|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)           
|(985) 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)                                                 
|                                                                 



---



|INDEX                                                             
|------------------------------------------------------------------
|                                                                  
|PART I - FINANCIAL
               INFORMATION                     
|                                                                  
|Consolidated
               Financial Statements:                 
|                                                                  
|Consolidated
               Statements of Financial Condition -   
|September 30, 2001
               and December 31, 2000           
|                                                                  
|Consolidated
               Statements of Income -                
|for the three and
               nine month periods ended         
|September 30, 2001
               and 2000                        
|                                                                  
|Consolidated
               Statements of Stockholders' Equity    
|for the nine
               months ended September 30, 2001       
|and 2000                                                          
|                                                                  
|Consolidated
               Statements of Cash Flows -            
|for the nine
               months ended September 30, 2001       
|and 2000                                                          
|                                                                  
|Notes
               to Consolidated Financial Statements         
|                                                                  
|Management's
               Discussion and Analysis of Financial  
|Condition and
               Results of Operations                
|                                                                  
|Part II - OTHER
               INFORMATION                        
|                                                                  
|Legal Proceedings                                                 
|                                                                  
|Changes in
               Securities                              
|                                                                  
|Defaults Upon
               Senior Securities                    
|                                                                  
|Submission of
               Matters to a Vote of Security Holders
|                                                                  
|Other Information                                                 
|                                                                  
|Exhibits and
               Reports on Form 8-K                   
|                                                                  
|Signatures                                                        
|                                                                  



---





|Homestead
               Bancorp, Inc. and Subsidiary         
|--------------------------------------------------------------
|CONSOLIDATED
               STATEMENTS OF FINANCIAL CONDITION 
|As
               of September 30, 2001 and December 31, 2000 
|                                                              
|ASSETS                                                        
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|Cash
               and Cash Equivalents                      
|                                                              
|Interest-bearing
               Deposits in Other Institutions
|                                                              
|Securities:                                                   
|                                                              
|Investment
               Securities Available                
|for
               Sale (Amortized Cost of                    
|$2.3
               million and $2.5 million)                 
|                                                              
|Mortgage-Backed
               Securities                     
|Available
               for Sale (Amortized                  
|Cost
               of $22.1 million and $20.8 million)       
|                                                              
|FPB
               Financial Corp. Stock                      
|                                                              
|Federal
               Home Loan Bank Stock, at Cost          
|                                                              
|                                                              
|Total
               Securities                               
|                                                              
|Loans
               Held for Sale                            
|                                                              
|Loans
               Receivable                               
|Leases
               Receivable                              
|                                                              
|                                                              
|Total
               Loans and Leases Receivable              
|                                                              
|Less:
               Allowance for Loan and Lease Losses      
|                                                              
|                                                              
|Net
               Loans and Leases Receivable                
|                                                              
|Real
               Estate Owned                              
|Premises
               and Equipment, Net                    
|Accrued
               Interest Receivable                    
|Other
               Assets                                   
|                                                              
|                                                              
|Total
               Assets                                   
|                                                              
|1                                                             
|LIABILITIES
               AND STOCKHOLDERS' EQUITY           
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|Deposits                                                      
|                                                              
|Advances
               from Borrowers for Taxes and          
|Insurance                                                     
|                                                              
|Advances
               from Federal Home                     
|Loan Bank                                                     
|                                                              
|Income
               Taxes Payable                           
|                                                              
|Other
               Liabilities                              
|                                                              
|Total
               Liabilities                              
|                                                              
|                                                              
|Stockholders'
               Equity                           
|                                                              
|Common
               Stock - $.01 Par Value;                 
|10,000,000
               Shares Authorized, 1,477,870        
|Shares
               Issued and Outstanding in 2001          
|and
               2000                                       
|                                                              
|Paid-in
               Capital in Excess of Par               
|                                                              
|                                                              
|Retained
               Earnings - Substantially Restricted   
|                                                              
|Accumulated
               Other Comprehensive Income         
|                                                              
|                                                              
|                                                              
|Treasury
               Stock - 540,790 shares at cost in     
|2001
               and 477,248 shares at cost in 2000        
|                                                              
|Unearned
               ESOP Shares                           
|                                                              
|Common
               Stock Acquired by Recognition Plans     
|                                                              
|Total
               Stockholders' Equity                     
|                                                              
|                                                              
|Total
               Liabilities and Stockholders'            
|Equity                                                        
|                                                              
|                                                              

2

---





|Homestead Bancorp, Inc. and
               SubsidiaryCONSOLIDATED STATEMENTS OF INCOME
               for the three and nine months
               ended September 30, 2001 and 2000
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|Interest Income:                                                                                                                                                                    
|Loans and Leases                                                                                                                                                                    
|Mortgage-Backed Securities                                                                                                                                                          
|Investment Securities                                                                                                                                                               
|Other                                                                                                                                                                               
|                                                                                                                                                                                    
|Total Interest Income                                                                                                                                                               
|                                                                                                                                                                                    
|Interest Expense:                                                                                                                                                                   
|Deposits                                                                                                                                                                            
|Borrowings                                                                                                                                                                          
|                                                                                                                                                                                    
|Total Interest Expense                                                                                                                                                              
|                                                                                                                                                                                    
|Net Interest Income                                                                                                                                                                 
|                                                                                                                                                                                    
|Provision for (Recovery of) Loan
               and Lease                                                                                                                           
|Losses                                                                                                                                                                              
|                                                                                                                                                                                    
|Net Interest Income After
               Provision for                                                                                                                              
|(Recovery of) Loan and Lease
               Losses                                                                                                                                  
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|Noninterest Income:                                                                                                                                                                 
|Gain on Sale of Loans                                                                                                                                                               
|Loan Fees and Service Charges                                                                                                                                                       
|Other Income                                                                                                                                                                        
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|Total Noninterest Income                                                                                                                                                            
|                                                                                                                                                                                    
|Noninterest Expense:                                                                                                                                                                
|Compensation and Benefits                                                                                                                                                           
|Occupancy and Equipment Expense                                                                                                                                                     
|Federal Insurance Premium                                                                                                                                                           
|Net Real Estate Owned Expense                                                                                                                                                       
|Loss on Sale of Securities                                                                                                                                                          
|Other                                                                                                                                                                               
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|Total Noninterest Expense                                                                                                                                                           
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|Income Before Provision for Income                                                                                                                                                  
|Taxes                                                                                                                                                                               
|                                                                                                                                                                                    
|Income Taxes                                                                                                                                                                        
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|Net Income                                                                                                                                                                          
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|Per Share:                                                                                                                                                                          
|Earnings Per Common Share                                                                                                                                                           
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|Earnings Per Common Share -
               Assuming Dilution                                                                                                                        
|                                                                                                                                                                                    
|                                                                                                                                                                                    
|Cash Dividends Declared                                                                                                                                                             
|                                                                                                                                                                                    
|                                                                                                                                                                                    



3

---





|Homestead
               Bancorp, Inc. and Subsidiary               
|--------------------------------------------------------------------
|CONSOLIDATED
               STATEMENTS OF STOCKHOLDERS' EQUITY      
|                                                                    
|for
               the nine months ended September 30, 2001 and 2000
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|Common
               Stock:                                        
|Balance
               - Beginning of Period                        
|                                                                    
|Balance
               - End of Period                              
|                                                                    
|Paid-in
               Capital in Excess of Par:                    
|Balance
               - Beginning of Period                        
|Management
               Plan Distribution                         
|ESOP
               Compensation Expense                            
|                                                                    
|Balance
               - End of Period                              
|                                                                    
|Retained
               Earnings:                                   
|Balance
               - Beginning of Period                        
|Net
               Income                                           
|Cash
               Dividends Declared and Paid                     
|Dividends
               on ESOP Shares                             
|                                                                    
|Balance
               - End of Period                              
|                                                                    
|Treasury
               Stock                                       
|Balance
               - Beginning of Period                        
|Repurchase
               of Stock                                  
|                                                                    
|Balance
               - End of Period                              
|                                                                    
|Accumulated
               Other Comprehensive Income:              
|Balance
               - Beginning of Period                        
|Net
               Change in Unrealized Gain (Loss)                 
|                                                                    
|Balance
               - End of Period                              
|                                                                    
|Unearned
               Employee Stock Ownership                    
|Plan
               Shares:                                         
|Balance
               - Beginning of Period                        
|Shares
               Released for Allocation                       
|                                                                    
|                                                                    
|Balance
               - End of Period                              
|                                                                    
|Director
               & Management Recognition Plans:             
|Balance
               - Beginning of Period                        
|Plan
               Distribution                                    
|                                                                    
|Balance
               - End of Period                              
|                                                                    
|Comprehensive
               Income:                                
|Net
               Income                                           
|                                                                    
|Other
               Comprehensive Income, Net of Tax:              
|Unrealizied
               Gains (Losses) on Securities             
|Available
               for Sale                                   
|                                                                    
|Total
               Comprehensive Income                           
|                                                                    
|                                                                    
|                                                                    



4

---





|Homestead
               Bancorp, Inc. and Subsidiary                          
|-------------------------------------------------------------------------------
|CONSOLIDATED
               STATEMENTS OF CASH FLOWS                           
|                                                                               
|for
               the nine months ended September 30, 2001 and 2000           
|                                                                               
|                                                                               
|                                                                               
|                                                                               
|                                                                               
|                                                                               
|Cash Flows From
               Operating Activities:                           
|Net Income                                                                     
|Adjustments to
               Reconcile Net Income                             
|to Net Cash
               Provided by (Used in) Operating                     
|Activities:                                                                    
|Depreciation                                                                   
|Provision for
               (Recovery of)                                     
|Loan and Lease
               Losses                                           
|Net
               Amortization(Accretion) of Premiums(Discounts) on Securities
|Stock Dividends on
               Federal Home                                 
|Loan Bank Stock                                                                
|Net (Increase)
               Decrease in Loans                                
|Held for Sale                                                                  
|Loss on Disposal
               of Equipment                                   
|Other                                                                          
|Change in Assets
               and Liabilities                                
|(Increase)
               Decrease in Accrued                                  
|Interest
               Receivable                                             
|(Increase)
               Decrease in Other                                    
|Assets                                                                         
|Increase
               (Decrease) in Income                                   
|Taxes Payable                                                                  
|Increase
               (Decrease) in Other                                    
|Liabilities                                                                    
|                                                                               
|Net Cash Provided
               by (Used in) Operating Activities             
|                                                                               
|Cash Flows From
               Investing Activities:                           
|Purchases of
               Property and Equipment                             
|Purchases of Real
               Estate Owned                                  
|Maturities of
               Investment Securities                             
|Purchases of
               Investment Securities                              
|Maturities of
               Mortgage-Backed Securities                        
|Purchases of
               Mortgage-Backed                                    
|Securities                                                                     
|Net (Increase)
               Decrease in Loans and Leases                     
|Receivable                                                                     
|                                                                               
|                                                                               
|Net Cash Provided
               by (Used in) Investing Activities             
|5                                                                              
|                                                                               
|                                                                               
|                                                                               
|Cash Flows From
               Financing Activities:                           
|Acquisition of
               Treasury Stock                                   
|MRP Shares Earned                                                              
|Net Increase
               (Decrease) in Money Market Accounts,               
|NOW Accounts and
               Savings Accounts                               
|Net Increase
               (Decrease) in Certificates                         
|of Deposit                                                                     
|Proceeds from
               (Repayment of) Federal Home                       
|Loan Bank Advances                                                             
|Increase
               (Decrease) in Advances from                            
|Borrowers for
               Taxes and Insurance                               
|Dividends Paid on
               Common Stock                                  
|Purchase of
               Federal Home Loan Bank Stock                        
|                                                                               
|Net Cash Provided
               by (Used In)                                  
|Financing
               Activities                                            
|                                                                               
|Net Increase
               (Decrease) in Cash and                             
|Cash Equivalents                                                               
|                                                                               
|Cash and Cash
               Equivalents -                                     
|Beginning of
               Period                                             
|                                                                               
|Cash and Cash
               Equivalents -                                     
|End of Period                                                                  
|                                                                               
|                                                                               
|                                                                               
|                                                                               
|Supplemental
               Disclosures of Cash flow                           
|Information:                                                                   
|Cash Payments for:                                                             
|Interest Paid to
               Depositors                                     
|                                                                               
|                                                                               
|Interest Paid on
               Borrowings                                     
|                                                                               
|                                                                               
|Income Taxes                                                                   
|                                                                               
|                                                                               
|Supplemental
               Schedules of Noncash                               
|Investing and
               Financing Activities:                             
|Real Estate
               Acquired in Settle-                                 
|ment of Loans and
               Leases                                        
|                                                                               
|                                                                               
|Increase
               (Decrease) in Unrealized Gain (Loss)                   
|on Securities
               Available for Sale                                
|                                                                               
|                                                                               
|(Increase)
               Decrease in Deferred Tax                             
|Effect on
               Unrealized Gain (Loss) on Securities                  
|Available for Sale                                                             
|                                                                               
|                                                                               

6

---





Homestead Bancorp, Inc. and Subsidiary

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
September 30, 2001

Note 1 - Basis of Presentation -

The accompanying
consolidated financial statements for the period ended September 30, 2001
include the accounts of Homestead Bancorp, Inc. (the "Company") and
its wholly owned subsidiary, Homestead Bank (the "Bank"). 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
six 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 $62,224
for the nine months ended September 30, 2001 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 2001. Total
dividends paid to stockholders in the first nine months of 2001 was $170,000.

Basic earnings per share is
computed by dividing net income by the weighted average number of shares of
common stock outstanding, which is 905,253 for the nine month period ended
September 30, 2001. 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 1,038,053 for the
nine month period ended September 30, 2001.



7

---



Homestead Bancorp, Inc. and SubsidiaryManagements Discussion and Analysis
of Financial Condition and Results of Operations

September 30, 2001

General

The following discussion compares
the consolidated financial condition of Homestead Bancorp, Inc. (the
"Company") and Subsidiary, Homestead Bank (the "Bank") at
September 30, 2001 to December 31, 2000 and the results of operations for the
three and nine month periods ended September 30, 2001 with the same periods in
2000. 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, 2001, the
Company's total assets, deposits and equity amounted to $120 million, $53.2
million, and $12.3 million respectively compared to $111.6 million, $41.5
million, and $12.4 million respectively at December 31, 2000. The increase in
total assets of $8.4 million or 7.6% was due primarily to an increase of $9.2
million in interest bearing deposits offset by a decrease in the net loan and
lease portfolio of 3.4 million or 4.2%. The increase in interest-bearing
deposits was due primarily to an increase in deposits. The decrease in the net
loan and lease portfolio was due to loan sales and repayments exceeding loan
originations. Investments in Mortgage-Backed securities increased in the first
nine months of 2001 by $1.4 million or 7%, due to new purchases of
Mortgage-Backed securities exceeding repayments.

The Company's
short term borrowing from the Federal Home Loan Bank decreased during the first
nine months of 2001 by $7.3 million or 24.5%. 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 increased during the first nine months of 2001 by $4.4
million or 16.4%. Homestead uses the proceeds from long term borrowing to fund
long term fixed rate mortgages. Deposits with the Bank have increased by $11.7
million or 28.2% in the first nine months of 2001, due primarily to the bank
offering some new higher yielding certificate of deposits. Other liabilities
decreased in the first nine months of 2001 by $333,000. The equity of the
Company decreased $27,000 or .22% in the first nine months of 2001, due
primarily to net income of $417,000 offset by the repurchase of the Company's
common stock in the stock repurchase plan of $563,000 and dividends paid out of
$170,000. At September 30, 2001 the Company had repurchased $4.6 million of it's
common stock. This amount appears in the equity section of the Statement of
Financial Condition as Treasury Stock.

8

---



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
weighting, 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, 2001, that the Bank meets all capital
adequacy requirements to which it is subject.

As of September
30, 2001, 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                                                                                        
|                                                                                                                                                                    |          |                                | (Dollars in Thousands)                                                                        
|As of September 30, 2001:                                                                                                                                           |          |                                |                                                                                               
|Total Capital (to Risk                                                                                                                                              |          |                                |                                                                                               
|Weighted Assets)                                                                                                                                                    | $ 11,542 | 19.84%                         | $ 4,655                                                                                       
|Tier I
                                                                      Capital
                                                                      (to Risk |          |                                |                                                                                               
|Weighted Assets)                                                                                                                                                    | $ 11,217 | 19.28%                         | $ 2,327                                                                                       
|Tier I Capital (to Average                                                                                                                                          |          |                                |                                                                                               
|Assets)                                                                                                                                                             | $ 11,217 | 9.36%                          | $ 4,794                                                                                       
|                                                                                                                                                                    |          |                                |                                                                                               



9

---



Liquidity

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 2001 was $417,000 compared to
$522,000 for the same period of 2000. The decrease in net income of $105,000 or
20.1%, was primarily due to an increase in non-interest expense of $308,000 or
19.4%, offset by an increase in net interest income after provision for
(recovery of) loan and lease losses of $8,000 or .37%, combined with an increase
in non-interest income of $151,000 or 62.6.%. The increase in non-interest
income is due to a increase in gain on sale of loans of $66,000 combined with an
increase in loan fees and service charges of $62,000. Compensation expense
increased by $139,000 or 16.5%, due to the hiring of additional employees for
the new branch office and the increase in salaries.
         Net income for the three months ended September 30, 2001 was $107,000
compared to $185,000 for the same period of 2000. The decrease in net income of
$78,000 or 42.2%, was primarily due to an increase in non-interest expense of
$145,000 or 27.6%, combined with a decrease in net interest income after
provision for (recovery of) loan and lease losses of $18,000 or 2.51%, offset by
an increase in non-interest income of $41,000 or 44.1%. The increase in
non-interest income is due to a increase in loan fees and services of $46,000.
Compensation expense increased by $52,000 or 18.0%, due to the hiring of
additional employees for the new branch and the increase in salaries.

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 2001 was $2.2 million an increase of $12,000 or .56% over the same
period of 2000. This increase in net interest income was primarily attributable
to a decrease in interest expense of $20,000 or .52% offset by a decrease in
interest income of $8,000 or .13%, over the same period of 2000. Factors
contributing to the decrease in interest expense was a decrease in advances from
Federal Home Loan Bank offset with an increase in interest on deposits.
         Net interest income for the first three months of 2001 was $705,000 a
decrease of $19,000 or 2.6% over the same period of 2000. This decrease in net
interest income was primarily attributable to a decrease in interest income of
$139,000 or 6.6%, offset by a decrease in interest expense of $120,000 or 8.7%
over the same period of 2000. 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, 2001 and 2000 was
2.18% and 2.10% respectively.



10

---



The table of Consolidated Average Balance Sheets and Interest Rate Analysis
for the nine months ended September 30, 2001 and 2000 on page 12,
and the corresponding table of Interest Differentials on page 13,
detail the effect the 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
91 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, 2001 were $199,000 compared to $495,000 at September 30,
2000. The percentage of non-accrual loans and leases to total loans and leases
at September 30, 2001 is .25% down from .61% at September 30, 2000.

Real estate owned is properties held for sale acquired through foreclosure or
negotiated settlements of debt. At September 30, 2001 the Bank had real estate
owned of $105,000 compared to $0 at September 30, 2000. Nonperforming assets at
September 30, 2001 were .25% of total assets compared to .44% at September 30,
2000.

Current Events

In the second quarter of 2001, Homestead Bank opened a branch office located
in Walker, La. Walker is a residential community located about 20 miles east of
Baton Rouge, La.



11

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|Homestead Bancorp, Inc. and
               Subsidiary                        
|-----------------------------------------------------------------------------
|CONSOLIDATED AVERAGE BALANCE
               SHEETS AND INTEREST RATE ANALYSIS
|for the nine months ended
               September 30, 2001 and 2000         
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Interest - Earning Assets:                                                   
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Noninterest - Earning Assets                                                 
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Interest - Bearing Liabilities:                                              
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Noninterest - Bearing Liabilities                                            
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Stockholders' Equity                                                         
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|Net Interest Income; Interest Rate
               Spread                     
|                                                                             
|                                                                             
|Net Interest Margin as a % of
               Total Earning Assets            
|                                                                             

12

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|Homestead
               Bancorp, Inc. and Subsidiary               
|--------------------------------------------------------------------
|INTEREST
               DIFFERENTIALS                               
|                                                                    
|for
               the nine months ended September 30, 2001 and 2000
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|                                                                    
|Interest
               - Earning Assets:                           
|                                                                    
|Loans
               and Lease Receivable                           
|Mortgage-Backed
               Securities                           
|Investment
               Securities                                
|Other
               Interest-Earning assets                        
|                                                                    
|Total
               Interest Income                                
|                                                                    
|                                                                    
|Interest
               - Bearing Liabilities:                      
|                                                                    
|Deposits                                                            
|Federal
               Home Loan Bank Advances                      
|                                                                    
|Total
               Interest Expense                               
|                                                                    
|                                                                    
|Increase
               (Decrease) in Interest Differential         
|                                                                    
|                                                                    
|                                                                    

13

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|Homestead
               Bancorp, Inc. and Subsidiary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|FORM
               10-QSB                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|nine
               months Ended September 30, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|PART
               II - OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Item
               1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|There
               are no matters required to be reported under this item.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Item
               2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|There
               are no matters required to be reported under this item.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Item
               3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|There
               are no matters required to be reported under this item.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Item
               4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|There
               are no matters required to be reported under this item.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Item
               5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|There
               are no matters required to be reported under this item.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Item
               6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|a.)Exhibits:
                                               
               No
               exhibits were filed on Form 8-K by the Registrant
                                              
               during
               the quarter ended September 30, 2001.
                                     
               b.)Reports:
                                              
               No
               reports on Form 8-K were filed by the Registrant
                                             
               during
               the quarter ended September 30, 2001.





14

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|SIGNATURES                                                                                                                            
|--------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Pursuant
               to the requirements 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.                        
|                                                                                                                                      
|                                                                                                                                      
|Homestead
               Bancorp, Inc                                                                                                 
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Date:                                                                                                                                 
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Date:                                                                                                                                 
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      





15