|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)                                                 



---



|INDEX                                   
|----------------------------------------
|                                        
|PART
      I - FINANCIAL INFORMATION    
|                                        
|Consolidated
      Financial Statements:
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|Part
      II - OTHER INFORMATION       
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        

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|Homestead
      Bancorp, Inc. and Subsidiary          |                                                
|----------------------------------------------------- | -----------------------------------------------
|CONSOLIDATED
      STATEMENTS OF FINANCIAL CONDITION  |                                                
|As
      of March 31, 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              
|                                                      | $2.5
      million and $2.5 million)           
|                                                      |                                                
|                                                      | Mortgage-Backed
      Securities               
|                                                      | Available
      for Sale (Amortized            
|                                                      | Cost of
      $19 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
|                                           
|                                           
|Advances
      from Federal Home           
|                                           
|                                           
|Income
      Taxes Payable                 
|                                           
|Other
      Liabilities                    
|                                           
|                                           
|                                           
|                                           
|Stockholders'
      Equity as Restated:    
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           

2

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|Homestead
      Bancorp, Inc. and Subsidiary            
|--------------------------------------------------------
|CONSOLIDATED
      STATEMENTS OF INCOME                 
|                                                        
|for
      the three months ended March 31, 2001 and 2000
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Interest
      Income:                                  
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Interest
      Expense:                                 
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Provision
      for (Recovery of) Loan and Lease        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Noninterest
      Income:                               
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Noninterest
      Expense:                              
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Income
      Taxes                                      
|                                                        
|                                                        
|                                                        
|Per
      Share:                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        

3

---





|Homestead
      Bancorp, Inc. and Subsidiary            
|--------------------------------------------------------
|CONSOLIDATED
      STATEMENTS OF STOCKHOLDERS' EQUITY   
|                                                        
|for
      the three months Ended March 31, 2001 and 2000
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Common
      Stock:                                     
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Paid-in
      Capital in Excess of Par:                 
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Retained
      Earnings:                                
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Treasury
      Stock                                    
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Accumulated
      Other Comprehensive Income:           
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Unearned
      Employee Stock Ownership                 
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Director
      & Management Recognition Plans:          
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Comprehensive
      Income:                             
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        

4

---



|Homestead
      Bancorp, Inc. and Subsidiary            
|--------------------------------------------------------
|CONSOLIDATED
      STATEMENTS OF CASH FLOWS             
|                                                        
|for
      the three months ended March 31, 2001 and 2000
|                                                        
|                                                        
|                                                        
|                                                        
|Cash
      Flows From Operating Activities:             
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|Cash
      Flows From Investing Activities:             
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        
|                                                        

5

---



|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|------------------------------------------- | ------------------------------------------------------- | --------------------------------------------------- | ---------------------------------------------------- | -------------------------- | ----- | ----- | --------------- | ----- | ----- | 
|                                            |                                                         |                                                     |                                                      |                            |       |       | (UNAUDITED)     |      
|                                            |                                                         |                                                     |                                                      |                            |       |       | March
      31, |      
|                                            |                                                         |                                                     |                                                      |                            |       |       | 2001            |       | 2000  | 
|Cash
      Flows From Financing Activities: |                                                         |                                                     |                                                      |                            |      
|                                            | Acquisition
      of Treasury Stock                     |                                                     |                                                      | (513)                      |       | (46)  |                
|                                            | Net
      Increase (Decrease) in Money Market Accounts, |                                                     |                                                      |                            |       |       |                
|                                            |                                                         | NOW
      Accounts and Savings Accounts             |                                                      | 433                        |       | (404) |                
|                                            | Net
      Increase (Decrease) in Certificates           |                                                     |                                                      |                            |       |      
|                                            |                                                         | of
      Deposit                                    |                                                      |                            |       | 2,322 |                 | 2,795 |      
|                                            | Proceeds
      from (Repayment of) Federal Home         |                                                     |                                                      |                            |       |      
|                                            |                                                         | Loan
      Bank Advances                            |                                                      |                            | (969) |       | 3,357           |      
|                                            | Increase
      (Decrease) in Advances from              |                                                     |                                                      |                            |       |       |                
|                                            |                                                         | Borrowers
      for Taxes and Insurance             |                                                      |                            | (42)  |       | (3)             |      
|                                            | Dividends
      Paid on Common Stock                    |                                                     | (57)                                                 |                            | (68)  |      
|                                            | Purchase
      of Federal Home Loan Bank Stock          |                                                     | 0                                                    |                            | (122) |      
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|                                            |                                                         |                                                     | Net
      Cash Provided by (Used In)                 |                            |       |       |                 |       |      
|                                            |                                                         |                                                     |                                                      | Financing
      Activities |       |       | 1,174           |       | 5,509 | 
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|Net
      Increase (Decrease) in Cash and   |                                                         |                                                     |                                                      |                            |      
|Cash
      Equivalents                      |                                                         |                                                     | 3,597                                                |                            | 2,081 |      
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|Cash
      and Cash Equivalents -           |                                                         |                                                     |                                                      |                            |      
|Beginning
      of Period                   |                                                         |                                                     | 2,033                                                |                            | 889   |      
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|Cash
      and Cash Equivalents -           |                                                         |                                                     |                                                      |                            |      
|End
      of Period                         |                                                         | $                                                   | 5,630                                                | $                          | 2,970 |      
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|Supplemental
      Disclosures of Cash flow |                                                         |                                                     |                                                      |                            |      
|                                            | Information:                                            |                                                     |                                                      |                            |       |       |                 |      
|                                            |                                                         | Cash
      Payments for:                            |                                                      |                            |       |       |                 |      
|                                            |                                                         |                                                     | Interest
      Paid to Depositors                    |                            | $     | 548   | $               | 450   |      
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|                                            |                                                         |                                                     | Interest
      Paid on Borrowings                    |                            | $     | 788   | $               | 759   |      
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|                                            |                                                         |                                                     | Income Taxes                                         |                            | $     | 71    | $               | 28    |      
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|Supplemental
      Schedules of Noncash     |                                                         |                                                     |                                                      |                            |      
|                                            | Investing
      and Financing Activities:               |                                                     |                                                      |                            |       |       |                
|                                            |                                                         | Real
      Estate Acquired in Settle-               |                                                      |                            |       |       |                 |      
|                                            |                                                         |                                                     | ment
      of Loans and Leases                       |                            | $     | 14    | $               | 15    |      
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|                                            |                                                         | Increase
      (Decrease) in Unrealized Gain (Loss) |                                                      |                            |       |       |                 |      
|                                            |                                                         |                                                     | on
      Securities Available for Sale               |                            | $     | 158   | $               | (16)  |      
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 
|                                            |                                                         | (Increase)
      Decrease in Deferred Tax           |                                                      |                            |       |       |                 |      
|                                            |                                                         |                                                     | Effect
      on Unrealized Gain (Loss) on Securities |                            |       |       |                 |       |      
|                                            |                                                         |                                                     | Available
      for Sale                             |                            | $     | (52)  | $               | (5)   |      
|                                            |                                                         |                                                     |                                                      |                            |       |       |                 |       |       | 

6

---





Homestead Bancorp, Inc. and Subsidiary

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)
March 31, 2001

Note 1 - Basis of Presentation -

The accompanying consolidated
financial statements for the period ended March 31, 2001 include the accounts of
Homestead Bancorp, Inc. (the ACompany@)
and its wholly owned subsidiary, Homestead Bank (the ABank@).
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 $20,353 for the three months ended March 31, 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 quarter of 2000. Total dividends paid to
stockholders in the first three months of 2001 was $57,000.

Basic earnings per share is
computed by dividing net income by the weighted average number of shares of
common stock outstanding, which is 923,535 for the three month period ended
March 31, 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 1,056,412 for the
three month period ended March 31, 2001.



7

---



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

March 31, 2001

General

The following discussion compares
the consolidated financial condition of Homestead Bancorp, Inc. (the ACompany@)
and Subsidiary, Homestead Bank (the ABank@)(formerly
Ponchatoula Homestead Savings, F.A.), at March 31, 2001 to December 31, 2000 and
the results of operations for the three month period ended March 31, 2001 with
the same period 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 March 31, 2001, the Company=s
total assets, deposits and equity amounted to $112.8 million, $44.3 million, and
$12.1 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 $1.2
million or 1.1% was due primarily to an increase of $3.7 million interest
bearing deposits offset by a decrease in the net loan and lease portfolio of 1.4
million or 1.7%. The increase in interest-bearing deposit 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 decreased in the first three months of 2001 by $1.7
million or 8.3%, due to repayment of Mortgage-Backed securities exceeding new
purchases.

The Company=s
short term borrowing from the Federal Home Loan Bank decreased during the first
three months of 2001 by $500,000 or 1.7%. 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
three months of 2001 by $469,000 or 1.7%. Homestead uses the proceeds from long
term borrowing to fund long term fixed rate mortgages. Deposits with the Bank
have increased by $2.8 million or 6.6% in the first three months of 2001, due
primarily to the bank offering some new higher yielding certificate of deposits.
Other liabilities decreased in

8

---



the first three months of 2001 by $246,000. The
equity of the Company decreased $287,000 or 2.3% in the first three months of
2001, due primarily to net income of $151,000 offset by the repurchase of the
Company=s common stock in the stock
repurchase plan of $513,000 and dividends paid out of $57,000. At March 31, 2001
the Company had repurchased $4.5 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 March 31, 2001, that the Bank meets all capital adequacy requirements to
which it is subject.

As of March 31, 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.



To Be WellCapitalized UnderFor Capital
    Prompt CorrectiveActual
    Adequacy Purposes:
    Action Provisions:Amount
    Ratio
    Amount    
      Ratio
    Amount Ratio(Dollars in Thousands)
  As of March 31, 2001:
  Total Capital (to Risk
  Weighted Assets)
    $ 11,124
    20.09%
    $ 4,430   >/=  
      8.0%
    $
      5,537   >/= 10.0%Tier I Capital (to RiskWeighted Assets)
    $ 10,799
    19.50%
    $ 2,215  
      >/=   4.0%
    $ 3,322  
      >/=  6.0%Tier I Capital (to AverageAssets)
    $ 10,799
    9.58%
    $ 4,510  
      >/=   4.0%
    $ 5,637  
      >/=  5.0%




9

---

Liquidity



The Bank is required under
applicable federal regulations to maintain specific levels of Aliquid@
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 three
months of 2001 was $151,000 compared to $144,000 for the same period of 2001.
The increase in net income of $7,000 or 4.9%, was primarily due to an increase
in net interest income after provision for (recovery of) loan and lease losses
of $24,000 or 3.5%, combined with an increase in non-interest income of $50,000
or 71.%, offset by and increase in non-interest expense of $71,000 or 13.3%. The
increase in non-interest income is due to a increase in gain on sale of loans of
$34,000. Compensation expense increased by $50,000 or 18.1%, due to the hiring
on additional employees 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 three months of 2001
was $720,000 an increase of $22,000 or 3.1% over the same period of 2000. This
increase in net interest income was primarily attributable to an increase in
interest income of $149,000 or 7.8%, offset by an increase in interest expense
of $127,000 or 10.5% over the same period of 2000. One of the factors
contributing to the increase in interest income was an increase in the volume of
the Company=s loan and lease
portfolio, offset with a decrease 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 three months ended March 31, 2001 and 2000 was
2.64% and 2.65% respectively.

The table of Consolidated Average
Balance Sheets and Interest Rate Analysis for the nine months ended March 31,
2001 and 1999 on page 12, and the corresponding
table of Interest Differentials on page 13, 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.



10

---



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 March 31, 2001 were
$125,000 compared to $179,000 at March 31, 2000. The percentage of non-accrual
loans and leases to total loans and leases at March 31, 2001 is .16% down from
 .26% at March 31, 2000.

Real estate owned is properties
held for sale acquired through foreclosure or negotiated settlements of debt. At
March 31, 2001 the Bank had real estate owned of $13,000 compared to $15,000 at
March 31, 2000. Nonperforming assets at March 31, 2001 were .12% of total assets
compared to .16% at March 31, 2000.

Current Events

In the first quarter of 2001,
Homestead Bank continued the construction of its third branch office located in
Walker, La. 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.

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.

Recent Accounting Pronouncements

In September 2000, the FASB issued
SFAS No. 140, AAccounting for
Transfers and Servicing of Financial Assets and Extinguishment of Liabilities.@
This statement replaces SFAS 125, by revising and clarifying the standards for
accounting for transfers of financial assets and collateral, and by requiring
additional disclosures. The provisions of SFAS No. 140 are effective for
transfers and servicing of financial assets occurring after March 31, 2001. The
adoption of SFAS No. 140 is not expected to have a material impact on the
Company=s financial position or
results of operations.

11

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Homestead
        Bancorp, Inc. and SubsidiaryCONSOLIDATED
        AVERAGE BALANCE SHEETS AND INTEREST RATE ANALYSISfor
        the three months ended March 31, 2001 and 2000three
        months Ended
      
      three
        months EndedMarch
        31, 2001
      
      March
        31, 2000AVERAGE
      
      YIELD/
      
      AVERAGE
      
      YIELD/BALANCE
      INTEREST
      RATE
      
      BALANCE
      INTEREST
      RATE(In
        Thousands)
      (In
        Thousands)
      
      
      (In
        Thousands)
      (In
        Thousands)Interest
        - Earning Assets:Loans
        and Leases Receivable
      $
      81,062
      1,606
      7.93%
      $
      73,857
      1,425
      7.72%Mortgage
        - Backed Securities
      
      19,103
      330
      6.92%
      
      23,488
      370
      6.30%Investment
        Securities
      
      5,489
      78
      5.69%
      
      5,171
      81
      6.26%Other
        Interest - Earning Assets
      
      3,325
      42
      5.05%
      
      2,716
      31
      4.60%Total
        Interest - Earning Assets
      $
      108,979
      2,056
      7.55%
      $
      105,232
      1,907
      7.25%Noninterest
        - Earning Assets
      
      3,189
      
      
      
      2,102Total
        Assets
      $
      112,168
      
      
      $
      107,334Interest
        - Bearing Liabilities:Deposits
      $
      43,101
      548
      5.09%
      $
      40,588
      450
      4.43%Federal
        Home Loan Bank Advances
      
      56,143
      788
      5.61%
      
      53,169
      759
      5.71%Total
        Interest-bearing Liabilities
      $
      99,244
      1,336
      5.38%
      $
      93,757
      1,209
      5.16%Noninterest
        - Bearing Liabilities
      
      758
      
      
      
      493Total
        Liabilities
      $
      100,002
      
      
      $
      94,250Stockholders'
        Equity
      $
      12,166
      
      
      $
      13,084Total
        Liabilities and Stockholders' Equity
      $
      112,168
      
      
      $
      107,334Net
        Interest Income; Interest Rate Spread


      $
      720
      2.17%
      
      $
      698
      2.09%Net
        Interest Margin as a % of Total Earning Assets



      
      2.64%
      
      
      
      2.65%


12

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|Homestead
      Bancorp, Inc. and Subsidiary             |                                       |  
|-------------------------------------------------------- | ------------------------------------- | -
|INTEREST
      DIFFERENTIALS                             |                                       |  
|                                                         |                                       |  
|for
      the three months ended March 31, 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       | $                                     | 9
|                                                         |                                       |  
|                                                         |                                       |  

13

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Homestead
      Bancorp, Inc. and Subsidiary

FORM 10-QSB

|Three
      Months Ended March 31, 2001
|---------------------------------------
|                                       
|                                       
|PART
      II - OTHER INFORMATION      
|                                       
|                                       
|Item
      1                           
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|Item
      2                           
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|Item
      3                           
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|Item
      4                           
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|Item
      5                           
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|                                       
|Item
      6                           
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|                                       
|                                       
|                                       

14

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|SIGNATURES                                                                                                                                                                                                 
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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|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.
|                                                                                                                                                                                                           
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|Homestead
      Bancorp, Inc                                                                                                                                                                               
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|Date:                                                                                                                                                                                                      
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|Date:                                                                                                                                                                                                      
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