<PAGE>

                            WEST TOWN BANCORP, INC.
                                 ANNUAL REPORT


                                MARCH 31, 2001
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                    <C>

     Financial Highlights...........................................   2

     Letter to Our Stockholders.....................................   3

     Directors and Officers.........................................   5

     Our Commitment To You..........................................   6

     Selected Financial Data........................................   9

     Management's Discussion and Analysis of
       Financial Condition and Results of Operations................  11

     Stock Data.....................................................  26

     Stockholder Information........................................  27

     Report of Independent Auditors and Financial
      Statements of West Town Bancorp, Inc. and
       Subsidiaries................................................. F-1

     Notes to Financial Statements.................................. F-6
</TABLE>

                                       1
<PAGE>

                              FINANCIAL HIGHLIGHTS


                           At or for the year ended March 31,

(Dollars in Thousands)          2001                2000                 1999
                                ----                ----                 ----
--------------------------------------------------------------------------------

FOR THE YEAR:
------------

Net interest income          $   873                 783                  780
Net income (loss)                (39)                 62                  157
Return on average equity        (.95)%              1.48%                3.80%
Return on average assets        (.01)%               .19%                0.52%

AT YEAR END:
-----------

Total Assets                 $49,825              34,958               30,984
Loans Receivable, net         31,345              19,633               20,110
Interest earning assets       46,118              32,383               29,221
Interest bearing liabilities  45,205              30,458               26,430
Non-performing assets              0                   0                    0
Allowance for loan losses         99                  58                   52
Book Value Per Share         $ 20.01               19.81                19.08
--------------------------------------------------------------------------------


                                       2




















<PAGE>

                    [LETTERHEAD OF WEST TOWN BANCORP, INC.]


To Our Fellow Stockholders:
--------------------------

         We are happy to present to you our Annual Report for the fiscal year
ended March 31, 2001. This past fiscal year was another very good year for the
West Town Bancorp, Inc. and it's subsidiary, West Town Savings Bank.

         Following this letter are out consolidated financial statements for the
year ended March 31, 2001. These financial statements present the combined
results of West Town Bancorp, Inc. and West Town Savings Bank. The financial
statements were audited by our independent auditors, Cobitz, Vandenberg &
Fennessy.

         The Bank's three year Business Plan developed in conjunction with the
opening of the Bank's North Riverside branch office in January, 2000 projected a
growth of $10,000,000 per year or $30,000,000 over three years. The total assets
of the Bank exceeded projections and increased to $49,825,000 at March 31, 2001
from $34,958,000 at March 31, 2000, primarily as a result of $14,335,000 in
deposits originated from the opening of the Bank's North Riverside branch
office. Our Business Plan also projected the Bank to break even after three
years taking into consideration the expenses attributed to the North Riverside
office. The Bank experienced an actual loss of less than half of the loss
anticipated in the Business Plan even after allocating an additional $34,000.00
to its loan loss reserve at March 31, 2001.

         The Company continued to re-purchase its common stock throughout the
fiscal year ended March 31, 2001. As a result, the book value per share
increased from $19.81 per share at March 31, 2000 to $20.01 per share at March
31, 2001. The Company will continue its re-purchase program during the current
fiscal year.

                                       3
<PAGE>

         Net loans receivable, which includes residential real estate and
commercial loans, increased from $19,633,000 to $31,345,000 at March 31, 2001,
an increase of 59.7%. With this substantial increase in loans, the Bank
allocated an additional $41,000.00 to its loan loss reserve to total $99,000.00
at fiscal year end. There were no loans delinquent three months or more at March
31, 2001.

         The Bank increased its investment in mortgage-backed securities from
$1,576,000 at March 31, 2000 to $7,502,000 at March 31, 2001, an increase of
$5.9 million.

         The Bank continues to exceed all regulatory capital standards. The Bank
has a 6.68% core-capital ratio at March 31, 2001 and a risk-based capital ratio
of 13.27% at year-end.

         We believe the Bank's financial outlook is very positive. We have been
able to grow both the loan and deposit portfolios at a much faster rate than we
had originally expected, and we plan to continue our expansion during our
current fiscal year Significantly, the loan and deposit portfolios the Bank has
now achieved allow us to generate sufficient net interest income and other
operating income to minimize our annual operating loss that was projected in our
Business Plan at the time the North Riverside branch office was opened.

         I am very proud of the hard work and dedication of all of our
employees. Their efforts make the difference and make West Town Savings Bank
what it is today. The loyalty and support we enjoy as a business, is a direct
result of the commitment of our officers, directors, and employees.

         We appreciate the trust and confidence you placed in West Town Bancorp,
Inc. and will work to keep your support while increasing shareholder value.

                                         Sincerely,

                                         /s/ Dennis B. Kosobucki

                                         Dennis B. Kosobucki
                                         Chairman and
                                         Chief Executive Officer

                                       4
<PAGE>

                            DIRECTORS AND OFFICERS

                            West Town Bancorp, Inc.
                            West Town Savings Bank


DIRECTORS:

Dennis B. Kosobucki
-------------------
Chairman, President and Chief Executive Officer and Director
West Town Bancorp, Inc. and West Town Savings Bank

Edward J. Hradecky
------------------
Secretary and Director of West Town Bancorp, Inc. and Director
of West Town Savings Bank

John A. Storcel
---------------
Director of West Town Bancorp, Inc. and West Town Savings Bank

James J. Kemp, Jr.
------------------
Director of West Town Bancorp, Inc. and West Town Savings Bank

James Kucharczyk
----------------
Director of West Town Bancorp, Inc. and West Town Savings Bank

================================================================================

West Town Bancorp, Inc.                      West Town Savings Bank
      Officers.                                    Officers
      --------                                     --------

Dennis B. Kosobucki                          Dennis B. Kosobucki
President and Chief                          President and Chief
Executive Officer                            Executive Officer

Jeffrey P. Kosobucki                         Jeffrey P. Kosobucki
Vice President,                              Vice President,
Chief Financial Officer                      Secretary and Chief
and Assistant Secretary                      Financial Officer

Edward J. Hradecky
Secretary


                                       5
<PAGE>

                             OUR COMMITMENT TO YOU

         Since 1922, the Bank's primary mission has been promoting savings and
home ownership through sound financial products and the highest quality and
friendly professional service to our customers. Continuing with its mission, the
Bank is now attracting small businesses to its customer base, through business
checking, money market and statement savings accounts together with various loan
products to assist businesses in their growth and profitability.

         The Bank is positioned to remain strong. Its strong capital position
allows it the flexibility to grow as demand for its product permits. Its capital
is well above regulatory requirements, with core capital to assets of 6.68%
(3.0% required) and risk-based capital to risk-based assets of 13.27% (8.0%
required).

         West Town Savings Bank's customers enjoy the advantages of dealing with
a healthy financial institution with resources to meet their needs, and the
friendly, service-minded, highly professional atmosphere of the Bank is
reminiscent of the personal banking environment of earlier days; hence our motto
"West Town Savings Bank - Modern Banking, Old Fashioned Values".

         Through its customer base, West Town Savings Bank reinvests in its
community, on a secure and profitable basis, to the benefit of both its
customers and stockholders.

                                       6
<PAGE>

                              PRODUCTS & SERVICES

PRODUCTS OFFERED
----------------

     The Savings Bank offers a full range of consumer and business products,
including but not limited to:

         .  First and Second Mortgage Loans
         .  Home Equity Installment and Line of Credit Loans
         .  Auto Loans (Direct Basis)
         .  Credit Cards (Offered through Elan Financial)
         .  Loan on Deposit Accounts
         .  Commercial Loans
         .  Savings Accounts - Including Passbooks, Personal and Business
             Statement Savings, Junior Savers and Christmas Clubs
         .  Money Market Accounts - Personal & Business
         .  Checking Accounts - Personal & Business
         .  Certificates of Deposit
         .  IRA Accounts


SERVICES OFFERED
----------------

     Services available include:

         *  Travelers Checks, Money Orders & Bank Checks
         *  ATM Cards - Including ATM Machine owned by the Bank for which our
             customers will not be charged to use
         *  Safe Deposit Boxes
         *  Telephone Banking
         *  Free Notary Service
         *  Check cashing (for depositors)
         *  Photocopy Services (customers only)
         *  Direct deposit of social security and pension payments
         *  Sale and redemption of U. S. Savings Bonds
         *  Coin counting for customers
         *  Cash Advance Program

                                FUTURE OUTLOOK

     All the products and services are offered by our consumer oriented
employees who will continue to satisfy both new and current loyal customers. We
believe that this is what it takes to build a financial institution that can
provide expert financial service for customers today and in the future utilizing
modern banking with old fashioned values.

                                       7
<PAGE>

                  SELECTED CONSOLIDATED FINANCIAL INFORMATION

<TABLE>
<CAPTION>
                                                                     March 31,
                                                 -----------------------------------------------
                                                      2001             2000             1999
                                                                  (in thousands)
                                                 -----------------------------------------------
<S>                                              <C>                 <C>               <C>
STATEMENT OF FINANCIAL CONDITION
--------------------------------

  Total assets                                       $49,825           $34,958          $30,984
  Loans receivable                                    31,345            19,633           20,110
  Mortgage-backed securities                           7,502             1,576              938
  Investment securities                                  464               435              447
  Deposits                                            45,205            30,458           26,430
  Total borrowings                                         0                 0                0
  Stockholders' equity                                 4,099             4,167            4,246
</TABLE>

<TABLE>
<CAPTION>
                                                               Years Ended March 31,
                                                 -----------------------------------------------
                                                      2001             2000             1999
                                                                   (in thousands)
                                                 -----------------------------------------------
<S>                                                 <C>               <C>                <C>
SELECTED OPERATIONS DATA
------------------------

  Total interest income                              $2,952            $2,028            $2,002
  Total interest expense                              2,079             1,245             1,222
                                                     ------            ------            ------
  Net interest income                                   873               783               780
  Provision for loan losses                              41                 6                 6
                                                     ------            ------            ------
  Net interest income after
    provision for loan losses                           832               777               774
                                                     ------            ------            ------
  Loan fees and service charges                           8                13                10
  Other non-interest income                             100                37                37
                                                     ------            ------            ------
  Total non-interest income                             108                50                47
  Total  non-interest expense                         1,011               741               572
  Income tax expense (benefit)                          (32)               24                92
                                                     ------            ------            ------
  Net income (loss)                                  $  (39)           $   62            $  157
                                                     ======            ======           =======
</TABLE>

                                       8
<PAGE>

<TABLE>
<CAPTION>
                                                                Years Ended March 31,
                                                   -------------------------------------------
                                                        2001           2000             1999
                                                   -------------------------------------------
<S>                                                   <C>              <C>              <C>
SELECTED FINANCIAL RATIOS AND
OTHER DATA:
----------

Performance Ratios:
  Return on assets (ratio of net
    income to average total
    assets)                                           (.01)%            0.19%            0.52%

Net interest rate spread information:
  Average during year                                 1.96%             2.21%            2.18%
  End of year                                         1.71%             1.86%            1.79%
  Net interest margin (1)                             2.19%             2.60%            2.72%

Ratio of operating expense to
    average total assets                              2.36%             2.31%            1.90%

Return on stockholders' equity
    (ratio of net income to
    average equity)                                   (.95)%            1.48%            3.80%

Short-term liquid assets
    to total assets (2)                              14.32%            31.95%            26.27%

Ratio of average interest-
    earning assets to average
    interest-bearing liabilities                      1.04x             1.09x            1.13x

Quality Ratios:
  Non-performing assets to total
    assets at end of year                             0.00%             0.00%            0.00%
   Allowance  for loan  losses to
    non-performing loans                                -0-               -0-              -0-
    Allowance for loan losses
    to total loans                                    0.31%             0.28%            0.24%

  Capital Ratios:
  Stockholders' equity to total
    assets at end of year                             8.23%            11.92%           13.71%

  Average stockholders' equity
    to average assets                                 9.57%            13.09%           13.75%

Number of full service
    offices                                              2                 2                1
</TABLE>

(Continued on next page)

                                       9
<PAGE>

<TABLE>
<CAPTION>
                                                                     March 31,
                                                    -------------------------------------------
                                                      2001              2000            1999
                                                    -------------------------------------------
<S>                                                 <C>                <C>              <C>
Weighted average yield on:
  Loans receivable                                    7.51%             7.38%            7.05%
  Mortgage-backed securities                          7.40%             7.24%            6.27%
  Investment securities (3)                           6.25%             6.27%            4.94%
  Other interest-earning assets                       5.37%             5.78%            4.88%
  Combined weighted average yield
    on interest-earning assets                        7.18%             6.83%            6.41%
Weighted average rate paid on:
  Savings deposits                                    2.50%             2.50%            2.50%
  Certificates                                        6.42%             5.76%            5.28%
  NOW and money market accounts                       3.88%             4.05%            1.05%
  Combined weighted average rate
    paid on interest-bearing
    liabilities                                       5.47%             4.97%            4.62%
Spread                                                1.71%             1.86%            1.79%
</TABLE>

________________________________________

(1)      Net interest income dividend by average interest earning assets.
(2)      Short-term liquid assets consist of cash, interest-bearing deposits and
         U.S. Government and agency obligations maturing within one year.
(3)      Includes FHLB stock and other corporate debt securities.

                                       10
<PAGE>

               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS

         West Town Bancorp, Inc. (the "Company"), a Delaware corporation, was
organized on May 6, 1994 to acquire all of the capital stock issued by West Town
Savings Bank (the "Bank") upon its conversion from the mutual to stock form of
ownership. On March 1, 1995, the Company sold 221,940 shares of common stock at
$10 per share to depositors, employees, and other investors. Total proceeds from
the conversion in the amount of $1,888,516 (which is net of conversion and
issuance costs of $330,884) was recorded as common stock and additional
paid-in-capital in fiscal year 1995. The Company utilized $944,258 of the net
proceeds to acquire all the capital stock of the Bank.

         Financial statements on a consolidated basis for both the Company and
the Bank are included in the Annual Report. The Company had no material assets
or liabilities until the conversion was completed on March 1, 1995.

         The following table presents the Consolidated Statements of Changes in
Stockholders' Equity for the three years ended March 31, 2001.

                                       11
<PAGE>

          CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                       THREE YEARS ENDED MARCH 31, 2001

<TABLE>
<CAPTION>
                                                                     Accumulated                  Common
                                             Additional              Other                        Stock
                                   Common    Paid-In     Retained    Comprehensive    Treasury    Acquired
                                   Stock     Capital     Earnings    Income           Stock       by ESOP         Total
                                   -------   ---------   ---------   -------------    --------    ---------     ---------
<S>                                <C>       <C>         <C>         <C>              <C>         <C>           <C>
Balance at March 31, 1998          $ 2,319   1,987,127   2,279,662              -     (81,906)    (139,384)     4,047,818
                                   -------   ---------   ---------                    -------     ---------     ---------

Comprehensive income:
 Net income                                                157,364                                                157,364
  Other comprehensive income,
    net of tax:
   Unrealized holding gain
    during the year                                                        44,832                                  44,832
                                                         ---------      ---------                               ---------
Total comprehensive income                                 157,364         44,832                                 203,196
                                                         ---------      ---------                               ---------
Purchase of treasury stock
 (1,700 shares)                                                                       (25,300)                    (25,300)
Tax benefit related to
  MRP stock                                      2,730                                                              2,730
Contribution to fund ESOP loan           -       4,012           -              -           -       14,968         18,980
                                   -------   ---------   ---------      ---------    --------     --------      ---------

Balance at March 31, 1999            2,319   1,993,869   2,437,026         44,832    (107,206)    (124,416)     4,246,424
                                   -------   ---------   ---------      ---------    --------     --------      ---------
Comprehensive income:
 Net income                                                 62,036                                                 62,036
 Other comprehensive income,
  net of tax:
  Unrealized holding gain
   during the year                                               -        (13,609)                                (13,609)
                                                         ---------      ----------                              ---------

Total comprehensive income                                  62,036        (13,609)                                 48,427
                                                         ---------      ----------                              ---------
Purchase of treasury stock
 (12,241 shares)                                                                     (147,451)                   (147,451)
Contribution to fund ESOP loan           -       3,392           -              -           -       16,454         19,846
                                   -------    --------   ---------     ----------    --------     --------      ---------

Balance at March 31, 2000            2,319   1,997,261   2,499,062         31,223    (254,657)    (107,962)     4,167,246
                                   -------   ---------   ---------     ----------    --------     --------      ---------

Comprehensive income:
 Net income                                                (39,007)                                               (39,007)
  Other comprehensive income,
   net of tax:
  Unrealized holding loss
   during the year                                                         15,559                                  15,559
                                                         ---------       --------                               ---------

Total comprehensive income                                 (39,007)        15,559                                 (23,448)
                                                         ---------       --------                               ---------
Purchase of treasury stock
 (5,575 shares)                                                                       (66,900)                    (66,900)
Contribution to fund ESOP loan                   3,616                                              18,088         21,704
                                   -------   ---------   ---------       --------    --------     --------      ---------

Balance at March 31, 2001          $ 2,319   2,000,877   2,460,055         46,782    (321,557)     (89,874)     4,098,602
                                   =======   =========   =========       ========    ========     ========      =========
</TABLE>

                                       12
<PAGE>

                            WEST TOWN SAVINGS BANK
                                 ---GENERAL---

         The Bank was organized in 1922 as an Illinois-chartered mutual savings
and loan association entitled "West Town Building and Loan Association". In
1992, the association converted to an Illinois chartered savings bank and
changed its named to "West Town Savings Bank". The Bank is regulated by the
Office of the Illinois Commissioner for Banks and Real Estate (OCBRE) and its
deposits are insured up to applicable limits under the Savings Association
Insurance Fund ("SAIF") of the Federal Deposit Insurance Corporation ("FDIC").
The Bank is a member of the Federal Home Loan Bank ("FHLB") System.

         The Bank's principal business consists of attracting deposits from the
public and investing those deposits, together with funds generated from
operations, in one-to-four family mortgage loans, and in home equity and
commercial loans. The Bank's deposit accounts are insured to the maximum
allowable amount by the Federal Deposit Insurance Corporation ("FDIC").

         The Bank's results of operations are dependent primarily on net
interest income, which is the difference between the interest income earned on
its loan, mortgage-backed securities and investment securities portfolios and
its cost of funds, consisting of interest paid on its deposits and borrowings.
The Bank's operating results are also affected, to a lesser degree, on loan
fees, customer service charges and other income. Operating expenses of the Bank
consist of employee compensation and benefits, equipment and occupancy costs,
federal deposit insurance premiums, and other administrative expenses. The
Bank's results of operations are further affected by economic and competitive
conditions, particularly changes in market interest rates, government policies
and actions of regulatory authorities.

                                       13
<PAGE>

                       CONSOLIDATED FINANCIAL CONDITION

         As of March 31, 2001, total assets increased approximately $14.9
million, or 42.5%, to $49,825,000 from $34,958,000 at March 31, 2000. The
increase primarily resulted from an increase in deposits taken in at the new
branch office, which were used to originate and purchase mortgage loans, and
commercial loans as well as purchase mortgage-backed securities.

         Net loans receivable increased in 2001 by $11.7 million, or 59.7%, as
purchased loans, participation loans and loan originations exceeded loan
repayments. During the year ended March 31, 2001, the Bank had loan originations
and purchases of $20,967,000, compared to $4,690,000 for the year ended March
31, 2000.

         Stockholders' equity decreased approximately $68,000, or 1.6%, for the
year ended March 31, 2001 as compared to March 31, 2000, primarily as a result
of the purchase of treasury stock at a cost of approximately $67,000, and a net
operating loss totaling $39,000, partially offset by unrealized gains on
securities available for sale, net of income taxes, totaling approximately
$16,000.

         The Bank's lending activities have been concentrated in residential
real property secured by first liens on such property. At March 31, 2001
approximately 70.5% of the Bank's loans were secured by one-to-four family
dwellings. In addition, the Bank currently is participating in construction
loans for the purpose of building one-to-four family dwellings. The remaining
loans were secured by commercial real estate and multi-family properties,
business assets and savings accounts. The Bank requires collateral on all loans
and generally maintains loan to value ratios on real estate loans no greater
than 80%. Virtually all of the Bank's mortgage loans are geographically located
within a thirty-mile radius of the Bank's main office.

                                       14
<PAGE>

                       CONSOLIDATED NET INTEREST INCOME

         Net interest income increased by $90,000, or 11.5%, during the year
ended March 31, 2001, as compared to the prior year. The increase in gross
interest income of $924,000 was the result of an increase of approximately $9.8
million in average interest earnings assets as well as an increase in the
average yield to 7.40% at March 31, 2001 from 6.74% at March 31, 2000. The
increase in interest expense of $834,000 was attributable to an increase in the
average interest bearing liabilities of approximately $9.8 million as well as on
increase in the average yield paid on deposits from 4.53% at March 31, 2000 to
5.44% at March 31, 2001.

         Net interest income increased by $3,000 or .4%, during the year ended
March 31, 2000 as compared to the prior year. Interest income increased $26,000,
while interest expense increased $23,000. The average interest - earning assets
increased by approximately $1.4 million while average interest - bearing
liabilities increased by approximately $2 million.

                                       15
<PAGE>

The following table presents for the periods indicated the total dollar amount
of interest income from average interest earning assets and the resultant
yields, as well as the interest expense on average interest bearing liabilities,
expressed both in dollars and rates. No tax equivalent adjustments were made.
All average balances are monthly average balances. Non-accruing loans have been
included in the table as loans carrying a zero yield.

<TABLE>
<CAPTION>
                                                                       YEAR ENDED MARCH 31,
                                --------------------------------------------------------------------------------------------------
                                             2001                               2000                            1999
                                --------------------------------------------------------------------------------------------------
                                Average       Interest             Average      Interest            Average       Interest
                                Outstanding   Earned/    Yield/    Outstanding  Earned/    Yield    Outstanding   Earned/    Yield
                                Balance       Paid        Rate     Balance      Paid       Rate     Balance       Paid       Rate
                                -----------   --------   ------    -----------  --------   -----    -----------   --------  ------
                                (Dollars in Thousands)             (Dollars in Thousands)           (Dollars in Thousands)
<S>                             <C>           <C>        <C>       <C>          <C>        <C>      <C>           <C>       <C>
Interest-Earning Assets:
  Loans receivable (1)              $26,870     $2,039     7.59%       $19,576    $1,448    7.40%       $19,133     $1,468    7.67%
  Mortgage-backed securities          4,598        338     7.34%           695        45    6.47%         1,345         80    5.94%
 Investment securities                  200         11     5.50%           200        11    5.50%           360         13    3.63%
 Other interest-earning
    assets                            8,053        550     6.83%         9,429       511    5.42%         7,653        430    5.62%
 FHLB stock                             192         14     7.46%           183        13    7.10%           177         11    6.53%
                                    -------     ------     ----        -------    ------    ----        -------     ------    ----
  Total interest-earning
    assets(1)                        39,913      2,952     7.40%        30,083     2,028    6.74%        28,668      2,002    6.98%
                                                ======     ====                   ======    ====                    ======    ====
  Non-interest-earning
    assets                            2,974                              1,995                            1,436
                                    -------                            -------                          -------
 Total Assets                       $42,887                            $32,078                          $30,104
                                    =======                            =======                          =======
Interest-Bearing Liabilities:
  Savings deposits                  $ 6,854        153     2.23%       $ 6,582       148    2.25%       $ 6,081        156    2.57%
 Certificate accounts                26,774      1,717     6.41%        20,372     1,086    5.33%        19,290      1,065    5.52%
 Demand deposit and
    money market accounts             4,600        209     4.54%           523        11    2.10%           103          1    1.28%
                                    -------     ------     ----        -------    ------    ----        -------     ------    ----
  Total interest-bearing
    liabilities                      38,228      2,079     5.44%        27,477     1,245    4.53%        25,474      1,222    4.80%
                                                ======     ====                   ======    ====                    ======    ====
  Non-interest bearing
    liabilities                         554                                403                              490
                                    -------                            -------                          -------
 Total liabilities                   38,782                             27,880                           25,964
 Total Stockholders' Equity           4,105                              4,198                            4,140
                                    -------                            -------                          -------
 Total liabilities and
    Stockholders' Equity            $42,887                            $32,078                          $30,194
                                    =======                            =======                          =======
 Net interest income                            $  873                            $  783                            $  780
                                                ======                            ======                            ======
  Net interest rate
    spread                                                 1.96%                            2.21%                             2.18%
                                                           ====                             ====                              ====
 Net earning assets                 $ 1,685                            $ 2,606                          $ 3,194
                                    =======                            =======                          =======
  Net yield on average
   interest-earning assets                                 2.19%                            2.60%                             2.72%
                                                           ====                             ====                              ====
  Ratio of average interest
    earning assets to
    average interest-bearing
    liabilities                                   1.04x                             1.09x                             1.13x
                                                  ====                              ====                              ====
</TABLE>

___________________________
(1)  Calculated net of deferred loan fees, loan discounts, loans in process and
     loss reserves.
<PAGE>

                              RATE/VOLUME ANALYSIS


          The following schedule presents the dollar amount of changes in
interest income and interest expense for major components of interest-earning
assets and interest-bearing liabilities. It distinguishes between the increase
related to higher outstanding balances and that due to the unprecedented levels
and volatility of interest rates. For each category of interest-earning assets
and interest-bearing liabilities, information is provided on changes
attributable to (i) changes in volume (i.e., changes in volume multiplied by old
rate) and (ii) changes in rate (i.e., changes in rate multiplied by old volume).
For purposes of this table, changes attributable to both rate and volume, which
cannot be segregated, have been allocated proportionately to the change due to
volume and the change due to rate.

<TABLE>
<CAPTION>
                                                        Year Ended March 31,
                                  -------------------------------------------------------------

                                             2000 v. 2001               1999 v. 2000

                                  -------------------------------------------------------------

                                    Increase                        Increase
                                    (Decrease)                     (Decrease)
                                      Due to                         Due to
                                    ----------                      --------
                                                     Total                      Total
                                                     Increase                  Increase
                                    Volume    Rate   (Decrease)     Volume   Rate  (Decrease)
                                    ------    ----   ----------     ------   ----  ----------
                                          (Dollars in Thousands)     (Dollars in Thousands)
<S>                                 <C>       <C>    <C>           <C>       <C>   <C>
Assets:
Interest-earning assets:
  Loan receivable                   $540      $ 51      $591         $ 33    $(53)   $(20)
  Mortgage-backed securities         283        10       293          (40)      5     (35)
  Investment securities                -         -         -          ( 6)      4     ( 2)
  Other interest-earning assets      (84)      123        39          100     (19)     81
  FHLB stock                           1         -         1            1       1       2
                                     ---       ---       ---         ----    -----   ----
Total interest-earning assets       $740       184       924           88     (62)     26
                                    ----       ---       ---         ----    -----   ----

Liabilities and Equity Capital:
Interest-bearing liabilities:
  Savings deposits                  $  5      $  -      $  5         $ 12    $(20)    $(8)
  Certificate accounts               386       245       631           59     (38)     21
  Demand deposit and
    money market accounts            172        26       198            8       2      10
                                    ----      ----       ---         ----    -----   ----
  Total interest-bearing
    liabilities                     $563      $271       834         $ 79    $(56)   $ 23
                                    ----      ----      ----         ----    -----   ----

Net interest income:                                    $ 90                         $  3
                                                        ====                         ====
</TABLE>

                                       17
<PAGE>

                          ASSET/LIABILITY MANAGEMENT

         The matching of assets and liabilities may be analyzed by examining the
extent to which such assets and liabilities are "interest rate sensitive" and by
monitoring an institution's interest rate sensitivity "gap". An asset or
liability is said to be interest rate sensitive within a specific time period if
it will mature or reprice within that time period. The interest rate sensitivity
gap is defined as the difference between the amount of interest-earning assets
anticipated, based upon certain assumptions, to mature or reprice within a
specific time period and the amount of interest-bearing liabilities anticipated,
based upon certain assumptions, to mature or reprice within that time period. A
gap is considered positive when the amount of interest rate sensitive assets
exceeds the amount of interest rate sensitive liabilities. A gap is considered
negative when the amount of interest rate sensitive liabilities exceeds the
amount of interest rate sensitive assets. During a period of rising interest
rates, a negative gap would tend to adversely affect net interest income. During
a period of falling interest rates, a negative gap would tend to result in an
increase in net interest income while a positive gap would tend to adversely
affect net interest income.

         At March 31, 2001, total interest-bearing liabilities maturing,
repricing or repaying within one year exceeded total interest-bearing assets
maturing, repricing, or repaying in the same period by $5.6 million,
representing a negative one-year gap ratio of 11.44%.

         During periods of rising interest rates, it is expected that the cost
of the Bank's interest-bearing liabilities would rise more quickly than the
yield on its interest-earning assets, which would adversely affect net interest
income. In periods of falling interest rates, the opposite effect on net
interest income is expected. However, heavy prepayments of mortgages could

                                       18
<PAGE>

reduce the positive effect of the falling interest rates. Management believes
that currently the risk of substantial effect of changes in interest rates on
net interest income is minimal due to the positive gap position and also due to
the strong net worth position of the Bank and the excess of its interest-earning
assets over interest-bearing liabilities. Nonetheless, the Bank closely monitors
interest rate risk as such risk relates to management's strategy.

         As part of its Asset/Liability Management strategy, the Bank invests in
mortgage pools and mortgage backed securities to offset unexpected loan
prepayments and to supplement low loan origination volumes. In recent years the
Bank has purchased mortgage pools of loans with maturities or repricing accruing
within a 1 to 7 year period.

         The following table sets forth the scheduled repricing or maturity of
the Bank's assets and liabilities as of March 31, 2001, based on the following
assumptions:

         1.    Fixed-rate certificate accounts will not be withdrawn prior to
               maturity.

         2.    Passbook, Demand Deposit and Money Market Accounts were assumed
               to withdraw at a rate of 10% during the first year, a combined
               rate of 20% for years two and three, and 20% for years four and
               five.

         3.    Adjustable-rate loans and mortgage-backed securities are
               calculated at the earlier of maturity or the contractual
               repricing date.

         4.    Fixed-rate mortgage loans, other fixed-rate loans and fixed-rate
               mortgage-backed securities are shown on the basis of contractual
               amortization and management's estimate of annual prepayments
               based upon past experience.

         The effect of these assumptions is to quantify the dollar amount of
items that are interest-sensitive and that can be repriced within each of the
periods specified. Such repricing can occur

                                       19
<PAGE>

in one of three ways: (1) the rate of interest to be paid on an asset or
liability may adjust periodically on the basis of an interest rate index; (2) an
asset or liability, such as a mortgage loan, may amortize, permitting
reinvestment of cash flows at the then-prevailing interest rates; or (3) an
asset or liability may mature, at which time the proceeds can be reinvested at
the current market rates. Management believes these prepayment and erosion rates
represent reasonable estimates based on the Bank's experience and are consistent
with information provided by regulatory agencies.

                                       20
<PAGE>

         The following table sets forth the interest rate sensitivity of the
Bank's assets and liabilities at March 31, 2001 on the basis of prepayments and
decay rates as calculated through historical analysis or as provided by
regulatory agencies.

<TABLE>
<CAPTION>
                                                                            Maturing or Repricing
                                                               --------------------------------------------------------------------

                                                               Within    Over 1-3 Over 3-5  Over
                                                               One Year  Years    Years     5 Years     Total
                                                               Amount    Amount   Amount    Amount      Amount
                                                               --------  -------- --------  -------     ------
<S>                                                            <C>       <C>      <C>       <C>         <C>
Fixed/Adjustable Rate Mortgage Loans                           $12,122    8,933    5,159     6,968      33,182

Other Loans                                                      4,874      974      246        62       6,156

Investment Securities                                            5,396      963        0         0       6,359
                                                               -------   ------    -----     -----      ------

Total Interest-Earning Assets                                   22,392   10,870    5,405     7,030      45,697
                                                               -------   ------    -----     -----      ------

Savings Deposits                                                   622    1,244    1,244     3,112       6,222

Certificates                                                    26,648    4,749      263         0      31,660

Demand Deposit and Money Market Accounts                           733    1,466    1,466     3,662       7,327
                                                               -------   ------    -----     -----      ------

Total Interest-Bearing Liabilities                              28,003    7,459    2,973     6,774      45,209
                                                               -------   ------    -----     -----      ------

Assets Less Liabilities                                         (5,611)   3,411    2,432       256         488

Cumulative Interest-Rate Sensitivity Gap                        (5,611)  (2,200)     232       488         488

Cumulative Percentage of Assets                                 (11.44)%  (4.48)%    .47%     1.06%
</TABLE>

                                       21
<PAGE>

                           PROVISION FOR LOAN LOSSES

         The allowance for loan losses is established through a provision for
loan losses based on management's evaluation of the risk inherent in its loan
portfolio and the general economy. Management's evaluation includes a review of
all loans on which full collectibility may not be reasonably assured, the
estimated fair market value of the underlying collateral, economic conditions,
historical loan loss experience and the Bank's internal credit review process.

         The Bank's allowance for general loan losses at March 31, 2001 was
$99,000. In the fiscal year ended March 31, 2001, the Bank provided
approximately $41,000 as an additional allowance for loan losses. At March 31,
2001, the Bank's allowance for loan losses, as a percentage of total loans
outstanding was .31% as compared to .28% at March 31, 2000.


                                 OTHER INCOME
                                 CONSOLIDATED

         Total other income increased $58,000 to $108,000 during the period
ended March 31, 2001 as compared to the same period for 2001. The increase was
primarily the result of an increase in deposit and ATM related fees and an
increase in the cash surrender value of officer's life insurance.

         Total other income increased $2,500 to approximately $50,000 in 2000 as
compared to 1999. The increase was primarily the result of an increase in loan
related fees and an increase in the cash surrender value of officer's life
insurance.

                                       22
<PAGE>

                        CONSOLIDATED OPERATING EXPENSES

         Operating expenses increased by $270,000 in fiscal year 2001, as
compared to fiscal 2000. This increase was primarily the result of increases in
compensation related expenses, occupancy costs and equipment expenses and data
processing costs totaling approximately $246,000 due mainly to the opening of
the North Riverside, Illinois branch site. As a percentage of average assets,
total operating expenses amounted to 2.4% for 2001 and 2.3% in 2000.

         Operating expenses increased by $169,000 in 2000, as compared to 1999.
As a percentage of average assets, total operating expenses amounted to 2.3% for
2000 and 1.9% for 1999.

                                 INCOME TAXES

         The income tax provisions amounted to $(32,000), $24,000 and $92,000
during the fiscal years 2001, 2000 and 1999, respectively, which amounted to
effective tax rates of (44.8)%, 28.0% and 36.8% during these respective periods.
See discussion of accounting and income tax issues in Note 12 in Notes to
Financial Statements.

                                       23
<PAGE>

                        LIQUIDITY AND CAPITAL RESOURCES

         The Bank's primary sources of funds are deposits, proceeds from
principal and interest payments on loans, mortgage-backed securities and
investment securities. Should the Bank need additional sources of funds,
borrowing could be utilized from the Federal Home Loan Bank. The Bank has not
utilized borrowed funds in the last five years. While maturities and scheduled
amortization of loans and mortgage-backed securities are a predictable source of
funds, deposit flows and mortgage prepayments are greatly influenced by general
interest rates, economic conditions, and competition.

         The Bank's liquidity, represented by cash equivalents, is a product of
its operating, investing and financing activities. These activities for the
years ended March 31, 2001, 2000 and 1999 are summarized below:

<TABLE>
<CAPTION>
                                                                Years Ended March 31,
                                                            ---------------------------
                                                             2001        2000       1999
                                                             ----        ----       ----
Consolidated Cash Flows                                              (in thousands)
-----------------------
<S>                                                       <C>         <C>          <C>
Operating activities
  Net income (loss)                                       $   (39)    $    62      $  157
Adjustment to reconcile net income to net cash
  provided by (used in) operating activities                   64         397         609
                                                          -------     -------      ------
Net cash provided by (used in) operating activities            25         459         766
Net cash provided by (used in) investing activities        (8,752)     (1,304)       (951)
Net cash provided by (used in) financing activities         4,692       3,876       1,146
                                                          -------     -------      ------
Net increase (decrease) in cash and cash equivalents       (4,035)      3,031         961
Cash and cash equivalents at beginning of year             11,170       8,139       7,178
                                                          -------     -------      ------
Cash and cash equivalents at end of year                  $ 7,135     $11,170      $8,139
                                                          =======     =======      ======
</TABLE>

         The primary investing activity of the Bank is the origination and
purchase of loans and the purchase of mortgage-backed and investment securities.
During the year ended March 31, 2001 the Bank had a net increase in loans of
approximately $11.7 million, and for the years ended March 31, 2000 and 1999,
the Bank had a net decrease and a net increase in loans of approximately
$477,000 and $1,658,000 (after principal repayments), respectively. Purchases of
mortgage-backed and investment securities (including Federal Home Loan Bank
Stock) approximated $6.9 million, $997,000, and $100,000 respectively, in those
same periods.

                                       24
<PAGE>

         Financing activities in the years ended March 31, 2001 and 2000
consisted of a net increase in total deposits of approximately $14.7 million and
$4.0 million, and for year ended March 31, 1999 a net increase in total deposits
of approximately $1.2 million. The Bank had no borrowed funds during these
years.

         At March 31, 2001, the Bank had outstanding loan commitments and
extended but unused lines of credit totaling approximately $3 million.

         Regulations require a savings institution to maintain an average daily
balance of liquid assets (cash and eligible investments) equal to at least 5% of
the average daily balance of its net withdrawable deposits and short-term
borrowings. In addition, short-term liquid assets currently must constitute 1%
of the sum of net withdrawable deposit accounts plus short-term borrowings.
Management's objectives and strategies for the Bank have consistently maintained
liquidity levels in excess of regulatory requirements. At March 31, 2001 and
2000, the Bank's liquidity level was in excess of 25%.

         The Bank is also required to maintain specific amounts of capital
pursuant to federal regulations. As of March 31, 2001 the Bank was in compliance
with all regulatory capital requirements, with core (Tier 1) and risk-based
(Tier 2) ratios of 6.68%, and 13.27%, well above the required ratios.

                    EFFECT OF INFLATION AND CHANGING PRICES

         The Financial Statements and related financial data presented herein
have been prepared in accordance with GAAP, which requires the measurement of
financial position and operating results in terms of historical dollars, without
considering the changes in relative purchasing power of money over time due to
inflation. The primary impact of inflation on operations of the Bank is
reflected in increased operating costs. Unlike most industrial companies,
virtually all the assets and liabilities of a financial institution are monetary
in nature. As a result, interest

                                       25
<PAGE>

rates generally have a more significant impact on a financial institution's
performance than do general levels of inflation. Interest rates do not
necessarily move in the same direction or to the same extent as the prices of
goods and services.

                                   STOCK DATA

         West Town Bancorp, Inc.'s common stock is traded over-the-counter
through the National Daily Quotation System "Pink Sheet" published by the
National Quotation Bureau, Inc. At March 31, 2001, the Company had 204,787
shares outstanding with a book value of $20.01 per share. The closing price of
the stock on March 31, 2001 was $12.00 per share, or 60.0% of book value. Loss
per share for the year ended March 31, 2001 was $0.20.

                                       26
<PAGE>

                            STOCKHOLDER INFORMATION
                            -----------------------

                            CORPORATE HEADQUARTERS
                             4852 West 30th Street
                            Cicero, Illinois 60804
                                (708) 652-2000


                                GENERAL COUNSEL
                           Kemp & Grzelakowski, Ltd.
                              Oak Brook, Illinois


                      STOCK TRANSFER AGENT AND REGISTRAR
                          First Bankers Trust Company
                            Broadway at 12th Street
                                 P.O. Box 3566
                          Quincy, Illinois 62305-3566
                                (217) 228-8060


                             INDEPENDENT AUDITORS
                         Cobitz, Vandenberg & Fennessy
                             Palos Hills, Illinois


                             INVESTOR INFORMATION
        Stockholders, investors, and analysts interested in additional
                            information may contact
                    Dennis B. Kosobucki, President and CEO,
                         at the corporate headquarters


                        ANNUAL MEETING OF STOCKHOLDERS
       The Annual Meeting of the Stockholders of West Town Bancorp, Inc.
     will be held at 1:00 p.m., July 11, 2001, at the following location:
                            Corporate Headquarters
                              4852 W. 30th Street
                            Cicero, Illinois 60804

                All Stockholders are cordially invited to attend.

        At June 1, 2001, the Corporation had 80 stockholders of record.

                                       27