<PAGE>

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

                                   FORM 10-QSB

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

    For the quarterly period ended December 31, 2002

[ ] 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)

Website address: www.americanfederalsavingsbank.com
                 ----------------------------------

                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             1,209,772 shares outstanding
--------------------------------------------------------------------------------
                             As of February 10, 2003

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

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                             Page

PART  I.  FINANCIAL INFORMATION
<S>                                                                        <C>
Item 1.   Financial Statements

           Consolidated Statements of Financial Condition as of
           December 31, 2002 (unaudited) and June 30, 2002..................1 and 2

           Consolidated Statements of Income for the three and
           six months ended December 31, 2002 and 2001 (unaudited)..........3 and 4

           Consolidated Statements of Stockholders' Equity for the
           six months ended December 31, 2002 (unaudited).........................5

           Consolidated Statements of Cash Flows for the six
           months ended December 31, 2002 and 2001 (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

Item 3.   Controls and Procedures................................................21


PART  II.          OTHER INFORMATION

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


Signatures.......................................................................23


Certifications Pursuant to Section 302(a)
  of the Sarbanes-Oxley Act of 2002.........................................24 - 27


Exhibit 99-1.....................................................................28
</TABLE>

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                 Consolidated Statements of Financial Condition

<TABLE>
<CAPTION>
                                                         December 31, 2002   June 30, 2002
                                                         -----------------   -------------
                                                            (Unaudited)         (Audited)
<S>                                                        <C>               <C>
ASSETS
  Cash and due from banks                                  $   4,124,137     $   2,836,853
  Interest-bearing deposits with banks                         8,955,945         7,786,136
                                                           -------------     -------------
    Total cash and cash equivalents                           13,080,082        10,622,989

  Investment securities available-for-sale,
    at fair value                                             63,867,569        50,153,872
  Investment securities held-to-maturity,
    at amortized cost                                          3,214,320         3,875,124
  Federal Home Loan Bank stock, at cost                        1,637,400         1,586,200
  Mortgage loans held-for-sale                                 4,508,579         1,352,121
  Loans receivable, net of deferred loan fees
    and allowance for loan losses                             97,087,896       105,623,213
  Accrued interest and dividends receivable                      956,001           998,378
  Mortgage servicing rights, net                               1,819,634         1,588,318
  Property and equipment, net                                  6,364,711         6,291,382
  Cash surrender value of life insurance                       2,296,624         2,244,453
  Real estate acquired in settlement of loans,
    net of allowance for losses                                        -                 -
  Other assets                                                   538,128           245,417
                                                           -------------     -------------

      Total assets                                         $ 195,370,944     $ 184,581,467
                                                           =============     =============
</TABLE>







See accompanying notes to consolidated financial statements.
                                      -1-

<PAGE>

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

<TABLE>
<CAPTION>
                                                         December 31, 2002   June 30, 2002
                                                         -----------------   -------------
                                                            (Unaudited)         (Audited)
<S>                                                        <C>               <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Deposit accounts:
    Noninterest bearing                                    $    8,404,470    $   6,835,235
    Interest bearing                                          152,866,259      144,769,504
  Advances from Federal Home Loan Bank                          9,293,889        9,343,889
  Accrued expenses and other liabilities                        1,938,559        1,929,962
                                                           --------------    -------------
      Total liabilities                                       172,503,177      162,878,590
                                                           --------------    -------------

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; 1,205,172 and 1,208,172 outstanding at
    December 31, 2002 and June 30, 2002, respectively)             12,236           12,236
  Additional paid-in capital                                    3,916,828        3,885,903
  Unallocated common stock held by employee
    stock ownership plan ("ESOP")                                (257,648)        (276,048)
  Treasury stock, at cost (18,400 and 15,400 shares
    at December 31, 2002 and June 30, 2002,
    respectively)                                                (242,765)        (180,950)
  Retained earnings                                            18,972,230       17,957,601
  Accumulated other comprehensive income                          466,886          304,135
                                                           --------------    -------------
      Total stockholders' equity                               22,867,767       21,702,877
                                                           --------------    -------------

      Total liabilities and stockholders' equity           $  195,370,944    $ 184,581,467
                                                           ==============    =============
</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,
                                                        ---------------------------       ---------------------------
                                                            2002           2001               2002          2001
                                                        ------------   ------------       ------------   ------------
                                                                (Unaudited)                      (Unaudited)
<S>                                                     <C>            <C>                <C>            <C>
Interest and Dividend Income:
  Interest and fees on loans                            $  1,926,959   $  2,364,788       $  3,997,538   $  4,740,808
  Interest on deposits with banks                             40,418         43,974             73,064        110,822
  FHLB Stock dividends                                        27,394         24,799             51,382         52,946
  Securities available-for-sale                              589,594        346,750          1,198,112        649,886
  Securities held-to-maturity                                 44,016         79,430             93,335        170,261
                                                        ------------   ------------       ------------   ------------
    Total interest and dividend income                     2,628,381      2,859,741          5,413,431      5,724,723
                                                        ------------   ------------       ------------   ------------

Interest Expense:
  Deposits                                                   946,296      1,150,361          1,924,323      2,375,050
  FHLB Advances                                              146,661        175,281            293,742        354,090
                                                        ------------   ------------       ------------   ------------
    Total interest expense                                 1,092,957      1,325,642          2,218,065      2,729,140
                                                        ------------   ------------       ------------   ------------

  Net Interest Income                                      1,535,424      1,534,099          3,195,366      2,995,583
  Loan loss provision                                              -              -                  -              -
                                                        ------------   ------------       ------------   ------------
    Net interest income after loan loss provision          1,535,424      1,534,099          3,195,366      2,995,583
                                                        ------------   ------------       ------------   ------------

Noninterest income:
  Net gain on sale of loans                                  497,060        401,039            806,223        572,157
  Demand deposit service charges                             125,299        128,240            254,158        253,803
  Mortgage loan servicing fees                               104,851         78,831            200,923         94,163
  Net gain on sale of available-for-sale securities                -          1,976                  -          1,976
  Other                                                       92,235         94,269            193,156        186,478
                                                        ------------   ------------       ------------   ------------
    Total noninterest income                                 819,445        704,355          1,454,460      1,108,577
                                                        ------------   ------------       ------------   ------------
</TABLE>








See accompanying notes to consolidated financial statements.
                                       -3-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                   QUARTERLY CONSOLIDATED STATEMENT OF INCOME
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                           Three Months Ended                   Six Months Ended
                                                               December 31,                       December 31,
                                                        ---------------------------       ---------------------------
                                                            2002           2001               2002          2001
                                                        ------------   ------------       ------------   ------------
                                                                (Unaudited)                      (Unaudited)
<S>                                                     <C>            <C>                <C>            <C>
Noninterest expense:
  Salaries and employee benefits                             721,976        698,787          1,445,200      1,432,254
  Occupancy expenses                                         117,688        121,788            247,630        235,537
  Furniture and equipment depreciation                        53,074         71,226            106,371        139,370
  In-house computer expense                                   65,131         48,879            119,968         98,378
  Advertising expense                                         49,482         26,389             82,777         57,915
  Amortization of mtg servicing fees                         216,702        105,083            314,529        173,792
  Federal insurance premiums                                   6,359          6,088             12,635         12,214
  Postage                                                     28,732         22,019             56,894         51,772
  Legal, accounting, and examination fees                     40,076         49,177             66,792         72,169
  Consulting fees                                             15,190          5,880             21,070         13,236
  ATM processing                                              11,314         12,736             22,903         23,297
  Other                                                      215,041        202,846            397,752        384,766
                                                        ------------   ------------       ------------   ------------
    Total noninterest expense                              1,540,765      1,370,898          2,894,521      2,694,700
                                                        ------------   ------------       ------------   ------------

Income before provision for income taxes                     814,104        867,556          1,755,305      1,409,460
                                                        ------------   ------------       ------------   ------------

Provision for income taxes                                   271,730        305,865            595,550        501,107
                                                        ------------   ------------       ------------   ------------

Net income                                              $    542,374   $    561,691       $  1,159,755   $    908,353
                                                        ============   ============       ============   ============

Basic earnings per share                                $       0.46   $       0.48       $       0.99   $       0.78
                                                        ============   ============       ============   ============

Diluted earnings per share                              $       0.46   $       0.47       $       0.97   $       0.77
                                                        ============   ============       ============   ============

Weighted average shares outstanding (basic eps)            1,172,551      1,166,010          1,172,796      1,165,434
                                                           =========      =========          =========      =========

Weighted average shares outstanding (diluted eps)          1,190,612      1,186,010          1,190,035      1,185,434
                                                           =========      =========          =========      =========
</TABLE>




See accompanying notes to consolidated financial statements.
                                       -4-


<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                   For the Six Months Ended December 31, 2002

<TABLE>
<CAPTION>

                                                        ADDITIONAL   UNALLOCATED
                                            PREFERRED     COMMON       PAID-IN        ESOP
                                              STOCK        STOCK       CAPITAL       SHARES
                                              -----        -----       -------       ------

<S>                                          <C>         <C>         <C>           <C>
Balance, June 30, 2002                       $     -     $ 12,236    $ 3,885,903   $ (276,048

  Net income (unaudited)                           -            -              -            -
  Other comprehensive income (unaudited)           -            -              -            -

    Total comprehensive income (unaudited)         -            -              -            -

Dividends paid ($.26 per share) (unaudited)        -            -              -            -

Treasury stock purchased (1,700 shares
  @ $19.50/sh; 1,300 shares @ $22.05/sh)
  (unaudited)                                      -            -              -            -

ESOP shares allocated or committed to be
   released for allocation (2,300 shares)
  (unaudited)                                      -            -         30,925       18,400
                                             -------     --------    -----------   ----------

Balance, December 31, 2002 (unaudited)       $     -     $ 12,236    $ 3,916,828   $ (257,648
                                             =======     ========    ===========   ==========

<CAPTION>

                                                                     ACCUMULATED
                                                                        OTHER
                                             TREASURY     RETAINED  COMPREHENSIVE
                                               STOCK      EARNINGS      INCOME       TOTAL
                                               -----      --------      ------       -----

<S>                                         <C>          <C>          <C>        <C>
Balance, June 30, 2002                      $ (180,950)  $17,957,601  $ 304,135  $21,702,877

  Net income (unaudited)                             -     1,159,755          -    1,159,755
  Other comprehensive income (unaudited)             -             -    162,751      162,751

    Total comprehensive income (unaudited)           -             -          -    1,322,506

Dividends paid ($.26 per share) (unaudited)          -      (145,126)         -     (145,126)

Treasury stock purchased (1,700 shares
  @ $19.50/sh; 1,300 shares @ $22.05/sh)
  (unaudited)                                  (61,815)            -          -      (61,815)

ESOP shares allocated or committed to be
   released for allocation (2,300 shares)
  (unaudited)                                        -             -          -       49,325
                                            ----------   -----------  ---------  -----------

Balance, December 31, 2002 (unaudited)      $ (242,765)  $18,972,230  $ 466,886  $22,867,767
                                            ==========   ===========  =========  ===========
</TABLE>


See accompanying notes to consolidated financial statements.
                                       -5-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                      Six Months Ended
                                                                                        December 31,
                                                                                   2002             2001
                                                                               ---------------------------
                                                                                        (Unaudited
<S>                                                                            <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                                   $  1,159,756    $   908,353
  Adjustments to reconcile net income to net cash
   from operating activities:
     Provision for mortgage servicing rights valuation losses                             -         58,433
     Depreciation                                                                   202,563        236,267
     Net amortization of marketable securities premium
       and discounts                                                                339,482         45,916
     Amortization of capitalized mortgage servicing rights                          314,529        171,126
     Gain on sale of loans                                                         (806,223)      (572,157)
     Net realized (gain) loss on sale of available-for-sale securities                    -         (1,976)
     FHLB & other dividends reinvested                                             (119,441)       (72,290)
     Increase in cash surrender value of life insurance                             (52,171)       (51,806)
     Gain on sale of property & equipment                                                 -           (950)
    Change in assets and liabilities:
     (Increase) decrease in assets:
       Accrued interest and dividends receivable                                     42,377         42,746
       Loans held-for-sale                                                       (2,303,707)    (1,269,859)
       Other assets                                                                (292,711)        15,238
     Increase (decrease) in liabilities:
       Accrued expenses and other liabilities                                      (392,499)       133,707
       Deferred compensation payable                                                 24,912         12,044
       Deferred income taxes payable                                                323,819        (78,339)
                                                                               ------------    -----------
         Net cash provided by (used in) operating activities                     (1,559,314)      (423,547)
                                                                               ------------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of securities:
    Investment securities held-to-maturity                                                -       (278,708)
    Investment securities available-for-sale                                    (21,282,633)   (12,972,116)
  Proceeds from maturities, calls and principal payments:
    Investment securities held-to-maturity                                          655,163      1,827,982
    Investment securities available-for-sale                                      7,521,248      3,382,835
    Proceeds from sales of investment securities available-for-sale                       -        502,750
</TABLE>




See accompanying notes to consolidated financial statements.
                                       -6-

<PAGE>

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

<TABLE>
<CAPTION>
                                                                                      Six Months Ended
                                                                                        December 31,
                                                                                   2002             2001
                                                                               ---------------------------
                                                                                        (Unaudited
<S>                                                                            <C>             <C>
CASH FLOWS FROM INVESTING ACTIVITIES (CONTINUED):
    Net (increase) decrease in loan receivable, excludes transfers
      to real estate acquired in settlement of loans                              7,989,472      1,573,005
    Purchase of property and equipment                                             (275,892)       (81,669)
    Proceeds from sale of equipment                                                       -            950
                                                                               ------------    -----------
        Net cash used in investing activities                                    (5,392,642)    (6,044,971)
                                                                               ------------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net increase in checking and savings accounts                                $  9,665,989    $10,720,832
  Payments on FHLB advances                                                         (50,000)    (2,050,000)
  Sale (Purchase) of Treasury Stock                                                 (61,815)             -
  Dividends paid                                                                   (145,126)      (111,015)
                                                                               ------------    -----------
        Net cash provided by financing activities                                 9,409,048      8,559,817
                                                                               ------------    -----------

Net increase (decrease) in cash                                                   2,457,092      2,091,299

CASH AND CASH EQUIVALENTS, beginning of period                                   10,622,990      8,352,038
                                                                               ------------    -----------

CASH AND CASH EQUIVALENTS, end of period                                       $ 13,080,082    $10,443,337
                                                                               ============    ===========

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for interest                                       $  2,278,331    $ 2,443,441
                                                                               ============    ===========

Cash paid during the period for income taxes                                   $    682,988    $   380,152
                                                                               ============    ===========

NON-CASH INVESTING ACTIVITIES:
(Increase) decrease in market value of securities available-for-sale           $   (217,911)   $   (29,985)
                                                                               ============    ===========

Mortgage servicing rights capitalized                                          $    544,845    $   296,430
                                                                               ============    ===========
</TABLE>



See accompanying notes to consolidated financial statements.
                                       -7-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
             NOTES TO CONSOLDIATED 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,
2002 are not necessarily indicative of the results to be expected for the fiscal
year ending June 30, 2003 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, 2002.










                                      -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, 2002 (Unaudited)                    June 30, 2002 (Audited)
                            ------------------------------------------   -------------------------------------------
                                               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       $  6,603,322   $   168,736    $  6,772,058   $  6,963,730    $   70,249     $  7,033,979
  Municipal obligations        4,300,383        89,039       4,389,422      4,301,732       (10,233)       4,291,499
  Corporate obligations        7,010,939       259,012       7,269,951      8,548,317       177,158        8,725,475
  Mortgage-backed
   securities                 19,801,712        83,295      19,885,007      6,505,009        64,995        6,570,004
  Mutual Funds                 4,643,620         4,639       4,648,259      4,575,378            10        4,575,388
  Collateralized
   mortgage obligations       18,863,245       158,302      19,021,547     16,829,068       183,960       17,013,028
  Corporate preferred
   stock                       1,951,011       (69,686)      1,881,325      1,955,215       (10,716)       1,944,499
                            ------------   -----------    ------------   ------------    ----------     ------------
    Total                   $ 63,174,232   $   693,337    $ 63,867,569   $ 49,678,449    $  475,423     $ 50,153,872
                            ============   ===========    ============   ============    ==========     ============

Held-to-maturity:
  Municipal obligation      $  1,353,096   $    57,819    $  1,410,915   $  1,354,531    $   37,458     $  1,391,989
  Mortgage-backed
   securities                  1,861,224        74,077       1,935,301      2,520,593        90,112        2,610,705
                            ------------   -----------    ------------   ------------    ----------     ------------
    Total                   $  3,214,320   $   131,896    $  3,346,216   $  3,875,124    $  127,570     $  4,002,694
                            ============   ===========    ============   ============    ==========     ============
</TABLE>


                                      -9-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

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

Loans receivable consist of the following:

<TABLE>
<CAPTION>
                                                      December 31,        June 30,
                                                         2002               2002
                                                      (Unaudited)         (Audited)
                                                     -------------     -------------
<S>                                                  <C>               <C>
           First mortgage loans:
             Residential mortgage (1-4 family)       $  57,860,887     $  66,958,637
             Commercial real estate                      9,487,251         9,454,674
             Real estate construction                    2,973,546         2,931,032

           Other loans:
             Home equity                                14,936,302        14,235,907
             Consumer                                    9,340,007        10,023,869
             Commercial                                  3,233,046         2,842,782
                                                     -------------     -------------

               Total                                    97,831,039       106,446,901

           Less:  Allowance for loan losses               (696,201)         (702,705)
                   Deferred loan fees                      (46,942)         (120,983)
                                                     -------------     -------------

               Total                                 $  97,087,896     $ 105,623,213
                                                     =============     =============
</TABLE>

Loans net of related allowance for loan losses on which the accrual of interest
has been discontinued were $560,000 and $528,000 at December 31, 2002 and June
30, 2002, respectively. Classified assets, including real estate owned, totaled
$1.82 million and $1.66 million at December 31, 2002 and June 30, 2002,
respectively.

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

<TABLE>
<CAPTION>
                                                    Six Months Ended    Year ended
                                                      December 31,       June 30,
                                                         2002              2002
                                                      (Unaudited)        (Audited)
                                                     -------------     -------------
<S>                                                  <C>               <C>
           Balance, beginning of period              $     702,705     $     688,282
             Transfer from interest reserve                      -             6,510
             Provision charged to operations                     -                 -
             Charge-offs                                   (13,023)          (27,390)
             Recoveries                                      6,519            35,303
                                                     -------------     -------------
           Balance, end of period                    $     696,201     $     702,705
                                                     =============     =============
</TABLE>

                                      -10-

<PAGE>

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

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

Deposits are summarized as follows:
<TABLE>
<CAPTION>
                                                      December 31,        June 30,
                                                         2002                2002
                                                      (Unaudited)         (Audited)
                                                     -------------     -------------

<S>                                                  <C>               <C>
           Noninterest checking                      $   8,404,470     $   6,835,235
           Interest-bearing checking                    27,211,494        24,908,989
           Passbook                                     23,622,267        22,464,984
           Money market                                 27,534,548        27,568,930
           Time certificates of deposit                 74,497,950        69,826,601
                                                     -------------     -------------
             Total                                   $ 161,270,729     $ 151,604,739
                                                     =============     =============
</TABLE>

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

Earnings per share for the three months ended December 31, 2002 is computed
using 1,172,551 weighted average shares outstanding. Earnings per share for the
six months ended December 31, 2002 is computed using 1,172,796 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 1,190,612 for the three
months ended December 31, 2002 and 1,190,035 for the six months ended December
31, 2002. Earnings per share for the three months ended December 30, 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. 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.

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

This fiscal year Eagle has paid two dividends of $0.13 per share, on August 23,
2002 and November 15, 2002. Another dividend of $0.13 per share was declared on
January 16, 2003, payable February 14, 2003 to stockholders of record on January
31, 2003. Eagle Financial MHC, Eagle's mutual holding company, has waived the
receipt of dividends on its 648,493 shares.

                                      -11-

<PAGE>

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

NOTE 6.    DIVIDENDS AND STOCK REPURCHASE PROGRAM (CONTINUED)
-------------------------------------------------------------

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. A stock repurchase program was announced on
December 21, 2000, covering 4% of the Company's outstanding common stock, with
the intent of meeting the needs of the restricted stock plan. By October 24,
2002, 23,000 shares had been repurchased, completing the repurchase program. On
January 18, 2002 and January 21, 2003, 4,600 shares of the restricted stock plan
vested and were distributed to the participants.

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 valuations performed on September
30, 2001 and May 31, 2002, a temporary decline in the fair value was determined
to have occurred, and a valuation allowance of $21,515 has been established. The
following schedules show the activity in the mortgage servicing rights and the
valuation allowance.

<TABLE>
<CAPTION>
                                                      Six months      Twelve months
                                                         ended            ended
                                                      December 31,       June 30,
                                                          2002            2002
                                                      (Unaudited)       (Audited)
<S>                                                  <C>              <C>
           Mortgage Servicing Rights
             Beginning balance                       $  1,609,833     $  1,315,819
             Servicing rights capitalized                 545,845          618,085
             Servicing rights amortized                  (314,529)        (324,071)
                                                     ------------     ------------

               Ending balance                           1,841,149        1,609,833
                                                     ------------     ------------

           Valuation Allowance
             Beginning balance                             21,515                -
             Provision                                          -           21,515
             Adjustments                                        -                -
                                                     ------------     ------------

               Ending balance                              21,515           21,515
                                                     ------------     ------------

           Net Mortgage Servicing Rights             $  1,819,634     $  1,588,318
                                                     ============     ============
</TABLE>

                                      -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 quarterly results in this section are between the six months
ended December 31, 2002 and June 30, 2002.

Total assets increased by $10.79 million, or 5.85%, to $195.37 million at
December 31, 2002, from $184.58 million at June 30, 2002. Total liabilities
increased by $9.62 million to $172.50 million at December 31, 2002, from $162.88
million at June 30, 2002. Total equity increased $1.17 million to $22.87 million
at December 31, 2002 from $21.70 million at June 30, 2002.

The growth in assets was primarily in the available-for-sale (AFS) investment
portfolio, which increased $13.72 million, or 27.36%, to $63.87 million at
December 31, 2002 from $50.15 million at June 30, 2002. The investment category
with the largest increase was mortgage-backed securities, which increased $13.32
million. The loan portfolio decreased $8.53 million, or 8.08%, to $97.09 million
at December 31, 2002 from $105.62 million at June 30, 2002. Continued
refinancing activity and the sale of predominantly all new originations
contributed to the decline in single-family mortgage loans to $57.86 million at
December 31, 2002 from $66.96 million at June 30, 2002. Consumer loans declined
slightly, while all other loan categories showed moderate increases. Total loan
originations were $75.60 million for the six months ended December 31, 2002,
with single family mortgages (including $2.85 million of construction loans)
accounting for $64.57 million of the total. Home equity loan and consumer loan
originations totaled $5.00 million and $4.28 million, respectively, for the same
period. Loans held for sale increased to $4.51 million at December 31, 2002 from
$1.35 million at June 30, 2002.

                                      -13-

<PAGE>

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


FINANCIAL CONDITION (CONTINUED)

Growth in deposits funded asset growth. Deposits grew $9.66 million, or 6.37%,
to $161.27 million at December 31, 2002 from $151.61 million at June 30, 2002.
Growth in certificates of deposit and checking accounts contributed to the
increase in deposits. Other deposit types showed modest increases.

The growth in total equity was the result of earnings for the six months of
$1.16 million and an increase in the unrealized gain on securities available for
sale of $163,000. This was partially offset by the payment of two quarterly
$0.13 per share regular cash dividends.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 2002 AND 2001

NET INCOME
Eagle's net income was $542,000 and $562,000 for the three months ended December
31, 2002, and 2001, respectively. The decrease of $20,000, or 3.56%, was
primarily due to an increase in noninterest expense of $170,000, partially
offset by increases in noninterest income of $115,000 and net interest income of
$1,000. Eagle's tax provision was $34,000 lower in the current quarter. Basic
earnings per share were $0.46 for the current period, compared to $0.48 for the
previous year's period.

NET INTEREST INCOME
Net interest income was virtually unchanged at $1.53 million for the quarter
ended December 31, 2002, with an increase of $1,000 over the previous year's
quarter. Total interest and dividend income decreased $231,000, which was offset
by the decrease in interest expense of $232,000.

INTEREST AND DIVIDEND INCOME
Total interest and dividend income was $2.63 million for the quarter ended
December 31, 2002, compared to $2.86 million for the quarter ended December 31,
2001, representing a decrease of $231,000, or 8.08%. Interest and fees on loans
decreased to $1.93 million for the three months ended December 31, 2002 from
$2.36 million for the same period ended December 31, 2001. This decrease of
$430,000, or 18.22%, was due primarily to the decrease in the average balances
of loans receivable for the quarter ended December 31, 2002 and the decline in
the average interest rate earned on loans. Average balances for loans
receivable, net, for the quarter ended December 31, 2002 were $103.05 million,
compared to $118.59 million for the previous year. This represents a decrease of
$15.54 million, or 13.10%. All loan categories except commercial loans have
shown decreases from the previous year. The average interest rate earned on
loans receivable decreased by 50 basis points, from 7.98% at December 31, 2001
to 7.48% at December 31, 2002. Interest and dividends on investment securities
available-for-sale (AFS) increased to $590,000 for the quarter ended December
31, 2002 from $347,000 for the same quarter last year. Average balances on
investments increased significantly, to $63.87 million for the quarter ended
December 31, 2002, compared to $33.35 million for the quarter ended December 31,
2001. The average interest rate

                                      -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, 2002 AND 2001
(CONTINUED)

earned on investments dropped to 3.97% from 5.11%. Interest on securities
held-to-maturity (HTM) decreased from $79,000 to $44,000 as new purchases are
placed in the AFS portfolio. Interest earned from deposits held at other banks
decreased to $40,000 for the quarter ended December 31, 2002 from $44,000 for
the quarter ended December 31, 2001, due to the drop in short-term interest
rates. Interest income is expected to increase in the coming quarter due to the
funding in January 2003 of a large government guaranteed commercial real estate
loan.

INTEREST EXPENSE
Total interest expense decreased to $1.09 million for the quarter ended December
31, 2002, from $1.32 million for the quarter ended December 31, 2001, a decrease
of $232,000, or 17.58%, primarily due to a decrease in interest paid on
deposits. Interest on deposits decreased to $946,000 for the quarter ended
December 31, 2002, from $1.15 million for the quarter ended December 31, 2001.
This decrease of $204,000, or 17.74%, was the result of a decrease in average
rates paid on deposit accounts, despite higher balances. All deposit accounts
showed decreases in average rates paid and also had increases in average
balances in the current quarter compared to last year's quarter. Money market
accounts and certificates of deposit saw the largest increases in balances due
primarily to the poor performance of the stock market. Average balances in
interest-bearing deposit accounts increased to $151.13 million for the quarter
ended December 31, 2002, compared to $134.02 million for the same quarter in the
previous year. The average rate paid on liabilities decreased 93 basis points
from the quarter ended December 31, 2001 to the quarter ended December 31, 2002.
Interest paid on borrowings decreased to $147,000 for the quarter ended December
31, 2002 from $175,000 for the quarter ended December 31, 2001. The decrease in
borrowing costs was due to a decrease 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 (the Bank), to provide for probable loan losses
based on prior loss experience, volume and type of lending conducted by the
Bank, 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, 2002 or the quarter ended December 31, 2001. This is a reflection
of the continued strong asset quality of the Bank's loan portfolio. Total
classified assets increased slightly from $1.66 million at June 30, 2002 to
$1.82 million at December 31, 2002. The Bank currently has no foreclosed real
estate.

                                      -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, 2002 AND 2001
(CONTINUED)

NONINTEREST INCOME
Total noninterest income increased to $819,000 for the quarter ended December
31, 2002, from $704,000 for the quarter ended December 31, 2001, an increase of
$115,000 or 16.33%. This was the result of increases in net gain on sale of
loans of $96,000 and mortgage servicing fees of $26,000. Increased loan
originations compared to a year ago contributed to the increase in income from
sale of loans. Mortgage loan servicing fees increased due to higher balances in
the loan servicing portfolio. The other categories of noninterest income
registered small decreases.

NONINTEREST EXPENSE
Noninterest expense increased by $170,000 or 12.41% to $1.54 million for the
quarter ended December 31, 2002, from $1.37 million for the quarter ended
December 31, 2001. This increase was primarily due to an increase in
amortization of mortgage servicing fees of $112,000. The increase in
amortization of mortgage servicing fees was related to increased prepayment
activity on mortgage loans. Advertising expenses increased $23,000 due to
increased promotion of home equity loans. Salaries and employee benefits
increased $23,000 due to higher year-end bonuses. Furniture and equipment
depreciation expense decreased $18,000 due to equipment becoming fully
depreciated.

INCOME TAX EXPENSE
Eagle's income tax expense was $272,000 for the quarter ended December 31, 2002,
compared to $306,000 for the quarter ended December 31, 2001. The effective tax
rate for the quarter ended December 31, 2002 was 33.42% and was 35.25% for the
quarter ended December 31, 2001. Management expects Eagle's effective tax rate
to be approximately 35%.


RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 2002 AND 2001

NET INCOME
Eagle's net income was $1.16 million and $908,000 for the six months ended
December 31, 2002 and 2001, respectively. The increase of $252,000, or 27.75%,
was primarily due to increases in noninterest income of $346,000 and net
interest income of $200,000, partially offset by an increase in noninterest
expense of $200,000. Eagle's tax provision was $94,000 higher in the current
period. Basic earnings per share for the period ended December 31, 2002 were
$0.99, compared to $0.78 per share for the period ended December 31, 2001.

NET INTEREST INCOME
Net interest income increased to $3.20 million for the six months ended December
31, 2002 from $3.00 million for the six months ended December 31, 2001. This
increase of $200,000 was the result of a significant decrease in interest
expense of $510,000, partially offset by a decrease in interest and dividend
income of $310,000.

                                      -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, 2002 AND 2001
(CONTINUED)

INTEREST AND DIVIDEND INCOME
Total interest and dividend income was $5.41 million for the six months ended
December 31, 2002, compared to $5.72 million for the same period ended December
31, 2001, representing a decrease of $310,000, or 5.42%. Interest and fees on
loans decreased to $4.00 million for 2002 from $4.74 million for 2001. This
decrease of $740,000, or 15.61%, was due primarily to a decrease in the average
balances of loans receivable for the six months ended December 31, 2002. Average
balances for loans receivable, net, for this period were $105.12 million,
compared to $119.27 million for the previous year. This is a decrease of $14.15
million, or 11.86%. Most loan categories had shown decreases from the previous
year. The average interest rate earned on loans receivable decreased by 34 basis
points, to 7.61% from 7.95%. Interest and dividends on investment securities
available-for-sale (AFS) increased to $1.20 million for the six months ended
December 31, 2002 from $650,000 for the same period ended December 31, 2001.
Interest on securities held-to-maturity (HTM) decreased from $170,000 to
$93,000. 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 decreased to $73,000 for the
six months ended December 31, 2002 from $111,000 for the six months ended
December 31, 2001 due primarily to the drop in short-term interest rates.

INTEREST EXPENSE
Total interest expense decreased to $2.22 million for the six months ended
December 31, 2002 from $2.73 million for the six months ended December 31, 2001,
a decrease of $510,000, or 18.68%, primarily due to the decrease in interest
paid on deposits. Interest on deposits decreased to $1.92 million for the six
months ended December 31, 2002 from $2.37 million for the six months ended
December 31, 2001. This decrease of $450,000, or 18.99%, was the result of a
decrease in average rates paid on deposit accounts despite higher balances in
deposit accounts. Money market accounts and certificates of deposit accounted
for the largest gain in balances during the period from December 31, 2001 to
December 31, 2002. Average balances in money market accounts increased from
$21.55 million for the six months ended December 31, 2001 to $28.06 million for
the six months ended December 31, 2002. The average rate paid on money market
accounts decreased to 2.00% from 3.29%. Average balances in certificates of
deposit increased from $66.46 million to $72.54 million. The average rate paid
on certificates of deposit decreased to 3.86% from 5.07%. Average rates paid on
all interest-bearing deposits declined from 2001 to 2002, with the average rate
paid on all liabilities dropping by 101 basis points from the six month period
ended December 31, 2001 to the six month period ended December 31, 2002.
Interest paid on borrowings decreased to $294,000 for the six months ended
December 31, 2002 from $354,000 for the same period ended December 31, 2001. The
decrease in borrowing costs was due to a decrease 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, 2002 AND 2001
(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 (the Bank), to provide for probable loan losses
based on prior loss experience, volume and type of lending conducted by the
Bank, available peer group information, and past due loans in the 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, 2002 or December 31, 2001. This is a reflection of
the continued strong asset quality of the Bank's loan portfolio. Total
classified assets increased slightly to $1.82 million at December 31, 2002 from
$1.66 million at June 30, 2002. The Bank currently has no foreclosed property.

NONINTEREST INCOME
Total noninterest income increased to $1.46 million for the six months ended
December 31, 2002, from $1.11 million for the six months ended December 31,
2001, an increase of $346,000, or 31.17%. This was primarily due to an increase
in net gain on sale of loans of $234,000. Increased loan originations
contributed to the increase in income from the sale of loans. Low interest rates
over the past year have contributed to an unusually high level 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 increased to $201,000 for the current six-month period compared
to $94,000 for the previous year's period. A provision was made to a valuation
allowance for mortgage servicing rights in 2001 for $58,000. A subsequent
valuation performed in May 2002 determined that the temporary decline had
decreased to $21,515 and the valuation allowance was adjusted accordingly.
Changes to the valuation allowance for mortgage servicing rights are charged
against mortgage loan servicing fees. Other categories of noninterest income
showed minor changes.

NONINTEREST EXPENSE
Noninterest expense increased by $200,000, or 7.43% to $2.89 million for the six
months ended December 31, 2002, from $2.69 million for the six months ended
December 31, 2001. This increase was primarily due to an increase in
amortization of mortgage servicing fees of $141,000 and in advertising expense
of $25,000. The increase in amortization of mortgage servicing fees was related
to increased prepayment activity on mortgage loans, while the increase in
advertising expense was due to increased promotion of home equity loan products.
These increases were partially offset by a decrease of $33,000 in furniture and
equipment depreciation expense. Its decrease was due to equipment becoming fully
depreciated. Other categories of noninterest expense showed modest increases.

                                      -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, 2002 AND 2001
(CONTINUED)

INCOME TAX EXPENSE
Eagle's income tax expense was $595,000 for the six months ended December 31,
2002, compared to $501,000 for the six months ended December 31, 2001. The
effective tax rate for the six months ended December 31, 2002 was 33.93% and was
35.55% for the six months ended December 31, 2001.


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 average
liquidity ratio was 27.76% and 23.47% for the months ended December 31, 2002 and
December 31, 2001, respectively. Liquidity increased due to growth in deposits
and the increased loan sale volume for the period ended December 31, 2002.

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, 2002 (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. The Bank's capital ratio as measured by the OTS decreased
slightly during the same period. The Bank is well within the guidelines set
forth by the 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, 2002, the Bank's regulatory capital was in excess of all
applicable regulatory requirements. At December 31, 2002, the Bank's tangible,
core, and risk-based capital ratios amounted to 10.90%, 10.90%, and 20.42%,
respectively, compared to regulatory requirements of 1.5%, 3.0%, and 8.0%,
respectively. See the following table (amounts in thousands):

                                             At December 31, 2002
                                        ---------------------------
                                                         For Capital
                                                           Adequacy
                                           Dollar          Purposes
                                           Amount        % of Assets
                                        ------------     -----------
      Tangible capital:
        Capital level                   $     21,117         10.90%
        Requirement                            2,907          1.50
                                        ------------     -----------
        Excess                          $     18,210          9.40%
                                        ============     ===========

      Core capital:
        Capital level                   $     21,117         10.90%
        Requirement                            5,813          3.00
                                        ------------     -----------
        Excess                          $     15,304          7.90%
                                        ============     ===========

      Risk-based capital:
        Capital level                   $     21,790         20.42%
        Requirement                            8,535          8.00
                                        ------------     -----------
        Excess                          $     13,255         12.42%
                                        ============     ===========

IMPACT OF INFLATION AND CHANGING PRICES

Our financial statements and the accompanying notes have been prepared in
accordance with generally accepted accounting principles, 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. 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
                             CONTROLS AND PROCEDURES


Based on their evaluation as of a date within 90 days of the filing of this Form
10-Q, the Company's Chief Executive Officer, Larry A. Dreyer, and Treasurer,
Peter J. Johnson, have concluded the Company's disclosure controls and
procedures are effective to ensure that information required to be disclosed in
the reports that the Company files or submits under the Securities Exchange Act
of 1934 is recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms. There
have been no significant changes in the Company's internal controls or in other
factors that could significantly affect those controls subsequent to the date of
their evaluation.













                                      -21-

<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 17, 2002:

          1.   Election of directors for three-year terms expiring in 2005:
                                               For:               Against:
                                               ---                -------
                Larry A. Dreyer             1,122,165              1,033
                Teresa L. Hartzog           1,122,640                558

          2.   Ratification of appointment of Anderson ZurMuehlen & Co., P.C. as
               auditors for the fiscal year ended June 30, 2003:
                                               For:    Against:   Abstain:
                                               ---     -------    -------
                                            1,122,083    775        340

Item 5.   Other Information.
          None.

Item 6.   Exhibits and Reports on Form 8-K
          a.)  Exhibits
               Certifications pursuant to 18 U.S.C. Section 1350, as adopted
               pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

          b.)  Reports on Form 8-K
               None.

                                      -22-

<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 10, 2003          By:  /s/ Larry A. Dreyer
                                                 -------------------
                                                 Larry A. Dreyer
                                                 President/CEO

         Date:   February 10, 2003          By:  /s/ Peter J. Johnson
                                                 --------------------
                                                 Peter J. Johnson
                                                 Sr. VP/Treasurer






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<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                            CERTIFICATION PURSUANT TO
                SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002


I, Larry A. Dreyer, Chief Executive Officer, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of Eagle Bancorp;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;

     b)   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent functions):

     a)   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     b)   any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

                                      -24-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                            CERTIFICATION PURSUANT TO
                SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002


6.   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:  February 10, 2003

                                         /s/ Larry A. Dreyer
                                         -------------------------------
                                         Larry A. Dreyer
                                         President and Chief Executive Officer














                                      -25-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                            CERTIFICATION PURSUANT TO
                SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002

I, Peter J. Johnson, Chief Financial Officer, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of Eagle Bancorp;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;

     b)   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent functions):

     a)   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     b)   any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

                                      -26-

<PAGE>

                          EAGLE BANCORP AND SUBSIDIARY
                            CERTIFICATION PURSUANT TO
                SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002


6.   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:  February 10, 2003

                                      /s/ Peter J. Johnson
                                      ----------------------------------
                                          Peter J. Johnson
                                          Sr. VP/Treasurer and Chief Financial
                                          Officer















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