UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the quarterly period ended December 31, 2001

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
     ACT

     For the transition period from _____________ to _____________.


                         Commission file number 0-29687


                                  Eagle Bancorp
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

         United States                                      81-0531318
-------------------------------                        -------------------
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                        Identification No.)

                     1400 Prospect Avenue, Helena, MT 59601
                    ----------------------------------------
                    (Address of principal executive offices)

                                 (406) 442-3080
                           ---------------------------
                           (Issuer's telephone number)


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court.  Yes [ ]  No[ ]


                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

Common stock, par value $0.01 per share             1,208,172 shares outstanding
--------------------------------------------------------------------------------
                             As of February 13, 2002

Transitional Small Business Disclosure Format (Check one):  Yes [ ]  No [X]

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY

                                TABLE OF CONTENTS


                                                                            Page
                                                                            ----
PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements

            Consolidated Statements of Financial Condition (As of
            December 31, 2001 (unaudited) and June 30, 2001) ..........  1 and 2

            Consolidated Statements of Income (For the three and six
            months ended December 31, 2001 and 2000 (unaudited)) ......  3 and 4

            Consolidated Statements of Stockholders' Equity (For the
            six months ended December 31, 2001 (unaudited)) ...........        5

            Consolidated Statements of Cash Flows (For the six
            months ended December 31, 2001 and 2000 (unaudited)) ......  6 and 7

            Notes to Consolidated Financial Statements ................  8 to 12

Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations ......................... 13 to 20


PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings ...........................................       21
Item 2.   Changes in Securities .......................................       21
Item 3.   Defaults Upon Senior Securities .............................       21
Item 4.   Submission of Matters to a Vote of Security-Holders .........       21
Item 5.   Other Information ...........................................       21
Item 6.   Exhibits and Reports on Form 8-K ............................ 21 to 22

Signatures

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


<TABLE>
<CAPTION>
                                                   December 31, 2001  June 30, 2001
                                                   -----------------  -------------
                                                      (Unaudited)       (Audited)
<S>                                                  <C>              <C>
ASSETS
  Cash and due from banks ........................   $  3,669,894     $  3,427,038
  Interest-bearing deposits with banks ...........      6,773,443        4,925,000
  Investment securities available for sale,
    at market value ..............................     30,701,134       21,603,520
  Investment securities held-to-maturity,
    at amortized cost ............................      5,015,869        6,570,794
  Federal Home Loan Bank stock, at cost ..........      1,540,200        1,487,300
  Mortgage loans held-for-sale ...................      4,875,426        3,033,244
  Loans receivable, net of deferred loan fees
    and allowance for loan losses ................    113,108,460      114,977,895
  Accrued interest and dividends receivable ......        898,371          941,117
  Mortgage servicing rights, net .................      1,382,690        1,315,819
  Property and equipment, net ....................      6,351,030        6,505,627
  Cash surrender value of life insurance .........      2,192,330        2,140,524
  Real estate acquired in settlement of loans,
    net of allowance for losses ..................             --               --
  Other assets ...................................        179,797          195,034
                                                     ------------     ------------
      Total assets ...............................   $176,688,644     $167,122,912
                                                     ============     ============
</TABLE>



See accompanying notes to consolidated financial statements.

                                       -1-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                   (Continued)


<TABLE>
<CAPTION>
                                                   December 31, 2001  June 30, 2001
                                                   -----------------  -------------
                                                      (Unaudited)       (Audited)
<S>                                                  <C>              <C>
LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
  Deposit accounts:
    Noninterest bearing ..........................   $  7,158,245     $  6,486,306
    Interest bearing .............................    137,612,918      127,564,024
  Advances from Federal Home Loan Bank ...........      9,393,889       11,443,889
  Accrued expenses and other liabilities .........      1,970,483        1,926,450
                                                     ------------     ------------
      Total liabilities ..........................    156,135,535      147,420,669
                                                     ------------     ------------

Stockholders' Equity:
  Preferred stock (no par value, 1,000,000 shares
    authorized, none issued or outstanding) ......
  Common stock (par value $0.01 per share;
    10,000,000 shares authorized; 1,223,572
    shares issued and 1,203,572 outstanding
    at December 31, 2001 and June 30, 2001) ......         12,236           12,236
  Additional paid-in capital .....................      3,862,480        3,845,908
  Unallocated common stock held by employee
    stock ownership plan ("ESOP") ................       (294,448)        (312,848)
  Treasury stock, at cost (20,000 shares) ........       (235,000)        (235,000)
  Retained earnings ..............................     17,018,150       16,220,812
  Accumulated other comprehensive income .........        189,691          171,135
                                                     ------------     ------------
      Total stockholders' equity .................     20,553,109       19,702,243
                                                     ------------     ------------
      Total liabilities and stockholders' equity .   $176,688,644     $167,122,912
                                                     ============     ============
</TABLE>



See accompanying notes to consolidated financial statements.

                                       -2-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                   QUARTERLY CONSOLIDATED STATEMENTS OF INCOME


<TABLE>
<CAPTION>
                                       Three Months Ended            Six Months Ended
                                            December 31,               December 31,
                                     ------------------------   -------------------------
                                        2001          2000          2001         2000
                                        ----          ----          ----         ----
Interest and dividend income:
<S>                                 <C>           <C>           <C>           <C>
  Interest and fees on loans ....    $2,364,788   $ 2,301,293    $4,740,808   $ 4,554,478
  Interest on deposits with banks        43,974        22,454       110,822        27,599
  FHLB stock dividends ..........        24,799        23,131        52,946        45,891
  Securities available for sale .       346,750       285,677       649,886       572,916
  Securities held to maturity ...        79,430       144,921       170,261       307,044
                                    -----------   -----------   -----------   -----------
      Total interest and dividend
       income ...................     2,859,741     2,777,476     5,724,723     5,507,928
                                    -----------   -----------   -----------   -----------

Interest expense:
  Deposits ......................     1,150,361     1,300,006     2,375,050     2,532,623
  FHLB advances .................       175,281       166,431       354,090       311,365
                                    -----------   -----------   -----------   -----------
      Total interest expense ....     1,325,642     1,466,437     2,729,140     2,843,988
                                    -----------   -----------   -----------   -----------

  Net interest income ...........     1,534,099     1,311,039     2,995,583     2,663,940
  Loan loss provision ...........            --            --            --        15,000
                                    -----------   -----------   -----------   -----------
      Net interest income after
       loan loss provision ......     1,534,099     1,311,039     2,995,583     2,663,940
                                    -----------   -----------   -----------   -----------

Noninterest income:
  Net gain on sale of loans .....       401,039        88,679       572,157       131,278
  Demand deposit service charges        128,240       139,150       253,803       273,829
  Mortgage loan servicing fees ..        78,831        72,767        94,163       145,361
  Net gain on sale of available
   for sale securities ..........         1,976            --         1,976            --
  Other .........................        94,269       100,782       186,478       194,213
                                    -----------   -----------   -----------   -----------
      Total noninterest income ..       704,355       401,378     1,108,577       744,681
                                    -----------   -----------   -----------   -----------
</TABLE>



See accompanying notes to consolidated financial statements.


                                      -3-

<PAGE>


                          EAGLE BANCORP AND SUBSIDIARY
                   QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
                                   (Continued)

<TABLE>
<CAPTION>
                                               Three Months Ended         Six Months Ended
                                                   December 31,             December 31,
                                             -----------------------    ---------------------
                                                2001          2000        2001         2000
                                                ----          ----        ----         ----
Noninterest expense:
<S>                                         <C>          <C>          <C>          <C>
  Salaries and employee benefits ........   $  698,787   $  693,695   $1,432,254   $1,362,255
  Occupancy expenses ....................      121,788      127,654      235,537      241,705
  Furniture and equipment depreciation ..       71,226       83,430      139,370      165,246
  In-house computer expense .............       48,879       45,558       98,378       88,909
  Advertising expense ...................       26,389       43,660       57,915       87,595
  Amortization of mortgage servicing fees      105,083       25,095      173,792       56,102
  Federal insurance premiums ............        6,088        5,322       12,214       12,394
  Postage ...............................       22,019       25,529       51,772       47,196
  Legal, accounting, and examination fees       49,177       51,228       72,169       98,916
  Consulting fees .......................        5,880        8,601       13,236       16,476
  ATM processing ........................       12,736       16,222       23,297       30,518
  Other .................................      202,846      190,760      384,766      357,815
                                            ----------   ----------   ----------   ----------
      Total noninterest expense .........    1,370,898    1,316,754    2,694,700    2,565,127
                                            ----------   ----------   ----------   ----------

Income before provision for income taxes       867,556      395,663    1,409,460      843,494
                                            ----------   ----------   ----------   ----------
Provision for income taxes ..............      305,865      124,084      501,107      268,364
                                            ----------   ----------   ----------   ----------
Net income ..............................   $  561,691   $  271,579   $  908,353   $  575,130
                                            ==========   ==========   ==========   ==========
Basic Earnings per share ................   $     0.48   $     0.23   $     0.78   $     0.49
                                            ==========   ==========   ==========   ==========
Diluted Earnings per share ..............   $     0.47         n.a.   $     0.77         n.a.
                                            ==========   ==========   ==========   ==========
Weighted average shares outstanding
  (basic eps) ...........................    1,166,010    1,181,412    1,165,434    1,180,835
                                            ==========   ==========   ==========   ==========
Weighted average shares outstanding
  (diluted eps) .........................    1,186,010         n.a.    1,185,434         n.a.
                                            ==========   ==========   ==========   ==========
</TABLE>


See accompanying notes to consolidated financial statements.


                                      -4-

<PAGE>


                          EAGLE BANCORP AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY


<TABLE>
<CAPTION>
                                                                                                           ACCUMULATED
                                                            ADDITIONAL UNALLOCATED                            OTHER
                                          PREFERRED  COMMON   PAID-IN      ESOP     TREASURY    RETAINED  COMPREHENSIVE
                                            STOCK    STOCK    CAPITAL     SHARES      STOCK     EARNINGS      INCOME       TOTAL
                                          --------- ------- ---------- ----------- ---------- ----------- ------------- -----------
<S>                                        <C>      <C>     <C>         <C>        <C>        <C>           <C>         <C>
Balance, June 30, 2001 ..................  $    --  $12,236 $3,845,908  $(312,848) $(235,000) $16,220,812   $ 171,135   $19,702,243

  Net income ............................       --       --         --         --         --      908,353          --       908,353
  Other comprehensive income ............       --       --         --         --         --           --      18,556        18,556
                                                                                                                        -----------
      Total comprehensive income ........       --       --         --         --         --           --          --       926,909

  Dividends paid ($.20 per share) .......       --       --         --         --         --     (111,015)         --      (111,015)

  ESOP shares allocated or committed
    to be released for allocation
    (2,300 shares) ......................       --       --     16,572     18,400         --           --          --        34,972
                                           -------  ------- ----------  ---------  ---------  -----------   ---------   -----------
Balance, December 31, 2001 ..............  $    --  $12,236 $3,862,480  $(294,448) $(235,000) $17,018,150   $ 189,691   $20,553,109
                                           =======  ======= ==========  =========  =========  ===========   =========   ===========
</TABLE>



See accompanying notes to consolidated financial statements.

                                       -5-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                           Six Months Ended
                                                             December 31,
                                                     ---------------------------
                                                        2001             2000
                                                        ----             ----
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income .....................................   $   908,353    $   575,130
  Adjustments to reconcile net income to
    net cash from operating activities:
      Provision for loan losses ..................            --             --
      Provision for mortgage servicing rights
       valuation losses ..........................        58,433             --
      Depreciation ...............................       236,267        284,208
      Deferred loan fees .........................            --         (5,958)
      Net amortization of marketable securities
       premium and discounts .....................        45,916             --
      Amortization of capitalized mortgage
       servicing rights ..........................       171,126         56,101
      Gain on sale of loans ......................      (572,157)      (131,278)
      Gain on sale of real estate owned ..........            --         (8,951)
      Net realized (gain) loss on sale of
       available-for-sale securities .............        (1,976)            --
      FHLB & other Dividends reinvested ..........       (72,290)       (45,800)
      Increase in cash surrender value
       of life insurance .........................       (51,806)       (47,987)
      Gain on sale of property & equipment .......          (950)            --
  Change in assets and liabilities:
    (Increase) decrease in assets:
      Accrued interest and dividends receivable ..        42,746        (81,905)
      Loans held-for-sale ........................    (1,269,859)       414,204
      Other assets ...............................        15,238           (827)
  Increase (decrease) in liabilities:
    Accrued expenses and other liabilities .......       133,707        (56,576)
    Deferred compensation payable ................        12,044         12,231
    Deferred income taxes payable ................       (78,339)       114,894
                                                     -----------    -----------
      Net cash provided by (used in) operating
        activities ...............................      (423,547)     1,077,486
                                                     -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of securities:
    Investment securities held-to-maturity .......      (278,708)      (501,150)
    Investment securities available-for-sale .....   (12,972,116)    (1,173,415)
  Proceeds from maturities, calls and
   principal payments:
    Investment securities held-to-maturity .......     1,827,982      1,474,445
    Investment securities available-for-sale .....     3,382,835      1,032,845
  Proceeds from sales of investment securities
    available-for-sale ...........................       502,750             --



See accompanying notes to consolidated financial statements.

                                      -6-


<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Continued)


                                                        Six Months Ended
                                                           December 31,
                                                   -----------------------------
                                                      2001              2000
                                                      ----              ----
CASH FLOWS FROM INVESTING ACTIVITIES:
  (CONTINUED)
  Increase in interest bearing deposits
   held at banks .............................      (1,848,443)              --
  Net (increase) decrease in loan
   receivable, excludes transfers
   to real estate acquired in settlement
   of loans ..................................       1,573,005       (5,730,253)
  Proceeds from the sale of real estate
   aquired in the settlement of loans ........              --          129,957
  Purchase of property and equipment .........         (81,669)         (33,908)
  Proceeds from sale of equipment ............             950               --
                                                   -----------      -----------
      Net cash used in investing activities ..      (7,893,414)      (4,801,479)
                                                   -----------      -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net increase in checking and savings
   accounts ..................................     $10,720,832      $ 2,534,972
  Net increase (decrease) in advances to
   borrowers for taxes and insurance .........              --          (44,731)
  Proceeds from FHLB advances ................              --        3,625,000
  Payments on FHLB advances ..................      (2,050,000)        (133,334)
  Dividends paid .............................        (111,015)         (80,511)
                                                   -----------      -----------
      Net cash provided by financing
        activities ...........................       8,559,817        5,901,396
                                                   -----------      -----------
Net increase (decrease) in cash ..............         242,856        2,177,403

CASH AND CASH EQUIVALENTS, beginning
 of period ...................................       3,427,038        3,477,650
                                                   -----------      -----------
CASH AND CASH EQUIVALENTS, end of period .....     $ 3,669,894      $ 5,655,053
                                                   ===========      ===========
SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid during the period for interest ...     $2,443,441       $ 2,603,029
                                                   ===========      ===========
  Cash paid during the period for income taxes     $  380,152       $   152,000
                                                   ===========      ===========
NON-CASH INVESTING ACTIVITIES:
  (Increase) decrease in market value of
    securities available-for-sale ............     $   (29,985)     $  (331,661)
                                                   ===========      ===========
Mortgage servicing rights capitalized ........     $   296,430      $    24,672
                                                   ===========      ===========



See accompanying notes to consolidated financial statements.


                                      -7-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


NOTE 1.  BASIS OF PRESENTATION
------------------------------

The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  instructions  for Form  10-QSB.  Accordingly,  they do not
include all of the information and footnotes  required by accounting  principles
generally  accepted  in the United  States of  America  for  complete  financial
statements.  However,  such information reflects all adjustments  (consisting of
normal  recurring  adjustments),  which  are,  in  the  opinion  of  management,
necessary for a fair presentation of results for the unaudited interim periods.

The results of operations for the three and six month periods ended December 31,
2001 are not necessarily indicative of the results to be expected for the fiscal
year  ending  June 30,  2002 or any other  period.  The  unaudited  consolidated
financial  statements and notes  presented  herein should be read in conjunction
with the audited  consolidated  financial  statements  and related notes thereto
included in Eagle's Form 10-KSB dated June 30, 2001.





                                      -8-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


NOTE 2.  INVESTMENT SECURITIES
------------------------------

Investment securities are summarized as follows:

<TABLE>
<CAPTION>
                                             December 31, 2001                              June 30, 2001
                                 ------------------------------------------   ------------------------------------------
                                                    GROSS                                        GROSS
                                  AMORTIZED      UNREALIZED        FAIR        AMORTIZED      UNREALIZED       FAIR
                                     COST      GAINS (LOSSES)      VALUE          COST      GAINS (LOSSES)     VALUE
                                 -----------   --------------   -----------   -----------   --------------   -----------
<S>                              <C>             <C>            <C>           <C>             <C>            <C>
Available-for-sale:
  U.S. government and agency
    obligations ..............   $ 4,705,387     $  41,933      $ 4,747,320   $ 4,566,644     $  42,694      $ 4,609,338
  Municipal obligations ......     4,302,471       (92,892)       4,209,579     4,303,574       (58,672)       4,244,902
  Corporate obligations ......     7,459,901       250,681        7,710,582     7,114,917       190,667        7,305,584
  Mortgage-backed securities .    10,963,656        55,738       11,019,394     4,029,519        73,726        4,103,245
  Collateralized mortgage
    obligations ..............     1,032,763        10,996        1,043,759     1,190,586        (4,304)       1,186,282
  Corporate preferred stock ..     1,958,692        11,808        1,970,500       150,000         4,169          154,169
                                 -----------     ---------      -----------   -----------     ---------      -----------
      Total ..................   $30,422,870     $ 278,264      $30,701,134   $21,355,240     $ 248,280      $21,603,520
                                 ===========     =========      ===========   ===========     =========      ===========

Held-to-maturity:
  U.S. government and agency
    obligations ..............   $   498,014     $   8,391      $   506,405   $ 1,395,905     $  19,267      $ 1,415,172
  Municipal obligations ......     1,356,036        (5,093)       1,350,943     1,078,681        13,070        1,091,751
  Mortgage-backed securities .     3,161,819        65,451        3,227,270     4,096,208        54,241        4,150,449
                                 -----------     ---------      -----------   -----------     ---------      -----------
      Total ..................   $ 5,015,869     $  68,749      $ 5,084,618   $ 6,570,794     $  86,578      $ 6,657,372
                                 ===========     =========      ===========   ===========     =========      ===========
</TABLE>



                                      -9-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


NOTE 3.  LOANS RECEIVABLE
-------------------------

Loans receivable consist of the following:

                                                  December 31,       June 30,
                                                      2001             2001
                                                  (Unaudited)       (Audited)
                                                  ------------     ------------
     First mortgage loans:
       Residential mortgage (1-4 family) .....    $ 72,618,327     $ 75,961,742
       Commercial real estate ................      10,265,442        9,062,769
       Real estate construction ..............       3,657,300        1,981,968

     Other loans:
       Home equity ...........................      15,189,129       15,698,367
       Consumer ..............................       9,709,035       10,362,135
       Commercial ............................       2,499,396        2,720,740
                                                  ------------     ------------
         Total ...............................     113,938,629      115,787,721

     Less:
       Allowance for loan losses .............        (705,128)        (688,282)
       Deferred loan fees ....................        (125,041)        (121,544)
                                                  ------------     ------------
         Total ...............................    $ 13,108,460     $114,977,895
                                                  ============     ============

Loans net of related  allowance for loan losses on which the accrual of interest
has been  discontinued  were $481,000 and $407,000 at December 31, 2001 and June
30, 2001, respectively.  Classified assets, including real estate owned, totaled
$1.36  million  and  $1.50  million  at  December  31,  2001 and June 30,  2001,
respectively.

The following is a summary of changes in the allowance for loan losses:

                                               Six Months Ended    Year Ended
                                                 December 31,       June 30,
                                                     2001             2001
                                                  (Unaudited)       (Audited)
                                               ----------------    -----------
     Balance, beginning of period ............     $688,282         $712,165
       Reclassification to REO reserve .......           --          (13,725)
       Provision charged to operations .......           --               --
       Charge-offs ...........................      (16,675)         (29,037)
       Recoveries ............................       33,521           18,879
                                                   --------         --------
         Balance, end of period ..............     $705,128         $688,282
                                                   ========         ========



                                      -10-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)



NOTE 4.  DEPOSITS
-----------------

Deposits are summarized as follows:

                                                   December 31,      June 30,
                                                       2001            2001
                                                   (Unaudited)       (Audited)
                                                  -------------    ------------
     Noninterest checking ....................    $  7,158,245     $  6,486,306
     Interest-bearing checking ...............      25,193,351       22,535,586
     Passbook ................................      21,197,459       20,688,121
     Money market ............................      23,978,014       17,399,325
     Time certificates of deposit ............      67,244,094       66,940,992
                                                  ------------     ------------
         Total ...............................    $144,771,163     $134,050,330
                                                  ============     ============


NOTE 5.  EARNINGS PER SHARE
---------------------------

Earnings  per share for the three  months  ended  December  31, 2001 is computed
using 1,166,010 weighted average shares outstanding.  Earnings per share for the
six months ended December 31, 2001 is computed using 1,165,434  weighted average
shares  outstanding.  Diluted  earnings per share is computed by  adjusting  the
number of shares  outstanding  by the  shares  purchased  to fund the  Company's
restricted  stock  plan,  for which  stock  was  awarded  in  January  2001,  as
determined by the treasury stock method. The weighted average shares outstanding
for the diluted  earnings per share  calculations  are  1,186,010  for the three
months ended  December 31, 2001 and 1,185,434 for the six months ended  December
31, 2001.  Earnings  per share for the three  months ended  December 30, 2000 is
computed using 1,181,412 weighted average shares outstanding. Earnings per share
for the six months ended December 31, 2000 is computed using 1,180,835  weighted
average shares outstanding.


NOTE 6.  DIVIDENDS AND STOCK REPURCHASE PROGRAM
-----------------------------------------------

This fiscal year Eagle has paid two dividends of $0.10 per share,  on August 24,
2001 and November 16, 2001.  Another dividend of $0.10 per share was declared on
January  17,  2002,  payable  February  15,  2002 to  stockholders  of record on
February 1, 2002.  Eagle  Financial MHC,  Eagle's mutual  holding  company,  has
waived the receipt of dividends on its 648,493 shares.

A stock  repurchase  program was announced on December 21, 2000,  covering 4% of
the Company's outstanding common stock. Through February 13, 2002, 20,000 shares
had been repurchased.  At the annual meeting held October 19, 2000, shareholders
approved  stock  option and  restricted  stock  plans for the  Company  covering
aggregate grants of up to 80,511 and 23,003,  respectively.  The repurchase plan
announced  in December is  intended  to meet the needs of the  restricted  stock
plan. On January 18, 2002,  4,600 shares of the restricted stock plan vested and
were distributed to the participants.


                                      -11-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


NOTE 7.  MORTGAGE SERVICING RIGHTS
----------------------------------

The Bank allocates its total cost in mortgage loans between  mortgage  servicing
rights  and  loans,  based  upon  their  relative  fair  values,  when loans are
subsequently  sold or  securitized,  with the servicing  rights  retained.  Fair
values are generally  obtained from an  independent  third party.  Impairment of
mortgage  servicing  rights is measured  based upon the  characteristics  of the
individual  loans,  including note rate, term,  underlying  collateral,  current
market conditions,  and estimates of net servicing income. If the carrying value
of the mortgage  servicing  rights  exceeds the estimated  fair market value,  a
valuation  allowance  is  established  for any  decline,  which is  viewed to be
temporary. Charges to the valuation allowance are charged against or credited to
mortgage  servicing  income.  Periodic  independent  valuations  of the mortgage
servicing  rights  are  performed.  As a  result  of a  valuation  performed  on
September 30, 2001, a temporary decline in the fair value was determined to have
occurred,  and a valuation  allowance of $58,433 was  established.  There was no
valuation  allowance at June 30, 2001. The following schedules show the activity
in the mortgage servicing rights and the valuation allowance.

                                                   Six Months      Twelve Months
                                                     Ended             Ended
                                                  December 31,        June 30,
                                                      2001              2001
                                                   (Unaudited)       (Audited)
                                                  -------------    -------------
     Mortgage Servicing Rights
       Beginning balance .......................   $1,315,819       $1,338,271
       Servicing rights capitalized ............      299,096          150,029
       Servicing rights amortized ..............     (173,792)        (172,481)
                                                   ----------       ----------
         Ending balance ........................    1,441,123        1,315,819
                                                   ----------       ----------
     Valuation Allowance
       Beginning balance .......................           --               --
       Provision ...............................      (58,433)              --
       Adjustments .............................           --               --
                                                   ----------       ----------
         Ending balance ........................      (58,433)              --
                                                   ----------       ----------
     Net Mortgage Servicing Rights .............   $1,382,690       $1,315,819
                                                   ==========       ==========


                                      -12-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS



Note Regarding Forward-Looking Statements

This  report  contains  certain  "forward-looking   statements."  Eagle  Bancorp
("Eagle"  or the  "Company")  desires  to take  advantage  of the "safe  harbor"
provisions  of the  Private  Securities  Litigation  Reform  Act of 1995  and is
including  this  statement  for the express  purpose of  availing  itself of the
protections  of  the  safe  harbor  with  respect  to all  such  forward-looking
statements. These forward-looking statements, which are included in Management's
Discussion and Analysis, describe future plans or strategies and include Eagle's
expectations  of  future  financial  results.  The  words  "believe,"  "expect,"
"anticipate,"   "estimate,"   "project,"   and  similar   expressions   identify
forward-looking statements.  Eagle's ability to predict results or the effect of
future plans or  strategies  or  qualitative  or  quantitative  changes based on
market risk is inherently  uncertain.  Factors which could affect actual results
but are not limited to include (i) change in general market interest rates, (ii)
general   economic   conditions,   (iii)   local   economic   conditions,   (iv)
legislative/regulatory  changes,  (v) monetary  and fiscal  policies of the U.S.
Treasury  and Federal  Reserve,  (vi) changes in the quality or  composition  of
Eagle's loan and investment portfolios,  (vii) demand for loan products,  (viii)
deposit  flows,  (ix)  competition,  and (x) demand for  financial  services  in
Eagle's   markets.   These  factors  should  be  considered  in  evaluating  the
forward-looking  statements.  You are cautioned  not to place undue  reliance on
these forward-looking statements which speak only as of their dates.


Financial Condition

Comparisons of results in this section are between the six months ended December
31, 2001 and June 30, 2001.

Total  assets  increased  by $9.57  million,  or 5.73%,  to  $176.69  million at
December 31,  2001,  from $167.12  million at June 30, 2001.  Total  liabilities
increased by $8.72 million to $156.14 million at December 31, 2001, from $147.42
million at June 30, 2001. Total equity  increased  $850,000 to $20.55 million at
December 31, 2001 from $19.70 million at June 30, 2001.

Growth in the available-for-sale investment portfolio of $9.10 million accounted
for the majority of the growth in total assets. The investment category with the
largest increase was mortgage-backed securities,  which increased $6.92 million.
$4  million  of this  increase  is  attributable  to the  investment  of  excess
liquidity into a  mortgage-backed  securities  mutual fund.  Loans held for sale
increased to $4.88  million at December 31, 2001 from $3.03  million at June 30,
2001. The loan portfolio  decreased $1.87 million,  or 1.63%, to $113.11 million
at December 31, 2001 from $114.98  million at June 30, 2001.  Heavy  refinancing
activity and the sale of  practically  all new  originations  contributed to the
decline in  single-family  mortgage loan balances to $72.62  million at December
31, 2001 from $75.96 million at June 30, 2001.  The  commercial  real estate and
construction  loan categories  showed increased  balances,  while all other loan
categories showed


                                      -13-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


Financial Condition (continued)

small decreases since June 30, 2001. Total loan originations were $67.88 million
for the six months ended December 31, 2001.  Single-family  mortgages  accounted
for $50.09  million of the  total.  Commercial  real  estate  loan  originations
totaled  $5.45  million  (including  a $3  million  construction  loan not fully
funded).  Home equity and consumer loan  originations  totaled $4.37 million and
$4.24 million, respectively, for the same period.

Growth in deposits funded asset growth.  Deposits have grown $10.72 million,  or
8.00%,  to $144.77 million at December 31, 2001 from $134.05 million at June 30,
2001. Growth in money market accounts and checking  accounts  contributed to the
increase in deposits.  The balances in Federal Home Loan Bank advances  declined
$2.05 million, as an advance matured in December.

The  growth in total  equity was the  result of  earnings  for the six months of
$908,000 and an increase in the unrealized gain on securities available for sale
of $19,000,  offset by the payment of two $0.10 per share regular cash dividends
during the period.


Results of Operations for the Three Months Ended December 31, 2001 and 2000

Net Income

Eagle's net income was $562,000 and $272,000 for the three months ended December
31, 2001,  and 2000,  respectively.  The increase of $290,000,  or 106.62%,  was
primarily due to increases in  non-interest  income of $303,000 and net interest
income of $223,000,  partially  offset by an increase in noninterest  expense of
$54,000. Basic earnings per share were $0.48 for the current period, compared to
$0.23 for the previous year's period.

Net Interest Income

Net interest  income  increased to $1.53 million for the quarter ended  December
31, 2001 from $1.31  million for the  quarter  ended  December  31,  2000.  This
increase of $223,000  was the result of an  increase  in interest  and  dividend
income of $82,000 and a decrease in interest expense of $141,000.

Interest and Dividend Income

Total  interest  and  dividend  income was $2.86  million for the quarter  ended
December 31, 2001,  compared to $2.78 million for the quarter ended December 31,
2000,  representing an increase of $82,000, or 2.87%. Interest and fees on loans
increased to $2.36 million for 2001 from $2.30  million for 2000.  This increase
of $63,000,  or 2.74%,  was due primarily to an increase in the average balances
of loans  receivable for the quarter ended December 31, 2001.  Average  balances
for loans receivable,  net, for the quarter ended December 31, 2001 were $118.59
million,  compared to $113.47  million for the previous year. This represents an
increase of $5.12 million,  or 4.51%.  Most loan  categories had shown increases
from the previous  year.  The average  interest rate earned on loans  receivable
decreased by 13 basis points, from 8.11% at


                                      -14-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


Results of Operations for the Three Months Ended December 31, 2001 and 2001
(continued)

Interest and Dividend Income (continued)

December  31, 2000 to 7.98% at December  31,  2001.  Interest  and  dividends on
investment  securities  available-for-sale  (AFS)  increased to $347,000 for the
quarter ended  December 31, 2001 from  $286,000 for quarter  ended  December 31,
2000, while interest on securities  held-to-maturity  (HTM) decreased to $79,000
from $145,000.  Interest  earned from deposits held at other banks  increased to
$44,000 for the quarter  ended  December  31, 2001 from  $22,000 for the quarter
ended December 31, 2000.

Interest Expense

Total interest expense decreased to $1.33 million for the quarter ended December
31, 2001, from $1.47 million for the quarter ended December 31, 2000, a decrease
of $141,000,or  9.59%, due to a decrease in interest paid on deposits.  Interest
on deposits  decreased to $1.15 million for the quarter ended December 31, 2001,
from $1.30  million for the quarter  ended  December 31, 2000.  This decrease of
$150,000,  or 11.54%, was the result of a decrease in average rates paid despite
higher balances on deposit  accounts.  Money market  accounts  accounted for the
largest  gain in balances  during the period from  December 31, 2000 to December
31, 2001.  The decline in interest  rates over the past year  combined  with the
poor  performance of the stock market appears to have led consumers to invest in
safe,  short-term  insured  deposits.  Average balances in money market accounts
increased  from $14.79 million for the quarter ended December 31, 2000 to $23.06
million for the quarter ended  December 31, 2001. The average rate paid on money
market  accounts  also  decreased,  from 4.11% to 3.01% for the period.  Average
rates paid on all interest-bearing deposits declined from 2000 to 2001, with the
average rate paid on all  liabilities  dropping 84 basis points from the quarter
ended  December 31, 2000 to the quarter  ended  December  31, 2001.  The cost of
deposits  is  expected  to  continue  to  decline  in  the  coming  quarter,  as
certificate of deposit accounts opened in previous quarters are renewed at lower
interest  rates.  Interest  paid on  borrowings  increased  to $175,000  for the
quarter ended December 31, 2001 from $166,000 for the quarter ended December 31,
2000.  The  increase  in  borrowing  costs was due to an increase in the average
balance of Federal Home Loan Bank advances.

Provision for Loan Losses

Provisions  for loan  losses  are  charged to  earnings  to  maintain  the total
allowance for loan losses at a level considered  adequate by Eagle's subsidiary,
American  Federal  Savings  Bank,  to provide for probable  loan losses based on
prior loss experience, volume and type of lending conducted by American Federal,
available peer group  information,  and past due loans in portfolio.  The Bank's
policies  require the review of assets on a quarterly basis. The Bank classifies
loans as well as other assets if warranted.  While the Bank believes it uses the
best information available to make a determination with respect to the allowance
for loan losses,  it recognizes  that future  adjustments  may be necessary.  No
provision  was made for loan losses for either the quarter  ended  December  31,
2001 or the  quarter  ended  December  31,  2000.  This is a  reflection  of the
continued  strong asset  quality of American  Federal's  loan  portfolio.  Total
classified  assets  declined to $1.36  million at  December  31, 2001 from $1.50
million at June 30, 2001. The Bank currently has no foreclosed property.


                                      -15-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


Results of Operations for the Three Months Ended December 31, 2001 and 2001
(continued)

Noninterest Income

Total  noninterest  income  increased to $704,000 for the quarter ended December
31, 2001,  from $401,000 for the quarter ended December 31, 2000, an increase of
$303,000  or 75.56%.  This was the result of an  increase in net gain on sale of
loans  of  $312,000.   Increased  loan  originations  compared  to  a  year  ago
contributed to the increase in income from the sale of loans. Low interest rates
contributed to unusually high levels of refinancing activity,  which will likely
decline in the coming quarter,  resulting in lower loan  originations and income
from the sale of loans.  Mortgage  loan  servicing  fees  increased  slightly to
$79,000 in the quarter ended December 31, 2001 from $73,000 in the quarter ended
December 31, 2000.  Demand deposit service  charges  declined to $128,000 in the
current  quarter from $139,000 for the previous year's period due to the decline
in the volume of overdraft charges.

Noninterest Expense

Noninterest  expense  increased  by  $54,000 or 4.09% to $1.37  million  for the
quarter  ended  December  31,  2001,  from $1.32  million for the quarter  ended
December  31,  2000.   This  increase  was  primarily  due  to  an  increase  in
amortization  of mortgage  service fees of $80,000.  The increase was related to
increased  prepayment activity on mortgage loans.  Advertising expense decreased
$17,000 due to decreased advertising for product promotions.

Income Tax Expense

Eagle's income tax expense was $306,000 for the quarter ended December 30, 2001,
compared to $124,000 for the quarter ended  December 31, 2000. The effective tax
rate for the quarter  ended  December 31, 2001 was 35.25% and was 31.36% for the
quarter ended December 31, 2000.  Management  expects Eagle's effective tax rate
to be approximately 35%.


Results of Operations for the Six Months Ended December 31, 2001 and 2000

Net Income

Eagle's net income was $908,000  and $575,000 for the six months ended  December
31, 2001 and 2000,  respectively.  The  increase  of  $333,000,  or 57.91%,  was
primarily  due to increases in  noninterest  income of $364,000 and net interest
income of $332,000,  partially offset by an increase in non-interest  expense of
$130,000.  Basic  earnings per share for the period ended December 31, 2001 were
$0.78, compared to $0.49 per share for the period ended December 31, 2000.

Net Interest Income

Net interest income increased to $2.99 million for the six months ended December
31, 2001 from $2.66  million for the six months ended  December  31, 2000.  This
increase of $332,000  was the result of an  increase  in interest  and  dividend
income of $217,000 and a decrease in interest expense of $115,000.


                                      -16-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


Results of Operations for the Six Months Ended December 31, 2001 and 2000
(Continued)

Interest and Dividend Income

Total  interest and dividend  income was $5.73  million for the six months ended
December 31, 2001,  compared to $5.51 million for the same period ended December
31, 2000,  representing an increase of $217,000,  or 3.94%. Interest and fees on
loans  increased  to $4.74  million for 2001 from $4.55  million for 2000.  This
increase of $186,000,  or 4.09%, was due primarily to an increase in the average
balances of loans receivable for the six months ended December 31, 2001. Average
balances  for loans  receivable,  net,  for this  period were  $119.27  million,
compared to $112.13  million for the previous year. This is an increase of $7.14
million,  or 6.37%.  Most loan  categories had shown increases from the previous
year. The average interest rate earned on loans receivable decreased by 17 basis
points,  to 7.95% from 8.12%.  Interest and dividends on  investment  securities
available-for-sale (AFS) increased to $650,000 for the six months ended December
31, 2001 from  $573,000  for the same period  ended  December  31,  2000,  while
interest  on  securities  held to  maturity  (HTM)  decreased  from  $307,000 to
$170,000. Most new purchases of securities are placed in the AFS portfolio,  and
the HTM  portfolio  will  continue  to shrink as the  securities  in it  mature.
Interest  earned from deposits held at other banks increased to $111,000 for the
six months  ended  December  31,  2001 from  $28,000  for the six  months  ended
December 31, 2000 due primarily to higher average balances in these accounts due
to increased liquidity from deposit growth and higher loan sale volume.

Interest Expense

Total  interest  expense  decreased  to $2.73  million for the six months  ended
December 31, 2001 from $2.84 million for the six months ended December 31, 2000,
a decrease of  $115,000,  or 4.05%,  due to the  decrease  in  interest  paid on
deposits.  Interest on deposits  decreased  to $2.37  million for the six months
ended December 31, 2001 from $2.53 million for the six months ended December 31,
2000.  This  decrease  of  $158,000,  or 6.25%,  was the result of a decrease in
average  rates paid on  deposit  accounts  despite  higher  balances  on deposit
accounts.  Money  market  accounts  accounted  for the largest  gain in balances
during the period from December 31, 2000 to December 31, 2001.  Average balances
in money market  accounts  increased from $14.78 million at December 31, 2000 to
$21.55  million at December  31,  2001.  The average  rate paid on money  market
accounts   decreased,   from  4.06%  to  3.29%.   Average   rates  paid  on  all
interest-bearing deposits declined from 2000 to 2001, with the average rate paid
on all  liabilities  dropping by 59 basis points from the six month period ended
December 31, 2000 to the six month period ended  December 31, 2001.  The cost of
deposits is expected to continue to decline in the coming months, as certificate
of deposit  accounts  opened in previous  periods are renewed at lower  interest
rates.  Interest  paid on  borrowings  increased  to $354,000 for the six months
ended  December 31, 2001 from  $311,000  for the same period ended  December 31,
2000.  The  increase  in  borrowing  costs was due to an increase in the average
balance of Federal Home Loan Bank advances.


                                      -17-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


Results of Operations for the Six Months Ended December 31, 2001 and 2000
(Continued)

Provision for Loan Losses

Provisions  for loan  losses  are  charged to  earnings  to  maintain  the total
allowance for loan losses at a level considered  adequate by Eagle's subsidiary,
American  Federal  Savings  Bank,  to provide for probable  loan losses based on
prior loss experience, volume and type of lending conducted by American Federal,
available peer group  information,  and past due loans in portfolio.  The Bank's
policies  require the review of assets on a quarterly basis. The Bank classifies
loans as well as other assets if warranted.  While the Bank believes it uses the
best information available to make a determination with respect to the allowance
for loan losses,  it recognizes  that future  adjustments  may be necessary.  No
provision  was made for loan losses for either of the  six-month  periods  ended
December 31, 2001 or December 31, 2000.  This is a reflection  of the  continued
strong asset quality of American  Federal's  loan  portfolio.  Total  classified
assets declined to $1.36 million at December 31, 2001 from $1.50 million at June
30, 2001. The Bank currently has no foreclosed property.

Noninterest Income

Total  noninterest  income  increased to $1.11  million for the six months ended
December 31, 2001,  from $745,000 for the six months ended December 31, 2000, an
increase of  $365,000 or 48.99%.  This was the result of an increase in net gain
on sale of loans of $441,000.  Increased  loan  originations  contributed to the
increase in income  from sale of loans.  Low  interest  rates over the past year
have  contributed to unusually high levels of refinancing  activity,  which will
likely  decline  over  the  remainder  of the  year,  resulting  in  lower  loan
originations  and income from the sale of loans.  Mortgage loan  servicing  fees
declined to $94,000 for the current  six-month  period  compared to $145,000 for
the previous  year's  period.  An independent  valuation of the Bank's  mortgage
portfolio  indicated a temporary decline in the value of the servicing rights in
the amount of $58,000.  A provision  was made to a valuation  allowance  in that
amount.  Changes to the valuation  allowance for mortgage  servicing  rights are
charged  against  mortgage loan servicing  fees.  Demand deposit service charges
declined  by $20,000  from the  previous  year due to a decline in the volume of
overdraft fees.

Noninterest Expense

Noninterest  expense increased by $130,000 or 5.08% to $2.69 million for the six
months  ended  December 31,  2001,  from $2.56  million for the six months ended
December  31,  2000.   This  increase  was  primarily  due  to  an  increase  in
amortization of mortgage servicing fees of $118,000 and in salaries and benefits
of $70,000.  The increase in amortization of mortgage servicing fees was related
to  increased  prepayment  activity on  mortgage  loans,  while the  increase in
salaries was due to merit  raises.  These  increases  were  partially  offset by
decreases of $30,000 in advertising  expense and $27,000 in legal and accounting
fees.  The  decrease  in  advertising  expense  was  due  to  decreased  product
promotional  advertising,  while less time spent on matters  relating to being a
public company by the Company's counsel led to lower legal fees.


                                      -18-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


Results of Operations for the Six Months Ended December 31, 2001 and 2000
(Continued)

Income Tax Expense

Eagle's  income tax expense was $501,000  for the six months ended  December 30,
2001,  compared to $268,000  for the six months ended  December  31,  2000.  The
effective tax rate for the six months ended December 31, 2001 was 35.55% and was
31.82% for the six months ended December 31, 2000.


Liquidity, Interest Rate Sensitivity and Capital Resources

The Company's subsidiary,  American Federal Savings Bank (the Bank), is required
to maintain  minimum  levels of liquid assets as defined by the Office of Thrift
Supervision (OTS) regulations.  The OTS has eliminated the statutory requirement
based upon a percentage of deposits and  short-term  borrowings.  The OTS states
that the liquidity  requirement  is retained for safety and soundness  purposes,
and  that  appropriate  levels  of  liquidity  will  depend  upon  the  types of
activities in which the company engages.  For internal reporting  purposes,  the
Bank uses the previous regulatory definitions of liquidity. The Bank's liquidity
ratio  average was 23.35% and 15.03% at December 31, 2001 and December 31, 2000,
respectively.  Liquidity  increased  due to growth in deposits and the increased
loan sale volume for the period ending December 31, 2001.

The  Bank's  primary  sources  of funds  are  deposits,  repayment  of loans and
mortgage-backed  securities,  maturities  of  investments,  funds  provided from
operations,  and advances from the Federal Home Loan Bank of Seattle.  Scheduled
repayments of loans and mortgage-backed  securities and maturities of investment
securities are generally  predictable.  However, other sources of funds, such as
deposit  flows and loan  prepayments,  can be greatly  influenced by the general
level of interest  rates,  economic  conditions and  competition.  The Bank uses
liquidity resources principally to fund existing and future loan commitments. It
also  uses  them  to fund  maturing  certificates  of  deposit,  demand  deposit
withdrawals and to invest in other loans and  investments,  maintain  liquidity,
and meet operating expenses.

Liquidity  may be adversely  affected by  unexpected  deposit  outflows,  higher
interest rates paid by competitors,  and similar  matters.  Management  monitors
projected  liquidity needs and determines the level desirable,  based in part on
commitments to make loans and  management's  assessment of the bank's ability to
generate funds.

At September 30, 2001 (the most recent report available),  the Bank's measure of
sensitivity to interest rate  movements,  as measured by the OTS,  improved from
the previous quarter.  This was due to management's strategy of retaining assets
with shorter  maturities while emphasizing  longer-term  funding sources such as
transaction  accounts and FHLB advances.  The Bank is well within the guidelines
set forth by its Board of Directors for interest rate risk sensitivity.


                                      -19-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


Liquidity, Interest Rate Sensitivity and Capital Resources (Continued)

As of December  31,  2001,  the Bank's  regulatory  capital was in excess of all
applicable regulatory  requirements.  At December 31, 2001, the Bank's tangible,
core,  and  risk-based  capital  ratios  amounted  to 10.9%,  10.9%,  and 19.5%,
respectively,  compared to  regulatory  requirements  of 1.5%,  3.0%,  and 8.0%,
respectively.

                                                     At December 31, 2001
                                                     --------------------
                                                                   % of
                                                       Amount     Assets
                                                      -------     ------
     Tangible capital:
       Capital level ..............................   $19,119     10.89%
       Requirement ................................     2,633      1.50
                                                      -------     -----
       Excess .....................................   $16,486      9.39%
                                                      =======     =====
     Core capital:
       Capital level ..............................   $19,119     10.89%
       Requirement ................................     5,265      3.00
                                                      -------     -----
       Excess .....................................   $13,854      7.89%
                                                      =======     =====
     Risk-based capital:
       Capital level ..............................   $19,802     19.47%
       Requirement ................................     8,136      8.00
                                                      -------     -----
       Excess .....................................   $11,666     11.47%
                                                      =======     =====

Impact of Inflation and Changing Prices

Our  financial  statements  and the  accompanying  notes have been  prepared  in
accordance with accounting principles generally accepted in the United States of
America,  which  require the  measurement  of financial  position and  operating
results in terms of historical  dollars  without  considering  the change in the
relative purchasing power of money over time and due to inflation. The impact of
inflation is reflected in the increased cost of our  operations.  Interest rates
have a  greater  impact  on  our  performance  than  do the  general  levels  of
inflation,  as  demonstrated  in the  results of the current  reporting  period.
Interest  rates do not  necessarily  move in the same  direction  or to the same
extent as the prices of goods and services.


                                      -20-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY

                           Part II - OTHER INFORMATION


Item 1.  Legal Proceedings.

         Neither the  Company  nor the Bank is  involved  in any  pending  legal
         proceedings other than non-material legal proceedings  occurring in the
         ordinary course of business.


Item 2.  Changes in Securities and Use of Proceeds

         Not applicable.


Item 3.  Defaults Upon Senior Securities

         Not applicable.


Item 4.  Submission of Matters to a Vote of Security Holders

         The  following  matters  were  voted  on   at  the  Annual  Meeting  of
         Stockholders on October 18, 2001:

         1.  Election of directors for three-year terms expiring in 2004:

                                                      For:         Abstain:
                                                    ---------      --------
                  Robert L. Pennington              1,119,392       1,575
                  Don O. Campbell                   1,118,392       2,575
                  Charles G. Jacoby                 1,119,367       1,600

         2.  Ratification of  appointment of  Anderson ZurMuehlen & Co., P.C. as
             auditors for the fiscal year ended June 30, 2002:

                                             For:         Against:      Abstain:
                                           ---------      --------      --------
                                           1,116,322        250          4,395


Item 5.  Other Information.

         None.


Item 6.  Exhibits and Reports on Form 8-K

         None


                                      -21-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY


SIGNATURES
----------

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                        EAGLE BANCORP

     Date:  February 13, 2002           By: /s/ Larry A. Dreyer
                                            -----------------------
                                            Larry A. Dreyer
                                            President/CEO


     Date:  February 13, 2002           By: /s/ Peter J. Johnson
                                            -----------------------
                                            Peter J. Johnson
                                            Sr. VP/Treasurer




                                      -22-