

         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 repurchase 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.

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>
Impact of New Accounting Standards

Several new accounting  standards  have been issued by the Financial  Accounting
Standards  Board  ("FASB")  that will apply to the  Company  for the year ending
September 30, 1998 or 1999.

         SFAS No. 128, "Earnings Per Share," revises the accounting requirements
for  calculating  earnings per share.  Basic  earnings per share for the quarter
ended  December 31, 1997 and later will be calculated  solely on average  common
shares  outstanding.  Diluted  earnings  per share will  reflect  the  potential
dilution effect of stock options and other common stock  equivalents.  All prior
calculations  will be  restated  to be  comparable  to the new  methods.  As the
Company has  dilution  from stock  options,  the new  calculation  methods  will
increase basic  earnings per share over what otherwise  would have been reported
as primary  earnings  per  share,  while  there  will be little  effect on fully
diluted earnings per share.


                                       12
<PAGE>
         SFAS No. 130, "Reporting  Comprehensive  Income," establishes standards
for reporting and display of comprehensive  income and its components  (revenue,
expenses,  gains,  and  losses)  in a  full  set  of  general-purpose  financial
statements.  This  statement  requires  all  items  that  are  recognized  under
accounting  standards as  components  of  comprehensive  income be reported in a
financial  statement  that is  displayed  with  the  same  prominence  as  other
financial statements. Income tax effects must also be shown.
This statement is effective for fiscal years beginning after December 15, 1997.

         SFAS No. 131,  "Disclosures about Segments of an Enterprise and Related
Information,"  establishes  standards  for the way public  business  enterprises
report information about operating  segments in annual financial  statements and
requires those enterprises report selected  information about operating segments
in  interim  financial  reports  issued  to  shareholders.  It also  establishes
standards for related disclosures about products and services, geographic areas,
and major  customers.  This statement is effective for financial  statements for
periods beginning after December 15, 1997.



                                       13
<PAGE>




                         REPORT OF INDEPENDENT AUDITORS



Board of Directors
Shareholders
Home Bancorp
Fort Wayne, Indiana


We have audited the accompanying  consolidated balance sheets of Home Bancorp as
of  September  30,  1997 and 1996 and the  related  consolidated  statements  of
income,  changes in  shareholders'  equity  and cash  flows for the years  ended
September  30,  1997,  1996  and  1995.  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, 1997 and 1996 and the results of its operations and its cash flows
for the  years  ended  September  30,  1997,  1996 and 1995 in  conformity  with
generally accepted accounting principles.





                                                   Crowe, Chizek and Company LLP

South Bend, Indiana
October 16, 1997


                                       14
<PAGE>
<TABLE>
<CAPTION>
                                           HOME BANCORP


                                                         
                                    CONSOLIDATED BALANCE SHEETS
                                    September 30, 1997 and 1996




                                                                      1997               1996
                                                                 -------------      -------------
<S>                                                              <C>                <C>    
Cash on hand and in other banks ............................     $   1,282,926      $   1,206,753
Federal funds sold .........................................         7,000,000          6,100,000
Interest-earning deposits in other banks ...................         8,162,372          4,615,815
                                                                 -------------      -------------
     Total cash and cash equivalents .......................        16,445,298         11,922,568
Securities available for sale ..............................        11,126,562          3,969,375
Securities held to maturity (fair value:
  1997 - $27,214,000 and 1996 - $49,273,000) ...............        26,954,555         48,818,448
Loans receivable, net of allowance for loan losses:
  1997 - $1,387,989 and 1996................................       283,986,922        250,305,646
Federal Home Loan Bank stock, at cost ......................         2,449,100          2,054,200
Accrued interest receivable ................................         2,049,564          2,260,499
Premises and equipment, net ................................         2,710,492          2,594,917
Other assets ...............................................           318,809            776,261
                                                                 -------------      -------------

     Total assets ..........................................     $ 346,041,302      $ 322,701,914
                                                                 =============      =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
     Non-interest-bearing demand deposits ..................     $   4,048,663      $   5,032,975
     Savings, NOW and MMDA deposits ........................        72,876,749         32,378,241
     Certificates of deposit ...............................       220,567,213        233,774,251
                                                                 -------------      -------------
         Total deposits ....................................       297,492,625        271,185,467

     Advances from borrowers for taxes and insurance .......         2,092,412          1,886,859
     Accrued expenses and other liabilities ................         2,465,213          2,916,373
                                                                 -------------      -------------
         Total liabilities .................................       302,050,250        275,988,699
                                                                 -------------      -------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                              <C>                <C>    
Shareholders' equity
     Preferred stock, no par value;  5,000,000 shares
       authorized; none issued .............................              --                 --
     Common stock, no par value;  10,000,000 shares
       authorized;  1997 - 3,381,305 shares issued
       and 2,467,238 shares outstanding; 1996 - 3,381,505
       shares issued and 2,762,350 shares outstanding ......        33,985,413         33,758,217
     Retained earnings, substantially restricted ...........        27,618,839         25,203,053
     Net unrealized appreciation on securities
       available for sale, net of tax of $26,284 in 1997 and
       $1,608 in 1996 ......................................            51,021              3,124
     Unearned Employee Stock Ownership Plan shares .........        (1,769,379)        (2,001,177)
     Unearned Recognition and Retention Plan shares ........          (714,294)          (955,589)
     Treasury stock at cost, 914,067 and 619,155 common
       shares at 1997 and 1996, respectively ...............       (15,180,548)        (9,294,413)
                                                                 -------------      -------------
         Total shareholders' equity ........................        43,991,052         46,713,215
                                                                 -------------      -------------

         Total liabilities and shareholders' equity ........     $ 346,041,302      $ 322,701,914
                                                                 =============      =============
</TABLE>
The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


                                       15
<PAGE>
<TABLE>
<CAPTION>
                                 CONSOLIDATED STATEMENTS OF INCOME
                           Years ended September 30, 1997, 1996 and 1995


                                                         1997             1996             1995
                                                     -----------      -----------      -----------
<S>                                                  <C>              <C>              <C>
Interest income
     Loans receivable, including fees
         Mortgage loans .......................      $19,820,186      $17,463,746      $15,585,034
         Consumer and other loans .............          798,484          655,700          570,534
     Securities ...............................        2,728,399        3,626,283        3,852,449
     Other ....................................        1,075,643        1,167,304        1,112,607
                                                     -----------      -----------      -----------
                                                      24,422,712       22,913,033       21,120,624
Interest expense
     Deposits .................................       14,963,252       13,787,143       12,730,160
                                                     -----------      -----------      -----------

Net interest income ...........................        9,459,460        9,125,890        8,390,464

Provision for loan losses .....................            2,400           13,200           87,000
                                                     -----------      -----------      -----------
Net interest income after provision
  for loan losses .............................        9,457,060        9,112,690        8,303,464

Noninterest income
     Gains on sales of interest-earning
       assets, net ............................             --              3,550            1,310
     Other ....................................          246,713          227,024          219,352
                                                     -----------      -----------      -----------
                                                         246,713          230,574          220,662
Noninterest expense
     Employee compensation and benefits .......        2,725,691        2,511,718        2,088,256
     Occupancy and equipment ..................          591,127          528,360          584,010
     Federal deposit insurance premium ........          251,594        2,235,132          582,117
     Other ....................................        1,187,017        1,150,883        1,273,814
                                                     -----------      -----------      -----------
                                                       4,755,429        6,426,093        4,528,197

Income before income taxes ....................        4,948,344        2,917,171        3,995,929

Income tax expense ............................        2,055,344        1,281,171        1,534,929
                                                     -----------      -----------      -----------

Net income ....................................      $ 2,893,000      $ 1,636,000      $ 2,461,000
                                                     ===========      ===========      ===========
Earnings per common and common
  equivalent share, subsequent
  to conversion ...............................      $      1.20      $       .57      $       .44
                                                     ===========      ===========      ===========
</TABLE>
The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                                16
<PAGE>
<TABLE>
<CAPTION>
                                                            HOME BANCORP
                                     CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                            Years ended September 30, 1997, 1996 and 1995


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

Cash dividends declared on common stock - $.20 per share             --            (477,214)               --                  --  
22,590 shares committed to be released under the ESOP ..          224,687              --                  --             231,798  
Cancellation of 200 RRP shares .........................           (3,050)             --                  --                  --  
Amortization of RRP contribution .......................             --                --                  --             238,245  
Issuance of 14,824 common shares from treasury stock
  due to exercise of stock options .....................            5,559              --                  --                  --  
Purchase 309,736 shares of treasury stock ..............             --                --                  --                  --  
Net change in unrealized appreciation on securities
  available for sale, net of tax of $24,676 ............             --                --              47,897                  --  
Net income for the year ended September 30, 1997 .......             --           2,893,000                --                  --  
                                                             ------------      ------------      ------------        ------------  

Balances at September 30, 1997 .........................     $ 33,985,413      $ 27,618,839      $     51,021        $ (1,769,379) 
                                                             ============      ============      ============        ============  

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                                Unearned                                      
                                                              Recognition                            Total      
                                                             and Retention      Treasury          Shareholders'  
                                                              Plan Shares        Stock              Equity      
                                                              -----------        -----              ------  
<S>                                                           <C>               <C>               <C>      
Balances at October 1, 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 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      
                                                                                                                    
Cash dividends declared on common stock - $.20 per share               --                 --          (477,214)     
22,590 shares committed to be released under the ESOP ..               --                 --           456,485      
Cancellation of 200 RRP shares .........................            3,050                 --                --      
Amortization of RRP contribution .......................          238,245                                           
Issuance of 14,824 common shares from treasury stock                                                                
  due to exercise of stock options .....................               --            220,507           226,066      
Purchase 309,736 shares of treasury stock ..............               --         (6,106,642)       (6,106,642)     
Net change in unrealized appreciation on securities                                                                 
  available for sale, net of tax of $24,676 ............               --                 --            47,897      
Net income for the year ended September 30, 1997 .......               --                 --         2,893,000      
                                                              ------------      ------------      ------------      
                                                                                                                    
Balances at September 30, 1997 .........................      $   (714,294)     $(15,180,548)     $ 43,991,052      
                                                              ============      ============      ============      
                                                             
</TABLE>
The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


                                       17
<PAGE>
<TABLE>
<CAPTION>
                                                 HOME BANCORP
                                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                Years ended September 30, 1997, 1996 and 1995


                                                                 1997              1996              1995
                                                            ------------      ------------      ------------
<S>                                                         <C>               <C>               <C>
Cash flows from operating activities
   Net income .........................................     $  2,893,000      $  1,636,000      $  2,461,000
   Adjustments to reconcile net income
     to net cash from operating activities
     Depreciation .....................................          208,661           181,463           230,196
     Provision for loan losses ........................            2,400            13,200            87,000
     Gain on sale of securities .......................             --              (1,438)             --
     Gain on sale of loans ............................             --              (2,112)           (1,310)
     Loans originated for sale ........................             --            (123,500)         (142,500)
     Proceeds from loan sales .........................             --             125,612           143,810
     ESOP expense .....................................          456,485           333,101           141,542
     Amortization of RRP contribution .................          238,245           238,898              --
     Loss on disposal of premises and equipment .......              770              --                --
     Securities amortization and accretion, net .......          (72,753)          127,892           (96,539)
     Change in
       Accrued interest receivable ....................          210,935           421,114          (897,037)
       Other liabilities ..............................         (451,160)        1,698,342           333,386
       Other assets ...................................          432,777          (317,673)          206,274
                                                            ------------      ------------      ------------
         Net cash from operating activities ...........        3,919,360         4,330,899         2,465,822

Cash flows from investing activities
   Proceeds from maturities of securities held-to-
     maturity .........................................       30,000,000        21,000,000        20,000,000
   Proceeds from sales of securities available for sale             --           2,032,376              --
   Purchase of securities available for sale ..........       (7,084,219)       (5,992,813)             --
   Purchase of securities held to maturity ............       (8,063,750)             --         (41,682,500)
   Purchase of Federal Home Loan Bank stock ...........         (394,900)          (86,700)         (142,100)
   Net change in loans ................................      (33,683,676)      (35,914,093)      (13,859,388)
   Purchase of premises and equipment .................         (325,006)         (444,394)         (126,554)
                                                            ------------      ------------      ------------
     Net cash from investing activities ...............      (19,551,551)      (19,405,624)      (35,810,542)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                         <C>               <C>               <C>
Cash flows from financing activities
   Net change in deposits .............................       26,307,158        15,077,412         4,767,771
   Increase in advance payments by
     borrowers for taxes and insurance ................          205,553            88,514           183,423
   Purchase of treasury stock .........................       (6,106,642)       (9,294,413)             --
   Cash dividends paid ................................         (477,214)         (263,947)             --
   Proceeds from exercise of stock options ............          226,066              --                --
   Proceeds from stock issue, net of conversion
     costs and stock acquired by ESOP .................             --                --          30,087,910
                                                            ------------      ------------      ------------
     Net cash from financing activities ...............       20,154,921         5,607,566        35,039,104
                                                            ------------      ------------      ------------

Net change in cash and cash equivalents ...............        4,522,730        (9,467,159)        1,694,384

Cash and cash equivalents at beginning of year ........       11,922,568        21,389,727        19,695,343
                                                            ------------      ------------      ------------

Cash and cash equivalents at end of year ..............     $ 16,445,298      $ 11,922,568      $ 21,389,727
                                                            ============      ============      ============

Supplemental disclosures of cash flow information
   Cash paid for
     Interest on deposits .............................     $ 14,942,651      $ 13,763,931      $ 12,449,902
     Income taxes .....................................        1,681,976         1,586,000         1,130,500
Noncash investing activities
   Transfer from investment securities to securities
     held to maturity .................................     $       --        $       --        $ 48,170,068

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


                                       18
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Nature of Business  and  Concentrations  of Credit Risk:  The primary  source of
income for the Company is the  origination of  residential  real estate loans in
Fort Wayne,  Indiana and the  surrounding  areas.  Loans  secured by real estate
mortgages  comprise  approximately  99% of the loan  portfolio at September  30,
1997.  The Company  accepts  deposits  from  customers  in the normal  course of
business primarily in Fort Wayne, Indiana and the surrounding areas. The Company
operates  in the  banking  industry  which  accounts  for  more  than 90% of its
revenues.

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

Certain  Vulnerability  Due  to  Certain  Concentrations:  Management  is of the
opinion that no  concentrations  exist that make the Company  vulnerable  to the
risk of near-term severe impact.

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

Securities:  The Company classifies securities into held to maturity,  available
or 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.

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>
 
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.


                                  (Continued)

                                       19
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

Loans:  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
<PAGE>
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  this  standard  was not  material  to the  consolidated  financial
statements.


                                  (Continued)

                                       20
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


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

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

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



                                  (Continued)

                                       21
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Earnings Per Share: Earnings per common share is 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 impact of dilutive  stock  options on
earnings  per  share is not  material.  The  weighted  average  number of shares
outstanding for the calculation of earnings per common share for the years ended
September 30, 1997 and 1996 was 2,402,971 and 2,858,551, respectively.  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.

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

Impact of New Accounting Standards:  SFAS No. 125, "Accounting for Transfers and
Servicing of  Financial  Assets and  Extinguishment  of  Liabilities,"  provides
accounting  and  reporting  standards  for  transfers and servicing of financial
assets and extinguishment of liabilities. Several transactions common to banking
are affected by SFAS No. 125,  including  servicing of loans and other financial
assets, repurchase agreements, loan participations,  asset securitizations,  and
transfers of receivables  with  recourse.  This statement was effective for some
transactions occurring after December 31, 1996, and will be effective for others
in 1998.  The impact of partial  adoption  in 1997 was not  material to the 1997
consolidated  financial  statements  and the impact of the complete  adoption in
1998 is also not expected to be material to the Company's consolidated financial
statements.

Reclassifications:  Certain  amounts in the 1996 and 1995  financial  statements
have been reclassified to conform with the 1997 presentation.
 
<PAGE>

NOTE 2 - SECURITIES

Year end securities available for sale were as follows:
<TABLE>
<CAPTION>

                                                  Gross             Gross
                             Amortized         Unrealized        Unrealized           Fair
1997                           Cost               Gains            Losses             Value
----                        -----------       -----------       ------------       ----------- 
<S>                         <C>               <C>               <C>                <C>        
Debt securities
      U.S. Government       $11,049,257       $    77,305       $       --         $11,126,562
                            ===========       ===========       ============       ===========

1996
----
Debt securities
      U.S. Government       $ 3,964,641       $     4,734       $       --         $ 3,969,375
                            ===========       ===========       ============       ===========

</TABLE>
                                  (Continued)

                                       22
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


NOTE 2 - SECURITIES (Continued)

Year end securities held to maturity were as follows:
<TABLE>
<CAPTION>
                                                                   Gross             Gross
                             Amortized         Unrealized        Unrealized           Fair
1997                           Cost               Gains            Losses            Value
----                        -----------       -----------       -----------        ----------- 
<S>                         <C>               <C>               <C>                <C>                      
Debt securities
      U.S. Government       $26,954,555       $   259,445       $      --          $27,214,000
                            ===========       ===========       ===========        ===========

1996
----
Debt securities
      U.S. Government       $48,818,448       $   473,354       $   (18,802)       $49,273,000
                            ===========       ===========       ===========        ===========
</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, 1997
                                                       -------------------------------
                                                         Amortized             Fair
                                                           Cost                Value
                                                       ------------       ------------
<S>                                                    <C>                <C>

           Due in one year or less                     $ 16,952,485       $ 17,016,562
           Due after one year through five years         21,051,327         21,324,000
                                                       ------------       ------------

                                                       $ 38,003,812       $ 38,340,562
                                                       ============       ============ 
</TABLE>

There  were no sales of  securities  available  for sale  during  the year ended
September 30, 1997. 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
year ended September 30, 1995. No securities classified as held to maturity were
sold or transferred  to available for sale during the years ended  September 30,
1997 or 1996.
<PAGE>
NOTE 3 - LOANS RECEIVABLE

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

                                                            1997             1996
                                                       ------------     ------------
<S>                                                    <C>              <C>   
Mortgage loans
    Principal balances
         Secured by one to four family residences      $269,995,150     $238,102,033
         Secured by other properties .............        1,856,007        1,357,340
         Construction loans ......................       11,796,566       12,406,540
                                                       ------------     ------------
                                                        283,647,723      251,865,913
    Less
         Undisbursed portion of construction loans        6,666,049        6,878,538
         Net deferred loan origination fees ......          337,509          392,800
                                                       ------------     ------------
             Total first mortgage loans ..........      276,644,165      244,594,575

Consumer and other loans
    Principal balances
         Home equity and second mortgage .........        7,804,899        6,338,940
         Other ...................................        1,133,388        1,067,032
                                                       ------------     ------------
             Total consumer and other loans ......        8,938,287        7,405,972

Less
    Allowance for loan losses ....................        1,387,989        1,385,589
    Loans in process .............................          207,541          309,312
                                                       ------------     ------------

                                                       $283,986,922     $250,305,646
                                                       ============     ============

</TABLE>
                                  (Continued)

                                       23

<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


NOTE 3 - LOANS RECEIVABLE (Continued)

Activity in the allowance for loan losses for the years ended September 30 is as
follows:
<TABLE>
<CAPTION>
                                        1997            1996            1995
                                    -----------     -----------     -----------
<S>                                 <C>             <C>             <C>                                                    
Balance at beginning of period      $ 1,385,589     $ 1,372,357     $ 1,287,969
Provision charged to income ...           2,400          13,200          87,000
Net recoveries (charge-offs) ..            --                32          (2,612)
                                    -----------     -----------     -----------

Balance at end of period ......     $ 1,387,989     $ 1,385,589     $ 1,372,357
                                    ===========     ===========     ===========
</TABLE>

At September  30, 1997 and 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 years ended September 30, 1997 and 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>

                                                      1997               1996
                                                   -----------        ----------  
<S>                                                <C>                <C>
Mortgage loans serviced for FNMA .........         $2,531,364         $2,860,554
                                                   ==========         ==========
</TABLE>


Custodial escrow balances  maintained for this loan servicing were approximately
$28,000 and $30,000 at September 30, 1997 and 1996, respectively.

<PAGE>
NOTE 5 - PREMISES AND EQUIPMENT

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

                                                        1997             1996
                                                   -----------      -----------
<S>                                                <C>              <C>
Land and land improvements ...................     $   643,350      $   643,350
Buildings ....................................       2,554,705        2,355,480
Furniture, fixtures and equipment ............       1,310,475        1,245,455
Leasehold improvements .......................         291,005          291,005
                                                   -----------      -----------
                                                     4,799,535        4,535,290
Less accumulated depreciation and amortization      (2,089,043)      (1,940,373)
                                                   -----------      -----------

                                                   $ 2,710,492      $ 2,594,917
                                                   ===========      ===========

</TABLE>

NOTE 6 - DEPOSITS

The aggregate amount of deposits with a minimum denomination of $100,000 or more
was  approximately  $54,316,000  and $47,590,000 at September 30, 1997 and 1996,
respectively.  Depositors  have their accounts  insured up to applicable  limits
($100,000  per  depositor,   as  defined)  by  the  Federal  Deposit   Insurance
Corporation.

                                  (Continued)

                                       24
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995

NOTE 6 - DEPOSITS (Continued)

At September 30, 1997, the scheduled  maturities of  certificates of deposit are
as follows for the years ended September 30:

                           1998                             $ 140,127,460
                           1999                                23,241,098
                           2000                                12,715,369
                           2001                                 5,624,000
                           2002                                 9,937,454
                           Thereafter                          28,921,832
                                                            -------------

                                                            $ 220,567,213
                                                            =============

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.  As a  multi-employer  plan,  there is no separate  valuation of plan
benefits nor segregation of plan assets  specifically  for the Company.  For the
year ended  September 30, 1997,  the fund was fully  funded.  Expense under this
plan was approximately  $-0-,  $49,000 and $67,000 for the years ended September
30, 1997, 1996 and 1995, respectively.

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,  $4,000 and $30,000
for the years ended September 30, 1997, 1996 and 1995, 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  $238,000 and $239,000 was recorded for these Plans for
the years ended September 30, 1997 and 1996, respectively.

                                  (Continued)

                                       25
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


NOTE 7 - EMPLOYEE BENEFITS (Continued)

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 $451,000,  $352,000 and $169,000 was recorded relative to the ESOP
for  the  years  ended  September  30,  1997,   1996  and  1995,   respectively.
Contributions of $302,000,  $310,000,  and $167,000 were made to the ESOP during
the years ended  September 30, 1997, 1996 and 1995,  respectively.  Dividends on
unearned shares are used to reduce the accrued  interest and principal amount of
the ESOPs loan payable to the Company.

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

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

For the years ended September 30, 1997, 1996 and 1995, 22,590, 23,237 and 12,350
shares  with an  average  fair  value of  $19.96,  $15.07  and $13.66 per share,
respectively, were committed to be released.
<PAGE>
The ESOP shares as of September 30 are as follows:
<TABLE>
<CAPTION>
                                            1997           1996          1995
                                         ----------     ----------     ----------
<S>                                     <C>            <C>             <C>
Allocated shares ..................         58,177         35,587         12,350

Unearned shares ...................        173,032        195,622        218,859
                                        ----------     ----------     ----------

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

Fair value of unearned shares .....     $4,196,026     $3,105,499     $3,447,029
                                        ==========     ==========     ==========

</TABLE>
                                  (Continued)

                                       26
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


NOTE 7 - EMPLOYEE BENEFITS (Continued)

Stock  Option  Plan:  The Board of  Directors  of the  Company  adopted the Home
Bancorp 1996 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.

The Company  applied APB Opinion 25  "Accounting  for Stock Issued to Employees"
and  related  interpretations  in  accounting  for  its  Plan.  Accordingly,  no
compensation expense has been recognized for the Plan. SFAS No. 123, "Accounting
for Stock-Based Compensation," requires disclosures for stock-based compensation
awarded in fiscal years  beginning after December 15, 1994 for companies that do
not adopt its fair value  accounting  method for stock-based  compensation.  The
effects on the Company's net income and earnings per share under the  provisions
of SFAS No. 123 were not  material  for the years ended  September  30, 1996 and
1997. In future  years,  as  additional  options are granted,  the effect on net
income and earnings per share may increase.
<TABLE>
<CAPTION>

                                            Available      Options      Weighted-Average
                                            For Grant    Outstanding     Exercise Price
                                            ---------    -----------     --------------
<S>                                         <C>            <C>            <C>
Balance - October 10, 1995 ...........       330,317           --

Granted (expire October 10, 2005) ....      (228,504)       228,504       $   15.25
Exercised ............................          --             --
Forfeited ............................          --             --
                                            --------       --------
Balance - September 30, 1996 .........       101,813        228,504

Granted ..............................          --             --
Exercised ............................          --          (14,824)          15.25
Forfeited ............................          --             --
                                            --------       --------
Balance - September 30, 1997 .........       101,813        213,680           15.25
                                            ========       ========
</TABLE>
At year end 1997, options outstanding had a weighted-average remaining life of 8
years and an exercise price of $15.25.
<PAGE>
Options exerciseable at year end are as follows.
<TABLE>
<CAPTION>

                                       Number              Weighted-Average
                                     of Options             Exercise Price
                                     ----------             --------------
<S>                                    <C>                    <C>
     1996                                 -                   $ 15.25
     1997                              30,877                   15.25
</TABLE>

                                  (Continued)

                                       27
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995

NOTE 8 - INCOME TAXES

The  Company  and the Bank file a  consolidated  federal  income tax return on a
fiscal year basis.  Prior to fiscal year 1997, if certain conditions were met in
determining  taxable income as reported on the  consolidated  federal income tax
return,  the Bank was allowed a special bad debt deduction based on a percentage
of taxable income (8% for 1996) or on specified  experience  formulas.  The Bank
used the percentage of taxable  income method for the tax years ended  September
30, 1996 and 1995. Tax  legislation  passed in August 1996 now requires the Bank
to  deduct a  provision  for bad  debts for tax  purposes  based on actual  loss
experience  and recapture the excess bad debt reserve  accumulated  in tax years
beginning after September 30, 1987. The related amount of deferred tax liability
which must be  recaptured  is  approximately  $625,000 and is payable over a six
year period beginning no later than the tax year ending September 30, 1999.

Income tax expense for the years ended September 30 is:
<TABLE>
<CAPTION>
                                    1997              1996               1995
                                -----------       -----------        -----------  
<S>                             <C>               <C>                <C>  
Federal
     Current ............       $   978,879       $ 1,410,864        $ 1,119,220
     Deferred ...........           630,214          (390,632)            61,709
                                -----------       -----------        -----------
                                  1,609,093         1,020,232          1,180,929
State
     Current ............           284,219           422,380            335,613
     Deferred ...........           162,032          (161,441)            18,387
                                -----------       -----------        -----------
                                    446,251           260,939            354,000
                                -----------       -----------        -----------

Income tax expense ......       $ 2,055,344       $ 1,281,171        $ 1,534,929
                                ===========       ===========        ===========
</TABLE>
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:
<PAGE>
<TABLE>
<CAPTION>
                                                        1997             1996             1995
                                                    -----------      -----------      -----------
<S>                                                 <C>              <C>              <C>
Income taxes at statutory rate ................     $ 1,682,437      $   991,838      $ 1,358,616
Increase (decrease) in taxes resulting from:
    Other .....................................          78,381          117,113          (57,327)
    State tax, net of federal income tax effect         294,526          172,220          233,640
                                                    -----------      -----------      -----------

    Income tax expense ........................     $ 2,055,344      $ 1,281,171      $ 1,534,929
                                                    ===========      ===========      ===========

    Effective tax rate ........................            41.5%            43.9%            38.4%
                                                    ===========      ===========      ===========
</TABLE>
                                  (Continued)

                                       28
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995

NOTE 8 - INCOME TAXES (Continued)

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

                                                     1997           1996           1995
                                                  ---------      ---------      ---------
<S>                                               <C>            <C>            <C>
Deferred tax assets:
    SAIF assessment .........................     $    --        $ 652,686      $    --
    Bad debts ...............................          --             --           60,995
    Deferred loan fees ......................       133,687        155,588        179,700
    Recognition and retention plan ..........        94,673           --             --
    Other ...................................        18,602        125,953         88,458
                                                  ---------      ---------      ---------
         Total deferred tax assets ..........       246,962        934,227        329,153

Deferred tax liabilities:
    Bad debts ...............................       (76,133)       (41,936)          --
    Discount accretion ......................      (182,107)      (111,323)      (100,258)
    Net unrealized appreciation on securities
      available for sale ....................       (26,284)        (1,608)          --
                                                  ---------      ---------      ---------
         Total deferred tax liabilities .....      (284,524)      (154,867)      (100,258)
Valuation allowance .........................          --             --             --
                                                  ---------      ---------      ---------

Net deferred tax asset (liability) ..........     $ (37,562)     $ 779,360      $ 228,895
                                                  =========      =========      =========
</TABLE>
Federal  income  tax  laws  provided  savings  banks  with  additional  bad debt
deductions  through  September  30,  1987,  totaling  $7,600,000  for the  Bank.
Accounting  standards do not require a deferred tax  liability to be recorded on
this amount,  which liability otherwise would total approximately  $2,584,000 at
September 30, 1997 and 1996. If the Bank were liquidated or otherwise  ceases to
be a bank or if tax laws were to change,  the  $2,584,000  would be  recorded as
expense.

NOTE 9 - CAPITAL STANDARDS

The Bank is subject to various regulatory capital  requirements  administered by
federal regulatory  agencies.  Capital adequacy guidelines and prompt corrective
action regulations involve  quantitative  measures of assets,  liabilities,  and
certain   off-balance-sheet   items  calculated   under  regulatory   accounting
practices.  Capital amounts and  classification  are also subject to qualitative
judgments by the regulators about components, risk weightings and other factors,
and the regulators can lower  classifications in certain cases.  Failure to meet
various capital requirements can initiate certain actions by regulators that, if
undertaken,  could have a direct material effect on the  consolidated  financial
statements.

                                  (Continued)

                                       29
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995

NOTE 9 - CAPITAL STANDARDS (Continued)

The prompt corrective action regulations provide five classifications, including
well  capitalized,  adequately  capitalized,   undercapitalized,   significantly
undercapitalized, and critically undercapitalized,  although these terms are not
used to  represent  overall  financial  condition.  If  adequately  capitalized,
regulatory   approval   is   required   to   accept   brokered   deposits.    If
undercapitalized,  capital  distributions  are  limited,  as is asset growth and
expansion, and plans for capital restoration are required.

At September 30, the Bank's actual  capital levels and minimum  required  levels
(in thousands) were:
<TABLE>
<CAPTION>
                                                                                                     Minimum
                                                                                                   Requirement
                                                                       Minimum                     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>
1997
Total Capital (to risk
  weighted assets)               $  34,601        21.38%       $  12,946         8.00%       $ 16,182       10.00%
Tier I (Core) Capital
  (to risk weighted
  assets)                        $  33,213        20.52%       $   6,473         4.00%       $  9,709        6.00%
Tier I (Core) Capital
  (to adjusted total
  assets)                        $  33,213         9.85%       $  10,120         3.00%            N/A         N/A
Tangible Capital
  (to adjusted total
  assets)                        $  33,213         9.85%       $   5,060         1.50%            N/A         N/A
Tier I (Core) Capital
  (to average assets)            $  33,213        10.03%       $  13,242         4.00%       $ 16,553        5.00%

1996
Total Capital (to risk
  weighted assets)               $  39,833        27.12%       $  11,748         8.00%       $ 14,685       10.00%
Tier I (Core) Capital
  (to risk weighted
  assets)                        $  38,450        26.18%       $   5,874         4.00%       $  8,811        6.00%
Tier I (Core) Capital
  (to adjusted total
  assets)                        $  38,450        12.13%       $   9,508         3.00%            N/A         N/A
Tangible Capital
  (to adjusted total
  assets)                        $  38,450        12.13%       $   4,754         1.50%            N/A         N/A
Tier I (Core) Capital
  (to average assets)            $  38,450        12.22%       $  12,586         4.00%       $ 15,732        5.00%
</TABLE>
                                  (Continued)

                                       30
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


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, 1997 approximately
$8,250,000  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  provides  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.
<PAGE>
NOTE 11 - OTHER NONINTEREST INCOME AND EXPENSE

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

                                             1997           1996           1995
                                         ----------     ----------     ----------
<S>                                      <C>            <C>            <C>
Other noninterest income
     Service charges and fees ......     $  147,890     $  129,656     $  125,405
     Late charges ..................         48,088         42,270         48,776
     Other .........................         50,735         55,098         45,171
                                         ----------     ----------     ----------

                                         $  246,713     $  227,024     $  219,352
                                         ==========     ==========     ==========

Other noninterest expenses
     Advertising and promotion .....     $  201,798     $  187,176     $  244,498
     Data processing ...............        252,750        250,114        263,583
     Professional fees .............        165,230        164,765        161,572
     Telephone, postage and supplies        154,751        172,657        188,456
     Other .........................        412,488        376,171        415,705
                                         ----------     ----------     ----------

                                         $1,187,017     $1,150,883     $1,273,814
                                         ==========     ==========     ==========

</TABLE>
                                  (Continued)

                                       31
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


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, 1997:
<TABLE>
<CAPTION>
                                        Fixed          Variable
                                         Rate            Rate            Total
                                      ----------      ----------      ----------
<S>                                   <C>             <C>             <C>
Mortgage loans .................      $3,633,000      $1,745,000      $5,378,000
Consumer and other loans .......           3,000         409,000         412,000
                                      ----------      ----------      ----------

                                      $3,636,000      $2,154,000      $5,790,000
                                      ==========      ==========      ==========
</TABLE>


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 majority of loan  commitments  have  commitment  periods up to 90 days, loan
terms ranging from 10 years to 30 years and  contractual  interest rates ranging
from 5.84% to 8.49%.

The Company has commitments for unused lines of credit aggregating $9,835,000 at
September 30, 1997.

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>
At September 30, 1997, 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, 1997, 1996 and 1995.

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.

                                  (Continued)

                                       32
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


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.


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, 1997 and 1996


                                                         1997            1996
                                                     -----------     -----------
<S>                                                  <C>             <C>                                     
ASSETS
Cash and cash equivalents ......................     $ 2,772,237     $ 2,213,866
Investment in subsidiary bank ..................      33,252,929      38,449,564
Securities available for sale ..................       5,090,938            --
Securities held to maturity ....................         990,443       3,974,088
Loan receivable from ESOP ......................       1,769,379       2,001,177
Other assets ...................................         143,547          94,487
                                                     -----------     -----------

     Total assets ..............................     $44,019,473     $46,733,182
                                                     ===========     ===========

LIABILITIES
Accrued expenses ...............................     $    28,421     $    19,967

SHAREHOLDERS' EQUITY ...........................      43,991,052      46,713,215
                                                     -----------     -----------

     Total liabilities and shareholders' equity      $44,019,473     $46,733,182
                                                     ===========     ===========

</TABLE>
                                  (Continued)

                                       33
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


NOTE 14 - PARENT COMPANY FINANCIAL STATEMENTS (Continued)

<TABLE>
<CAPTION>
                                 CONDENSED STATEMENTS OF INCOME


                                                                                 For the period
                                                    For the         For the      March 29, 1995
                                                  Year ended       Year ended       through
                                                 September 30,    September 30,   September 30,
                                                     1997             1996            1995
                                                 -----------      -----------     -----------
<S>                                              <C>              <C>             <C>
Interest income ............................     $   459,166      $   727,979     $   505,842
Dividends from subsidiary bank .............       8,383,000          907,000            --
Net realized gains on sales of securities
  available for sale .......................            --              1,438            --
                                                 -----------      -----------     -----------
                                                   8,842,166        1,636,417         505,842

Operating expenses .........................         127,287          384,354          25,012
                                                 -----------      -----------     -----------


Income before income taxes and equity in
  undistributed earnings of subsidiary bank        8,714,879        1,252,063         480,830

Equity in undistributed (excess distributed)
  earnings of subsidiary bank ..............      (5,690,000)         521,000       1,076,000
                                                 -----------      -----------     -----------


Income before income taxes .................       3,024,879        1,773,063       1,556,830

Income tax expense .........................         131,879          137,063         190,830
                                                 -----------      -----------     -----------


Net income .................................     $ 2,893,000      $ 1,636,000     $ 1,366,000
                                                 ===========      ===========     ===========


</TABLE>
                                  (Continued)

                                       34
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


NOTE 14 - PARENT COMPANY FINANCIAL STATEMENTS (Continued)
<TABLE>
<CAPTION>

                                      CONDENSED STATEMENTS OF CASH FLOWS

                                                                                              For the period
                                                               For the           For the       March 29, 1995
                                                             Year ended        Year ended          through
                                                            September 30,     September 30,     September 30,
                                                                 1997              1996              1995
                                                            ------------      ------------      ------------
<S>                                                         <C>               <C>               <C>
Cash flows from operating activities
     Net income .......................................     $  2,893,000      $  1,636,000      $  1,366,000
     Adjustments to reconcile net income to net
       cash provided by operating activities
         Equity in (undistributed) excess distributed
           income of subsidiary bank ..................        5,690,000          (521,000)       (1,076,000)
         Amortization and accretion, net ..............          226,069           200,417           (14,001)
         Net realized gains on sales of securities
           available for sale .........................             --              (1,438)             --
         Net change in other assets ...................          (55,035)           56,281          (150,748)
         Net change in accrued expenses ...............            8,454              (863)           20,830
                                                            ------------      ------------      ------------
              Net cash provided by operating activities        8,762,488         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 ....................................        3,000,000         4,000,000              --
     Purchase of securities available for sale ........       (5,078,125)       (2,030,938)             --
     Purchase of securities held to maturity ..........             --                --          (7,943,513)
     Origination of loan receivable form ESOP .........             --                --          (2,312,090)
     Repayments on loan receivable from ESOP ..........          231,798           214,576            96,337
     Purchase of stock in subsidiary bank .............             --                --         (16,200,000)
                                                            ------------      ------------      ------------
         Net cash provided by (used in) investing
           activities .................................       (1,846,327)        4,216,014       (26,359,266)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                         <C>               <C>               <C>
Cash flows from financing activities
     Proceeds from issuance of common stock,
       net of conversion costs ........................             --                --          32,400,000
     Purchase of treasury stock .......................       (6,106,642)       (9,294,413)             --
     Cash dividends paid ..............................         (477,214)         (263,947)             --
     Proceeds from exercise of stock options ..........          226,066              --                --
                                                            ------------      ------------      ------------
         Net cash provided by (used in) financing
           activities .................................       (6,357,790)       (9,558,360)       32,400,000
                                                            ------------      ------------      ------------

     Net change in cash and cash equivalents ..........          558,371        (3,972,949)        6,186,815

Cash and cash equivalents at beginning of period ......        2,213,866         6,186,815              --
                                                            ------------      ------------      ------------

Cash and cash equivalents at end of period ............     $  2,772,237      $  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).


                                  (Continued)

                                       35
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995


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, 1997 and 1996.
Items which are not financial instruments are not included.
<TABLE>
<CAPTION>
                                               1 9 9 7                               1 9 9 6
                                               -------                               -------
                                     Carrying           Estimated           Carrying          Estimated
                                      Amount           Fair Value            Amount          Fair Value
                                  -------------      -------------      -------------      -------------
<S>                               <C>                <C>                <C>                <C>
Cash and cash equivalents ...     $  16,445,298      $  16,445,000      $  11,922,568      $  11,923,000
Securities available for sale        11,126,562         11,127,000          3,969,375          3,969,000
Securities held to maturity .        26,954,555         27,214,000         48,818,448         49,273,000
Loans receivable, net .......       283,986,922        287,953,000        250,305,646        245,046,000
Federal Home Loan Bank
  stock .....................         2,449,100          2,449,000          2,054,200          2,054,000
Demand and savings deposits .       (76,925,412)       (76,925,000)       (37,411,216)       (37,411,000)
Certificates of deposit .....      (220,567,213)      (222,072,000)      (233,774,251)      (233,575,000)
Advances from borrowers for
  taxes and insurance .......        (2,092,412)        (2,092,000)        (1,886,859)        (1,887,000)
</TABLE>

For purposes of the above  disclosures  of estimated  fair value,  the following
assumptions  were used as of September  30, 1997 and 1996.  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, 1997 and 1996,  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, 1997 and 1996,  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, 1997 and 1996, 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, 1997 and 1996 should not  necessarily  be  considered to apply at
subsequent dates.
<PAGE>
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.


                                  (Continued)

                                       36
<PAGE>
                                  HOME BANCORP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1997, 1996 and 1995

                                                             
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.




                                  (Continued)

                                       37
<PAGE>
Company and Bank Address
         132 East Berry Street
         P. O. Box 989
         Fort Wayne, Indiana 46801-0989
         Telephone:      (219) 422-3502
         Facsimile:        219.426.7027


Stock Price Information
The  Company's  stock is traded on The Nasdaq  National  Market under the symbol
"HBFW."  The  table  below  shows  the  range of high and low bid  prices of the
Company's Common Stock for fiscal years 1996 and 1997. The information set forth
in the table below was provided by The Nasdaq  Stock  Market.  Such  information
reflects  interdealer prices,  without retail mark-up,  mark-down or commission,
and may not represent actual transactions for fiscal years:

Fiscal
Quarter  Div.    High      Low    Div.     High       Low

    I           $16.00   $14.50   .05     $19.50    $16.00
   II           $15.25   $13.75   .05     $21.25    $19.00
  III    .05    $15.25   $14.25   .05     $20.875   $20.125
  ---    ---    ------   ------   ---     -------   -------
   IV    .05    $16.50   $14.75   .05     $25.75    $21.375

Stock Price
September 30th:       $15.875                $24.25


The  seventh  quarterly  $0.05 per share  dividend  (Div.) was  declared  on the
Company's  common stock,  payable  November 25, 1997 to  shareholders  of record
November 4, 1997. For information regarding restrictions on dividends,  see Note
9 to the Consolidated Financial Statements.

As of December 1, 1997,  the Company had  approximately  1,589  shareholders  of
record and 2,411,862 outstanding shares of Common Stock.


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, 1997 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 27, 1998, at the Holiday Inn Downtown, 300 East
Washington Boulevard, Fort Wayne, Indiana. Your attendance is appreciated.


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

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


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

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


Home Loan Bank   o    Banking Offices
   (year established)

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

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

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

Covington/Time Corners       6128 Covington Rd. (46804)
   1977                        (219) 432-0606

Northwest                    926 W. State Blvd. (46808)
   1987                        (219) 482-6391

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

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

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

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




                                       38
<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  acknowledge  the  holding  company's
ultimate responsible goal of shareholder enhancements.






                     MARKET MAKERS AS OF SEPTEMBER 30, 1997




                             Capital Resources, Inc.
                                The Chicago Corp.
                     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.
                        Sandler O'Neill & Partners, L.P.
                        Stifel, Nicolaus & Company, Inc.

























                                       39
<PAGE>
                                    DIRECTORS

                                       and

                                    OFFICERS


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

W. Paul Wolf   Chairman of the Board 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
Donald E. Thornton   Vice President of Lending                1997




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
          HBFW


132 East Berry St. o  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
Chairman, President and CEO
Donald E. Thornton
Vice President of Lending/Secretary
Gary L. Hemrick
Vice President/Operations
Matthew P. Forrester
Vice President/Treasurer/CFO
Donald P. Tuszynski
Vice President/Decatur Lending
John E. Fitzgerald
Vice President/CRA
Barbara J. Boyd
Vice President/Retail Banking
Paul N. Lewark
Assistant Vice President
James M. Turner
Assistant Vice President
Robert P. Norton
Assistant Vice President
Betty A. Schlensker
Assistant Vice President
Irene A. Thain
Assistant Vice President
Gladys A. Thomas
Assistant Vice President
Robert V. Earl
Assistant Vice President
Stanley J. Amstutz
Assistant Vice President
Shirley A. Brincefield
Assistant Vice President
Helen E. Casey
Assistant Vice President
                              


<PAGE>

Linda M. DeGroff
Assistant Vice President
Mark R. Freudenberg
Assistant Vice President
Ruth A. Marburger
Assistant Vice President
Jody J. Morrissey
Assistant Vice President
Timothy A. Sheppard
Assistant Treasurer
H. Lee Sendelbach
Assistant Treasurer
Luben Lazoff
Assistant Secretary
Jerry W. Gump
Internal Auditor/Compliance
John C. Monroe
Assistant Internal Auditor
Lupka Baloski
Personnel
Matthew L. Level
Loan Officer
Aaron T. Clinkenbeard
Loan Officer
Michael J. Jones
Loan Officer
Penny S. Parrish
Loan Officer
Joseph M. Hayes
Branch Manager
Carol A. Tait
Administrative Assistant



                                       40