UNITED
      STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM 10-QSBQUARTERLY
      REPORT UNDER SECTION 13 OR 15(d)OF THE
      SECURITIES EXCHANGE ACT OF 1934Homestead Bancorp, Inc.(Exact Name
      of Registrant as specified in its charter)(985)
      386-3379Louisiana
      
      
      72-1416514(State of incorporation or organization)
      
      
      (IRS Employer Identification No.)195 North Sixth StreetPonchatoula, Louisiana
      
      
      
      70454(Address of principal executive office)
      
      
      
      (including zip code)Securities
      to be registered pursuant to Section 12(b) of the Act:NONESecurities
      to be registered pursuant to Section 12(g) of the Act:Common Stock, par value $.01 per share(Title of
      Class)




---





INDEXPART I - FINANCIAL INFORMATIONConsolidated Financial Statements:PageConsolidated Statements of Financial Condition -March 31 2003 and December 31, 2002
      1 - 2Consolidated Statements of Income -for the three month period endedMarch 31 2003 and 2002
      3Consolidated Statements of Stockholders' Equityfor the three months ended March 31 2003and 2002
      4Consolidated Statements of Cash Flows -for the three months ended March 31 2003and 2002
      5 - 6Notes to Consolidated Financial Statements
      7 - 8Management's Discussion and Analysis of FinancialCondition and Results of Operations
      9 - 13Controls and Procedures
      14Part II - OTHER INFORMATIONLegal Proceedings
      15Changes in Securities
      15Defaults Upon Senior Securities
      15Submission of Matters to a Vote of Security Holders
      15Other Information
      15Exhibits and Reports on Form 8-K
      15Signatures
      16Certification
      17 - 20Independent Auditor's Report
      21




---





Homestead Bancorp, Inc. and SubsidiaryCONSOLIDATED STATEMENTS OF FINANCIAL CONDITIONAs of March
      31, 2003 and December 31, 2002ASSETS(UNAUDITED)March 31,
      
      December
      31,2003
      
      2002(In
      Thousands)Cash and Cash Equivalents
      $
      2,125
      $
      2,459Interest-bearing Deposits in Other Institutions
      
      4,891
      
      18,627Securities:Investment Securities Availablefor Sale (Amortized Cost of$301,000 and $701,000)
      
      301
      
      704Mortgage-Backed SecuritiesAvailable for Sale (AmortizedCost of $59.1 million and $43.3 million)
      
      59,642
      
      44,152Other
      
      
      340
      
      300Federal Home Loan Bank Stock, at Cost
      
      3,191
      
      3,171Total Securities
      
      63,474
      
      48,327Loans Held for Sale
      
      1,122
      
      677Loans Receivable
      
      
      58,432
      
      63,138Leases Receivable
      
      212
      
      215Total Loans and Leases Receivable
      
      58,644
      
      63,353Less: Allowance for Loan and Lease Losses
      
      (347)
      
      (340)Net Loans and Leases Receivable
      
      58,297
      
      63,013Real Estate Owned
      
      --
      
      --Premises and Equipment, Net
      
      1,689
      
      1,707Accrued Interest Receivable
      
      630
      
      605Other Assets
      
      
      116
      
      57Total Assets
      $
      132,344
      $
      135,472continued




1

The accompanying notes are an integral part
of these financial statements.

---





LIABILITIES AND STOCKHOLDERS' EQUITY(UNAUDITED)March 31,
      
      December
      31,2003
      
      2002(In
      Thousands)Deposits
      $
      64,961
      $
      67,124Advances from Borrowers for Taxes andInsurance
      
      60
      
      52Advances from Federal HomeLoan Bank
      
      53,082
      
      53,964Income Taxes Payable
      
      348
      
      591Other Liabilities
      
      418
      
      216Total Liabilities
      
      118,869
      
      121,947Stockholders' EquityCommon Stock - $.01 Par Value;10,000,000 Shares Authorized, 1,477,870Shares Issued in 2003and 2002
      
      15
      
      15Paid-in Capital in Excess of Par
      
      12,944
      
      12,938Retained Earnings - Substantially Restricted
      
      5,462
      
      5,408Accumulated Other
      Comprehensive Income
      
      419
      
      55218,840
      
      18,913Treasury Stock - 553,024 shares at cost in2003 and 2002
      
      (4,703)
      
      (4,703)Unearned ESOP Shares
      
      (470)
      
      (493)Common Stock Acquired by
      Recognition Plans
      
      (192)
      
      (192)Total Stockholders' Equity
      
      13,475
      
      13,525Total Liabilities and Stockholders'Equity
      $
      132,344
      $
      135,472


2

The accompanying notes are an integral part
of these financial statements.

---



Homestead Bancorp, Inc. and
      SubsidiaryCONSOLIDATED STATEMENTS OF INCOMEfor the three months ended March 31, 2003 and 2002(Unaudited)three Months EndedMarch 31,2003
      
      2002(In Thousands)Interest Income:Loans and Leases
      $
      1,113
      $
      1,387Mortgage-Backed Securities
      
      540
      
      498Investment Securities
      
      25
      
      56Other
      
      72
      
      33Total Interest Income
      
      1,750
      
      1,974Interest Expense:Deposits
      
      406
      
      535Borrowings
      
      628
      
      666Total Interest Expense
      
      1,034
      
      1,201Net Interest Income
      
      716
      
      773Provision for (Recovery of) Loan and LeaseLosses
      
      7
      
      (11)Net Interest Income After Provision for(Recovery of) Loan and Lease
      Losses
      
      709
      
      784Noninterest Income:Gain on Sale of Loans
      
      6
      
      3Loan Fees and Service Charges
      
      160
      
      84Other Income
      
      20
      
      2Total Noninterest Income
      
      186
      
      89Noninterest Expense:Compensation and Benefits
      
      409
      
      372Occupancy and Equipment Expense
      
      65
      
      67Federal Insurance Premium
      
      3
      
      2Net Real Estate Owned Expense
      
      --
      
      --Other
      
      267
      
      230Total Noninterest Expense
      
      744
      
      671Income Before Provision for Income Taxes
      
      151
      
      202Income Taxes
      
      47
      
      72Net Income
      $
      104
      $
      130Per Share:Earnings Per Common Share
      
      0.12
      
      0.15Earnings Per Common Share - Assuming Dilution
      
      0.11
      
      0.13Cash Dividends Declared
      
      0.06
      
      0.06


3

The accompanying notes are an integral part
of these financial statements.

---



|Homestead
    Bancorp, Inc. and Subsidiary            
|------------------------------------------------------
|CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY       
|                                                      
|for the three
    months ended March 31, 2003 and 2002
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|Common Stock:                                         
|                                                      
|                                                      
|                                                      
|Paid-in Capital in Excess of Par:                     
|                                                      
|                                                      
|                                                      
|                                                      
|Retained Earnings:                                    
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|Accumulated Other Comprehensive Income:               
|                                                      
|                                                      
|                                                      
|                                                      
|Treasury Stock                                        
|                                                      
|                                                      
|                                                      
|                                                      
|Unearned Employee Stock Ownership                     
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|Director & Management Recognition Plans:              
|                                                      
|                                                      
|                                                      
|                                                      
|Comprehensive Income:                                 
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      
|                                                      

4

The accompanying notes are an integral part
of these financial statements.

---





Homestead Bancorp, Inc. and SubsidiaryCONSOLIDATED STATEMENTS OF CASH FLOWSfor the
      three months ended March 31, 2003 and 2002(UNAUDITED)March 31,2003
      
      2002(In
      Thousands)Cash Flows From Operating Activities:Net Income
      
      $
      104
      $
      130Adjustments to Reconcile Net Incometo Net Cash Provided by (Used in) OperatingActivities:Depreciation
      
      21
      
      18Provision for (Recovery of)Loan and Lease Losses
      
      7
      
      (11)Net Amortization(Accretion) of Premiums(Discounts) on
      Securities
      
      32
      
      18Stock Dividends on Federal HomeLoan Bank Stock
      
      (20)
      
      (23)Unrealized Gain on Trading Security
      
      (40)
      
      (8)Other
      
      
      34
      
      15Change in Assets and LiabilitiesNet (Increase) Decrease in LoansHeld for Sale
      
      (445)
      
      229(Increase) Decrease in AccruedInterest Receivable
      
      (25)
      
      (61)(Increase) Decrease in OtherAssets
      
      (59)
      
      (9)Increase (Decrease) in IncomeTaxes Payable
      
      (174)
      
      264Increase (Decrease) in OtherLiabilities
      
      202
      
      (93)Net Cash Provided by (Used in) Operating Activities
      
      (363)
      
      469Cash Flows From Investing Activities:Purchases of Property and Equipment
      
      (3)
      
      (16)Purchases of Real Estate Owned
      
      --
      
      --Maturities of Investment Securities
      
      400
      
      300Purchases of Investment Securities
      
      --
      
      --Maturities of Mortgage-Backed Securities
      
      8,213
      
      1,846Purchases of Mortgage-BackedSecurities
      
      
      (23,934)
      
      (10,467)Net (Increase) Decrease in Loans and LeasesReceivable
      
      
      4,709
      
      1,373Net Cash Provided by (Used in) Investing Activities
      
      (10,615)
      
      (6,964)continued


5

The accompanying notes are an integral part
of these financial statements.

---





|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|------------------------------------- | ------------------------------------------------- | --------------------------------------------- | ---------------------------------------------- | ----- | ------- | ------------------------------ | ----- | ------------------ |  | -----
|                                      |                                                   |                                               |                                                |       |         |                                |       | (UNAUDITED)       
|                                      |                                                   |                                               |                                                |       |         |                                |       | March 31,         
|                                      |                                                   |                                               |                                                |       |         |                                |       | 2003               |  | 2002 
|                                      |                                                   |                                               |                                                |       |         |                                |       | (In
    Thousands)
|Cash Flows From Financing Activities: |                                                   |                                               |                                                |      
|                                      | Acquisition of Treasury Stock                     |                                               | 0                                              |       | (107)  
|                                      | Net Increase (Decrease) in Money Market Accounts, |                                               |                                                |       |        
|                                      |                                                   | NOW Accounts and Savings Accounts             |                                                | 2,750 |         | 784                           
|                                      | Net Increase (Decrease) in Certificates           |                                               |                                                |       |        
|                                      |                                                   | of Deposit                                    |                                                |       | (4,913) |                                | 879  
|                                      | Proceeds from (Repayment of) Federal Home         |                                               |                                                |       |        
|                                      |                                                   | Loan Bank Advances                            |                                                | (882) |         | 4,237                         
|                                      | Increase (Decrease) in Advances from              |                                               |                                                |       |        
|                                      |                                                   | Borrowers for Taxes and Insurance             |                                                | 8     |         | (7)                           
|                                      | Dividends Paid on Common Stock                    |                                               | (55)                                           |       | (56)   
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|                                      |                                                   |                                               |                                                |       |         | Net Cash Provided by (Used In) |       |                    |  |      
|                                      |                                                   |                                               |                                                |       |         | Financing Activities           |       | (3,092)            |  | 5,730
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|Net Increase (Decrease) in Cash and   |                                                   |                                               |                                                |      
|                                      | Cash Equivalents                                  |                                               | (14,070)                                       |       | (765)  
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|Cash and Cash Equivalents -           |                                                   |                                               |                                                |      
|                                      | Beginning of Period                               |                                               | 21,086                                         |       | 6,100  
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|Cash and Cash Equivalents -           |                                                   |                                               |                                                |      
|                                      | End of Period                                     |                                               | $                                              | 7,016 | $       | 5,335                         
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|Supplemental Disclosures of Cash flow |                                                   |                                               |                                                |      
|                                      | Information:                                      |                                               |                                                |       |         |                               
|                                      |                                                   | Cash Payments for:                            |                                                |       |         |                               
|                                      |                                                   |                                               | Interest Paid to Depositors                    | $     | 406     | $                              | 544  
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|                                      |                                                   |                                               | Interest Paid on Borrowings                    | $     | 628     | $                              | 666  
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|                                      |                                                   |                                               | Income Taxes                                   | $     | 62      | $                              | 72   
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|Supplemental Schedules of Noncash     |                                                   |                                               |                                                |      
|                                      | Investing and Financing Activities:               |                                               |                                                |       |        
|                                      |                                                   | Real Estate Acquired in Settle-               |                                                |       |         |                               
|                                      |                                                   |                                               | ment of Loans and Leases                       | $     | --      | $                              | 123  
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|                                      |                                                   | Loan made on Sale of Real Estate Owned        | $                                              | --    | $       | --                            
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|                                      |                                                   | Increase (Decrease) in Unrealized Gain (Loss) |                                                |       |         |                               
|                                      |                                                   |                                               | on Securities Available for Sale               | $     | 202     | $                              | (226)
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      
|                                      |                                                   | (Increase) Decrease in Deferred Tax           |                                                |       |         |                               
|                                      |                                                   |                                               | Effect on Unrealized Gain (Loss) on Securities |       |         |                                |      
|                                      |                                                   |                                               | Available for Sale                             | $     | 69      | $                              | 77   
|                                      |                                                   |                                               |                                                |       |         |                                |       |                    |  |      

6

The accompanying notes are an integral part
of these financial statements.

---





Homestead Bancorp, Inc. and Subsidiary

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)
March 31, 2003 and 2002

**Note 1 - Basis of Presentation -**

The accompanying consolidated financial statements for the periods ended March 31, 2003 and
2002 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 consolidated interim 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 accounting principles generally accepted in the United States of America.  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.  It is noted that the
results for the first three months ended March 31, 2003 are no indication of the expected results for the
annual period which ends December 31, 2003.  Additional information concerning the audited financial
statements and notes can be obtained from Homestead Bancorp, Inc.'s annual report and Form 10KSB
filed for the period ended December 31, 2002.

**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 $28,795 for the
three months ended March 31, 2003 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 2003.  Total
dividends paid to stockholders in the first three months of 2003 were $55,000.

Basic earnings per share is computed by dividing net income by the weighted average number
of shares of common stock outstanding, which is 900,762 and 880,933  for the three month period
ended March 31, 2003 and 2002.  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 954,413 and 1,013,733  for the three month period ended March
31, 2003 and 2002.



7

---





**Note 4 - Stock Option and Management Recognition Plans -**

The Company applies APB Opinion 25 and related interpretations in accounting for its stock option and
management recognition plans.  Had compensation cost for the Company's stock-based compensation
plans been determined based on the fair value of the grant dates for awards under those plans consistent
with the methods of SFAS No. 123, the Company's net income and earnings per common share would
have changed to the proforma amounts indicated below:



|                   |             | March 31,            
|------------------ | ----------- | ---------------------
|                   |             | 2003                 
|                   |             | Dollars in Thousands)
|                   |             |                      
|Net Income         | As Reported | $104                 
|                   | Proforma    | $114                 
|                   |             |                      
|Earnings Per Share | As Reported | $0.12                
|                   | Proforma    | $0.13                



**Note 5 - Recent Accounting Pronouncements -**

In February 2002, the American Institute of Certified Public Accountants (AICPA) issued
Statement of Position  (SOP) No. 01-6.  SOP 01-6 provides industry-specific guidance and disclosure
requirements regarding the accounting for certain transactions by banks, savings institutions and other
entities that lend to or finance the activities of others.  This pronouncement provides guidance
concerning the recognition and measurement of loans, credit losses, investments in Federal Home Loan
Bank or Federal Reserve Bank stock, deposit accounts, and purchases and sales of securities.  SOP 01-6 is effective for annual and interim financial statements for fiscal years beginning after December 15,
2002. The company has adopted the provisions of SOP 01-6 effective January 1, 2002.  The adoption
of SOP 01-6 did not have a material impact on the Company's financial position or results of
operations as of March 31, 2003.

**Note 6 - Forward-Looking Statements  -**

This quarterly report on Form 10-Q includes statements that may constitute forward-looking
statements, usually containing the words "believe", "estimate", "expect", "intend", or similar
expressions.  These statements are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.  Forward-looking statements inherently involve risks and uncertainties
that could cause actual results to differ materially from those reflected in the forward-looking
statements.  Factors that could cause future results to vary from current expectations include, but not
limited to, the following: changes in economic conditions (both generally and more specifically in the
markets in which the company operates); changes in interest rates, deposit flows, and loan demand;
changes in real estate values; changes in competition; changes in accounting principles, policies, or
guidelines, and changes in government legislation and regulation (which change from time to time and
over which the Company has no control); and other risks detailed in this quarterly report on Form 10-Q
and the Company's other Securities and Exchange Commission filings.  Readers are cautioned not to
place undue reliance on these forward-looking statements, which reflect management's analysis only as
of the date hereof.  The Company undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the date hereof.



8

---





**Homestead Bancorp, Inc. and SubsidiaryManagement's Discussion and Analysis
of Financial Condition and Results of Operations**

March 31, 2003 and 2002

**General**

The following discussion compares the consolidated financial condition of Homestead Bancorp,
Inc. (the "Company") and Subsidiary, Homestead Bank (the "Bank") at March 31, 2003 to December
31, 2002 and the results of operations for the three month period ended March 31, 2003 with the same
period in 2002.  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 depend 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, 2003, the Company's total assets, deposits and equity amounted to $132.3
million, $65 million, and $13.5 million respectively compared to $135.5 million, $67.1 million, and
$13.5 million respectively at December 31, 2002. The decrease in total assets of $3.2 million or 2.4%
was due primarily to a decrease of $13.7 million in interest bearing deposits in other institutions,
combined with a decrease in net loan and lease portfolio of $4.7 million of 7.5%, offset by an increase
in investments in Mortgage-Backed Securities of $15.5 million or 35.1%.  The decrease in interest
bearing deposits in other institutions was due to the company's increased investing in Mortgage-Backed Securities.  The decrease in the net loan and lease portfolio was due to loan sales and
repayments exceeding loan originations.

The Company's short term borrowing from the Federal Home Loan Bank during the first three
months of 2003 was $21.5 million.  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
2003 by $882,000 or 1.6%.  The Bank uses the proceeds from long term borrowing to fund long term
fixed rate mortgages.  Deposits with the Bank  have decreased by $2.2 million or 3.2% in the first three
months of 2003, due primarily to the decrease in rates paid on deposits.  The equity of the Company
decreased $50,000 or .4% in the first three months of 2003, due primarily to net income of $104,000
offset by dividends paid out of $55,000, and the change in unrealized gain on available for sales
securities of $133.000.  At March 31, 2003 the Company had repurchased $4.7 million of its common
stock.  This amount appears in the equity section of the Statement of Financial Condition as Treasury
Stock.



9

---





**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 March 31, 2003, that the Bank meets all
capital adequacy requirements to which it is subject.

As of March 31, 2003, 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 Corrective Action Provisions:
|---------------------------------------- | ---------------------- | ------------------------------ | ---------------------------------------------------------------------------
|                                         | Amount                 | Ratio                          | Amount                                                                     
|                                         | (Dollars in Thousands)
|As of March 31, 2003:                    |                        |                                |                                                                            
|Total Capital (to Risk                   |                        |                                |                                                                            
|Weighted Assets)                         | $ 12,119               | 25.32%                         | $ 3,829                                                                    
|Tier I Capital (to Risk                  |                        |                                |                                                                            
|Weighted Assets)                         | $ 11,794               | 24.64%                         | $ 1,914                                                                    
|Tier I Capital (to Average 
     Assets) | $ 11,794               | 8.97%                          | $ 5,257                                                                    



10

---





**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 5% of its average daily balance of net withdrawable deposit accounts and
borrowings  payable in one year or less of which short-term liquid assets must consist of not less than
1%.

**Results of Operations**

Net income for the first three months of 2003 was $104,000 compared to $130,000 for the same
period of 2002.  The decrease in net income of $26,000 or 20%, was primarily due to a decrease in net
interest income of $57,000 or 7.4%, combined with an increase in non-interest expense of $73,000 or
10.9% offset by an increase in non-interest income  of $97,000 or 109%.  The increase in non-interest
income was due primarily to the company increase in sales of loans on the secondary market.
Compensation expense increased by $37,000 or 9.9%, due to 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 2003 was $716,000  a decrease of $57,000 or 7.4% over the same
period of 2002.  This decrease in net interest income was primarily attributable to a decrease in interest
income of $224,000 or 11.4% offset by a decrease in interest expense of $167,000  or 13.9%, over the
same period of 2002.  The decrease in interest income was due to a decrease in interest on loans and
leases and the decline in interest rates.

The table of Consolidated Average Balance Sheets and Interest Rate Analysis for the three
months ended March 31, 2003 and 2002 on page 12, and the corresponding table of Interest
Differentials on page 13, detail the effect of 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 March 31, 2003 were $587,000 compared to $186,000 at March 31, 2002.  The
percentage of non-accrual loans and leases to total loans and leases at March 31, 2003 is 1.0% up from
..27% at March 31, 2002.

Real estate owned is properties held for sale acquired through foreclosure or negotiated
settlements of debt.  At March 31, 2003 the Bank had real estate owned of $0 compared to $123,000 at
March 31, 2002.  Nonperforming assets at March 31, 2003 were .44% of total assets compared to .23%
at March 31, 2002.



11

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Homestead Bancorp, Inc. and SubsidiaryCONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST RATE
      ANALYSISfor the three months ended March 31 2003 and 2002three months ended
      
      three months endedMarch 31 2003
      
      March 31 2002AVERAGE
      
      YIELD/
      
      AVERAGE
      
      YIELD/BALANCE
      INTEREST
      RATE
      
      BALANCE
      INTEREST
      RATE(In Thousands)
      (In Thousands)
      
      
      (In Thousands)
      (In Thousands)Interest - Earning Assets:Loans and Leases Receivable
      $
      59,940
      1,113
      7.42%
      $
      73,910
      1,387
      7.50%Mortgage - Backed Securities
      
      56,827
      540
      3.80%
      
      37,493
      498
      5.32%Investment Securities
      
      
      3,614
      25
      2.77%
      
      4,941
      56
      4.50%Other Interest - Earning Assets
      
      7,798
      72
      3.69%
      
      6,236
      33
      2.16%Total Interest - Earning Assets
      $
      128,179
      1,750
      5.46%
      $
      122,580
      1,974
      6.44%Noninterest - Earning Assets
      
      
      5,677
      
      
      
      4,064Total Assets
      
      
      $
      133,856
      
      
      $
      126,644Interest - Bearing Liabilities:Deposits
      
      
      $
      65,830
      406
      2.47%
      $
      57,152
      535
      3.74%Federal Home Loan Bank Advances
      
      53,377
      628
      4.71%
      
      56,825
      666
      4.69%Total Interest-bearing Liabilities
      $
      119,207
      1,034
      3.47%
      $
      113,977
      1,201
      4.22%Noninterest - Bearing Liabilities
      
      1,108
      
      
      
      474Total Liabilities
      
      $
      120,315
      
      
      $
      114,451Stockholders' Equity
      
      
      $
      13,541
      
      
      $
      12,193Total Liabilities and Stockholders'
      Equity
      $
      133,856
      
      
      $
      126,644Net Interest Income; Interest Rate
      Spread
      
      $
      716
      1.99%
      
      $
      773
      2.22%Net Interest Margin as a % of Total
      Earning Assets
      
      
      
      2.23%
      
      
      
      2.52%


12

The accompanying notes are an integral part
of these financial statements.



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Homestead Bancorp, Inc. and SubsidiaryINTEREST DIFFERENTIALSfor the
      three months ended March 31, 2003 and 2002March 31
      2003 VS March 31 2002CHANGE
      DUE TO
      
      TOTALVOLUME
      
      RATE
      
      CHANGE(In
      Thousands)Interest - Earning Assets:Loans and Lease Receivable
      $
      (259)
      $
      (15)
      $
      (274)Mortgage-Backed Securities
      
      210
      
      (168)
      
      42Investment Securities
      
      (12)
      
      (19)
      
      (31)Other Interest-Earning assets
      
      11
      
      28
      
      39Total Interest Income
      $
      (50)
      $
      (174)
      $
      (224)Interest - Bearing Liabilities:Deposits
      
      $
      72
      $
      (201)
      $
      (129)Federal Home Loan Bank Advances
      
      (40)
      
      2
      
      (38)Total Interest Expense
      $
      32
      $
      (199)
      $
      (167)Increase (Decrease) in Interest Differential
      $
      (82)
      $
      25
      $
      (57)


13

The accompanying notes are an integral part
of these financial statements.



---





**Controls and Procedures**

The Company's President, acting as its Chief Executive Officer and the
Company's Treasurer, acting as its Chief Financial Officer after evaluating the
effectiveness of the Company's disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14(c) and 15-d-14 (c) as of a date within 90 days of the
filing date of the quarterly report (the "Evaluation Date") have concluded that
as of the Evaluation Date, the Company's disclosure controls and procedures were
adequate and effective to ensure that material information relating to the
Company and its consolidated subsidiaries would be made known to them by others
within those entities, particularly during the period in which this quarterly
report was being prepared.

There were no significant changes in the Company's internal controls or in
other factors that could significantly affect the Company's disclosure controls
and procedures subsequent to the Evaluation Date, nor any significant
deficiencies or material weaknesses in such disclosure controls and procedures
requiring corrective actions. As a result, no corrective actions were taken.



14

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Homestead Bancorp, Inc. and SubsidiaryFORM
      10-QSBthree
      months Ended March 31, 2003PART II
      - OTHER INFORMATIONItem 1
      
      Legal Proceedings:There are no matters required to be reported under
      this item.Item 2
      
      Changes in Securities:There are no matters required to be reported under
      this item.Item 3
      
      Defaults Upon Senior Securities:There are no matters required to be reported under
      this item.Item 4
      
      Submission of Matters to a Vote of Security
      Holders.There are no matters required to be reported under
      this item.Item 5
      
      Other Information:There are no matters required to be reported under
      this item.Item 6
      
      Exhibits and Reports on Form 8-K:a.)Exhibits:No exhibits were filed on Form 8-K by the Registrantduring the quarter ended March 31 2003.b.)Reports:No reports on Form 8-K were filed by the Registrantduring the quarter ended March 31 2003.




15

The accompanying notes are an integral part
of these financial statements.



---







SIGNATURESPursuant to
      the requirements of the Securities Exchange Act of 1934, the Registrant
      has duly caused thisreport to
      be signed on its behalf by the undersigned, thereunto duly authorized.Homestead
      Bancorp, IncDate:
      May 14, 2003
      
      
      BY
      /s/Lawrence C. Caldwell, Jr.Lawrence C. Caldwell, Jr.President and Chief Executive OfficerDate:
      May 14, 2003
      
      
      BY
      /s/Kelly MorseKelly MorseComptroller




16

---



**Certification**

I, Kelly Morse, Chief Financial Officer for Homestead Bancorp Inc. certify
that:

1.     I have
reviewed this quarterly report on Form 10Q of Homestead Bancorp Inc.

2.     Based on
my knowledge, this quarterly report does not contain any untrue statements of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly report;

3.     Based on
my knowledge, the financial statements, and other financial information included
in this quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this quarterly report;

4.     The
registrant's other certifying officers and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-14 and 15d-14) for the registrant and have:

a.     designed
such disclosure controls and procedures to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in
which this quarterly report is being prepared;

b.    
evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report, March 31, 2003; and

c.    
presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5.     The
registrant's other certifying officers and I have disclosed, based on our most
recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

a.     all
significant deficiencies in the design or operation of internal controls which
could adversely affect the registrant's ability to record, process, summarize
and report financial data and have identified for the registrant's auditors any
material weaknesses in internal controls; and

b.     any
fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant's internal controls; and

6.     The
registrant's other certifying officers and I have indicated in this quarterly
report whether there were significant changes in internal controls or in other
factors that could significantly affect internal controls subsequent to the date
of our most recent evaluation, including any corrective actions with regards to
significant deficiencies and material weaknesses.



Date: May 14, 2003
BY /s/Kelly Morse
C.F.O.



17

---



**Certification**



I, L. C. Caldwell, Jr. President and C.E.O. for Homestead Bancorp Inc.
certify that:

1.     I have
reviewed this quarterly report on Form 10Q of Homestead Bancorp Inc.

2.     Based on
my knowledge, this quarterly report does not contain any untrue statements of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly report;

3.     Based on
my knowledge, the financial statements, and other financial information included
in this quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this quarterly report;

4.     The
registrant's other certifying officers and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-14 and 15d-14) for the registrant and have:

a.     designed
such disclosure controls and procedures to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in
which this quarterly report is being prepared;

b.    
evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report, March 31, 2003; and

c.    
presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5.     The
registrant's other certifying officers and I have disclosed, based on our most
recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

a.     all
significant deficiencies in the design or operation of internal controls which
could adversely affect the registrant's ability to record, process, summarize
and report financial data and have identified for the registrant's auditors any
material weaknesses in internal controls; and

b.     any
fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant's internal controls; and

6.     The
registrant's other certifying officers and I have indicated in this quarterly
report whether there were significant changes in internal controls or in other
factors that could significantly affect internal controls subsequent to the date
of our most recent evaluation, including any corrective actions with regards to
significant deficiencies and material weaknesses.



Date: May 14, 2003
BY /s/L.C. Caldwell, Jr.
President and C.E.O.

18

---





Certification Pursuant to 18 U.S.C. Code Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act 2002

In connection with the Quarterly Report of Homestead Bancorp Inc. ("the
Company") on Form 10-Q for the period ending March 31, 2003 as filed with the
Securities and Exchange Commission on the date hereof, (the "Report"), I
Lawrence C. Caldwell, Jr. President, and C.E.O. of the Company, certify,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with
the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934; and

(2) The information contained in
the Report fairly presents, in all material respects, the financial condition
and results of operations of the Company.

Date: May 14, 2003
      BY  /s/Lawrence C. Caldwell, Jr.President and C.E.O.




19

---





Certification Pursuant to 18 U.S.C. Code Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act 2002

In connection with the Quarterly Report of Homestead Bancorp Inc. ("the
Company") on Form 10-Q for the period ending March 31, 2003 as filed with the
Securities and Exchange Commission on the date hereof, (the "Report"), I, Kelly
Morse C.F.O. of the Company, certify, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with
the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934; and

(2) The information contained in
the Report fairly presents, in all material respects, the financial condition
and results of operations of the Company.



Date: May 14, 2003
      BY  /s/Kelly MorseC.F.O.




20

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April 15, 2003



To the Shareholders and Board of Directors
Homestead Bancorp, Inc. and Subsidiary
Ponchatoula, Louisiana

We have reviewed the accompanying Consolidated Balance Sheets
of Homestead Bancorp, Inc. and Subsidiary as of March 31, 2003, the related
Consolidated Statements of Income, Changes in Stockholders' Equity, and Cash
Flows for the three month periods ended March 31, 2003 and 2002.

We previously audited and expressed an unqualified opinion in
our report dated January 17, 2003 on the Consolidated Balance Sheet of Homestead
Bancorp, Inc. and Subsidiary as of December 31, 2002.

We conducted our reviews in accordance with standards
established by the American Institute of Certified Public Accountants. A review
of interim financial information consists principally of obtaining an
understanding of the system for the preparation of interim financial
information, applying analytical review procedures to financial data, and making
inquiries of persons responsible for financial and accounting matters. It is
substantially less in scope than an examination in accordance with generally
accepted auditing standards, the objective of which is the expression of an
opinion regarding the financial statements taken as a whole. Accordingly, we do
not express such an opinion.

Based on our reviews, we are not aware of any material
modifications that should be made to the accompanying consolidated financial
statements for them to be in conformity with generally accepted accounting
principles.





Respectfully submitted,



21