|UNITED
      STATES                                                    
|-----------------------------------------------------------------------
|SECURITIES
      AND EXCHANGE COMMISSION                               
|Washington,
      D.C. 20549                                           
|                                                                       
|                                                                       
|                                                                       
|FORM
      10-QSB                                                      
|                                                                       
|                                                                       
|QUARTERLY
      REPORT UNDER SECTION 13 OR 15(d)                       
|OF
      THE SECURITIES EXCHANGE ACT OF 1934                           
|                                                                       
|                                                                       
|                                                                       
|Homestead
      Bancorp, Inc.                                          
|(Exact
      Name of Registrant as specified in its charter)           
|(504)
      386-3379                                                   
|                                                                       
|Louisiana                                                              
|(State
      of incorporation or organization)                         
|                                                                       
|                                                                       
|195
      North Sixth Street                                           
|Ponchatoula,
      Louisiana                                           
|(Address
      of principal executive office)                          
|                                                                       
|                                                                       
|Securities
      to be registered pursuant to Section 12(b) of the Act:
|                                                                       
|NONE                                                                   
|                                                                       
|Securities
      to be registered pursuant to Section 12(g) of the Act:
|                                                                       
|Common
      Stock, par value $.01 per share                           
|(Title
      of Class)                                                 



---





INDEXPART I - FINANCIAL
      INFORMATIONConsolidated Financial
      Statements:PageConsolidated Statements
      of Financial Condition -September 30, 2000 and
      December 31, 1999
    
    
    1 - 2Consolidated Statements
      of Income -for the three and nine
      month periods endedSeptember 30, 2000 and
      1999
    
    
    3Consolidated Statements
      of Stockholders' Equityfor the nine months
      ended September 30, 2000and 1999
    
    
    4Consolidated Statements
      of Cash Flows -for the nine months
      ended September 30, 2000and 1999
    
    
    5 - 6Notes to Consolidated
      Financial Statements
    
    
    7Management's Discussion
      and Analysis of FinancialCondition and Results of
      Operations
    
    
    8 - 14Part II - OTHER
      INFORMATIONLegal Proceedings
    
    
    15Changes in Securities
    
    
    15Defaults Upon Senior
      Securities
    
    
    15Submission of Matters to
      a Vote of SecurityHolders
    
    
    15Other Information
    
    
    15Exhibits and Reports on
      Form 8-K
    
    
    15Signatures
    
    
    16




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Homestead
      Bancorp, Inc. and SubsidiaryCONSOLIDATED
      STATEMENTS OF FINANCIAL CONDITIONAs
      of September 30, 2000 and December 31, 1999ASSETS(UNAUDITED)
    
    (AUDITED)September
      30,
    
    December
      31,2000
    
    1999(In
      Thousands)Cash
      and Cash Equivalents
    $        
      603
    
    $          
      633Interest-bearing
      Deposits in Other Institutions
    1,953
    
    256Securities:Investment
      Securities Availablefor
      Sale (Amortized Cost of$2.4
      million and $2.2 million)
    2,477
    
    2,180Mortgage-Backed
      SecuritiesAvailable
      for Sale (AmortizedCost
      of $22.7 million and $24.1 million)
    21,646
    
    23,871FPB
      Financial Corp. Stock
    114
    
    103Federal
      Home Loan Bank Stock, at Cost
    2,908
    
    2,649Total
      Securities
    27,145
    
    28,803Loans
      Held for Sale
    304
    
    133Loans
      Receivable
    80,214
    
    71,594Leases
      Receivable
    211
    
    208Total
      Loans and Leases Receivable
    80,425
    
    71,802Less:
      Allowance for Loan and Lease Losses
    (308)
    
    (295)Net
      Loans and Leases Receivable
    80,117
    
    71,507Premises
      and Equipment, Net
    786
    
    517Accrued
      Interest Receivable
    648
    
    567Other
      Assets
    104
    
    34Total
      Assets
    $   
      111,660
    
    $  
      102,450LIABILITIES
      AND STOCKHOLDERS' EQUITY(UNAUDITED)
    
    (AUDITED)September
      30,
    
    December
      31,2000
    
    1999(In
      Thousands)Deposits
    $    
      41,134
    
    $   
      38,039Advances
      from Borrowers for Taxes and Insurance
    74
    
    61Advances
      from Federal Home Loan
      Bank
    56,048
    
    51,097Income
      Taxes Payable
    215
    
    145Other
      Liabilities
    715
    
    77Total
      Liabilities
    98,186
    
    89,419Stockholders'
      Equity as Restated:Common
      Stock - $.01 Par Value;10,000,000
      Shares Authorized, 1,477,870Shares
      Issued and Outstanding in 20001,477,870
      in 1999
    15
    
    15Paid-in
      Capital in Excess of Par
    12,912
    
    12,929Retained
      Earnings - Substantially Restricted
    4,510
    
    4,175Accumulated
      Other Comprehensive Income
    (110)
    
    (156)17,327
    
    16,963Treasury
      Stock - 347,544 shares at cost in2000
      and 321,183 shares at cost in 1999
    (2,841)
    
    (2,795)Unearned
      ESOP Shares
    (694)
    
    (761)Common
      Stock Acquired by Recognition Plans
    (318)
    
    (376)Total
      Stockholders' Equity
    13,474
    
    13,031Total
      Liabilities and Stockholders' Equity
    $  
      111,660
    
    $  
      102,450




---







Homestead
      Bancorp, Inc. and SubsidiaryCONSOLIDATED
      STATEMENTS OF INCOMEfor
      the three and nine months ended September 30, 2000 and 1999(Unaudited)
    
    (Unaudited)Three
      Months Ended
    
    Nine
      months EndedSeptember
      30,
    
    September
      30,2000
    
    1999
    
    2000
    
    1999(In
      Thousands)
    
    (In
      Thousands)Interest
      Income:Loans
      and Leases
    $
    1,579
    $
    1,283
    $
    4,507
    $
    3,523Mortgage-Backed
      Securities
    
    404
    
    374
    
    1,119
    
    1,102Investment
      Securities
    
    87
    
    67
    
    299
    
    206Other
    
    33
    
    49
    
    103
    
    139Total
      Interest Income
    
    2,103
    
    1,773
    
    6,028
    
    4,970Interest
      Expense:Deposits
    
    509
    
    416
    
    1,425
    
    1,261Borrowings
    
    870
    
    643
    
    2,449
    
    1,710Total
      Interest Expense
    
    1,379
    
    1,059
    
    3,874
    
    2,971Net
      Interest Income
    
    724
    
    714
    
    2,154
    
    1,999Provision
      for (Recovery of) Loan and LeaseLosses
    
    6
    
    15
    
    15
    
    9Net
      Interest Income After Provision for(Recovery
      of) Loan and Lease Losses
    
    718
    
    699
    
    2,139
    
    1,990Noninterest
      Income:Gain
      on Sale of Loans
    
    14
    
    11
    
    27
    
    30Loan
      Fees and Service Charges
    
    59
    
    91
    
    186
    
    244Other
      Income
    
    20
    
    8
    
    28
    
    13Total
      Noninterest Income
    
    93
    
    110
    
    241
    
    287Noninterest
      Expense:Compensation
      and Benefits
    
    289
    
    270
    
    841
    
    797Occupancy
      and Equipment Expense
    
    46
    
    47
    
    137
    
    131Federal
      Insurance Premium
    
    2
    
    6
    
    6
    
    18Net
      Real Estate Owned Expense
    
    0
    
    7
    
    3
    
    8Loss
      on Sale of Securities
    
    0
    
    12
    
    0
    
    20Other
    
    189
    
    224
    
    597
    
    674Total
      Noninterest Expense
    
    526
    
    566
    
    1,584
    
    1,648Income
      Before Provision for IncomeTaxes
    
    285
    
    243
    
    796
    
    629Income
      Taxes
    
    100
    
    83
    
    274
    
    218Net
      Income
    $
    185
    $
    160
    $
    522
    $
    411Per
      Share:Earnings
      Per Common Share
    
    0.17
    
    0.13
    
    0.48
    
    0.32Earnings
      Per Common Share - Assuming Dilution
    
    0.15
    
    0.12
    
    0.43
    
    0.29Cash
      Dividends Declared
    
    0.06
    
    0.05
    
    0.18
    
    0.15




---







Homestead
      Bancorp, Inc. and SubsidiaryCONSOLIDATED
      STATEMENTS OF STOCKHOLDERS' EQUITYfor
      the nine months Ended September 30, 2000 and 1999(UNAUDITED)
    
    (UNAUDITED)September
      30,
    
    September
      30,2000
    
    1999(In
      Thousands)Common
      Stock:Balance
      - Beginning of Period
    $
    15
    $
    15Balance
      - End of Period
    $
    15
    $
    15Paid-in
      Capital in Excess of Par:Balance
      - Beginning of Period
    $
    12,929
    $
    12,942Exercise
      of Stock Options
    
    --
    
    8ESOP
      Compensation Expense
    
    (17)
    
    (18)Balance
      - End of Period
    $
    12,912
    $
    12,932Retained
      Earnings:Balance
      - Beginning of Period
    $
    4,175
    $
    3,875Net
      Income
    
    522
    
    411Cash
      Dividends Declared and Paid
    
    (203)
    
    (214)Dividends
      on ESOP Shares
    
    16
    
    15Balance
      - End of Period
    $
    4,510
    $
    4,087Treasury
      StockBalance
      - Beginning of Period
    $
    (2,795)
    $
    --Repurchase
      of Stock
    
    (46)
    
    (2,383)Balance
      - End of Period
    $
    (2,841)
    $
    (2,383)Accumulated
      Other Comprehensive Income:Balance
      - Beginning of Period
    $
    (156)
    $
    (6)Transfer
      of securities from Held-to-Maturityto
      Available-for-Sale
    
    --
    
    (4)Net
      Change in Unrealized Gain (Loss)
    
    46
    
    (162)Balance
      - End of Period
    $
    (110)
    $
    (172)Unearned
      Employee Stock OwnershipPlan
      Shares:Balance
      - Beginning of Period
    $
    (761)
    $
    (851)Shares
      Released for Allocation
    
    67
    
    67Balance
      - End of Period
    $
    (694)
    $
    (784)Director
      & Management Recognition Plans:Balance
      - Beginning of Period
    $
    (376)
    
    (33)Plan
      Distribution
    
    58
    
    8Fund
      1999 Recognition Plan
    
    --
    
    (352)Balance
      - End of Period
    $
    (318)
    $
    (377)Comprehensive
      Income:Net
      Income
    $
    522
    $
    411Other
      Comprehensive Income, Net of Tax:Reclassification
      Adjustments
    
    --
    
    8Unrealizied
      Gains (Losses) on SecuritiesAvailable
      for Sale
    
    (110)
    
    (172)Total
      Comprehensive Income
    $
    412
    $
    247




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Homestead
      Bancorp, Inc. and SubsidiaryCONSOLIDATED
      STATEMENTS OF CASH FLOWSfor the
      nine months ended September 30, 2000 and 1999(UNAUDITED)September
      30,2000
    
    1999Cash Flows From
      Operating Activities:Net Income
    $
    522
    $
    411Adjustments to Reconcile
      Net Incometo Net Cash Provided by
      (Used in) OperatingActivities:Depreciation
    
    36
    
    30Provision for (Recovery
      of)Loan and Lease Losses
    
    15
    
    9Gain on Sale of Real
      Estate Owned
    
    
    
    5Net Amortization of
      Premiums on Securities
    
    22
    
    100Realized Loss on Sale of
      Securities
    
    --
    
    20Stock Dividends on
      Federal HomeLoan Bank Stock
    
    (176)
    
    (87)Net (Increase) Decrease
      in LoansHeld for Sale
    
    (171)
    
    (246)Change in Assets and
      Liabilities(Increase) Decrease in
      AccruedInterest Receivable
    
    (81)
    
    (81)(Increase) Decrease in
      OtherAssets
    
    (70)
    
    (17)Increase (Decrease) in
      IncomeTaxes Payable
    
    70
    
    5Increase (Decrease) in
      OtherLiabilities
    
    638
    
    187Net Cash Provided by
      (Used in) Operating Activities
    
    805
    
    336Cash Flows From
      Investing Activities:Purchases of Property
      and Equipment
    
    (306)
    
    (28)Purchases of Real Estate
      Owned
    
    (18)
    
    --Maturities of Investment
      Securities
    
    900
    
    1,000Purchases of Investment
      Securities
    
    (1,179)
    
    (1,399)Maturities of
      Mortgage-Backed Securities
    
    2,830
    
    5,440Purchases of
      Mortgage-BackedSecurities
    
    (577)
    
    (5,329)Proceeds from Sale of
      securities available for sale
    
    --
    
    2,243Net (Increase) Decrease
      in Loans and LeasesReceivable
    
    (8,582)
    
    (15,864)Net Cash Provided by
      (Used in) Investing Activities
    
    (6,932)
    
    (13,937)(UNAUDITED)September
      30,2000
    
    1999Cash Flows From
      Financing Activities:Acquisition of Treasury
      Stock
    
    (46)
    
    (2,383)Acquisiton of shares of
      Recognition Plan
    
    --
    
    (319)MRP Shares Earned
    
    67
    
    8Net Increase (Decrease)
      in Money Market Accounts,NOW Accounts and Savings
      Accounts
    
    (1,239)
    
    542Net Increase (Decrease)
      in Certificatesof Deposit
    
    4,334
    
    (796)Proceeds from (Repayment
      of) Federal HomeLoan Bank Advances
    
    4,951
    
    15,469Increase (Decrease) in
      Advances fromBorrowers for Taxes and
      Insurance
    
    13
    
    12Dividends Paid on Common
      Stock
    
    (203)
    
    (214)Purchase of FPB
      Financial Stock
    
    --
    
    (100)Purchase of Federal Home
      Loan Bank Stock
    
    (83)
    
    (750)Net Cash Provided by
      (Used In)Financing Activities
    
    7,794
    
    11,469Net Increase (Decrease)
      in Cash andCash Equivalents
    
    1,667
    
    (2,132)Cash and Cash
      Equivalents -Beginning of Period
    
    889
    
    3,703Cash and Cash
      Equivalents -End of Period
    $
    2,556
    $
    1,571Supplemental Disclosures
      of Cash flowInformation:Cash Payments for:Interest Paid to
      Depositors
    $
    1,425
    $
    1,261Interest Paid on
      Borrowings
    $
    2,449
    $
    1,710Income Taxes
    $
    177
    $
    167Supplemental Schedules
      of NoncashInvesting and Financing
      Activities:Real Estate Acquired in Settlementof Loans and Leases
    $
    15
    $
    97Increase (Decrease) in
      Unrealized Gain (Loss)on Securities Available
      for Sale
    $
    46
    $
    (162)(Increase) Decrease in
      Deferred TaxEffect on Unrealized
      Gain (Loss) on SecuritiesAvailable for Sale
    $
    15
    $
    (55)




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Homestead Bancorp, Inc. and Subsidiary

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
September 30, 2000

Note 1 - Basis of Presentation -

The accompanying consolidated financial statements for the period ended September 30, 2000 include the accounts of Homestead Bancorp, Inc. (the "Company") and its wholly owned subsidiary,
Homestead Bank (the "Bank").  Ponchatoula Homestead Savings, F.A.  changed it's name to Homestead Bank on July 1, 1999.  Currently, the business and management of Homestead Bancorp, Inc.  is primarily the business and management of the Bank.  All
significant intercompany transactions and balances have been eliminated in the consolidation.

The accompanying unaudited financial statements were prepared in accordance with instructions for Form 10-QSB and, therefore, do not include information or footnotes necessary for complete
presentation of financial position, results of operations and cash flows in conformity with generally accepted accounting principles.  However, all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are
necessary for a fair presentation of the financial statements have been included.

Note 2 - Employee Stock Ownership Plan -

The Company sponsors a leveraged employee stock ownership plan (ESOP) that covers all employees who have at least nine  months of service with the Company, and obtained age 20.  The ESOP
shares initially were pledged as collateral for its debt.  The debt is being repaid based on a ten-year amortization and the shares are being released for allocation to active employees annually over the ten-year period.  The shares pledged as collateral
are deducted from stockholder's equity as unearned ESOP shares in the accompanying balance sheets.  ESOP compensation expense was $50,715 for the six  months ended September 30, 2000 based on the annual release of shares.

Note 3 - Dividends and Earnings Per Share -

The Company declared a quarterly dividend of $.06 for the first, second and third quarters of 2000.  Total dividends paid to stockholders in the first nine  months of 2000 was $203,000.

Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, which is 1,085,786 for the nine  month period ended September
30, 2000.  Earnings per common share - assuming dilution, are computed by dividing net income by the weighted average number of shares of common stock outstanding plus the effect of diluted securities, which was 1,218,663  for the nine  month period ended
September 30, 2000.



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Homestead Bancorp, Inc. and Subsidiary



Managements Discussion and Analysis
of Financial Condition and Results of Operations

September 30, 2000



General

The following discussion compares the consolidated financial condition of Homestead Bancorp, Inc. (the "Company") and Subsidiary, Homestead Bank (the "Bank")(formly Ponchatoula Homestead
Savings, F.A.),  at September 30, 2000 to December 31, 1999 and the results of operations for the three and nine  month periods ended September 30, 2000 with the same period in 1999.  Currently, the business and management of Homestead Bancorp, Inc. is
primarily the business and management of the Bank.  This discussion should be read in conjunction with the interim consolidated financial statements and footnotes included herein.

The Company and Bank's results of operations depends primarily on its net interest income, which is the difference between interest income on interest-earning assets and interest expense on
interest bearing liabilities.  The Company's principle interest-earning assets are loans and leases, mortgage-backed securities and investment securities.  The Company's results of operations also are affected by the provision for losses on loans and
leases; the level of its other income, including loan fees and service charges, federal insurance premiums, net real estate owned expense and miscellaneous other expenses; as well as its income tax expense.

Changes in Financial Condition

At September 30, 2000, the Company's total assets, deposits and equity amounted to $111.6 million, $41.1 million, and $13.5 million respectively compared to $102.5 million, $38 million, and $13
million respectively at December 31, 1999. The increase in total assets of $9.1 million or 8.9% was due primarily to an increase of $8.6 million in the net loan and lease portfolio.  The increase of 12.0% in net loan and lease portfolio was due to new
loan originations exceeding new loan sales and repayment, combined with the Company retaining a greater number of fixed rate loans in its loan portfolio.  Interest-bearing deposits in other institutions increased $1.7 million during the first nine  months
to $2  million.  The increase in interest-bearing deposit was due primarily to an increase in deposits combined with an increase in Federal Home Loan Bank Advances.  Investments in Mortgage-Backed securities decreased in the first nine  months of 2000 by
$2.2 million or 9.3%, due to repayment of Mortgage-Backed securities exceeding new purchases.  Investment in Federal Home Loan Bank stock increased in the first nine  months of 2000 by $259,000 or 9.8%, due to the purchase of additional Federal Home Loan
Bank stock to facilitate the long term borrowing from Federal Home Loan Bank.



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The Company's short term borrowing from the Federal Home Loan Bank increased during the first nine  months of 2000 by $6.3 million or 28.3%.  The Bank uses the proceeds from short term borrowing
to finance the purchase of mortgage-backed securities and fund long term fixed rate mortgages.  The Company's long term borrowing from the Federal Home Loan Bank decreased during the first nine  months of 2000 by $1.3 million.  Homestead uses the proceeds
from long term borrowing to fund long term fixed rate mortgages.  Deposits with the Bank  have increased by $3.1 million or 8.1% in the first nine  months of 2000, due primarily to the bank offering some new higher  yielding certificate of deposits.
Other liabilities increased in the first nine  months of 2000 by $638,000.  This increase was due primarily to an increase of $474,000 in funds due on closed loans.  The equity of the Company increased $443,000 or 3.4% in the first nine  months of 2000,
due primarily to net income of $522,000 offset by the repurchase of the Company's common stock in the stock repurchase plan of $46,000 and dividends paid out of $203,000.  At September 30, 2000 the Company had repurchased $2.8 million of it's common
stock.  This amount appears in the equity section of the Statement of Financial Condition as Treasury Stock.



Capital



The Bank is subject to various regulatory capital requirements administered by the federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory---and
possible additional discretionary---actions by regulators that, if undertaken, could have a direct material effect on the Bank's financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank
must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.  The Bank's capital amounts and classification are also
subject to qualitative judgments by the regulators about components, risk weighing, and other factors.



Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as
defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined).  Management believes, as of September 30, 2000, that the Bank meets all capital adequacy requirements to which it is subject
 .



As of September 30, 2000, the most recent notification categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well
capitalized the Bank must maintain minimum total risk-based, Tier I risk based, and Tier I leverage ratios as set forth in the table.  There are no conditions or events since that notification that management believes have changed the institution's category
 .



---



The Bank's actual capital amounts and ratios are also presented in the table.



Actual
      For Capital
                                                     Adequacy Purposes:
      To Be Well 
        Capitalized Under
        Prompt CorrectiveAction Provisions:Amount
      Ratio
      Amount
      Ratio
      Amount
      Ratio(Dollars
        in Thousands)As of September 30, 2000:Total Capital (to
        RiskWeighted Assets)
      $ 11,025
      20.69%
      $ 4,262
      >  8.0%
      $ 5,328
      >  10.0%Tier I Capital (to RiskWeighted Assets)
      $ 10,725
      20.13%
      $ 2,131
      >  4.0%
      $ 3,197
      >  6.0%Tier I Capital (to AverageAssets)
      $ 10,725
      9.63%
      $ 4,453
      >  4.0%
      $ 5,566
      >   5.0%








The Bank is required under applicable federal regulations to maintain specific levels of "liquid" investments in qualifying types of United States Government, federal agency and other
investments having maturities of five years or less.  Current regulations require that a Savings institution maintain liquid assets of not less than 4% of its average daily balance of net withdrawable shares.



Results of Operations

Net income for the first nine  months of 2000 was $522,000 compared to $411,000 for the same period of 1999.  The increase in net income of $111,000 or 27%, was primarily due to an increase in
net interest income after provision for (recovery of) loan and lease losses of $149,000 or 7.5%, offset by a decrease in non-interest income of $46,000 or 16.0%, with an increase of $56,000 or 25.7%, in income tax expense.  The decrease in non-interest
income is due to a decrease in loan fees and service charges of $58,000 or 23.8%.  Non-interest expense decreased by $64,000 or 3.9% in the  first nine  months of 2000.  Compensation expense increased by $44,000 or 5.5%, offset by a decease in federal
insurance premiums of $12,000 or 66.7%, for the first nine  months of 2000.

Net income for the three month period ended September 30, 2000  was $185,000 compared to $160,000 for the same period of 1999.  The increase in net income of $25,000 or 15.6%, was primarily due
to an increase in net interest income after provision for (recovery of) loan and lease losses of $19,000 or 2.72%, offset by a decrease in non-interest income of $17,000 or 15.5%, with an increase of $17,000 or 20.5%, in income tax expense.  The decrease
in non-interest income is due to a decrease in loan fees and service charges of $32,000 or 35.2%.



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Net Interest Income



The primary source of earnings for the Company is net interest income; the difference between income generated from interest-earning assets less interest expense on interest-bearing
liabilities.  The primary factors that affect interest income are changes in the volume and type of interest-earning assets and interest-bearing liabilities, along with changes in market rates.  Net interest income
for the first nine  months of 2000 was $2.2 million an increase of $155,000 or 7.8% over the same period of 1999.  This increase in net interest income was primarily attributable to an increase in interest income of $1.1 million or 21.3%, offset by an
increase in interest expense of $903,000 or 30.4% over the same period of 1999.  One of the factors in the increase in net interest income, was a special dividend of $45,000 paid by Federal Home Loan Bank of Dallas to it's shareholders in April 2000.  As
this was a special dividend, the Bank does not anticipate receiving any other special dividends in future periods.  Other factors contributing to the increase in  interest income was an increase in the volume of the Company's loan and lease portfolio,
combined with an increase in the volume of  investment securities and mortgage- backed securities.  Interest rate spread is the yield of interest-earning assets minus the costs of interest-bearing liabilities.  The interest rate spread for the nine
months ended September 30, 2000 was 2.68% as compared to 2.80% for the same period in 1999.

Net interest income for the three month period ended September 30, 2000 was $724,000 an increase of $10,000 or 1.34% over the same period of 1999.  This increase in net interest income was
primarily attributable to an increase in interest income of $330,000 or 18.6%, offset by an increase in interest expense of $320,000 or 30.2% over the same period of 1999.  The increase in interest income was primarily due to an increase in the volume of
the Company's loan and lease portfolio, combined with an increase in the volume of  investment securities and mortgage-backed securities.

The table of Consolidated Average Balance Sheets and Interest Rate Analysis for the nine  months ended September 30, 2000 and 1999 on page
13, and the corresponding table of Interest Differentials on page 14, detail the effect of a change in average balances and the change in interest yield and interest cost have on net interest income for the respective periods.



Nonperforming Assets



Nonperforming assets include non-accrual loans and leases and real estate owned.  Loans are considered non-accrual when the principal or interest becomes 90 days past due or when there is
uncertainty about the repayment of the principal and interest in accordance with the terms of the loans.  Non-accrual loans at September 30, 2000 were $495,000 compared to $282,000 at September 30, 1999.  The percentage of non-accrual loans and leases to
total loans and leases at September 30, 2000 is .62% up from .45% at September 30, 1999.

Real estate owned is properties held for sale acquired through foreclosure or negotiated settlements of debt.  At September 30, 2000 the Bank had real estate owned of $0 compared to $23,000 at
September 30, 1999.  Nonperforming assets at September 30, 2000 were .43% of total assets compared to .30% at September 30, 1999.



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Current Events





On July 12, 2000, the Office of Thrift Supervision (OTS), amended it's regulations on stock repurchases.  Under the old regulations, a company could not repurchase any of its common stock, for
the first year after the public offer, and in years two and three only up to 25% of the total outstanding, with OTS approval.  Under the new regulations adopted by the OTS  on July 12, 2000 a company can not repurchase any common stock in the first year
after the public offering, but after the first year a company can repurchase any amount of it's common  stock  without OTS approval.  As a result of the new regulations the Board of Directors of Homestead Bancorp, Inc on July 12, 2000,  approved a new
stock repurchase program. Under the new program the company can purchase up to 250,000 shares of its common stock.

In January of this year,  Homestead Bank, purchased a tract of land in Walker, La.  The land will be used to open its third location.  Construction on this branch office is scheduled to begin in
the fourth quarter on 2000.   The target date for the opening is the second quarter of 2001.  Walker is a residential community located about 20 miles east of Baton Rouge, La.



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Homestead
      Bancorp, Inc. and SubsidiaryCONSOLIDATED
      AVERAGE BALANCE SHEETS AND INTEREST RATE ANALYSISfor
      the nine months ended September 30, 2000 and 1999nine
      months Ended
    
    nine
      months EndedSeptember
      30, 2000
    
    September
      30, 1999AVERAGE
    
    YIELD/
    
    AVERAGE
    
    YIELD/BALANCE
    INTEREST
    RATE
    
    BALANCE
    INTEREST
    RATE(In
      Thousands)
    (In
      Thousands)
    
    
    (In
      Thousands)
    (In
      Thousands)Interest
      - Earning Assets:Loans
      and Leases Receivable
    
    $
    76,643
    4,508
    7.84%
    $
    61,462
    3,523
    7.64%Mortgage
      - Backed Securities
    
    
    22,753
    1,119
    6.56%
    
    25,244
    1,102
    5.82%Investment
      Securities
    
    
    5,273
    299
    7.56%
    
    4,823
    206
    5.69%Other
      Interest - Earning Assets
    
    
    2,446
    103
    5.61%
    
    3,693
    139
    5.02%Total
      Interest - Earning Assets
    
    $
    107,115
    6,029
    7.51%
    $
    95,222
    4,970
    6.96%Noninterest
      - Earning Assets
    
    
    2,359
    
    
    
    2,313Total
      Assets
    
    $
    109,474
    
    
    $
    97,535Interest
      - Bearing Liabilities:Deposits
    
    $
    40,484
    1,425
    4.69%
    $
    39,992
    1,261
    4.20%Federal
      Home Loan Bank Advances
    
    
    54,898
    2,449
    5.95%
    
    42,792
    1,710
    5.33%Total
      Interest-bearing Liabilities
    
    $
    95,382
    3,874
    5.41%
    $
    82,784
    2,971
    4.79%Noninterest
      - Bearing Liabilities
    
    
    777
    
    
    
    477Total
      Liabilities
    
    $
    96,159
    
    
    $
    83,261Stockholders'
      Equity
    
    $
    13,315
    
    
    $
    14,274Total
      Liabilities and Stockholders' Equity
    
    $
    109,473
    
    
    $
    97,535Net
      Interest Income; Interest Rate Spread
    
    
    $
    2,155
    2.10%
    
    $
    1,999
    2.17%Net
      Interest Margin as a % of Total Earning Assets
    
    
    
    
    2.68%
    
    
    
    2.80%




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Homestead
      Bancorp, Inc. and SubsidiaryINTEREST
      DIFFERENTIALSfor
      the nine months ended September 30, 2000 and 1999September
      30, 2000 VS September 30, 1999CHANGE
      DUE TO
    
    TOTALVOLUME
    
    RATE
    
    CHANGE(In
      Thousands)Interest
      - Earning Assets:Loans
      and Lease Receivable
    $
    891
    $
    94
    $
    985Mortgage-Backed
      Securities
    
    (114)
    
    131
    
    17Investment
      Securities
    
    20
    
    73
    
    93Other
      Interest-Earning assets
    
    (51)
    
    15
    
    (36)Total
      Interest Income
    $
    746
    $
    313
    $
    1,059Interest
      - Bearing Liabilities:Deposits
    $
    15
    $
    149
    $
    164Federal
      Home Loan Bank Advances
    
    524
    
    215
    
    739Total
      Interest Expense
    $
    539
    $
    364
    $
    903Increase
      (Decrease) in Interest Differential
    $
    207
    $
    (51)
    $
    156




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Homestead
      Bancorp, Inc. and SubsidiaryFORM
      10-QSBNine
      Months Ended September 30, 2000PART
      II - OTHER INFORMATIONItem 1
    -
    Legal
      Proceedings:There
      are no matters required to be reported under this item.Item 2
    -
    Changes
      in Securities:There
      are no matters required to be reported under this item.Item 3
    -
    Defaults
      Upon Senior Securities:There
      are no matters required to be reported under this item.Item 4
    -
    Submission of Matters to a Vote of Security Holders.There
      are no matters required to be reported under this item.Item 5
    -
    Other
      Information:There
      are no matters required to be reported under this item.Item 6
    -
    Exhibits
      and Reports on Form 8-K:a.)   Exhibits:No
      exhibits were filed on Form 8-K by the Registrant during
      the quarter ended September 30, 2000.b.)   Reports:No
      reports on Form 8-K were filed by the Registrant during
      the quarter ended September 30, 2000.




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SIGNATURESPursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has duly caused thisreport to
      be signed on its behalf by the undersigned, thereunto duly authorized.Homestead
      Bancorp, Inc.Date:
    November 10, 2000
    
    
    
    BY
    /s/Lawrence C. Caldwell,
      Jr.Lawrence C. Caldwell,
      Jr.
      President and Chief
      Executive OfficerDate:
    November 10, 2000
    
    
    
    BY
    /s/Kelly MorseKelly Morse
      Comptroller