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



---



|Homestead Bancorp, Inc. and Subsidiary         
|-----------------------------------------------
|CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION 
|As of June 30, 2001 and December 31, 2000      
|                                               
|ASSETS                                         
|                                               
|                                               
|                                               
|                                               
|                                               
|                                               
|Cash and Cash Equivalents                      
|                                               
|Interest-bearing Deposits in Other Institutions
|                                               
|Securities:                                    
|                                               
|Investment Securities Available                
|for Sale (Amortized Cost of                    
|$2.5 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                                   
|                                               
|                                               



---

|                                                    |   |                |   |             
|--------------------------------------------------- | - | -------------- | - | ------------
|LIABILITIES AND STOCKHOLDERS' EQUITY               
|                                                    |   |                |   |             
|                                                    |   | (UNAUDITED)    |   | (AUDITED)   
|                                                    |   | June 30,       |   | December 31,
|                                                    |   | 2001           |   | 2000        
|                                                    |   | (In Thousands)
|                                                    |   |                |   |             
|Deposits                                            | $ | 47,393         | $ | 41,504      
|                                                    |   |                |   |             
|Advances from Borrowers for Taxes and               |   |                |   |             
|Insurance                                           |   | 81             |   | 96          
|                                                    |   |                |   |             
|Advances from Federal Home                          |   |                |   |             
|Loan Bank                                           |   | 54,905         |   | 56,786      
|                                                    |   |                |   |             
|Income Taxes Payable                                |   | 232            |   | 246         
|                                                    |   |                |   |             
|Other Liabilities                                   |   | 393            |   | 586         
|                                                    |   |                |   |             
|Total Liabilities                                   |   | 103,004        |   | 99,218      
|                                                    |   |                |   |             
|                                                    |   |                |   |             
|Stockholders' Equity as Restated:                   |   |                |   |             
|                                                    |   |                |   |             
|Common Stock - $.01 Par Value;                      |   |                |   |             
|10,000,000 Shares Authorized, 1,477,870             |   |                |   |             
|Shares Issued and Outstanding in 2001
     and 2000 |   | 15             |   | 15          
|                                                    |   |                |   |             
|                                                    |   |                |   |             
|Paid-in Capital in Excess of Par                    |   | 12,903         |   | 12,906      
|                                                    |   |                |   |             
|Retained Earnings - Substantially Restricted        |   | 4,799          |   | 4,593       
|                                                    |   |                |   |             
|Accumulated Other Comprehensive Income              |   | (61)           |   | (160)       
|                                                    |   |                |   |             
|                                                    |   | 17,656         |   | 17,354      
|                                                    |   |                |   |             
|Treasury Stock - 347,544  shares at cost in         |   |                |   |             
|2001 and 321,183 shares at cost in 2000             |   | (4,550)        |   | (4,010)     
|                                                    |   |                |   |             
|Unearned ESOP Shares                                |   | (627)          |   | (672)       
|                                                    |   |                |   |             
|Common Stock Acquired by Recognition Plans          |   | (314)          |   | (314)       
|                                                    |   |                |   |             
|Total Stockholders' Equity                          |   | 12,165         |   | 12,358      
|                                                    |   |                |   |             
|Total Liabilities and Stockholders'                 |   |                |   |             
|Equity                                              | $ | 115,169        | $ | 111,576     
|                                                    |   |                |   |             

2

---



Homestead Bancorp, Inc. and SubsidiaryCONSOLIDATED STATEMENTS OF INCOMEfor the three and six months ended June 30, 2001 and 2000(Unaudited)

(Unaudited)Three Months Ended

Six Months EndedJune 30,

June 30,2001

2000

2001

2000(In Thousands)

(In Thousands)Interest Income:Loans and Leases
$
1,564
$
1,505
$
3,168
$
2,930Mortgage-Backed Securities

298

345

628

715Investment Securities

69

130

147

211Other

70

39

113

70Total Interest Income

2,001

2,019

4,056

3,926Interest Expense:Deposits

587

467

1,135

917Borrowings

672

820

1,460

1,579Total Interest Expense

1,259

1,287

2,595

2,496Net Interest Income

742

732

1,461

1,430Provision for (Recovery of) Loanand Lease Losses

11

4

14

9Net Interest Income AfterProvision for (Recovery
                   
     of) Loan and Lease Losses

731

728

1,447

1,421Noninterest Income:Gain on Sale of Loans

39

9

78

13Loan Fees and Service Charges

93

65

143

127Other Income

8

5

37

8Total Noninterest Income

140

79

258

148Noninterest Expense:Compensation and Benefits

313

277

639

552Occupancy and Equipment Expense

54

50

105

91Federal Insurance Premium

2

2

4

4Net Real Estate Owned Expense

13

0

10

3Loss on Sale of Securities

0

0

0

0Other

235

196

463

408Total Noninterest Expense

617

525

1,221

1,058Income Before Provision for IncomeTaxes

254

282

484

511Income Taxes

95

89

174

174Net Income
$
159
$
193
$
310
$
337Per Share:Earnings Per Common Share

0.17

0.18

0.34

0.31Earnings Per Common Share - 
               Assuming Dilution

0.15

0.16

0.30

0.28Cash Dividends Declared

0.06

0.06

0.12

0.12


3

---





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

4

---



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



6

---



Homestead Bancorp, Inc. and Subsidiary

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

**Note 1 - Basis of Presentation -**

The accompanying consolidated financial statements for the period ended June 30, 2001
include the accounts of Homestead Bancorp, Inc. (the "Company") and its wholly owned
subsidiary, Homestead Bank (the "Bank").  Currently, the business and management of
Homestead Bancorp, Inc.  is primarily the business and management of the Bank.  All significant
intercompany transactions and balances have been eliminated in the consolidation.

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

**Note 2 - Employee Stock Ownership Plan -**

****     The Company sponsors a leveraged employee stock ownership plan (ESOP) that covers
all employees who have at least six months of service with the Company, and obtained age 20.
The ESOP shares initially were pledged as collateral for its debt.  The debt is being repaid based
on a ten-year amortization and the shares are being released for allocation to active employees
annually over the ten-year period.  The shares pledged as collateral are deducted from
stockholder's equity as unearned ESOP shares in the accompanying balance sheets.  ESOP
compensation expense was $41,400 for the six months ended June 30, 2001 based on the annual
release of shares.

**Note 3 - Dividends and Earnings Per Share -**

The Company declared a quarterly dividend of $.06 for the first and second quarters  of
2001.  Total dividends paid to stockholders in the first six  months of 2001 was $114,000.

Basic earnings per share is computed by dividing net income by the weighted average
number of shares of common stock outstanding, which is 910,217 for the six month period ended
June 30, 2001.  Earnings per common share - assuming dilution, are computed by dividing net
income by the weighted average number of shares of common stock outstanding plus the effect of
diluted securities, which was 1,043,094  for the six  month period ended June 30, 2001.

7

---



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

June 30, 2001

**General**

The following discussion compares the consolidated financial condition of Homestead
Bancorp, Inc. (the "Company") and Subsidiary, Homestead Bank (the "Bank") at June 30, 2001
to December 31, 2000 and the results of operations for the three and  six month periods ended
June 30, 2001 with the same periods in 2000.  Currently, the business and management of
Homestead Bancorp, Inc. is primarily the business and management of the Bank.  This discussion
should be read in conjunction with the interim consolidated financial statements and footnotes
included herein.

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

**Changes in Financial Condition**

At June 30, 2001, the Company's total assets, deposits and equity amounted to $115.2
million, $47.4 million, and $12.2 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 $3.6 million
or 3.2% was due primarily to an increase of $7.6 million interest bearing deposits offset by a
decrease in the net loan and lease portfolio of 2.5 million or 3.0%.  The increase in interest-bearing deposits was due primarily to an increase in deposits.  The decrease in the net loan and
lease portfolio was due to loan sales and repayments exceeding loan originations.  Investments in
Mortgage-Backed securities decreased in the first six  months of 2001 by $2.3 million or 11.3%,
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 six  months of 2001 by $6.9 million or 30.1%.  The Bank uses the proceeds from
short term borrowing to finance the purchase of mortgage-backed securities and fund long term
fixed rate mortgages.  The Company's long term borrowing from the Federal Home Loan Bank
increased during the first six  months of 2001 by $5.0 million or 15.7%.  Homestead uses the
proceeds from long term borrowing to fund long term fixed rate mortgages.  Deposits with the
Bank  have increased by $5.9 million or 14.2% in the first six  months of 2001, due primarily to
the bank offering some new higher  yielding certificate of deposits.  Other liabilities decreased in
the first six  months of 2001 by $193,000.   The equity of the Company decreased $193,000 or
1.6% in the first six  months of 2001, due primarily to net income of $310,000 offset by the
repurchase of the Company's common stock in the stock repurchase plan of $540,000 and
dividends paid out of $114,000.  At June 30, 2001 the Company had repurchased $4.6 million of
it's common stock.  This amount appears in the equity section of the Statement of Financial
Condition as Treasury Stock.

8

---

**Capital**

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

Quantitative measures established by regulation to ensure capital adequacy require the
Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1
capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as
defined) to average assets (as defined).  Management believes, as of June 30, 2001, that the Bank
meets all capital adequacy requirements to which it is subject.

As of June 30, 2001, the most recent notification categorized the Bank as well capitalized
under the regulatory framework for prompt corrective action.  To be categorized as well
capitalized the Bank must maintain minimum total risk-based, Tier I risk based, and Tier I
leverage ratios as set forth in the table.  There are no conditions or events since that notification
that management believes have changed the institution's category.

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

|                           | Actual    | For Capital   Adequacy Purposes: | To Be Well
                                                                                                                               Capitalized Under
                 Prompt CorrectiveAction Provisions:
|-------------------------- | --------- | -------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                           | Amount    | Ratio                            | Amount                                                                                                                                                                                                          
|As of June 30, 2001:       |           |                                  | (Dollars in Thousands)                                                                                                                                                                                          
|Total Capital (to Risk     |           |                                  |                                                                                                                                                                                                                 
|Weighted Assets)           | $  11,317 | 20.20%                           | $  4,481                                                                                                                                                                                                        
|Tier I Capital (to Risk    |           |                                  |                                                                                                                                                                                                                 
|Weighted Assets)           | $ 10,992  | 19.62%                           | $   2,241                                                                                                                                                                                                       
|Tier I Capital (to Average |           |                                  |                                                                                                                                                                                                                 
|Assets)                    | $  10,992 | 9.54%                            | $  4,604                                                                                                                                                                                                        



9

---



**Liquidity**

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

**Results of Operations**

Net income for the first six months of 2001 was $310,000 compared to $337,000 for the
same period of 2001.  The decrease in net income of $27,000 or 8.0%, was primarily due to an
increase in non-interest expense of $163,000 or 15.4%, offset by an increase in net interest
income after provision for (recovery of) loan and lease losses of $26,000 or 1.8%, combined with
an increase in non-interest income of $110,000 or 74.3.%.  The increase in non-interest income is
due to a increase in gain on sale of loans of $65,000.  Compensation expense increased by
$87,000 or 15.8%, due to the hiring of additional employees for the new branch office and the
increase in salaries.

Net income for the three months ended June 30, 2001 was $159,000 compared to
$193,000 for the same period of 2000.  The decrease in net income of $34,000 or 17.6%, was
primarily due to an increase in non-interest expense of $92,000 or 17.5%, offset by an increase in
net interest income after provision for (recovery of) loan and lease losses of $3,000 or .4%,
combined with an increase in non-interest income of $61,000 or 77.2.%.  The increase in non-interest income is due to a increase in gain on sale of loans of $30,000, combined with an increase
in loan fees and services of $28,000.  Compensation expense increased by $36,000 or 13.0%, due
to the hiring of 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 six  months of 2001 was $1.5 million  an increase of $31,000 or 2.2%
over the same period of 2000.  This increase in net interest income was primarily attributable to an
increase in interest income of $130,000  or 3.3%, offset by an increase in interest expense of
$99,000 or 4.0% 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 decreased volume of  investment securities and mortgage- backed securities.

Net interest income for the first three months of 2001 was $742,000  an increase of
$10,000 or 1.4% over the same period of 2000.  This increase in net interest income was primarily
attributable to a decrease in interest expense of $28,000  or 2.2%, offset by a decrease in interest
income of $18,000 or 1.0% over the same period of 2000.  Interest rate spread is the yield of
interest-earning assets minus the costs of interest-bearing liabilities.  The interest rate spread for
the six months ended June 30, 2001 and 2000 was 2.21% and 2.24% respectively.



10

---



The table of Consolidated Average Balance Sheets and Interest Rate Analysis for the nine
months ended June 30, 2001 and 2000 on page12, and the corresponding table of Interest
Differentials on page13, 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 June 30, 2001 were $149,000 compared to $197,000 at June 30,
2000.  The percentage of non-accrual loans and leases to total loans and leases at June 30, 2001 is
 .19% down from .24% at June 30, 2000.

Real estate owned is properties held for sale acquired through foreclosure or negotiated
settlements of debt.  At June 30, 2001 the Bank had real estate owned of $105,000 compared to
$0 at June 30, 2000.  Nonperforming assets at June 30, 2001 were .22% of total assets compared
to .18% at June 30, 2000.



**Current Events**

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





**Recent Accounting Pronouncements**

In September 2000, the FASB issued SFAS No. 140, "Accounting 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 June 30, 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

---



|Homestead Bancorp, Inc. and Subsidiary                        
|--------------------------------------------------------------
|CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST RATE ANALYSIS
|for the six months ended June 30, 2001 and 2000               
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|Interest - Earning Assets:                                    
|                                                              
|Loans and Leases Receivable                                   
|Mortgage - Backed Securities                                  
|Investment Securities                                         
|Other Interest - Earning Assets                               
|                                                              
|                                                              
|Total Interest - Earning Assets                               
|                                                              
|Noninterest - Earning Assets                                  
|                                                              
|Total Assets                                                  
|                                                              
|                                                              
|Interest - Bearing Liabilities:                               
|                                                              
|Deposits                                                      
|Federal Home Loan Bank Advances                               
|                                                              
|Total Interest-bearing Liabilities                            
|                                                              
|Noninterest - Bearing Liabilities                             
|                                                              
|Total Liabilities                                             
|                                                              
|                                                              
|Stockholders' Equity                                          
|                                                              
|Total Liabilities and Stockholders' Equity                    
|                                                              
|                                                              
|Net Interest Income; Interest Rate Spread                     
|                                                              
|Net Interest Margin as a % of Total Earning Assets            
|                                                              



12

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

13

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|Homestead Bancorp, Inc. and Subsidiary
|--------------------------------------
|FORM 10-QSB                           
|                                      
|Six Months Ended June 30, 2001        
|                                      
|                                      
|PART II - OTHER INFORMATION           
|                                      
|                                      
|Item 1                                
|                                      
|                                      
|                                      
|                                      
|Item 2                                
|                                      
|                                      
|                                      
|                                      
|Item 3                                
|                                      
|                                      
|                                      
|                                      
|Item 4                                
|                                      
|                                      
|                                      
|                                      
|Item 5                                
|                                      
|                                      
|                                      
|                                      
|Item 6                                
|                                      
|                                      
|                                      
|                                      
|                                      
|                                      
|                                      

14

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|SIGNATURES                                                                                              
|--------------------------------------------------------------------------------------------------------
|                                                                                                        
|                                                                                                        
|                                                                                                        
|Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this
|report to be signed on its behalf by the undersigned, thereunto duly authorized.                        
|                                                                                                        
|                                                                                                        
|Homestead Bancorp, Inc                                                                                  
|                                                                                                        
|                                                                                                        
|                                                                                                        
|Date:                                                                                                   
|                                                                                                        
|                                                                                                        
|                                                                                                        
|                                                                                                        
|                                                                                                        
|                                                                                                        
|                                                                                                        
|                                                                                                        
|Date:                                                                                                   
|                                                                                                        
|                                                                                                        
|                                                                                                        



15