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

                            FORM 10-QSB

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

For the quarterly period ended June 30, 2000
                               -------------
                                     or

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

For the transition period from ____________ to ________________________

                    Commission File Number: 0-24896

                        Home Building Bancorp, Inc.
                      ------------------------------
         (Exact name of registrant as specified in its charter)

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

                            35-1935840
                           -------------
               (I.R.S. Employer identification No.)

        200 East VanTrees Street, Washington, Indiana 47501
        ----------------------------------------------------
       (Address of principal executive offices)   (Zip Code)

                          (812) 254-2641
                          --------------
         (Registrant's telephone number, including area code)

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

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

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock as of the latest practicable date.

            Class                      Outstanding
           -------                     ------------
        Common Stock            296,660 as of August 13, 2000

Transitional Small Business Disclosure Format (check one):
{ } Yes          {X} No

<PAGE>



                          HOME BUILDING BANCORP, INC.

                                    INDEX

<TABLE>

       Part I. Financial Information                                                          Page

            <S>                                                                               <C>
            Item 1.  Financial Statements

            Consolidated Statements of Financial Condition at June 30, 2000                     1
            and September 30, 1999

            Consolidated Statements of Operations for the three and nine months
            ended June 30, 2000 and 1999                                                        2

            Consolidated Statements of Comprehensive Income/Loss for the three
            and nine months ended June 30, 2000 and 1999                                        3

            Consolidated Statements of Cash Flows for the nine months ended
            June 30, 2000 and 1999                                                              4

            Notes to Consolidated Financial Statements                                          5

            Item 2.  Management's Discussion and Analysis of Financial Condition                8
                       and Results of Operations



       Part II. Other Information                                                              13

            Signatures                                                                         14

            Index of Exhibits                                                                  15
</TABLE>

<PAGE>



                           Home Building Bancorp, Inc.
                               Washington, Indiana
                 Consolidated Statements of Financial Condition

<TABLE>
<CAPTION>
                                                                                 June 30,               Sept. 30,
                                                                                   2000                    1999
                                                                                 -------                ---------
<S>                                                                       <C>                    <C>
                                ASSETS
Cash and due from banks                                                   $     1,545,979        $     1,247,958
Interest-bearing deposits with banks                                            2,509,720              4,760,057
Securities available for sale                                                   4,196,901              4,634,094
Securities held to maturity, fair value of $78,444
   at June 30, and $129,697 at Sept. 30                                            79,045                129,362
Loans receivable, net of allowance for loan losses of
   $88,140 at June 30, and $86,288 at Sept. 30                                 37,017,195             36,842,618
Accrued interest receivable                                                       247,607                251,030
Insurance receivable                                                              298,722                    -
Premises and equipment                                                            730,072                744,516
Other assets                                                                      283,158                277,436
                                                                         ----------------       ----------------
     Total assets                                                          $   46,908,399         $   48,887,071
                                                                           ==============         ==============

             LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
Savings and NOW deposits                                                   $   10,481,272         $   11,190,073
Other time deposits                                                            25,105,314             24,398,525
                                                                           --------------         --------------
     Total deposits                                                            35,586,586             35,588,598
                                                                           --------------         --------------

Advances from Federal Home Loan Bank                                            4,677,863              6,677,863
Accrued expenses and other liabilities                                            418,312                459,888
                                                                          ---------------         --------------
     Total liabilities                                                         40,682,761             42,726,349
                                                                           --------------          -------------

Shareholders' equity:
   Common stock, $.01 par value, 1 million shares authorized,
      331,660 issued                                                                3,317                  3,317
   Additional paid-in capital                                                   3,097,219              3,098,774
   Treasury stock, 35,000 shares at cost                                         (605,000)              (605,000)
   Retained earnings                                                            3,906,307              3,855,608
   Accumulated other comprehensive income                                         (65,616)               (37,946)
   Unearned ESOP & recognition and retention shares                              (110,589)              (154,031)
                                                                          ---------------        ---------------
     Total shareholders' equity                                                 6,225,638              6,160,722
                                                                          ---------------        ---------------

     Total liabilities and shareholders' equity                            $   46,908,399         $   48,887,071
                                                                           ==============         ==============

</TABLE>
                                See accompanying notes.

                                       -1-

<PAGE>
<TABLE>
<CAPTION>

                           Home Building Bancorp, Inc.
                               Washington, Indiana
                      Consolidated Statements of Operations

                                                                     Three months ended                 Nine months ended
                                                                         June 30,                          June 30,
                                                                 2000             1999             2000              1999
                                                             ------------     ------------     ------------      ------------
<S>                                                              <C>            <C>               <C>             <C>
Interest income:
    Loans receivable                                             $ 674,496       $ 681,355        $2,095,288       $ 2,020,169
    Investments                                                     35,243          34,484           101,564            89,100
    Mortgage-backed securities                                      41,072          47,829           128,184           161,207
    Deposits with other banks                                       40,677          82,595           153,165           217,546
                                                                ----------       ---------        ----------         ---------
         Total interest income                                     791,488         846,263         2,478,201         2,488,022
                                                                 ---------       ---------         ---------         ---------

Interest expense:
    Deposits                                                       355,177         369,695         1,093,932         1,106,410
    Other borrowed funds                                            77,692          85,329           243,552           258,047
                                                               -----------       ---------         ---------         ---------
         Total interest expense                                    432,869         455,024         1,337,484         1,364,457
                                                                ----------       ---------         ---------         ---------

Net interest income                                                358,619         391,239         1,140,717         1,123,565
Provision for loan losses                                              -               -               3,500            15,000
                                                            --------------    ------------       -----------        ----------
    Net interest income after provision for loan losses            358,619         391,239         1,137,217         1,108,565
                                                                ----------       ---------         ---------         ---------

Noninterest income:
     Gain on sale of assets                                             12              12                43            10,396
     Customer service fees                                          37,773          46,156            91,558           135,539
                                                               -----------     -----------       -----------        ----------
         Total other income                                         37,785          46,168            91,601           145,935
                                                               -----------     -----------       -----------        ----------

Noninterest expenses:
     Salaries and employee benefits                                157,659         159,279           485,184           469,715
     Severance agreement expense                                   106,189             -             106,189               -
      Occupancy and equipment                                       33,064          34,948           106,269           107,382
     Deposit insurance premium                                       1,785           5,188             9,005            14,967
     Computer expense                                               15,368           9,961            48,210            44,337
     Service fees                                                   14,954          14,794            44,809            46,295
     Advertising expense                                            13,820          16,223            39,759            44,207
     Professional fees                                              48,818           9,996           104,299            43,504
     Other expense                                                  30,155          30,644           103,947            91,708
                                                                ----------      ----------        ----------        ----------
Total other expenses                                               421,812         281,033         1,047,671           862,115
                                                                 ---------       ---------         ---------         ---------

Income before income taxes                                         (25,408)        156,374           181,147           392,385
Income tax expense                                                 (13,378)         47,073            63,699           121,962
                                                               ------------    -----------       -----------        ----------

Net income                                                     $   (12,030)    $  109,301         $  117,448        $  270,423
                                                               ============    ==========         ==========        ==========

Basic earnings per share                                      $      (0.04)  $       0.39       $       0.41     $       0.96
                                                              =============  ============       ============     ============
Weighted average shares outstanding                                285,598        281,056            284,478          283,157
                                                                 =========      =========          =========        =========

Diluted earnings per share                                    $      (0.04)  $       0.39       $       0.41     $       0.96
                                                              =============  ============       ============     ============
Diluted weighted average shares outstanding                        285,598        281,056            284,478          283,157
                                                                 =========      =========          =========        =========

</TABLE>

                             See accompanying notes.

                                       -2-
<PAGE>
<TABLE>
<CAPTION>

                                                                             Home Building Bancorp, Inc.
                                                                                  Washington, Indiana
                                                                Consolidated Statements of Comprehensive Income/Loss


                                                                   Three months ended                 Nine months ended
                                                                       June 30,                           June 30,
                                                                 2000            1999             2000              1999
                                                             ------------   -----------       -----------       -----------
<S>                                                          <C>            <C>               <C>               <C>
Net income (loss)                                            $  (12,030)    $  109,301        $  117,448        $  270,423

Other comprehensive income, net of income tax:
     Unrealized holding gains and (losses)                       (3,073)       (35,429)          (27,670)          (46,901)
                                                             -----------    -----------       ----------        -----------

Comprehensive income/(loss)                                  $  (15,103)    $   73,872        $   89,778        $  223,522
                                                             ===========    ===========       ==========        ==========

</TABLE>



                             See accompanying notes.

                                       -3-



<PAGE>

<TABLE>
<CAPTION>
                           Home Building Bancorp, Inc.
                               Washington, Indiana
                      Consolidated Statements of Cash Flows

                                                                                   Nine months ended June 30,
                                                                                    2000                  1999
                                                                                   ------                ------
<S>                                                                            <C>                    <C>
Cash flows from operating activities:
Net income                                                                    $    117,448            $    270,423
Adjustments to reconcile net income to net cash
  provided by (used by) operating activities:
     Depreciation and amortization                                                  26,208                  29,040
     Non cash compensation                                                          41,887                  54,504
     Other gains and losses, net                                                       -                   (10,396)
     Net realized gains on available-for-sale securities                               -                        -
     Change in accrued interest receivable                                           3,423                   3,464
     Change in accrued expenses and other liabilities                              (41,575)                (70,977)
     Change in other assets                                                         13,925                (109,867)
     Provision for loan losses                                                       3,500                  15,000
                                                                             -------------              ----------
Net cash provided by operating activities                                          164,816                 181,191
                                                                             -------------              ----------

Cash flows from investing activities:
     Net change in interest-bearing deposits with banks                          2,250,337              (1,532,698)
     Purchases of available-for-sale securities                                    (96,513)             (1,300,127)
     Proceeds from maturities of available-for-sale securities                     486,389               2,035,400
     Proceeds from sales of available-for-sale securities                              -                       -
     Proceed from maturities of held-to-maturity securities                         50,317                  75,702
     Net change in loans                                                          (476,800)             (3,363,890)
     Net purchases of premises and equipment                                       (11,764)                (15,417)
                                                                             -------------             ------------
Net cash used in investing activities                                            2,201,966              (4,101,030)
                                                                             -------------             -----------

Cash flows from financing activities:
     Net change in deposits                                                         (2,012)              3,324,139
     Purchase of 15,000 shares of treasury stock                                       -                  (260,000)
     Proceeds from Federal Home Loan Bank advances                              (2,000,000)                500,000
     Dividends paid                                                                (66,749)                (66,747)
                                                                             --------------            -----------
Net cash provided by financing activities                                       (2,068,761)              3,497,392
                                                                             --------------            -----------

Net change in cash and due from banks                                              298,021                (422,447)
Cash and due from banks at beginning of period                                   1,247,958               1,366,761
                                                                             -------------            ------------
Cash and due from banks at end of period                                     $   1,545,979            $    944,314
                                                                             =============            ============


Cash paid for:
Interest                                                                      $  1,367,507            $  1,370,849
                                                                              ============            ============

Income taxes                                                                  $    162,117            $    220,234
                                                                              =============            ============

</TABLE>

                             See accompanying notes.

                                       -4-
<PAGE>

                           Home Building Bancorp, Inc.
                   Notes to Consolidated Financial Statements
                             June 30, 2000 and 1999

Note 1:  Basis of Presentation

The  consolidated  financial  statements  include the accounts of Home  Building
Bancorp, Inc. (the "Company"), Home Building Savings Bank, FSB (the "Bank"), and
the Bank's subsidiary.  All significant  inter-company balances and transactions
have been  eliminated  in  consolidation.  In the opinion of  management  of the
Company,  the financial  statements reflect all adjustments  (consisting only of
normal  recurring  adjustments)  necessary  to present  fairly the  consolidated
financial  statements.  These  interim  financial  statements  should be read in
conjunction  with the Company's  most recent  annual  financial  statements  and
footnotes  included in the annual report of Home Building  Bancorp,  Inc.  dated
September  30, 1999.  The results of the period  presented  are not  necessarily
representative of the results of operations and cash flows which may be expected
for the entire year.

Note 2:  Earnings Per Share

Basic  earnings/(loss) of $(0.04) per share for the three month period and $0.41
for the nine month  period ended June 30,  2000,  were  computed by dividing net
income by the weighted average number of shares  outstanding during the quarter,
less average unearned Employee Stock Ownership Plan ("ESOP") and Recognition and
Retention  Plan ("RRP")  shares.  Diluted  earnings per share give effect to all
dilutive  potential  common  shares  that were  outstanding  during the  period.
Earnings, assuming dilution, for the most recent three-month period were $(0.04)
per  share  and  $0.41  for the  nine  month  period  ended  June  30,  2000.  A
reconciliation of both numerators and denominators of the per share calculations
follows:

<TABLE>
<CAPTION>

                                                            Income                  Shares                Per-Share
                                                          (Numerator)            (Denominator)             Amount
<S>                                                        <C>                        <C>                  <C>
FOR THE THREE MONTHS ENDED JUNE 30, 2000
----------------------------------------
BASIC EPS,
Income available to common shareholders                    $  (12,030)                 285,598             $ (0.04)
Effect of dilutive securities:
  Incentive stock option plan shares                                                        -
DILUTED EPS
Income available to common shareholders+
assumed conversions                                        $  (12,030)                 285,598               (0.04)

FOR THE NINE MONTHS ENDED JUNE 30, 2000
---------------------------------------
BASIC EPS,
Income available to common shareholders                    $  117,448                  284,478                0.41
Effect of dilutive securities:
  Incentive stock option plan shares                                                         -
DILUTED EPS
Income available to common shareholders +
assumed conversions                                        $  117,448                  284,478                0.41

</TABLE>


                                       -5-

<PAGE>
<TABLE>
<CAPTION>

                           Home Building Bancorp, Inc.
                   Notes to Consolidated Financial Statements
                             June 30, 2000 and 1999


Note 2:  Earnings Per Share, continued

FOR THE THREE MONTHS ENDED JUNE 30, 1999
----------------------------------------
<S>                                                        <C>                         <C>                    <C>
BASIC EPS,
Income available to common shareholders                    $  109,301                  281,056                0.39
Effect of dilutive securities:
  Incentive stock option plan shares                                                       -
DILUTED EPS
Income available to common shareholders +
assumed conversions                                        $  109,301                  281,056                0.39

FOR THE NINE MONTHS ENDED JUNE 30, 1999
---------------------------------------
<S>                                                        <C>                         <C>                    <C>
BASIC EPS,
Income available to common shareholders                    $  270,423                  283,157                0.96
Effect of dilutive securities:
  Incentive stock option plan shares                                                       -
DILUTED EPS
Income available to common shareholders +
assumed conversions                                        $  270,423                  283,157                0.96

</TABLE>

Note 3:  Allowance for Loan Losses and Loan Loss Provision

The allowance  for loan losses  increased  $2,000 to $88,000 for the  nine-month
period ended June 30,  2000.  Activity in the  allowance  for loan losses was as
follows:

<TABLE>
<CAPTION>

                                  For the nine months ended June 30,
                                       2000                 1999
                                     -------              --------
         <S>                        <C>                 <C>
        Beginning                   $   86,288          $   92,249

             Provision                   3,500              15,000
             Charge-offs                (1,744)            (24,277)
             Recoveries                     96               3,133
                                  ------------         -----------

         Ending                     $   88,140          $   86,105
                                    ==========          ==========
</TABLE>


Note 4:  Insurance Receivable

During  December of 1999,  management  discovered  an employee  fraud  involving
approximately  $350,000 in fictitious loans on savings accounts. Of this amount,
$340,000,  combined with various  professional fees was initially recorded as an
insurance  receivable,  because  management  believes the loss is covered by the
Company's fidelity bond. The difference of $10,000,  representing the deductible
of the Bank's  fidelity  bond, was recorded as an other  noninterest  expense in
December,  1999. Management,  working with counsel, has submitted a claim to its
bond carrier and is awaiting their determination.



                                       -6-

<PAGE>

                           Home Building Bancorp, Inc.
                   Notes to Consolidated Financial Statements
                             June 30, 2000 and 1999


Note 4:  Insurance Receivable, continued

Based on initial consultations with the insurance carrier,  management wrote off
an  additional  $52,000  during the  quarter  ended June 30,  2000.  This amount
represents  professional  fees  and  interest  on the  loans,  which  may not be
reimbursed by the Bank's fidelity bond. The defalcation took place over a period
of six years,  but was not  prevented  or  detected  earlier  because it did not
result in any cash shortages,  accounting imbalances,  or from the usurpation of
duties  from  other  personnel.  The  Bank now  uses  the  same  procedures  for
origination and accounting of loans on savings  accounts as on any other type of
secured installment loan.

                                       -7-

<PAGE>

                           Home Building Bancorp, Inc.
                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

GENERAL

Home Building Bancorp,  Inc. (the "Company") was formed at the direction of Home
Building Savings Bank, FSB (the "Bank"), for the purpose of owning all the stock
outstanding in the Bank. The Company incorporated under the laws of the State of
Indiana and is generally  authorized to engage in any activity  permitted  under
Indiana law. On February 7, 1995, the Company acquired all the stock of the Bank
in  accordance  with the approved  plan of  conversion.  At June 30,  2000,  the
Company had no significant assets other than its equity investment in the bank's
stock, cash, investments, and a loan to the Bank's Employee Stock Ownership Plan
("ESOP").

Established in 1908,  Home Building  Savings Bank,  FSB is a community  oriented
financial institution offering a variety of financial services to meet the needs
of the communities it serves.  The Bank's primary market area covers Daviess and
Pike  counties in  southwestern  Indiana.  The Bank  attracts  deposits from the
general public and uses such deposits, together with borrowings and other funds,
to originate  one-to-four  family  residential  mortgage  loans,  automobile and
consumer loans, and to a lesser extent commercial,  multifamily and construction
real estate loans. The Bank also invests in US government and agency obligations
and may invest in other permissible investments.

The Bank's results of operations  are primarily  dependent upon its net interest
income, which is the difference between interest earned on loans and investments
and  interest  paid on deposits  and  borrowed  funds.  Net  interest  income is
directly  affected  by the  relative  amounts  of  interest-earning  assets  and
interest-bearing  liabilities  and the  interest  rates  earned  or paid on such
amounts. The Bank's results of operations are also affected by the provision for
loan losses and the level of noninterest  income and expenses.  General economic
conditions,  the  monetary  and fiscal  policies  of federal  agencies,  and the
policies  of  agencies  that  regulate  financial  institutions  also affect the
operating  results of the Bank.  Interest  rates on  competing  investments  and
general market rates of interest  influence the Bank's cost of funds. The demand
for real estate  loans and other types of loans  influence  lending  activities,
which in turn is affected  by the rates of interest at which loans are  offered,
general economic conditions affecting loan demand, and the availability of funds
for lending activities.

FINANCIAL CONDITION

During the nine months ended June 30, 2000, total assets decreased approximately
$2.0 million to $46.9 million from $48.9 million at September 30, 1999. Cash and
due from banks increased  $298,000,  while  interest-bearing  deposits decreased
$2.3 million.  Net loans receivable  increased $0.2 million, to $37.0 million on
June 30, 2000 from $36.8  million on September  30,  1999.  The Company had $4.2
million in securities available for sale and only $79,000 in held to maturity at
June 30, 2000.

Total liabilities  decreased by approximately $2.0 million during the nine-month
period,  to $40.7  million at June 30, 2000 from $42.7  million at September 30,
1999. The decrease of $2.0 million was related to the payoff of two Federal Home
Loan Bank advances.


                                       -8-
<PAGE>

                           Home Building Bancorp, Inc.
                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations
                                   (continued)


RESULTS OF OPERATIONS:
COMPARISON OF THE THREE AND NINE MONTHS ENDED JUNE 30, 2000 AND 1999.

GENERAL. The Company recorded a net loss of $12,000 for the quarter and a profit
of $117,000 for the nine months ended June 30, 2000,  compared to net profits of
$109,000 and $270,000 for the same periods in 1999.  Results of  operations  for
the  third  quarter  were  impacted  by  lower  noninterest  income  and  higher
noninterest  expense.  Year to date,  these same  trends  were  apparent.  Lower
noninterest  income  from the  Bank's  investment  services  subsidiary,  higher
professional  fees related to the employee fraud discovered in December 1999 and
severance pay for the former CEO were the primary drivers of these changes.

INTEREST INCOME.  Total interest income decreased $55,000,  or 6.5%, to $791,000
for the three months ended June 30, 2000, compared to the same period last year.
Interest  income on loans  decreased  $7,000 for the three months ended June 30,
2000 compared to a year ago. Loan interest  income is up $75,000,  3.7%, year to
date but was reduced  this quarter by the reversal of $40,000 of interest on the
fraudulent  loans  discussed  in  Note  4.  Lower  volumes  of   mortgage-backed
securities and deposits with other banks reduced  interest from these sources by
a total of $48,000 for the most recent  quarter  compared to the same  quarter a
year ago. The sources of interest  income  reflect the changes in the asset mix,
with a higher proportion of assets in loans and less in securities. For the nine
month period interest income decreased $10,000,  or 0.4%, to $2,478,000 compared
to $2,488,000 during the first nine months of fiscal year 1999.

INTEREST EXPENSE. Total interest expense decreased $22,000, or 4.9%, to $433,000
for the most recent quarter compared to the same quarter a year ago. Interest on
deposits  decreased  $15,000  due to $3.2  million in public  fund  monies  that
matured during the first quarter of the current fiscal year. Interest expense on
FHLB advances declined due to the $2.0 million payment on funds borrowed.

The weighted  average cost of deposits for the year to date at June 30, 2000 was
4.2%,  the  same as for 1999  and the  overall  cost of  funds,  including  FHLB
advances,  was 4.4% for the nine month  period ended June 30, 2000 also the same
as in 1999.  These  numbers  reflect the Bank's  ability to keep  deposit  rates
stable  despite rising  interest  rates during the quarter.  The Bank is able to
compete  aggressively  for  savings  funds  when  adequate  spreads  on loans or
investments  are  available.  FHLB  advances  have been an  effective  liability
management tool in the past as well.

NET INTEREST  INCOME.  Net interest  income,  before  provision for loan losses,
decreased  $33,000,  or 8.3%,  to $359,000 for the quarter  compared to the same
quarter a year ago.  For the nine  month  period  ended June 30,  2000,  average
interest-earning  assets were 108.52% of average interest  bearing  liabilities.
Local demand for mortgage  loans has declined  during the  nine-month  period as
rates have increased. Net loans receivable have remained stable at approximately
$37.0 million.


                                       -9-
<PAGE>

                           Home Building Bancorp, Inc.
                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations
                                   (continued)


NET INTEREST INCOME, CONTINUED

Total  deposits  during the  nine-month  period  also  remained  stable at $35.6
million.  The Bank's  advances  from the FHLB  declined  by $2.0  million  due a
scheduled  maturity.  Additionally,  the Company  regularly  bids on  short-term
funds, such as short-term public funds. At any time the Company could decline to
bid on such funds, and allow them to be withdrawn if acceptable  spreads are not
available.  The Company's  liabilities are generally shorter in term and subject
to re-pricing more frequently than assets.

The Company continues to stress consumer and installment  lending,  shorter-term
(15 years and under) fixed rate mortgage  loans,  and adjustable rate mortgages.
Investments  involve  shorter-term  and  adjustable  securities  to  respond  to
changing rates.  However,  given the higher proportion of fixed rate assets, the
Company has more downside  exposure in a rising rate  environment.  Based on the
latest available OTS Interest Rate Risk Exposure  Report,  the net present value
of the Bank, as a percent of assets in the +200bp scenario,  would decline 3.1%.
It would increase 1.8% assuming a -200bp scenario.

NONPERFORMING  ASSETS AND  PROVISION  FOR LOAN LOSSES.  The  provision  for loan
losses is a result of  management's  periodic  analysis  of the  adequacy of the
Company's  allowance for loan losses.  During the three-month  period ended June
30, 2000 no  additional  provision  was recorded and net  charge-offs  were only
$2,000 year to date.  The Company  adjusts its allowance in accordance  with its
Classified  Assets  Policy.  The Company  believes  it has taken an  appropriate
approach  toward reserve  levels,  consistent with the Company's loan portfolio,
its current  level of  reserves,  the economy,  real estate  values and interest
rates.  The Company  has had an  extremely  low level of loan losses  during its
history and therefore also considers the loss  experience of similar  portfolios
in  comparable  lending  markets.  Federal  regulators  may  require  additional
reserves as a result of their examinations of the Company, but have not done so.
Accordingly,  the  calculation  of the  adequacy of the  allowance is not solely
based  directly  on the  level  of  nonperforming  assets  at any one  time.  No
assurance can be made that future losses will not exceed the estimated  amounts,
thereby  adversely  affecting future results of operations.  As of June 30, 2000
the  Company's  allowance  for loan  losses was  $88,000  compared to $86,000 on
September  30,  1999.  Over the  nine-month  period  $1,700  in  losses,  net of
recoveries,  were  recognized and $3,500 in additions were made to the loan loss
reserve.

As of June 30,2000,  the Company's  nonperforming  assets totaled  $267,000,  or
0.57% of total assets.  At the same date,  the Company's  ratio of allowance for
loan losses to nonperforming assets was 33.0%.

NONINTEREST  INCOME.  Noninterest  income decreased $8,000, or 18.2%, to $38,000
for the most recent  quarter  compared to the same  quarter a year ago.  For the
nine-month period noninterest income decreased $54,000, or 37.2%, to $92,000 for
the period.  During both the most recent quarter and year to date the gains from
sale of assets and customer  service fees decreased  compared to a year ago. The
Company  does not depend on the regular or  periodic  sale of assets for income,
but during the quarter and the nine-month  period in the 1999 fiscal year,  some
investment  securities were called at profit to the Bank. Customer services fees
decreased $44,000, or 32.5%, to $92,000 for the nine month period ended June 30,
2000  compared  to $136,000  for the same  period a year ago.  Of this  decline,
$34,000,  77.3%, resulted from lower fees from investment sales generated by the
Bank's investment advisory subsidiary.


                                       -10-

<PAGE>

                           Home Building Bancorp, Inc.
                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations
                                   (continued)


NONINTEREST EXPENSE.  Total noninterest expense increased $141,000, or 50.1%, to
$422,000 for the latest quarter compared to $281,000 for the same quarter a year
ago.  The  increases  were due to an  employee  severance  agreement  and higher
professional  fees and other expense.  For the nine months  noninterest  expense
increased  $186,000,  21.5%,  to  $1,048,000  compared to $862,000  for the same
period a year ago. The increase was due to an employee  severance  agreement and
higher salaries and benefits, professional expenses and other expenses. Compared
to the same  period a year ago the Bank has  added a full time  commercial  loan
officer. In addition,  during December 1999,  management  discovered an employee
fraud and the Company has  incurred  higher  professional  fees  related to this
matter.

During April 2000, the Company entered into a separation and severance agreement
with its Chief  Executive  Officer.  Pursuant to the terms of the agreement,  he
will  continue to receive  salary and  benefits  for a period of time.  In April
2000, the Company accrued and expensed  approximately  $106,000  related to this
agreement. This agreement accounts for 75.2% of the noninterest expense increase
for the quarter and 57.0% of the increase, year to date.

INCOME TAX EXPENSE. An income tax benefit of $13,000 was recognized for the most
recent  quarter  compared to an expense of $47,000  for the same  quarter a year
ago. For the nine months ended June 30, 2000,  tax expense was $64,000  compared
to $122,000 for the period a year ago. The changing  expense/(benefit)  reflects
levels of income before tax and changes in effective tax rate.

LIQUIDITY AND CAPITAL  REQUIREMENTS.  Home  Building's main sources of funds are
deposits, loan and investment repayments,  fees and service charges, and Federal
Home Loan Bank (FHLB) advances. Federal regulations require the Bank to maintain
cash and eligible  investments at levels that assure its ability to meet demands
for  withdrawals and repayments of short-term  borrowings.  As of June 30, 2000,
the Bank had cash and due from banks,  deposits,  and  securities  available for
sale equal to 20.5% of total deposits and FHLB advances.

The  Bank  uses its  capital  resources  to meet  ongoing  commitments,  to fund
maturing  certificates of deposit and deposit  withdrawals,  to invest,  to fund
existing  and  future  loan  commitments,  to  maintain  liquidity,  and to meet
operating  expenses.  The Bank anticipates it will have sufficient funds to meet
current loan commitments. At June 30, 2000, the Bank had outstanding commitments
to  extend  credit  totaling  $450,000.  Management  believes  loan  repayments,
deposits,  and  other  sources  of funds  will be  adequate  to meet the  Bank's
foreseeable  liquidity  needs.  FHLB  advances may be used to take  advantage of
investment  opportunities,  or as an alternative source of liquid funds, but are
not relied upon in the regular course of business.

Home  Building  Savings  Bank  is  required  to  maintain  specific  amounts  of
regulatory capital pursuant to federal regulations. The table below presents the
capital  position  at  June  30,  2000,   relative  to  the  regulatory  capital
requirements.


                                       -11-
<PAGE>
<TABLE>
<CAPTION>

                           Home Building Bancorp, Inc.
                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operation
                                   (concluded)

LIQUIDITY AND CAPITAL REQUIREMENTS, CONTINUED

                                                       Amount
                                                   (in thousands)          Percent of Assets
                                                   --------------          -----------------
<S>                                                   <C>                         <C>
Tier 1 Core Capital                                   $ 4,851                     10.44%
Core Capital Requirement                              $ 1,859                      4.00%
Excess                                                $ 2,992                      6.44%

Total Capital                                         $ 4,939                     18.70%
Risk-Based Capital Requirement                        $ 2,113                      8.00%
Excess                                                $ 2,826                     10.70%

</TABLE>

YEAR 2000

Home  Building  Savings Bank has not  experienced  any data  processing or other
operational problems connected with the Year 2000 event. Moreover, management is
not aware of any significant operational problems among the Bank's correspondent
institutions,  data processing providers, or others vendors, which would have an
effect on the Bank's  operations.  The Bank did not  experience  any  noticeable
deposit withdrawals or other activity by Bank's customers that had any impact on
operations.


FORWARD-LOOKING STATEMENTS

When used in this  Quarterly  Report on Form  10-QSB  or future  filings  by the
Company with the  Securities  and Exchange  Commission,  in the Company's  press
releases or other public or shareholder  communications,  or in oral  statements
made with the approval of an authorized  executive officer, the words or phrases
"will likely  result",  "are expected to", "will  continue",  "is  anticipated",
"estimate", "project", "believe" or similar expressions are intended to identify
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation  Reform Act of 1995.  The  Company  wishes to caution  readers not to
place undue reliance on any such forward-looking statements, which speak only as
of the date made, and to advise readers that various factors including  regional
and national  economic  conditions,  changes in levels of market interest rates,
credit risks of lending activities, and competitive and regulatory factors could
affect the Company's financial  performance and could cause the Company's actual
results  for future  periods to differ  materially  from  those  anticipated  or
projected.

The Company does not undertake  and  specifically  disclaims  any  obligation to
publicly  release  the  result  of  any  revisions,  which  may be  made  to any
forward-looking   statements  to  reflect  the   occurrence  of  anticipated  or
unanticipated events or circumstances after the date of such statements.



                                       -12-
<PAGE>

                         PART II. OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits

              Exhibit 27:    Financial Data Schedules (electronic filing only)


                                       -13-
<PAGE>

                                   SIGNATURES


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

                                     HOME BUILDING BANCORP, INC.
                                     Registrant



Date:   8/13/00                      /s/ John G. Graham
                                     ------------------------
                                     John B. Graham, President and Chief
                                     Executive Officer (Duly Authorized Officer)


Date:  8/13/00                       /s/ Debra K. Shields
                                     -------------------------
                                     Debra K. Shields, Vice President


                                       -14-
<PAGE>

                                INDEX OF EXHIBITS



EXHIBIT           DESCRIPTION

27                         Financial Data Schedules (electronic filing only) For
                           nine month period ended June 30, 2000