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, 1998	
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

As of August 13, 1998 there were 331,660 shares of the Registrant's common 
stock issued and outstanding.  
Indicate the number of shares outstanding of each of the issuer's classes of 
common stock as of the latest practicable date.

Transitional Small Business Disclosure Format:
{ } Yes          {X} No  

<PAGE>
HOME BUILDING BANCORP, INC.

INDEX


Part I. Financial Information	Page

	Item 1. Financial Statements (Unaudited)

	Consolidated Statements of Financial Condition at June 30, 1998       	1
	and September 30, 1997

	Consolidated Statements of Income for the Three and Nine Months 	
	Ended June 30, 1998 and 1997	                                        	 2

	Consolidated Statements of Cash Flows for the Nine Months Ended	
	June 30, 1998 and 1997                                               		3

	Notes to Consolidated Financial Statements                           		4

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

Part II. Other Information                                           		12

	Signatures	                                                         		13

	Index of Exhibits                                                   		14

<PAGE>
<TABLE>
<CAPTION>
Home Building Bancorp, Inc.
Washington, Indiana
Consolidated Statements of Financial Condition

	                                                              (Unaudited)
	                                                        June 30,	    Sept. 30,
	                                                          1998     	    1997 
                                      ASSETS
<S>                                                    <C>          <C>
Cash and due from banks	                               $ 1,243,321	 $ 1,494,118
Interest-bearing deposits with banks	                    2,343,631	   2,521,578
Securities available-for-sale	                           6,313,983	   7,483,447
Securities held-to-maturity, fair market value of 
  $265,000 at June 30, and $349,000 at Sept. 30	           261,994     	344,257
Loans receivable, net of allowance for loan losses of
   $84,000 at June 30, and $81,000 at Sept. 30	         33,149,400	  28,582,610
Insurance receivable	                                      238,494     	240,444
Accrued interest receivable                               	223,236     	210,256
Premises and equipment                                    	764,933     	783,967
Other assets	                                              123,221	      89,075
     Total assets	                                    $ 44,662,213	$ 41,749,752

             LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
Savings and NOW deposits	                             $ 11,123,902	$ 10,880,043
Other time deposits	                                    20,519,642   20,637,490
     Total deposits	                                    31,643,544   31,517,533

Advances from Federal Home Loan Bank	                    6,500,341   	4,000,341
Accrued expenses and other liabilities	                    373,593	     338,947
     Total liabilities	                                 38,517,478	  35,856,821

Shareholders' equity:
   Common stock, $.01 par value, 1 million 
     shares authorized, 331,660 issued and 
     outstanding                                            	3,317       	3,317
   Additional paid-in capital                           	3,079,655   	3,046,415
   Treasury stock, at cost                               	(345,000)   	(345,000)
   Retained earnings	                                    3,609,887   	3,449,876
   Net unrealized gain on available-for-sale securities,
      net of deferred tax of $17,005 at June 30, and 
      $8,451 at Sept. 30                                   	25,509      	12,606
   Unearned ESOP & recognition and retention shares	      (228,633)    (274,283)
     Total shareholders' equity	                         6,144,735    5,892,931

     Total liabilities and shareholders' equity	      $ 44,662,213	$ 41,749,752

<FN>


See notes to consolidated financial statements.
</TABLE>

-1-
<PAGE>
<TABLE>
<CAPTION>
Home Building Bancorp., Inc.
Washington, Indiana
Consolidated Statements of Income
	                                                        (Unaudited)                      	
                                         	Three months ended	       Nine months ended
                                                	June 30,                 	June 30,
	                                           1998    	    1997    	    1998    	    1997    	
Interest income: 	
	<S>                                    <C>           <C>         <C>          <C>
 Loans receivable	                      $ 644,989	    $ 599,583  	$ 1,880,978	 $ 1,795,274
	Investments                              	40,605       	44,751      	144,483	     119,176
	Mortgage-backed securities               	75,341       	98,776      	229,456      307,637
	Deposits with other banks	                53,940   	   103,092	      183,082	     274,071
	Total interest income	                   814,875	      846,202	    2,437,999	   2,496,158

Interest expense:
	Deposits	                                378,178      	412,239    	1,131,503	   1,225,601
	Other borrowed funds	                     87,769  	     52,727	      211,992	     161,366
	Total interest expense	                  465,917   	   464,966   	 1,343,495	   1,386,967

Net interest income	                      348,958      	381,236	    1,094,504	   1,109,191
Provision for loan losses	                 10,000  	      5,000	       17,000	       5,000	

	Net interest income after provision 
   for loan losses	                       338,958	      376,236   	 1,077,504	   1,104,191

Noninterest income:
	Gain on sale of assets                      	126        	9,231       	17,238	      12,684
	Customer service fees	                    65,298	       26,508   	   135,810	      85,423
	Total other income	                       65,424	       35,739	      153,048	      98,107

Noninterest expenses:
	Salaries and employee benefits          	163,643      	125,455      	460,446   	  386,778
	Occupancy and equipment	                  36,432       	37,807      	107,062  	   111,952
	Deposit insurance premium                 	5,526        	4,997       	16,233	      26,389
	Computer expense                         	13,059       	12,352       	40,953	      41,529
	Service fees                             	12,870       	12,617       	40,578	      37,154
	Advertising expense                      	13,938       	14,206       	43,220	      40,321
	Professional fees	                        17,714       	10,844       	56,079	      36,882
	Other expense	                            36,966	       50,697	      118,862	     117,620
	Total other expenses	                    300,148	      268,975	      883,433	     798,625

Income before income taxes	               104,234      	143,000      	347,119 	    403,673
Income tax expense	                        27,254	       55,963	      116,984	     153,446

Net income                            	$   76,980   	$   87,037	   $  230,135	  $  250,227

Basic earnings per share of 
  common stock	                        $     0.26	   $     0.30	   $     0.79	  $     0.88
Weighted average shares outstanding	      291,367	      285,973	      290,173	     284,406

Diluted earnings per share of 
  common stock                        	$     0.26	   $     0.30	   $     0.78  	$     0.86
Diluted weighted average shares 
  outstanding	                            296,381	      291,041       295,187	     289,474

<FN>
See notes to consolidated financial statements.
</TABLE>
-2-
<PAGE>
<TABLE>
<CAPTION>
Home Building Bancorp, Inc.
Washington, Indiana
Consolidated Statements of Cash Flows
	                                                           (Unaudited)  
	                                                  Nine months ended June 30,
                                                 	    1998      	    1997    	
Cash flows from operating activities:
<S>                                              <C>               <C>
Net income	                                      $   230,135      	$    250,227
Adjustments to reconcile net income to net cash
  provided by (used by) operating activities:
     Depreciation and amortization	                   29,594            	30,474
     Non cash compensation                           	78,890	               -  
     Other gains and losses, net                     	(9,929)            	  -  
     Net realized gains on 
        available-for-sale securities	                (7,309)          	(10,989)
     Decrease in insurance receivable	                 1,950             	  -  
     Increase in accrued interest receivable        	(12,980)        	  (10,692)
     Increase (decrease) in accrued expenses 
       and other liabilities                         	26,092            	(5,444)
     (Increase) decrease in other assets	            (24,217)          	 54,636
     Provision for loan loss	                         17,000	             5,000
     Total adjustments	                               99,091	            62,985
Net cash provided by operating activities	           329,226	           313,212

Cash flows from investing activities:
Net increase (decrease) in interest-bearing 
    deposits with banks                             	177,947        	(2,912,409)
Purchases of available-for-sale securities	         (957,647)       	(2,283,616)
Proceeds from maturities of available-for-sale 
    securities                                    	1,897,224           	907,933
Proceeds from sales of available-for-sale 
    securities                                      	258,653         	1,784,918
Proceed from maturities of held-to-maturity
    securities                                       	82,263            	95,280
Net increase in loans	                            (4,583,790)         	(125,556)
Net purchases of premises and equipment	             (10,560)	          (26,723)
Net cash used in investing activities	            (3,135,910)      	 (2,560,173)

Cash flows from financing activities:
Net increase in savings and NOW deposit accounts    	243,859         	2,555,993
Net increase (decrease) in time deposits           	(117,848)           	28,261
Net decrease in securities sold under agreements
     to repurchase	                                      -            	(273,951)
Proceeds from Federal Home Loan Bank advances	     2,500,000               	-  
Dividends paid	                                      (70,124)	          (71,626)
Net cash provided by financing activities	         2,555,887       	  2,238,677

Net decrease in cash and due from banks            	(250,797)           	(8,284)
Cash and due from banks at beginning of period	    1,494,118	         1,428,754
Cash and due from banks at end of period	        $ 1,243,321	       $ 1,420,470


Cash paid for:
Interest		                                       $ 1,330,072	       $ 1,387,411

Income taxes                                    	$   180,831	       $       -  


<FN>
See notes to consolidated financial statements.

</TABLE>
-3-
<PAGE>
Home Building Bancorp, Inc.
Notes to Consolidated Financial Statements
June 30, 1998 and 1997



Note 1:  Basis of Presentation

The unaudited information for the three and nine months ended June 30, 
1998 and June 30, 1997, includes the results of operations of Home 
Building Bancorp, Inc. (the "Company") and its wholly owned subsidiary, 
Home Building Savings Bank, FSB (the "Bank").  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, 1997.  The results of the 
period presented are not necessarily representative of the results of 
operations and cash flows which may be expected for the entire year.


Note 2:  Principles of Consolidation

The consolidated financial statements include the accounts of Home 
Building Bancorp, Inc., Home Building Savings Bank, FSB, and the Bank's 
subsidiary.  All significant inter-company balances and transactions have 
been eliminated in consolidation.


Note 3:  Stock Conversion

On February 7, 1995, Home Building Bancorp, Inc. began trading as a 
public company on the Nasdaq SmallCap Market.  The Company issued 
322,000 shares, $.01 par value common stock, for proceeds of $2,858,862 
net expenses of approximately $361,000.  The Bank converted to a federal 
stock savings bank following the formation of the holding company and 
received proceeds of $1,432,853 in exchange for all its common stock. This 
transaction was accounted for using historical cost in a manner similar to 
that in a pooling of interests.  In February 1998, the Corporation's stock 
listing was moved from the NASDAQ SmallCap Market to the "pink 
sheets" published by the National Quotations Bureau, Inc.


Note 4:  Earnings Per Common Share

Basic earnings of $0.26 per common share for the three-month period and 
$0.79 for the nine-month period ended June 30, 1998, were computed by 
dividing net income by the weighted average number of shares outstanding 
during the quarter, less Employee Stock Ownership Plan ("ESOP") shares 
and Recognition and Retention Plan ("RRP") shares not committed to be 
released.  The weighted average number of shares outstanding for the 
periods was 291,367 and 290,173, respectively.  Diluted earnings per share 
is consistent with that of basic earnings per share while giving effect to all 
dilutive potential common shares that were outstanding during the period.  
Earnings, assuming dilution, for the most recent three-month period were 
$0.26 per share and $0.78 for the nine-month period ended June 30, 1998.  
A reconciliation of both numerators and denominators of the per share 
calculations follows:







-4-
<PAGE>
Home Building Savings Bank, FSB
Notes to Consolidated Financial Statements
June, 1998 and 1997


Note 4:  Earnings Per Common Share, continued

                     	                     Income	       Shares	     Per-Share
	                                          (Numerator)	(Denominator)	  Amount
                                      For the Three Months Ended June 30, 1998
Basic EPS,
Income available to common shareholders     	$76,980     	291,367     	$0.26
Effect of dilutive securities:
  Incentive stock option plan shares                      		5,014
Diluted EPS	
Income available to common shareholders+
assumed conversions                         	$76,980     	296,381     	$0.26

For the Nine Months Ended June 30, 1998
Basic EPS,
Income available to common shareholders    	$230,135     	290,173     	$0.79
Effect of dilutive securities:
  Incentive stock option plan shares                      		5,014
Diluted EPS	
Income available to common shareholders+
assumed conversions                        	$230,135     	295,187     	$0.78


For the Three Months Ended June 30, 1997
Basic EPS,
Income available to common shareholders	     $87,037     	285,973     	$0.30
Effect of dilutive securities:
  Incentive stock option plan shares                      		5,068
Diluted EPS	
Income available to common shareholders+
assumed conversions                         	$87,037     	291,041     	$0.30

For the Nine Months Ended June 30, 1997
Basic EPS,
Income available to common shareholders	    $250,227    	284,406      	$0.88
Effect of dilutive securities:
  Incentive stock option plan shares	                     	5,068
Diluted EPS	
Income available to common shareholders+
assumed conversions                        	$250,227    	289,474      	$0.86




-5-
<PAGE>
Home Building Savings Bank, FSB
Notes to Consolidated Financial Statements
June 30, 1998 and 1997
(Continued)

Note 5:  Allowance for Loan Losses and Loan Loss Provision

Activity in the allowance for loan losses was as follows:

  	                  For the nine months ended June 30, 
	                           1998     	     1997    	 
Beginning	              $  81,000     	$  77,039

	Provision	                17,000	           -   
	Charge-offs	             (15,000)          	-   
	Recoveries	                1,000	           -   	

	Ending	                $  84,000	     $  77,039


Note 6:  Comprehensive Income

In June of 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive 
Income," which establishes standards for reporting and display of 
comprehensive income and its components in a full set of general purpose 
financial statements.  This statement requires classification of items of 
other compressive income by their nature in the financial statements and 
display of the accumulated balance of other comprehensive income separately 
from retained earnings and additional paid in capital in the equity section 
of the statement of financial position. This statement is effective for 
fiscal years beginning after December 15, 1997, and the Company will 
implement this for its year ending September 30, 1999.  However, the 
following table reflects the impact of FASB No. 130 had the new pronouncement
been implemented at June 30, 1998.
<TABLE>
<CAPTION>
    Consolidated Statements of Comprehensive Income
	                                                        (Unaudited)                      	
                                        	Three months ended	        Nine months ended
                                              	June 30,                	June 30,
	                                         1998    	    1997    	    1998    	    1997    	
<S>                                   <C>          <C>          <C>          <C>
	Net income	                          $  76,980   	$  87,037   	$  230,135	  $  250,227
	Other comprehensive income, 
      net of income tax:				
	Unrealized holding gains and (losses)	   3,903	      15,833	       12,903	      19,694
	Comprehensive income	                $  80,883	   $ 102,870	    $ 243,038	  $  269,921

	Comprehensive income per weighted  
   average share of common stock 	    $    0.28	   $    0.36	    $    0.84	  $     0.95
	Weighted average shares outstanding	   291,367	     285,973	      290,173	     284,406

	Comprehensive income per diluted 
   weighted average share of 
   common stock 	                     $    0.27	   $    0.35	    $    0.82	  $     0.93
	Diluted weighted average shares 
   outstanding	                         296,381	     291,041	      295,187	     289,474

</TABLE>




-6-
<PAGE>
Home Building Savings Bank, FSB
Notes to Consolidated Financial Statements
June 30, 1998 and 1997
(Concluded)


Note 7:  Contingencies

Due to employee theft that was discovered during the year ended September 
30, 1997, the Corporation has recorded an insurance receivable for 
$238,494 at June 30, 1998.  In the insurance company's initial review of the 
claim, the total amount recoverable has not been determined.  In the opinion 
of management, after consultation with legal counsel, the ultimate 
disposition of the claim is not expected to have a material adverse effect on 
the consolidated financial position of the Corporation.
















-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. The Company had not engaged in any 
material operations at June 30, 1998, and 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 other consumer loans, and to a lesser extent 
commercial, multifamily and construction real estate loans. The Bank also 
invests in United States 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. The operating results of the Bank are also affected by general 
economic conditions, the monetary and fiscal policies of federal agencies, 
and the policies of agencies that regulate financial institutions. The Bank's 
cost of funds is influenced by interest rates on competing investments and 
general market rates of interest. Lending activities are influenced by the 
demand for real estate loans and other types of loans, which in turn is 
affected by the rates of interest at which loans are offered, general economic 
conditions affecting loan demand, and the availability of funds for lending 
activities.

Financial Condition

For the nine months ended June 30, 1998, total assets increased 
approximately $3.0 million to $44.7 million from $41.7 million at 
September 30, 1997. This increase in total assets was the result of a $4.6 
million increase in net loans receivable to $33.1 million at June 30, 1998 
from $28.5 million at September 30, 1997.  Net loans receivable increased 
as a result of the Bank's purchase of $2.5 million in adjustable-rate, 
residential first mortgage loans.  The purchase was funded by a $2.5 million 
advance from the Federal Home Loan Bank.   The remaining increase in net 
loans receivable was funded primarily by a $1.3 million decrease in the 
Bank's investment and mortgage-backed securities portfolios, as such 
securities matured, were prepaid, or called, and a $429,000 decrease in cash 
and interest-bearing deposits.

Liabilities increased by approximately $2.6 million, to $38.5 million at June 
30, 1998 from $35.9 million at September 30, 1997, primarily as a result of 
the $2.5 million FHLB advance discussed above.  Savings and NOW 
deposits increased by approximately $244,000, and time deposits decreased 
by approximately $118,000 in the nine-month period. The Bank has 
maintained steady deposit rates that are competitive for its marketplace and 
has been successful in retaining and slightly increasing deposits since 
September 30, 1997.  However, competition for deposits in the Bank's 
market area is strong and therefore no assurances can be made that the 
Bank will be successful in increasing or retaining its deposits in the future.

-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, 1998 and 1997.

General. The Company experienced a net profit of $77,000 for the three 
months and $230,000 for the nine months ended June 30, 1998, 
respectively, compared to net profits of $87,000 and $250,000 for the same 
periods in 1997. 

Interest Income. Total interest income decreased $31,000, or 3.7%, to 
$815,000 for the three months ended June 30, 1998, compared to the same 
period last year. Interest income earned by the Company's loan portfolio 
increased $45,000 for the three months ended June 30, 1998 compared to a 
year ago due to higher loan volume, which was primarily the result of loans 
purchased by the Company. Lower balances of mortgage-backed securities 
and deposits with other banks reduced interest from these sources by a total 
of $73,000 for the most recent quarter compared to the same quarter a year 
ago. During this quarter last year the Company benefited from large short-
term deposits which were in turn deposited by the Bank at positive spreads. 
These deposits were withdrawn later in fiscal year 1997. For the nine-
month period interest income decreased $58,000, or 2.3%, to $2,438,000 
compared to $2,496,000 during the first nine months of fiscal year 1997. 

Interest Expense. Total interest expense decreased $1,000, or .21%, during 
the most recent quarter compared to the same quarter a year ago. Interest on 
deposits decreased because the volume of savings was less compared to a 
year ago. Interest paid on borrowed funds increased as additional funds 
were borrowed from FHLB. The weighted average cost of savings at June 
30, 1998 was 4.57%, unchanged from December 31, 1997. The overall cost 
of funds, including all FHLB advances, was 4.75% at June 30, 1998 
compared to 4.69% at December 31, 1997. The small increase reflects the 
rates paid on the additional advances taken during the previous quarter. The 
Company is able to compete aggressively for savings funds when adequate 
spreads on loans or investments are available. FHLB advances have been an 
effective asset-liability management tool.

Net Interest Income.  Net interest income, before provision for loan losses, 
decreased $32,000, or 8.4%, to $349,000 for the quarter compared to the 
same quarter a year ago. As of  June 30, 1998, interest-earning assets were 
110.6% of interest bearing liabilities.

Demand for mortgage loans was very strong during the nine-month period.  
Net loans receivable increased $4.6 million to $33.1 million at June 30, 
1998 compared to $28.5 million at September 30, 1997.  Two packages of 
single family, adjustable rate mortgages loans were purchased during the 
previous quarter, totaling $2.5 million. Local loan volume grew a net $2.1 
million for the nine-month period as well.  Securities held for sale decreased 
$1.2 million in the nine-month period to $6.3 million at June 30, 1998 from 
$7.5 million at September 30, 1997. 

Savings and NOW deposits increased during the nine-month period by 
$244,000, to $11.1 million from $10.9 million. The Bank increased its 
advances from the FHLB by $2.5 million during the most recent quarter, to 
$6.5 million at June 30, 1998, to  fund the purchase of the mortgage loan  
packages. Management feels these advances were a cost effective 
alternative to raising funds from local depositors, and allowed funding to be 
more efficiently matched with the interest rate characteristics of the loans. 
Significant increases in short term interest  rates would  adversely affect the
Company's interest rate spread and thus interest income. In the case of 
some short-term funds, such as short-term public funds, the Company could 
decline to bid and allow them to be withdrawn if acceptable spreads are not 
available. The Company's liabilities are generally shorter in term and 
subject to repricing more frequently than assets. 

-9-
<PAGE>
Home Building Bancorp, Inc.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
(continued)

Net Interest Income, (continued).  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. The 
Company, as a thrift institution, continues to have a below average exposure 
to interest rate risk compared to its peers.

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, 1998  an additional provision of $10,000 was taken against 
earnings. 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, 1998 the Company's allowance for loan losses 
was $84,000 compared to $81,000 on September 30, 1997. Over the nine-
month period  $14,000 in net losses were recognized and $17,000 in 
additions were made to the loan loss reserve.

As of June 30,1998, the Company's nonperforming assets totaled $134,000, 
or .30% of total assets. At the same date, the Company's ratio of allowance 
for loan losses to nonperforming assets was 62.6%.

Noninterest Income.  Noninterest income increased $29,000, or 80.6%,  to 
$65,000 for the most recent quarter compared to the same quarter a year 
ago. For the nine-month period noninterest income increased $55,000,  or 
56.1%, to $153,000 for the period. During the nine month period $17,000 
in gains on the sale of assets were realized, compared to $13,000 during the 
same nine month period a year ago. The Company does not depend on the 
regular or periodic sale of assets for income, but  some investment securities 
were called at profit to the Bank.  Customer service fees increased  $51,000, 
or 60.0%, to $136,000 for the nine month period ended June 30, 1998 
compared to $85,000 for the same period a year ago.  The increase was 
attributable to improved service corporation results and increased customer
transaction fees.

Noninterest Expense. Total noninterest expense increased $31,000, or 
11.5%,  to $300,000 for the latest quarter compared to $269,000 for the 
same quarter a year ago. The increases were due to salary and benefit 
expense and  professional fees. For the nine months noninterest expense 
increased $84,000,  to $883,000 compared to $799,000  for the same period 
a year ago. The increase was due to salaries and employee benefits, 
professional fees, and other expense. Compared to the same period a year 
ago the Bank has added the equivalent of 1 1/2 full time employees.

Income Tax Expense.  Income tax expense was $27,000 for the most recent 
quarter compared to $56,000 for the same quarter a year ago. For the nine 
months ended June 30, 1998, tax expense was $117,000 compared to 
$153,000. Tax expense reflects the level of profitability for the respective 
periods.

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, 1998, the Bank had 
cash and due from banks, deposits, and securities available for sale with an 
estimated approximate market value of $9.9 million, or 22.2% of total 
assets. 
-10-
<PAGE>
Home Building Bancorp, Inc.
Management's Discussion and Analysis of
Financial Condition and Results of operations
(concluded)

Liquidity and Capital Requirements (continued).  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, 1998, the Bank had outstanding commitments to 
extend credit totaling $ 1.2 million.  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, 1998, relative to the regulatory capital 
requirements.

                                        	Amount
                                   	(in thousands)	        Percent of Assets
Tangible Capital	                     $   4,643                 	10.45%
Tangible Capital Requirement          	     667	                  1.50%
Excess                                   	3,976                  	8.95%

Core Capital	                         $   4,643	                 10.45%
Core Capital Requirement	                 1,333	                  3.00% 
Excess	                                   3,310                  	7.45%

Total Capital   (Core & Supple.)     	$   4,727                 	20.20%
Risk-Based Capital Requirement	           1,872	                  8.00%
Excess	                                   2,855                 	12.20%














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<PAGE>
PART II. OTHER INFORMATION


Item 6.	Exhibits and Reports on Form 8-K

	(a)	Exhibits

		Exhibit 27:	Financial Data Schedule (electronic filing only)

	(b)	There were no reports on Form 8-K filed during the quarter.


































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<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:    8/13/98                           		/s/ Bruce A. Beesley 
	                                  	    					Bruce A. Beesley, President and 
                                             Chief Executive Officer (Duly 
                                             Authorized Officer)

					

Date:     8/13/98                          		/s/ Debra K. Shields 
	                                       					Debra K. Shields, Vice President 
                                             and Chief Financial Officer
                                             (Principal Financial and 
                                             Accounting Officer)
































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<PAGE>

INDEX OF EXHIBITS



Exhibit		Description

27	Financial Data Schedule (electronic filing only)













































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