|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                                         72-1416514                                                                
|(State of incorporation or organization)                        
            
  (IRS Employer Identification No.)           
|                                                                                                                            
|                                                                                                                            
|195 North Sixth Street                                                                                                      
|Ponchatoula, Louisiana                                 
               
             70454                                  
|(Address of principal executive office)                    
                             
           
  (including zip code)
|                                                                                                                            
|                                                                                                                            
|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, 2000 and December 31, 1999                  
|                                                     
|Consolidated Statements of Income -                  
|for the three and six month periods ended            
|June 30, 2000 and 1999                               
|                                                     
|Consolidated Statements of Stockholders' Equity      
|for the six months ended June 30, 2000               
|and 1999                                             
|                                                     
|Consolidated Statements of Cash Flows -              
|for the six months ended June 30, 2000               
|and 1999                                             
|                                                     
|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, 2000 and December 31, 1999      
|                                               
|ASSETS                                         
|                                               
|                                               
|                                               
|                                               
|                                               
|                                               
|Cash and Cash Equivalents                      
|                                               
|Interest-bearing Deposits in Other Institutions
|                                               
|Securities:                                    
|                                               
|Investment Securities Available                
|for Sale (Amortized Cost of                    
|$2.6 million and $2.2 million)                 
|                                               
|Mortgage-Backed Securities                     
|Available for Sale (Amortized                  
|Cost of $22.7 million and $24.1 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                
|                                               
|Premises and Equipment, Net                    
|Accrued Interest Receivable                    
|Other Assets                                   
|                                               
|Total Assets                                   
|                                               
|                                               
|                                               
|LIABILITIES AND STOCKHOLDERS' EQUITY           
|                                               
|                                               
|                                               
|                                               
|                                               
|                                               
|Deposits                                       
|                                               
|Advances from Borrowers for Taxes and          
|Insurance                                      
|                                               
|Advances from Federal Home                     
|Loan Bank                                      
|                                               
|Income Taxes Payable                           
|                                               
|Other Liabilities                              
|                                               
|Total Liabilities                              
|                                               
|                                               
|Stockholders' Equity as Restated:              
|                                               
|Common Stock - $.01 Par Value;                 
|10,000,000 Shares Authorized, 1,477,870        
|Shares Issued and Outstanding in 2000          
|1,477,870 in 1999                              
|                                               
|Paid-in Capital in Excess of Par               
|                                               
|                                               
|Retained Earnings - Substantially Restricted   
|                                               
|Accumulated Other Comprehensive Income         
|                                               
|                                               
|                                               
|Treasury Stock - 347,544  shares at cost in    
|2000 and 321,183 shares at cost in 1999        
|                                               
|Unearned ESOP Shares                           
|                                               
|Common Stock Acquired by Recognition Plans     
|                                               
|Total Stockholders' Equity                     
|                                               
|Total Liabilities and Stockholders'            
|Equity                                         
|                                               



---





|Homestead
      Bancorp, Inc. and Subsidiary                   
|---------------------------------------------------------------
|CONSOLIDATED
      STATEMENTS OF INCOME                        
|                                                               
|for
      the three and six months ended June 30, 2000 and 1999
|                                                               
|                                                               
|                                                               
|                                                               
|                                                               
|                                                               
|                                                               
|                                                               
|Interest
      Income:                                         
|Loans
      and Leases                                         
|Mortgage-Backed Securities                                     
|Investment Securities                                          
|Other                                                          
|                                                               
|Total Interest Income                                          
|                                                               
|Interest
      Expense:                                        
|Deposits                                                       
|Borrowings                                                     
|                                                               
|Total Interest Expense                                         
|                                                               
|Net Interest Income                                            
|                                                               
|Provision
      for (Recovery of) Loan and Lease               
|Losses                                                         
|                                                               
|Net Interest Income After Provision for                        
|(Recovery of) Loan and Lease Losses                            
|                                                               
|Noninterest
      Income:                                      
|Gain on
      Sale of Loans                                    
|Loan
      Fees and Service Charges                            
|Other
      Income                                             
|                                                               
|Total Noninterest Income                                       
|                                                               
|Noninterest
      Expense:                                     
|Compensation and Benefits                                      
|Occupancy and Equipment Expense                                
|Federal
      Insurance Premium                                
|Net
      Real Estate Owned Expense                            
|Loss on
      Sale of Securities                               
|Other                                                          
|                                                               
|Total Noninterest Expense                                      
|                                                               
|Income Before Provision for Income                             
|Taxes                                                          
|                                                               
|Income
      Taxes                                             
|                                                               
|Net Income                                                     
|                                                               
|Per
      Share:                                               
|Earnings Per Common Share                                      
|                                                               
|Earnings Per Common Share - Assuming Dilution                  
|                                                               
|Cash
      Dividends Declared                                  
|                                                               



---





|Homestead Bancorp, Inc. and Subsidiary         
|-----------------------------------------------
|CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
|                                               
|for the six Months Ended June 30, 2000 and 1999
|                                               
|                                               
|                                               
|                                               
|                                               
|Common Stock:                                  
|Balance - Beginning of Period                  
|                                               
|                                               
|Balance - End of Period                        
|                                               
|Paid-in Capital in Excess of Par:              
|Balance - Beginning of Period                  
|Exercise of Stock Options                      
|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                  
|Transfer of securities from Held-to-Maturity   
|to Available-for-Sale                          
|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                  
|Exercise of Stock Options                      
|Fund 1999 Recognition Plan                     
|                                               
|Balance - End of Period                        
|                                               
|Comprehensive Income:                          
|Net Income                                     
|                                               
|Other Comprehensive Income, Net of Tax:        
|Reclassification Adjustments                   
|Unrealized Gains (Losses) on Securities        
|Available for Sale                             
|                                               
|Total Comprehensive Income                     
|                                               



---





|Homestead
      Bancorp, Inc. and Subsidiary         
|-----------------------------------------------------
|CONSOLIDATED
      STATEMENTS OF CASH FLOWS          
|                                                     
|for
      the six months ended June 30, 2000 and 1999
|                                                     
|                                                     
|                                                     
|                                                     
|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 of Premiums on Securities           
|Realized Loss on Sale of Securities                  
|Stock Dividends on Federal Home                      
|Loan Bank Stock                                      
|Net (Increase) Decrease in Loans                     
|Held for Sale                                        
|                                                     
|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                                           
|Proceeds from Sale of securities available for sale  
|Net (Increase) Decrease in Loans and Leases          
|Receivable                                           
|                                                     
|Net Cash Provided by (Used in) Investing Activities  
|                                                     
|                                                     
|                                                     
|                                                     
|Cash Flows From Financing Activities:                
|Acquisition of Treasury Stock                        
|Acquisiton of shares of Recognition Plan             
|MRP Shares Earned                                    
|Net Increase (Decrease) in Money Market Accounts,    
|NOW Accounts and Savings Accounts                    
|Net Increase (Decrease) in Certificates              
|of Deposit                                           
|Proceeds from (Repayment of) Federal Home            
|Loan Bank Advances                                   
|Increase (Decrease) in Advances from                 
|Borrowers for Taxes and Insurance                    
|Dividends Paid on Common Stock                       
|Purchase of Federal Home Loan Bank Stock             
|                                                     
|Net Cash Provided by (Used In)                       
|Financing Activities                                 
|                                                     
|Net Increase (Decrease) in Cash and                  
|Cash Equivalents                                     
|                                                     
|Cash and Cash Equivalents -                          
|Beginning of Period                                  
|                                                     
|Cash and Cash Equivalents -                          
|End of Period                                        
|                                                     
|                                                     
|                                                     
|Supplemental Disclosures of Cash flow                
|Information:                                         
|Cash Payments for:                                   
|Interest Paid to Depositors                          
|                                                     
|Interest Paid on Borrowings                          
|                                                     
|Income Taxes                                         
|                                                     
|Supplemental Schedules of Noncash                    
|Investing and Financing Activities:                  
|Real Estate Acquired in Settle-                      
|ment of Loans and Leases                             
|                                                     
|Increase (Decrease) in Unrealized Gain (Loss)        
|on Securities Available for Sale                     
|                                                     
|(Increase) Decrease in Deferred Tax                  
|Effect on Unrealized Gain (Loss) on Securities       
|Available for Sale                                   
|                                                     
|                                                     

---





Homestead Bancorp, Inc. and Subsidiary

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

Note 1 - Basis of Presentation -

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

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

Note 2 - Employee Stock Ownership Plan -

The Company sponsors a
leveraged employee stock ownership plan (ESOP) that covers all employees who
have at least 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 $31,347
for the six months ended June 30, 2000 based on the annual release of shares.

Note 3 - Dividends and Earnings Per Share -

The Company declared a
quarterly dividend of $.06 for the first and second quarters of 2000. Total
dividends paid to stockholders in the first six months of 2000 was $135,000.

Basic earnings per share is
computed by dividing net income by the weighted average number of shares of
common stock outstanding, which is 1,086,484 for the six month period ended June
30, 2000. Earnings per common share - assuming dilution, are computed by
dividing net income by the weighted average number of shares of common stock
outstanding plus the effect of diluted securities, which was 1,219,438 for the
six month period ended June 30, 2000.



---



Homestead Bancorp, Inc. and Subsidiary

Managements
Discussion and Analysisof Financial Condition and Results of Operations

June 30, 2000

General

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

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

Changes in Financial Condition

At June 30, 2000, the Company's
total assets, deposits and equity amounted to $110.9 million, $40.9 million, and
$13.2 million respectively compared to $102.5 million, $38 million, and $13
million respectively at December 31, 1999. The increase in total assets of $8.4
million or 8.2% was due primarily to an increase of $6.1 million in the net loan
and lease portfolio. The increase of 8.5% in net loan and lease portfolio was
due to new loan originations exceeding new loan sales and repayment, combined
with the Company retaining a greater number of fixed rate loans in its loan
portfolio. Interest-bearing deposits in other institutions increased $2.4
million during the first six months to $2.6 million. The increase in
interest-bearing deposit was due primarily to an increase in deposits combined
with an increase in Federal Home Loan Bank Advances. Investments in
Mortgage-Backed securities decreased in the first six months of 2000 by $1.4
million or 6.0%, due to repayment of Mortgage-Backed securities exceeding new
purchases. Investment in Federal Home Loan Bank stock increased in the first six
months of 2000 by $213,000 or 8.0%, due to the purchase of additional Federal
Home Loan Bank stock to facilitate the long term borrowing from Federal Home
Loan Bank.



---



The Company's short term
borrowing from the Federal Home Loan Bank increased during the first six months
of 2000 by $5.8 million or 26.0%. 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 six months of 2000 by $892,000.
Homestead uses the proceeds from long term borrowing to fund long term fixed
rate mortgages. Deposits with the Bank have increased by $2.8 million or 7.4% in
the first six months of 2000. The equity of the Company increased $149,000 or
1.1% in the first six months of 2000, due primarily to net income of $337,000
offset by the repurchase of the Company's common stock in the stock repurchase
plan of $46,000 and dividends paid out of $135,000. At June 30, 2000 the Company
had repurchased $2.8 million of it's common stock. This amount appears in the
equity section of the Statement of Financial Condition as Treasury Stock.

Capital

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

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

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



---





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

|                                         | Actual   | For CapitalAdequacy Purposes: | To Be Well
      Capitalized UnderPrompt CorrectiveAction Provisions:
|---------------------------------------- | -------- | ----------------------------- | ---------------------------------------------------------------------
|                                         | Amount   | Ratio                         | Amount                                                               
|(Dollars
      in Thousands)            
|As of June 30, 2000:                     |          |                               |                                                                      
|Total Capital (to Risk Weighted Assets)  | $ 11,753 | 22.78%                        | $ 4,128                                                              
|Tier I Capital (to Risk Weighted Assets) | $ 11,458 | 22.21%                        | $ 2,064                                                              
|Tier I Capital (to Average Assets)       | $ 11,458 | 10.36%                        | $ 4,425                                                              



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 shares.



Results of Operations

Net income for the first six
months of 2000 was $337,000 compared to $251,000 for the same period of 1999.
The increase in net income of $86,000 or 34.3%, was primarily due to an increase
in net interest income after provision for (recovery of) loan and lease losses
of $130,000 or 10.1%, offset by a decrease in non-interest income of $29,000 or
16.4%, with an increase of $39,000 or 28.9%, in income tax expense. The decrease
in non-interest income is due to a decrease in loan fees and service charges of
$26,000 or 17.0%. Non-interest expense decreased by $24,000 or 2.2% in the first
six months of 2000. Compensation expense increased by $25,000 or 4.7%, offset by
a decease in federal insurance premiums of $8,000 or 66.7%, for the first six
months of 2000.

Net income for the three month
period ended June 30, 2000 was $193,000 compared to $118,000 for the same period
of 1999. The increase in net income of $75,000 or 63.6%, was primarily due to an
increase in net interest income after provision for (recovery of) loan and lease
losses of $85,000 or 13.2%, offset by a decrease in non-interest income of
$9,000 or 10.2%, with an increase of $24,000 or 36.9%, in income tax expense.
The decrease in non-interest income is due to a decrease in loan fees and
service charges of $8,000 or 11.0%. Non-interest expense decreased by $23,000 or
4.2% for the three month period ended June 30, 2000.



---



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 2000 was $1.4 million an increase of $145,000 or 11.3% over the same period
of 1999. This increase in net interest income was primarily attributable to an
increase in interest income of $729,000 or 22.8%, offset by an increase in
interest expense of $584,000 or 30.5% over the same period of 1999. One of the
factors in the increase in net interest income, was a special dividend of
$45,000 paid by Federal Home Loan Bank of Dallas to it's shareholders in April
2000. As this was a special dividend, the Bank does not anticipate receiving any
other special dividends in future periods. Other factors contributing to the
increase in interest income was an increase in the volume of the Company's loan
and lease portfolio, combined with an increase in the volume of investment
securities offset by a decrease in the volume of the Company's mortgage-backed
securities. Interest rate spread is the yield of interest-earning assets minus
the costs of interest-bearing liabilities. The interest rate spread for the six
months ended June 30, 2000 was 2.24% as compared to 2.10% for the same period in
1999

Net interest income for the
three month period ended June 30, 2000 was $732,000 an increase of $95,000 or
14.9% over the same period of 1999. This increase in net interest income was
primarily attributable to an increase in interest income of $404,000 or 25.0%,
offset by an increase in interest expense of $309,000 or 31.6% over the same
period of 1999. The increase in interest income was primarily due to an increase
in the volume of the Company's loan and lease portfolio, combined with an
increase in the volume of investment securities and the Federal Home Loan Bank
of Dallas special dividend, offset by a decrease in the volume of the Company's
mortgage-backed securities.

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

NonperformingAssets

Nonperforming assets include
non-accrual loans and leases and real estate owned. Loans are considered
non-accrual when the principal or interest becomes 90 days past due or when
there is uncertainty about the repayment of the principal and interest in
accordance with the terms of the loans. Non-accrual loans at June 30, 2000 were
$197,000 compared to $274,000 at June 30, 1999. The percentage of non-accrual
loans and leases to total loans and leases at June 30, 2000 is .26% down from
 .43% at June 30, 1999.

Real estate owned is properties
held for sale acquired through foreclosure or negotiated settlements of debt. At
June 30, 2000 the Bank had real estate owned of $0 compared to $97,000 at June
30, 1999. Nonperforming assets at June 30, 2000 were .18% of total assets
compared to .37% at June 30, 1999.



---





Current Events

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

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



---





Homestead
        Bancorp, Inc. and SubsidiaryCONSOLIDATED
        AVERAGE BALANCE SHEETS AND INTEREST RATE ANALYSISfor the six
        months ended June 30, 2000 and 1999Six
        Months Ended
      
      Six
        Months EndedJune
        30, 2000
      
      June
        30, 1999AVERAGE
      
      
      
      AVERAGEBALANCE
      INTEREST
      YIELD/
      
      BALANCE
      INTEREST
      YIELD/(In
        Thousands)
      (In
        Thousands)
      RATE
      
      (In
        Thousands)
      (In
        Thousands)
      RATEInterest
        - Earning Assets:Loans and Leases Receivable
      $   67,695
      2,930
      8.66%
      
      $   58,878
      2,240
      7.61%Mortgage - Backed
        Securities
      23,588
      715
      6.06%
      
      25,530
      728
      5.70%Investment Securities
      4,993
      211
      8.45%
      
      4,721
      139
      5.89%Other Interest - Earning
        Assets
      2,890
      70
      4.84%
      
      4,339
      90
      4.18%________
      ________
      _______
      
      ________
      ________
      _______Total Interest - Earning
        Assets
      $   99,167
      3,926
      7.92%
      
      $   93,468
      3,197
      6.84%Noninterest - Earning Assets
      2,114
      
      
      
      1,410________
      
      
      
      ________Total Assets
      $ 101,281
      
      
      
      $  94,878=====
      
      
      
      =====Interest - Bearing Liabilities:Deposits
      $   40,125
      917
      4.57%
      
      $   40,102
      845
      4.21%Federal Home Loan Bank
        Advances
      47,772
      1,579
      6.61%
      
      40,583
      1,067
      5.26%________
      ________
      _______
      
      ________
      ________
      _______Total Interest-bearing
        Liabilities
      $   87,897
      2,496
      5.68%
      
      $   80,685
      1,912
      4.74%Noninterest - Bearing Liabilities
      519
      
      
      
      468________
      
      
      
      ________Total Liabilities
      $  88,417
      
      
      
      $  81,153=====
      
      
      
      =====Stockholders' Equity
      $ 12,865
      
      
      
      $ 13,725________
      
      
      
      ________Total Liabilities and
        Stockholders' Equity
      $101,281
      
      
      
      $ 94,878=====
      
      
      
      =====Net Interest Income; Interest Rate
        Spread
      
      $   1,430
      2.24%
      
      
      $   1,285
      2.10%=====
      =====
      
      
      =====
      =====Net Interest Margin as a % of Total
        Earning Assets
      
      
      2.88%
      
      
      
      2.75%=====
      
      
      
      =====




---





Homestead
        Bancorp, Inc. and SubsidiaryINTEREST
        DIFFERENTIALSfor
        the six months ended June 30, 2000 and 1999June
        30, 2000 VS June 30, 1999CHANGE
        DUE TO
      
      TOTALVOLUME
      
      RATE
      
      CHANGE(In
        Thousands)Interest
        - Earning Assets:Loans
        and Lease Receivable
      
      
      
      
      $    
        359
      
      $   
        331
      
      $    
        690Mortgage-Backed Securities
      
      
      
      
      (57)
      
      44
      
      (13)Investment Securities
      
      
      
      
      8
      
      64
      
      72Other Interest-Earning assets
      
      
      
      
      (33)
      
      13
      
      (20)______
      
      ______
      
      ______Total Interest
        Income
      
      
      
      
      $   
        277
      
      $  
        452
      
      $   
        729=====
      
      =====
      
      =====Interest
        - Bearing Liabilities:Deposits
      
      
      
      
      $       
        1
      
      $     
        71
      
      $      
        72Federal Home Loan Bank Advances
      
      
      
      
      209
      
      303
      
      512______
      
      ______
      
      ______Total Interest Expense
      
      
      
      
      $   
        210
      
      $   
        374
      
      $   
        584=====
      
      =====
      
      =====Increase
        (Decrease) in Interest Differential
      
      
      
      $    
        67
      
      $    
        78
      
      $   
        145=====
      
      =====
      
      =====




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|Homestead
      Bancorp, Inc. and Subsidiary
|--------------------------------------------
|FORM
      10-QSB                           
|                                            
|Six
      Months Ended June 30, 2000        
|                                            
|                                            
|PART
      II - OTHER INFORMATION           
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|Item
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|Item
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|Item
      4                                
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|Item
      5                                
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|Item
      6                                
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SIGNATURESPursuant
        to the requirements of the Securities Exchange Act of 1934, the
        Registrant has duly caused thisreport
        to be signed on its behalf by the undersigned, thereunto duly
        authorized.Homestead
        Bancorp, IncDate:
      August
        8, 2000
      
      
      
      BY
      /s/
        Lawrence C. Caldwell, Jr.Lawrence
        C. Caldwell, Jr.President
        and Chief Executive OfficerDate:
      August
        8, 2000
      
      
      
      BY
      /s/
        Kelly MorseKelly
        MorseComptroller