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, 2000

[ ]  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 incorporation          (I.R.S. Employer
 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             1,206,072 shares outstanding
--------------------------------------------------------------------------------
                             As of January 31, 2001

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, 2000 (unaudited) and June 30, 2000.................1 and 2

         Consolidated Statements of Income for the three and
         six months ended December 31, 2000 and 1999 (unaudited).........3 and 4

         Consolidated Statements of Stockholders' Equity for the
         six months ended December 31, 2000 (unaudited).......................5

         Consolidated Statements of Cash Flows for the six
         months ended December 31, 2000 and 1999 (unaudited).............6 and 7

         Notes to Consolidated Financial Statements .....................8 to 11

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations ...........................12 to 19


PART II. OTHER INFORMATION

Item 1.  Legal Proceedings....................................................20
Item 2.  Changes in Securities................................................20
Item 3.  Defaults Upon Senior Securities......................................20
Item 4.  Submission of Matters to a Vote of Security-Holders..................20
Item 5.  Other Information....................................................20
Item 6.  Exhibits and Reports on Form 8-K...............................20 to 23

Signatures


<PAGE>


                          EAGLE BANCORP AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


                                                      December 31,    June 30,
                                                         2000           2000
                                                         ----           ----
                                                     (Unaudited)
ASSETS
  Cash and due from banks ........................   $  2,905,053   $  3,477,650
  Interest-bearing deposits with banks ...........      2,750,000             --
                                                     ------------   ------------
      Total cash and cash equivalents ............      5,655,053      3,477,650

  Investment securities available for sale, ......     19,059,756     18,414,219
    at market value
  Investment securities held-to-maturity, at
    amortized cost ...............................      8,961,205      9,922,687
  Federal Home Loan Bank stock, at cost ..........      1,438,800      1,393,000
  Mortgage loans held-for-sale ...................        578,364        861,290
  Loans receivable, net of deferred loan fee .....    113,158,978    107,447,437
    and allowance for loan losses
  Accrued interest and dividends receivable ......        914,109        832,204
  Mortgage servicing rights ......................      1,306,842      1,338,271
  Property and equipment, net ....................      6,733,891      6,962,081
  Cash surrender value of life insurance .........      2,088,960      2,040,973
  Real estate acquired in settlement of loans, ...             --        121,006
    net of allowance for losses
      Other assets ...............................        243,750        219,857
                                                     ------------   ------------

        Total assets .............................   $160,139,708   $153,030,675
                                                     ============   ============


See accompanying notes to consolidated financial statements.


<PAGE>

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



                                                 December 31,        June 30,
                                                    2000               2000
                                                    ----               ----
                                                 (Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Deposit accounts:
    Noninterest bearing ......................   $   5,032,172    $   5,732,528
    Interest bearing .........................     122,015,805      118,780,477
  Advances from Federal Home Loan Bank .......      12,174,444        8,682,778
  Accrued expenses and other liabilities .....       1,738,799        1,505,750
                                                 -------------    -------------
        Total liabilities ....................     140,961,220      134,701,533
                                                 -------------    -------------

Stockholders' Equity:
  Preferred stock (no par value, 1,000,000
    shares authorized, none issued or
    outstanding)
  Common stock (par value $0.01per share;
    10,000,000 shares authorized; 1,223,572
    shares issued and outstanding ............          12,236           12,236
  Additional paid-in capital .................       3,836,553        3,831,887
  Unallocated common stock held by employee
    stock ownership plan ("ESOP") ............        (331,248)        (349,648)
  Retained earnings ..........................      15,653,034       15,158,415
  Accumulated other comprehensive gain (loss)            7,913         (323,748)
                                                 -------------    -------------
      Total equity ...........................      19,178,488       18,329,142
                                                 -------------    -------------
      Total liabilities and equity ...........   $ 160,139,708    $ 153,030,675
                                                 =============    =============


See accompanying notes to consolidated financial statements.


                                      -2-


<PAGE>


                          EAGLE BANCORP AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME


<TABLE>
<CAPTION>
                                       Three Months Ended            Six Months Ended
                                            December 31,               December 31,
                                     ------------------------   -------------------------
                                        2000          1999          2000         1999
                                        ----          ----          ----         ----
                                           (unaudited)                  (unaudited)
Interest and dividend income:
<S>                                 <C>           <C>           <C>           <C>
  Interest and fees on loans ....   $ 2,301,293   $ 2,036,020   $ 4,554,478   $ 4,018,320
  Interest on deposits with banks        22,454        16,253        27,599        57,719
  FHLB stock dividends ..........        23,131        24,211        45,891        47,989
  Securities available for sale .       285,677       258,223       572,916       503,833
  Securities held to maturity ...       144,921       194,967       307,044       409,787
                                    -----------   -----------   -----------   -----------
      Total interest and dividend
       income ...................     2,777,476     2,529,674     5,507,928     5,037,648
                                    -----------   -----------   -----------   -----------

Interest expense:
  Deposits ......................     1,300,006     1,138,207     2,532,623     2,257,421
  FHLB advances .................       166,431       139,233       311,365       308,023
                                    -----------   -----------   -----------   -----------
      Total interest expense ....     1,466,437     1,277,440     2,843,988     2,565,444
                                    -----------   -----------   -----------   -----------

  Net interest income ...........     1,311,039     1,252,234     2,663,940     2,472,204
  Loan loss provision ...........            --            --            --        15,000
                                    -----------   -----------   -----------   -----------
      Net interest income after
       loan loss provision ......     1,311,039     1,252,234     2,663,940     2,457,204
                                    -----------   -----------   -----------   -----------

Noninterest income:
  Net gain on sale of loans .....        88,679        69,915       131,278       158,252
  Demand deposit service charges        139,150       126,311       273,829       244,916
  Mortgage loan servicing fees ..        72,767        76,471       145,361       150,579
  Net gain (loss) on sale of
   available for sale securities             --            --            --       (30,355)
  Other .........................       100,782        84,923       194,213       166,601
                                    -----------   -----------   -----------   -----------
      Total noninterest income ..       401,378       357,620       744,681       689,993
                                    -----------   -----------   -----------   -----------
</TABLE>



See accompanying notes to consolidated financial statements.


                                      -3-


<PAGE>


                          EAGLE BANCORP AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Continued)

<TABLE>
<CAPTION>
                                               Three Months Ended         Six Months Ended
                                                    December 31              December 31
                                             ------------------------------------------------
                                                2000          1999        2000         1999
                                                ----          ----        ----         ----
                                                  (unaudited)              (unaudited)
Noninterest expense:
<S>                                         <C>          <C>          <C>          <C>
  Salaries and employee benefits ........   $  693,695   $  662,290   $1,362,255   $1,304,363
  Occupancy expenses ....................      127,654      107,937      241,705      214,607
  Furniture and equipment depreciation ..       83,430       79,763      165,246      159,229
  In-house computer expense .............       45,558       38,994       88,909       77,837
  Advertising expense ...................       43,660       33,785       87,595       74,306
  Amortization of mortgage servicing fees       25,095       25,015       56,102       61,776
  Federal insurance premiums ............        5,322       17,711       12,394       34,577
  Postage ...............................       25,529       18,863       47,196       42,499
  Legal,accounting, and examination fees        51,228       16,209       98,916       34,118
  Consulting fees .......................        8,601        2,805       16,476       19,425
  ATM processing ........................       16,222       18,267       30,518       37,941
  Other .................................      190,760      183,049      357,815      352,674
                                            ----------   ----------   ----------   ----------
      Total noninterest expense .........    1,316,754    1,204,688    2,565,127    2,413,352
                                            ----------   ----------   ----------   ----------

Income before provision for income taxes       395,663      405,166      843,494      733,845
Provision for income taxes ..............      124,084      110,017      268,364      230,134
                                            ----------   ----------   ----------   ----------
Net income ..............................   $  271,579   $  295,149   $  575,130   $  503,711
                                            ==========   ==========   ==========   ==========
Earnings per share ......................   $     0.23          n/a   $     0.49          n/a
                                            ==========   ==========   ==========   ==========
Weighted average shares outstanding .....    1,181,412          n/a    1,180,835          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           RETAINED     COMPREHENSIVE
                                  STOCK       STOCK        CAPITAL         SHARES         EARNINGS         INCOME          TOTAL
                                  -----       -----        -------         ------         --------         ------          -----
<S>                               <C>   <C>            <C>            <C>             <C>             <C>             <C>
Balance, June 30, 2000 .........   $--   $     12,236   $  3,831,887   $   (349,648)   $ 15,158,415    $   (323,748)   $ 18,329,142

  Net income (unaudited) .......    --             --             --             --         575,130              --         575,130
  Other comprehensive
   income (unaudited) ..........    --             --             --             --              --         331,661         331,661
                                                                                                                       ------------
    Total comprehensive
     income (unaudited) ........    --             --             --             --              --              --         906,791
                                                                                                                       -------------

  Dividends paid ($.14 per
   share) (unaudited) ..........    --             --             --             --         (80,511)             --         (80,511)
                                                                                                                       -------------
  ESOP shares allocated or
   committed to be released
   for allocation (1,150
   shares) (unaudited) .........    --             --          4,666         18,400              --              --          23,066
                                   ---   ------------   ------------   ------------    ------------    ------------    ------------
Balance, December 31, 2000
 (unaudited) ...................   $--   $     12,236   $  3,836,553   $   (331,248)   $ 15,653,034    $      7,913    $ 19,178,488
                                   ===   ============   ============   ============    ============    ============    ============
</TABLE>


See accompanying notes to consolidated financial statements.

                                      -5-


<PAGE>


                          EAGLE BANCORP AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                           Six Months Ended
                                                             December 31,
                                                     ---------------------------
                                                        2000             1999
                                                        ----             ----
                                                             (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income .....................................   $   575,130    $   503,711
  Adjustments to reconcile net income to
    net cash from operating activities
      Provision for loan losses ..................            --         15,000
      Depreciation, accretion and
       amortization expense ......................       284,208        304,976
      Deferred loan fees .........................        (5,958)       (46,528)
      Amortization of capitalized mortgage
       servicing rights ..........................        56,101         61,775
      Gain on sale of loans ......................      (131,278)      (158,252)
      Gain on sale of real estate owned ..........        (8,951)            --
      Net realized (gain) loss on sale of
       available-for-sale securities .............            --         30,355
      Dividends reinvested .......................       (45,800)       (47,900)
      Increase in cash surrender value
       of life insurance .........................       (47,987)       (45,813)
  Change in assets and liabilities:
    (Increase) decrease in assets:
      Accrued interest and dividends
       receivable ................................       (81,905)       (69,355)
      Loans held-for-sale ........................       414,204        599,781
      Other assets ...............................          (827)      (101,257)
  Increase (decrease) in liabilities:
    Accrued expenses and other liabilities .......       (56,576)       174,210
    Deferred compensation payable ................        12,231          4,850
    Deferred income taxes payable ................       114,894         (7,283)
                                                     -----------    -----------
          Net cash provided by operating
           activities ............................     1,077,486      1,218,270
                                                     -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of securities:
    Investment securities held-to-maturity .......      (501,150)      (449,936)
    Investment securities available-for-sale .....    (1,173,415)    (3,062,973)
  Proceeds from maturities, calls and
   principal payments:
    Investment securities held-to-maturity .......     1,474,445      4,017,137
    Investment securities available-for-sale .....     1,032,845        253,455
  Proceeds from sales of investment securities
      available-for-sale .........................            --      1,715,580



See accompanying notes to consolidated financial statements.

                                      -6-


<PAGE>

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


                                                        Six Months Ended
                                                           December 31,
                                                   -----------------------------
                                                      2000              1999
                                                      ----              ----
                                                            (unaudited)
CASH FLOWS FROM INVESTING ACTIVITIES:
  (CONTINUED)
  Net (increase) decrease in loan
   receivable, excludes transfers
   to real estate acquired in settlement
   of loans ..................................      (5,730,253)      (5,118,337)
  Proceeds from the sale of real estate
   aquired in the settlement of loans ........         129,957               --
  Purchase of property and equipment .........         (33,908)        (267,183)
  Proceeds from sale of equipment ............              --          221,274
                                                   -----------      -----------
          Net cash used in investing
           activities ........................      (4,801,479)      (2,690,983)
                                                   -----------      -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net increase in checking and savings
   accounts ..................................       2,534,972        2,020,661
  Net increase in advances to borrowers
   for taxes and insurance ...................         (44,731)        (249,431)
  Proceeds from FHLB advances ................       3,625,000               --
  Payment on FHLB advances ...................        (133,334)      (1,533,334)
  Dividends paid .............................         (80,511)              --
                                                   -----------      -----------
          Net cash provided by financing
           activities ........................       5,901,396          237,896
                                                   -----------      -----------

Net increase (decrease) in cash ..............       2,177,403       (1,234,817)

CASH AND CASH EQUIVALENTS, beginning
 of period ...................................       3,477,650        6,741,171
                                                   -----------      -----------

CASH AND CASH EQUIVALENTS, end of period .....     $ 5,655,053      $ 5,506,354
                                                   ===========      ===========

SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid during the period for
   interest ..................................     $ 2,603,029      $ 2,447,872
                                                   ===========      ===========

  Cash paid during the period for income
   taxes .....................................     $   152,000      $   140,000
                                                   ===========      ===========

NON-CASH INVESTING ACTIVITIES:
(Increase) decrease in market value of
 securities available-for-sale ...............     $  (331,661)     $   165,127
                                                   ===========      ===========

Mortgage servicing rights capitalized ........     $    24,672      $   136,621
                                                   ===========      ===========



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  notes  required  by  generally  accepted
accounting   principles  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,
2000 are not necessarily indicative of the results to be expected for the fiscal
year  ending  June 30,  2001 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, 2000.



                                      -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, 2000 (Unaudited)                        June 30, 2000 (Audited)
                                            -----------------------------------------     ------------------------------------------
                                                                 NET                                        NET
                                              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 ........................    $ 4,226,834    $    20,353     $ 4,247,187    $ 4,250,803    $   (99,656)    $ 4,151,147
  Municipal obligations ................      3,307,240        (73,873)      3,233,367      3,307,967       (251,657)      3,056,310
  Corporate obligations ................      6,210,227         42,330       6,252,557      6,184,453       (122,998)      6,061,455
  Mortgage-backed securities ...........      4,781,144         25,935       4,807,079      4,623,260        (40,258)      4,583,002
  Collateralized mortgage
    obligations ........................        320,056         (1,990)        318,066        372,372        (11,067)        361,305
  Corporate preferred
   stock ...............................        201,397            103         201,500        201,398           (398)        201,000
                                            -----------    -----------     -----------    -----------    -----------     -----------
      Total ............................    $19,046,898    $    12,858     $19,059,756    $18,940,253    $  (526,034)    $18,414,219
                                            ===========    ===========     ===========    ===========    ===========     ===========

Held-to-maturity:
  U.S. government and agency
    obligations ........................    $ 2,891,224    $     8,434     $ 2,899,658    $ 2,888,392    $   (29,659)    $ 2,858,733
  Municipal obligations ................        940,629         (8,338)        932,291      1,069,806        (21,234)      1,048,572
  Mortgage-backed
   securities ..........................      5,129,352        (11,926)      5,117,426      5,964,489       (164,775)      5,799,714
                                            -----------    -----------     -----------    -----------    -----------     -----------
      Total ............................    $ 8,961,205    $   (11,830)    $ 8,949,375    $ 9,922,687    $  (215,668)    $ 9,707,019
                                            ===========    ===========     ===========    ===========    ===========     ===========
</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,
                                                    2000                2000
                                                (Unaudited)          (Audited)
                                                -----------          ---------
First mortgage loans:
  Residential mortgage (1-4 family) ......     $  76,425,564      $  74,336,712
  Commercial real estate .................         8,166,654          7,784,333
  Real estate construction ...............         1,912,597          1,453,371

Other loans:
  Home equity ............................        15,913,614         13,654,250
  Consumer ...............................         8,874,635          8,279,049
  Commercial .............................         2,659,284          2,757,708
                                               -------------      -------------
    Total ................................       113,952,348        108,265,423

Less:
  Allowance for loan losses ..............          (693,508)          (712,165)
  Deferred loan fees .....................           (99,862)          (105,821)
                                               -------------      -------------
    Total ................................     $ 113,158,978      $ 107,447,437
                                               =============      =============

Loans net of related  allowance for loan losses on which the accrual of interest
has been  discontinued  were $590,000 and $504,000 at December 31, 2000 and June
30, 2000, respectively.  Classified assets, including real estate owned, totaled
$1.47  million  and  $1.58  million  at  December  31,  2000 and June 30,  2000,
respectively.

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

                                                  Six Months Ended   Year Ended
                                                    December 31,       June 30,
                                                       2000              2000
                                                    (Unaudited)       (Audited)
                                                    -----------       ---------
Balance, beginning of period .................       $ 712,165        $ 736,624
  Reclassification to REO reserve ............         (13,725)         (11,519)
  Provision charged to operations ............              --           15,000
  Charge-offs ................................          (9,683)         (30,623)
  Recoveries .................................           4,751            2,683
                                                     ---------        ---------
    Balance, end of period ...................       $ 693,508        $ 712,165
                                                     =========        =========




                                      -10-

<PAGE>


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


NOTE 4. DEPOSITS

Deposits are summarized as follows:

                                                  December 31,         June 30,
                                                     2000               2000
                                                  (Unaudited)         (Audited)
                                                  -----------         ---------
Noninterest checking .....................       $  5,032,172       $  5,732,528
Interest-bearing checking ................         24,064,889         22,849,549
Passbook .................................         19,842,768         20,936,122
Money market .............................         14,717,367         14,716,098
Time certificates of deposit .............         63,390,781         60,278,708
                                                 ------------       ------------
    Total ................................       $127,047,977       $124,513,005
                                                 ============       ============


NOTE 5. EARNINGS PER SHARE

Earnings  per share for the three  months  ended  December  31, 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. No earnings per share information is given for the three and
six month periods  ending  December 31, 1999 because shares of common stock were
not issued until April 4, 2000.


NOTE 6. DIVIDENDS AND STOCK REPURCHASE PROGRAM

Eagle paid its first  dividend of $0.07 per share on August 25,  2000.  A second
$0.07  dividend was paid  November 17,  2000,  and a third  dividend of the same
amount  was  declared  on  January  19,  2001,  payable  February  16,  2001  to
stockholders of record on February 2, 2001.  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 January 31, 2001, 17,500 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  for  up  to  80,511  and  23,003  shares,  respectively.  The
repurchase  plan  announced  in  December  is  intended to meet the needs of the
restricted stock plan.




                                      -11-


<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 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)  compensation,  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

Total assets increased by $7.11 million,  or 4.65%, from $153.03 million at June
30, 2000, to $160.14 million at December 31, 2000. Total  liabilities  increased
by $6.26 million from $134.70  million at June 30, 2000,  to $140.96  million at
December 31, 2000. Total equity  increased  $850,000 from $18.33 million at June
30, 2000 to $19.18 million at December 31, 2000.

Growth in the loan portfolio of $5.71 million  accounted for the majority of the
growth in total assets.  The loan  category  with the largest  increase was home
equity loans, which increased $2.26 million.  This represented a 16.56% increase
over the balance at June 30,  2000 of $13.65  million.  Total loan  originations
were $33.52  million for the six months ended  December  31,  2000,  with single
family  mortgages  accounting  for $19.94  million of the total.  Consumer  loan
originations  totaled  $7.83  million for the same  period.  Loans held for sale
decreased from $861,000 at June 30, 2000 to $578,000 at December 31, 2000.



                                      -12-

<PAGE>


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


Financial Condition (continued)

Asset  growth  was  funded by  Federal  Home Loan Bank  advances  and  deposits.
Advances had grown to $12.17  million by December 31, 2000, an increase of $3.49
million, or 40.21%, from the balance of $8.68 million at June 30, 2000. Deposits
grew $2.54 million,  or 2.04%,  from $124.51 million at June 30, 2000 to $127.05
million at December 31, 2000.  Strong  competition from local banks continues to
limit deposit  growth in all of our market areas.  Other  liabilities  increased
from $1.51  million at June 30,  2000 to $1.74  million at  December  31,  2000,
primarily due to an increase in the balance of deferred income taxes.

The  growth in total  equity was the  result of  earnings  for the six months of
$575,000 and a decrease in the unrealized loss on securities  available for sale
of $332,000, offset by the payment of two $0.07 per share regular cash dividends
during the period.


Results of Operations for the Three Months Ending December 31, 2000 and 1999

Net Income.  Eagle's net income was  $272,000  and $295,000 for the three months
ended December 31, 2000,  and 1999,  respectively.  The decrease of $23,000,  or
7.80%,  was  primarily due to an increase in  non-interest  expense of $112,000,
partially  offset by increases in net interest income of $59,000 and noninterest
income of  $44,000.  Earnings  per share were $0.23 for the current  period.  No
earnings  per share are  available  for the period  ended  December  31, 1999 as
shares of common stock were not issued until April 4, 2000.

Net Interest  Income.  Net interest income  increased from $1.25 million for the
quarter ended  December 31, 1999 to $1.31 million for the quarter ended December
31, 2000. This increase of $59,000 was the result of an increase in interest and
dividend income of $248,000, partially offset by an increase in interest expense
of $189,000.

Interest  and Dividend  Income.  Total  interest  and dividend  income was $2.78
million for the quarter ended  December 31, 2000,  compared to $2.53 million for
the quarter ended December 31, 1999,  representing  an increase of $248,000,  or
9.80%. Interest and fees on loans increased from $2.04 million for 1999 to $2.30
million for 2000. This increase of $260,000,  or 12.75%, was due primarily to an
increase  in the  average  balances of loans  receivable  for the quarter  ended
December 31, 2000.  Average balances for loans receivable,  net, for the quarter
ended December 31, 2000 were $113.47  million,  compared to $101.34  million for
the previous year. This represents an increase of $12.13 million, or 11.97%. All
loan categories had shown increases from the previous year. The average interest
rate earned on loans receivable also increased by 7 basis points,  from 8.04% at
December 31, 1999 to 8.11% at December 31, 2000. Interest and


                                      -13-


<PAGE>


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


Results of  Operations  for the Three Months  Ending  December 31, 2000 and 1999
(continued)


dividends on  investment  securities  available-for-sale  (AFS)  increased  from
$258,000  for the quarter  ended  December  31, 1999 to $286,000 for the quarter
ended  December 31, 2000,  while  interest on securities  held to maturity (HTM)
decreased from $195,000 to $145,000. Interest earned from deposits held at other
banks  increased from $16,000 for the quarter ended December 31, 1999 to $22,000
for the quarter ended December 31, 2000.

Interest  Expense.  Total interest expense  increased from $1.28 million for the
quarter ended December 31, 1999, to $1.47 million for the quarter ended December
31, 2000,  an increase of  $189,000,or  14.76%,  due primarily to an increase in
interest paid on deposits. Interest on deposits increased from $1.14 million for
the quarter  ended  December 31, 1999,  to $1.30  million for the quarter  ended
December 31, 2000.  This increase of $160,000,  or 14.04%,  was the result of an
increase in average  rates paid and higher  balances on deposit  accounts.  Time
certificate of deposits (CD's) accounted for the largest gain in balances during
the period from December 31, 1999 to December 31, 2000.  Special  certificate of
deposit offerings  contributed to the increase.  Average balances in CD accounts
increased  from $58.78 million for the quarter ended December 31, 1999 to $62.17
million for the quarter  ended  December 31,  2000.  The average rate paid on CD
accounts also  increased,  from 5.10% to 5.93% for the period.  Interest paid on
borrowings  increased  from $139,000 for the quarter ended  December 31, 1999 to
$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.  Two  factors  will help to lower the cost of  deposits  in the coming
quarter.  First,  in  mid-December,  management  lowered  the  interest  rate on
checking  accounts by 1/2%.  Secondly,  CD accounts opened in previous  quarters
under special offerings will be maturing in the coming quarter.  As market rates
have fallen, the Bank will be able to renew these certificates at lower rates.

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, 2000 or the quarter ended December 31, 1999. This
is a reflection of the continued strong asset quality of American Federal's loan
portfolio,  as  non-performing  loan ratios  continue to be below peer averages.
Total classified assets declined from


                                      -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  Ending  December 31, 2000 and 1999
(continued)


$1.58 million at June 30, 2000 to $1.47 million at December 31, 2000.  Both real
estate owned (REO) properties that were previously on the Bank's books were sold
during the current quarter with no additional loss incurred.  The Bank currently
has no foreclosed property.

Noninterest  Income.  Total  noninterest  income increased from $358,000 for the
quarter ended  December 31, 1999, to $401,000 for the quarter ended December 31,
2000,  an increase  of $43,000 or 12.01%.  This was the result of an increase in
other noninterest income items of $16,000, an increase in demand deposit service
charges of $13,000, and an increase in the net gain on sale of loans of $19,000.
The  increase  in other  noninterest  income was due to gains on the sale of REO
properties and increased rental income.  Increased loan originations compared to
a year ago combined  with  management's  decision  late in the quarter to resume
selling  mortgage loans with  maturities of 15 years or less  contributed to the
increase in income from sale of loans.  Mortgage  loan  servicing  fees declined
slightly from $76,000 in the quarter  ended  December 31, 1999 to $73,000 in the
quarter ended December 31, 2000.

Noninterest  Expense.  Noninterest  expense  increased by $112,000 or 9.26% from
$1.21 million for the quarter ended  December 31, 1999, to $1.32 million for the
quarter ended December 31, 2000.  This increase was primarily due to an increase
in legal and accounting fees of $35,000 and in salaries and benefits of $31,000.
The increase in legal and  accounting  fees were related to the costs of being a
public  company,  while  the  increase  in  salaries  was due to  merit  raises.
Occupancy  expense  increased  $20,000 due to higher property taxes and repairs.
Advertising expense increased $10,000 due to increased  advertising for internet
banking and CD promotions.  These increases were partially  offset by a decrease
of $12,000 in federal deposit insurance premiums.

Income Tax  Expense.  Eagle's  income tax expense was  $110,000  for the quarter
ended December 30, 1999, compared to $124,000 for the quarter ended December 31,
2000.  The effective tax rate for the quarter ended December 31, 1999 was 27.15%
and was 31.36% for the quarter ended  December 31, 2000.  The effective tax rate
is lower in the  December  1999  quarter  due to an  adjustment  made  after the
completion of the tax return for calendar year 1999.  Management expects Eagle's
effective tax rate to be approximately 32%.

                                      -15-


<PAGE>


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


Results of Operations for the Six Months Ending December 31, 2000 and 1999

Net Income.  Eagle's net income was  $575,000  and  $504,000  for the six months
ended  December 31, 2000 and 1999,  respectively.  The  increase of $71,000,  or
14.09%,  was primarily  due to increases in net interest  income of $192,000 and
noninterest  income of $55,000,  partially offset by an increase in non-interest
expense of $152,000.  Earnings per share for the period ended  December 31, 2000
were $0.49.  No earnings per share were  available for the period ended December
31, 1999 as shares of common stock were not issued until April 4, 2000.

Net Interest  Income.  Net interest income  increased from $2.47 million for the
six months  ended  December  31, 1999 to $2.66  million for the six months ended
December  31, 2000.  This  increase of $192,000 was the result of an increase in
interest and dividend  income of  $470,000,  partially  offset by an increase in
interest expense of $278,000.

Interest  and Dividend  Income.  Total  interest  and dividend  income was $5.51
million for the six months ended  December 31, 2000,  compared to $5.04  million
for the same  period  ended  December  31,  1999,  representing  an  increase of
$470,000,  or 9.33%. Interest and fees on loans increased from $4.02 million for
1999 to $4.56  million for 2000.  This increase of $536,000,  or 13.33%,was  due
primarily to an increase in the average balances of loans receivable for the six
months ended December 31, 2000. Average balances for loans receivable,  net, for
this period were $112.13  million,  compared to $100.13 million for the previous
year. This is an increase of $12.00 million,  or 11.98%. All loan categories had
shown  increases  from the previous  year.  The average  interest rate earned on
loans receivable also increased by 9 basis points, from 8.03% to 8.12%. Interest
and dividends on investment securities  available-for-sale  (AFS) increased from
$504,000  for the six months  ended  December  31, 1999 to $573,000 for the same
period ended December 31, 2000,  while  interest on securities  held to maturity
(HTM) decreased from $410,000 to $307,000. Interest earned from deposits held at
other banks decreased from $58,000 for the six months ended December 31, 1999 to
$28,000  for the six months  ended  December  31,  2000 due  primarily  to lower
average   balances  in  these  accounts  from  funding  the  increase  in  loans
receivable.

Interest  Expense.  Total interest expense  increased from $2.57 million for the
six months  ended  December  31, 1999 to $2.84  million for the six months ended
December 31, 2000, an increase of $279,000,  or 10.86%,  due almost  entirely to
the increase in interest paid on deposits.  Interest on deposits  increased from
$2.26  million for the six months ended  December 31, 1999 to $2.53  million for
the six months ended  December 31, 2000.  This increase of $275,000,  or 12.17%,
was the result of an increase in average  rates paid on deposit  accounts.  Time
certificate of deposits (CD's) accounted for the largest gain in balances during
the period from December 31, 1999 to December 31, 2000.  Special  certificate of
deposit offerings contributed to the increase. Average


                                      -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  Ending  December  31,  2000 and 1999
(continued)


balances in CD accounts  increased  from $58.64  million at December 31, 1999 to
$61.02  million at December 31, 2000.  The average rate paid on CD accounts also
increased,  from 5.08% to 5.80%.  Interest  paid on  borrowings  increased  from
$308,000  for the six months  ended  December  31, 1999 to $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.

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 the six
months ended  December  31, 2000,  compared to $15,000 for the same period ended
December 31, 1999. This is a reflection of the continued strong asset quality of
American Federal's loan portfolio,  as non-performing loan ratios continue to be
below peer averages. Total classified assets declined from $1.58 million at June
30, 2000 to $1.47  million at December  31,  2000.  During the current six month
period,  a transfer of $14,000  was made from the loan loss  reserve to the real
estate owned (REO) reserve.  The transfer was made to write down the balances of
the two foreclosed  properties in Butte,  Montana to their net realizable value.
Both REO properties were sold during the current quarter with no additional loss
incurred. The Bank currently has no foreclosed property.

Noninterest Income. Total noninterest income increased from $690,000 for the six
months ended  December 31, 1999,  to $745,000 for the six months ended  December
31, 2000, an increase of $55,000 or 7.97%. This was the result of an increase in
demand  deposit  service  charges of $29,000,  an increase in other  noninterest
income  items of $27,000,  and a decrease in the loss on sale of  available  for
sale securities of $30,000.  These increases to income were offset by a decrease
in gain on sale of loans of $27,000.  Demand deposit related fees were raised in
late 1999,  contributing  to the increase in that category,  while no securities
were sold in the six months ended  December 31, 2000.  Mortgage  loan  servicing
fees declined  slightly from $150,000 in the six months ended  December 31, 1999
to $145,000 in the six months ended December 31, 2000.


                                      -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  Ending  December  31,  2000 and 1999
(continued)


Noninterest  Expense.  Noninterest  expense  increased by $152,000 or 6.30% from
$2.41  million for the six months ended  December 31, 1999, to $2.56 million for
the six months ended  December 31, 2000.  This  increase was primarily due to an
increase in legal and accounting fees of $65,000 and in salaries and benefits of
$58,000.  The increase in legal and accounting fees were related to the costs of
being a public company,  while the increase in salaries was due to merit raises.
These increases were partially offset by decreases of $22,000 in federal deposit
insurance  premiums and $7,000 in ATM  processing  fees. The decrease in deposit
insurance  premiums was due to the FDIC lowering their  assessment  rate by 64%,
while  lower  costs  passed  on from  the  Bank's  ATM  processor  led to  lower
processing expense for ATMs and debit cards.

Income Tax Expense.  Eagle's  income tax expense was $230,000 for the six months
ended December 30, 1999,  compared to $268,000 for the six months ended December
31, 2000.  The effective tax rate for the six months ended December 31, 1999 was
31.36% 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. This requirement,  which varies from time to time
depending upon economic conditions and deposit flows, is based upon a percentage
of our deposits and short-term  borrowings.  The Bank's  liquidity ratio average
was 15.03% and 17.92% at December 31, 2000 and December 31, 1999,  respectively.
Liquidity  declined due to an increase in loans receivable for the period ending
December 31, 2000.

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.


                                      -18-


<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)

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, 2000 (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 the Board of Directors for interest rate risk sensitivity.

As of December  31,  2000,  the Bank's  regulatory  capital was in excess of all
applicable regulatory  requirements.  At December 31, 2000, the Bank's tangible,
core,  and  risk-based  capital  ratios  amounted  to 11.1%,  11.1%,  and 19.1%,
respectively,  compared to  regulatory  requirements  of 1.5%,  3.0%,  and 8.0%,
respectively. See the following table (amounts in thousands):


                                                         At December 31, 2000
                                                       -------------------------
                                                                          % of
                                                        Amount            Assets
                                                        ------            ------
Tangible capital:
  Capital level ...........................            $17,693            11.13%
  Requirement .............................              2,384             1.50
                                                       -------            -----
  Excess ..................................            $15,309             9.63%
                                                       =======            =====

Core capital:
  Capital level ...........................            $17,693            11.13%
  Requirement .............................              4,768             3.00
                                                       -------            -----
  Excess ..................................            $12,925             8.13%
                                                       =======            =====

Risk-based capital:
  Capital level ...........................            $18,358            19.14%
  Requirement .............................              7,675             8.00
                                                       -------            -----
  Excess ..................................            $10,683            11.14%
                                                       =======            =====

                                      -19-

<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 Annual Meeting of  Stockholders of the Company was held October 19,
         2000 and the following matters were voted on:

         1.    Election of directors for three-year terms expiring in 2003:

                                                   For:         Abstain:
                                                   ----         --------
               James A. Maierle                 1,111,376         775
               Thomas J. McCarvel               1,111,476         675

         2.    Ratification of appointment of Anderson ZurMuehlen & Co., P.C. as
               auditors for the fiscal year ended June 30, 2001:
                                 For:             Against:        Abstain:
                                 ----             --------        --------
                               1,108,701           2,725            725

         3.    Adoption of Eagle Bancorp 2000 Stock Incentive Plan:

                                 For:             Against:        Abstain:
                                 ----             --------        --------
                               311,172             26,849          6,350


Item 5.  Other Information.
         None.


Item 6.  Exhibits and Reports on Form 8-K
         a.  Exhibit 27 - Financial Data


                                      -20-


<PAGE>


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 9, 2001      By:  /s/ Larry A. Dreyer
                                            -----------------------
                                                Larry A. Dreyer
                                                President/CEO

         Date:   February 9, 2001      By:  /s/ Peter J. Johnson
                                            -----------------------
                                                Peter J. Johnson
                                                Sr. VP/Treasurer





                                      -21-