FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549
(Mark One)
 X]               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended September 30, 1997
                                                        OR
[  ]              TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                           SECURITIES EXCHANGE ACT OF 1934

                  For the transition period from ____________ to _______________

                         Commission file number 0-25076

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

            Iowa                                                  42-1446740
-------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)

 102 East Main Street, Washington, Iowa                            52353
----------------------------------------                         ----------
(Address of principal executive offices)                         (Zip Code)

        Registrant's telephone number, including area code: (319)653-7256

Check  whether  the issuer  (1) has filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Securities  Exchange  act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days. Yes[X] No[ ] The issuer has been subject to such filing requirements since
March 11, 1996.

State the number of shares  outstanding of each of the issuers classes of common
equity, as of the latest practicable date.

Common Stock, $.01 par value 651,133 shares outstanding as to November 10, 1997

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



<PAGE>





                                      INDEX

Part I.  Financial Information

         Item 1.  Consolidated Financial Statements

                  Consolidated Balance Sheets at September 30, 1997 
                    (unaudited) and June 30, 1997

                  Unaudited Consolidated Statements of Income for the
                    three months ended September 30, 1997 and 1996

                  Unaudited  Consolidated  Statements  of Cash
                    Flows  for the  three  months  ended
                    September 30, 1997 and 1997

                  Notes to Consolidated Financial Statements

         Item 2.  Management's Discussion and Analysis

Part II.          Other Information

                  Items 1 through 6

                  Signatures



<PAGE>




Washington Bancorp and Subsidiary
Consolidated Statements of Financial Condition

<TABLE>

                                                   September 30,      
                                                       1997           June 30,
                                                    (unaudited)        1997*
                                                   -------------   -------------
<S>                                                <C>             <C>   
ASSETS
Cash and cash equivalents:
         Interest-bearing ......................   $  2,001,976    $    574,736
         Noninterest-bearing ...................        312,681         233,069
                                                   ------------    ------------
                                                      2,314,657         807,805
Investment securities, available for sale ......      7,320,053       9,849,991
Loans receivable, net ..........................     54,689,348      52,530,153
Accrued interest receivable ....................        680,421         568,228
Federal Home Loan Bank stock ...................        495,100         465,600
Premises and equipment, net ....................        539,706         550,231
Foreclosed real estate .........................           --              --
Other assets ...................................        106,729         103,026
                                                   ------------    ------------
         Total assets ..........................   $ 66,146,014    $ 64,875,034
                                                   ============    ============
LIABILITIES
Deposits .......................................   $ 46,283,313    $ 44,754,328
Borrowed funds .................................      8,324,780       8,651,765
Advance from borrowers for
         taxes and insurance ...................         88,328         204,677
Accrued expenses and other liabilities .........        556,081         519,441
                                                   ------------    ------------
         Total liabilities .....................     55,252,502      54,130,211
                                                   ------------    ------------

COMMITMENTS AND CONTINGENCIES
Redeemable common stock held by Employee
         Stock Ownership Plan (the "ESOP") .....         73,729          69,392
                                                   ------------    ------------

STOCKHOLDERS' EQUITY Common stock:
         Common stock ..........................          6,575           6,575
         Additional paid-in capital ............      6,156,311       6,150,032
Retained earnings ..............................      5,385,370       5,292,419
Unrealized gain (loss) on investment securities,
         available for sale, net of income taxes         10,707          (3,307)
                                                   ------------    ------------
                                                     11,558,963      11,445,719
Less:
Cost of 6,386 common shares acquired
         for treasury ..........................        (85,827)        (85,827)
Deferred compensation ..........................       (125,954)       (151,739)
Maximum cash obligation related to ESOP shares .        (73,729)        (69,392)
Unearned ESOP shares ...........................       (453,670)       (463,330)
                                                   ------------    ------------
          Total stockholders' equity ...........     10,819,783      10,675,431
                                                   ------------    ------------
         Total liabilities and
               stockholders' equity ............   $ 66,146,014    $ 64,875,034
                                                   ============    ============
<FN>
*Condensed from audited financial statements.
</FN>
</TABLE>

See Notes to Consolidated Financial Statements.
<PAGE>


Washington Bancorp and Subsidiary
Unaudited Consolidated Statements of Income



                                                            Three Months
                                                        Ended September 30,
                                                        1997          1996
                                                     -----------   -----------

Interest income:
         Loans receivable:
                  First mortgage loans ...........   $   876,027   $   816,762
                  Consumer and other loans .......       263,518       137,668
         Investment securities:
                  Taxable ........................       139,864       232,375
                  Nontaxable .....................         5,313         5,433
                                                     -----------   -----------
                  Total interest income ..........     1,284,722     1,192,238
                                                     -----------   ----------- 

Interest expense:
         Deposits ................................       548,677       552,502
         Borrowed funds ..........................       132,830        74,474
                                                     -----------   -----------
                  Total interest expense .........       681,507       626,976
                                                     -----------   -----------
                  Net interest income ............       603,215       565,262

                  Provision for loan loss ........        25,000         3,000
                                                     -----------   -----------
                  Net interest income after
                    provision for loan loss ......       578,215       562,262
                                                     -----------   -----------
Noninterest income:
         Security gains(losses), net .............          --             388
         Loan origination and commitment fees ....         2,525         2,251
         Service charges and fees ................        39,262        30,980
         Insurance commissions ...................         8,892        13,395
         Other ...................................         1,454         9,565
                                                     -----------   -----------
                  Total noninterest income .......        52,133        56,579
                                                     -----------   -----------
Noninterest expense:
         Compensation and benefits ...............       206,751       159,713
         Occupancy and equipment .................        38,144        35,048
         SAIF deposit insurance premium ..........        12,176       326,718
         Data processing .........................        21,259        13,660
         Other ...................................        91,007       130,509
                                                     -----------   -----------
                  Total noninterest expense ......       369,337       665,648
                                                     -----------   -----------

                  Income(loss) before income taxes       261,011       (46,807)
Income tax expense(credit) .......................       103,791       (17,446)
                                                     -----------   -----------
                  Net income(loss) ...............   $   157,220   $   (29,361)
                                                     ===========   ===========
  Earnings(loss) per common share
         subsequent to conversion ................   $      0.25   $     (0.05)
                                                     ===========   ===========

Dividends per common share .......................   $      0.10   $      0.08
                                                     ===========   ===========

Weighted average common shares ...................       621,123       607,628
                                                     ===========   ===========

See Notes to Consolidated Financial Statements.
<PAGE>



Washington Bancorp and Subsidiary
Unaudited Consolidated Statements of Cash Flows
<TABLE>


                                                                      Three Months
                                                                    Ended September 30,
                                                              ----------------------------
                                                                  1997            1996
                                                              ------------    ------------
<S>                                                           <C>             <C> 
Cash Flows from Operating Activities
         Net income(loss) .................................   $    157,220    $    (29,361)
Adjustments to reconcile net income to net cash
         provided by operating activities:
         Amortization of premiums and discounts on debt 
           securities .....................................          2,360          19,415
         Provision for loan loss ..........................         25,000           3,000
         (Gain) on sale of investment securities ..........             --            (388)
         (Gain) loss on sale of foreclosed real estate ....             --          (7,720)
         Depreciation .....................................         15,704          12,910
         Compensation under stock awards ..................         25,785              --
         ESOP contribution expense ........................         15,939          12,328
         Deferred income taxes ............................             --        (109,778)
         (Increase)in accrued interest receivable .........       (112,193)       (158,984)
         (Increase)decrease in other assets ...............         (3,703)          4,813
         Increase in accrued expenses and other liabilities          28,232         99,814
         Increase in accrued SAIF assessment ..............             --         294,310
                                                              ------------    ------------
                  Net cash provided by operating activities        154,344         140,359
                                                              ------------    ------------

Cash Flows from Investing Activities
Available for sale securities:
         Sales ............................................             --             911
         Maturities and calls .............................      2,600,000       2,015,000
         Purchases ........................................        (50,000)       (145,000)
Purchase of Federal Home Loan Bank Stock ..................        (29,500)             --
Loans made to customers, net ..............................     (2,184,195)     (2,640,452)
Purchase of premises and equipment ........................         (5,179)         (1,650)
                                                              ------------    ------------
                  Net cash (used in) investing activities .        331,126        (771,191)
                                                              ------------    ------------

Cash Flows from Financing Activities
         Net increase in deposits .........................   $  1,528,985    $  2,216,943
         Proceeds from Federal Home Loan Bank advance .....     22,200,000       8,500,000
         Principal payments on Federal Home Loan Bank 
            advances ......................................    (22,526,984)     (9,275,019)
         Net(decrease) in advances from borrowers for
            taxes and insurance ...........................       (116,349)       (122,599)
         Payment of cash dividends ........................        (64,270)        (52,602)
                                                              ------------    ------------
                  Net cash provided by financing activities      1,021,382       1,266,723
                                                              ------------    ------------

                  Net increase in cash and cash equivalents      1,506,852         635,891
Cash and cash equivalents:
         Beginning ........................................        807,805       1,903,352
                                                              ------------    ------------
         Ending ...........................................   $  2,314,657    $  2,539,243
                                                              ============    ============

Supplemental Disclosures of Cash Flow Information
         Cash payments for:
                  Interest paid to depositors .............   $    541,942    $    514,732
                  Interest paid on other obligations ......        132,830          74,474
                  Income taxes, net of refunds ............         62,700          39,050

Supplemental Schedule of Noncash Investing
         and Financing Activities
         Transfer from loans to foreclosed real estate ....           --            60,454
         Contract sales of foreclosed real estate .........           --            39,000
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>



Washington Bancorp and Subsidiary

Notes to Consolidated Financial Statements



Organization.  On March 11, 1996,  Washington  Bancorp  sold  604,917  shares of
common stock at $10.00 per share and simultaneously  invested $3,089,356 for all
the  outstanding   common  shares  of  Washington  Federal  Savings  Bank  in  a
transaction accounted for like a pooling of interests.

Prior to March 11, 1996, the Bank was a federally chartered mutual savings bank.
After a  reorganization,  effective  March 11, 1996, the Bank became a federally
chartered  stock  savings  bank and 100% of the Bank's  common stock is owned by
Washington Bancorp.

Principles of consolidation.  The accompanying consolidated financial statements
include  the  accounts of  Washington  Bancorp("Washington"  or the  "Company"),
Washington  Federal Savings Bank(the  "Bank"),  and its wholly-owned  subsidiary
Washington  Financial  Services,  Inc., which is a discount  brokerage firm. All
significant  intercompany  balances and  transactions  have been  eliminated  in
consolidation.

Basis of presentation.  Interim Financial Information (unaudited): The financial
statements and notes related  thereto for the three month period ended September
30,  1997,  are  unaudited,  but  in  the  opinion  of  management  include  all
adjustments,  consisting only of normal recurring  adjustments,  necessary for a
fair  presentation  of the  financial  position and results of  operations.  The
operating  results for the interim  periods are not  indicative of the operating
results to be expected  for a full year or for other  interim  periods.  Not all
disclosures required by generally accepted accounting principles necessary for a
complete   presentation  have  been  included.  It  is  recommended  that  these
consolidated  condensed  financial  statements be read in  conjunction  with the
Annual  Report on Form  10-KSB for the year ended June 30,  1997 and all related
amendments and exhibits (including all financial  statements and notes therein),
filed by the Company with the Securities and Exchange Commission.

Recapture of Bad Debt Reserves.  Prior to the enactment,  on August 20, 1996, of
the Small  Business Job  Protection  Act of 1996 (the "1996  Act"),  for federal
income tax purposes,  thrift  institutions  such as the Bank,  which met certain
definitional  tests  primarily  relating to their assets and the nature of their
business,  were  permitted to establish  tax reserves for bad debt,  and to make
annual additions thereto,  which additions could, within specified  limitations,
be deducted  in arriving at their  taxable  income.  The Bank's  deduction  with
respect to  "qualifying  loans,"  which are  generally  loans secured by certain
interests  in real  property,  could  be  computed  using an  amount  based on a
six-year moving average of the Bank's actual loss  experience  (the  "Experience
Method"),  or a percentage  equal to 8% of the Bank's  taxable income ( the "PTI
Method"),  computed  without  regard  to  this  deduction  and  with  additional
modifications  and  reduced  by the  amount  of any  permitted  addition  to the
non-qualifying reserve.

Under the 1996 Act, the PTI Method was repealed and the Bank will be required to
use the  Experience  Method of  computing  additions to its bad debt reserve for
taxable years  beginning with the Banks taxable year beginning  January 1, 1996.
In  addition,  the Bank will be required to recapture  (i.e.,  take into income)
over a six-year period, beginning with the Bank's taxable year beginning January
1, 1996,  the excess of the  balance of its bad debt  reserves  (other  than the
supplemental  reserve)  as of  December  31,  1995 over the  greater  of (a) the
balance of such reserves as of December 31, 1987 (or over a lesser amount if the
Bank's portfolio  decreased since December 31, 1987) or (b) an amount that would
have been the  balance of such  reserves  as of  December  31, 1995 had the Bank
always  computed the additions to its reserves using the six-year moving average
Experience Method. However, under the 1996 Act, such recapture requirements will
be suspended for each of the two successive  taxable years beginning  January 1,
1996 in which the Bank originates a minimum amount of certain  residential loans
during such years that is not less than the average of the principal  amounts of
such loans made by the Bank during its six taxable  years  preceding  January 1,
1996. This  legislation  will result in the Bank's recapture of reserves with an
aggregate tax liability of  approximately  $156,000.  Since the Bank has already
provided a deferred income tax liability of this amount for financial  reporting
purposes,  there will be no adverse impact to the Bank's financial  condition or
results of operations from the enactment of this legislation.
<PAGE>


Deposit  Insurance  Funds Act of 1996.  In response to the  SAIF/BIF  assessment
disparity, the Deposit Insurance Funds Act of 1996 (the "Funds Act") was enacted
into law on  September  30,  1996.  The Funds Act amended  the  Federal  Deposit
Insurance Act (the "FDIA") in several ways to  recapitalize  the SAIF and reduce
the disparity in the  assessment  rates for the BIF and the SAIF.  The Funds Act
authorized  the FDIC to impose a special  assessment  on all  institutions  with
SAIF-assessable  deposits in the amount  necessary to recapitalize  the SAIF. As
implemented  by the FDIC,  institutions  with  SAIF-assessable  deposits  paid a
special  assessment  of 65.7 basis points on the Savings  Association  Insurance
Fund (SAIF)  deposits  held as of March 31,  1995.  Washington  Federal  Savings
Bank's assessment totalled $294,000. As a result of the special assessment,  the
Bank's deposit insurance premium was reduced to 6.48 basis points based upon its
current risk  classification  and the new  assessment  schedule for SAIF insured
institutions. These premiums are subject to change in future periods.

Earnings per common share.  The earnings per common and common  equivalent share
were computed  using the weighted  average  number of shares,  stock options and
stock  awards  outstanding  during the periods  presented.  In  accordance  with
Statement  of  Position  93-6,  shares  owned  by the  ESOP  that  have not been
committed  to be  released  are not  considered  outstanding  for the purpose of
computing earnings per share.  Dilutive common stock equivalents  related to the
stock options were determined  using the treasury stock method.  Dilutive common
stock  equivalents  related to a stock  award plan are  considered  to be common
stock  equivalents  at all times  since they were  awarded.  Earnings  per share
information for the three months ended September 30, 1997 and September 30, 1996
is  calculated by dividing net income by the weighted  average  number of shares
outstanding.

ESOP  obligations  and expense.  The receivable from the Company's ESOP has been
treated as a reduction  from  equity.  Any  principal  repayment  of the debt is
treated as an  increase  in equity.  Compensation  expense for the ESOP is based
upon the fair value of shares allocated to participants.

Stock  awards.  Expense  for  common  stock to be  issued  under  the  Company's
recognition and retention plan is based upon the fair value of the shares at the
date of grant, allocated over the period of vesting.

Redeemable  common stock held by ESOP.  The  Company's  maximum cash  obligation
related to these shares is classified outside  stockholders'  equity because the
shares are not  readily  traded and could be put to the  Company  for cash.  The
maximum cash obligation represents the approximate market value of the allocated
ESOP shares at the end of the reporting period.

Regulatory capital  requirements.  Pursuant to the Financial Information Reform,
Recovery and Enforcement Act of 1989 ("FIRREA"),  savings institutions must meet
three  separate  minimum  capital-to-asset  requirements.  The  following  table
summarizes,  as of September 30, 1997 the capital requirements of the Bank under
FIRREA  and its  actual  capital  ratios.  As of  September  30,  1997  the Bank
substantially exceeded all current regulatory capital requirement standards.


                                                          At September 30, 1997
                                                          ----------------------
                                                          Amount        Percent
                                                          ------        --------
                                                          (Dollars in thousands)
                                                               (unaudited)

Tangible Capital:
         Capital Level ........................           $8,875         13.4%
         Requirement ..........................              991          1.5%
                                                          ------        ------
         Excess ...............................           $7,884         11.9%

Core Capital:
         Capital Level ........................           $8,875         13.4%
         Requirement ..........................            1,982          3.0%
                                                          ------         -----
         Excess ...............................           $6,893         10.4%


Risk-Based Capital:
         Capital Level ........................           $9,101         20.6%
         Requirement ..........................            3,540          8.0%
                                                          ------         -----
         Excess ...............................           $5,561         12.6%


<PAGE>



Part I - Financial Information

Item 2. Management's Discussion and Analysis

Forward-Looking Statements

When  used in this  Form  10-QSB  or  future  filings  by the  Company  with the
Securities  and Exchange  Commission,  in the Company's  press releases or other
public  or  shareholder  communications,  or in oral  statements  made  with the
approval of an authorized  executive officer,  the words or phrases "will likely
result," "are  expected  to," "will  continue,"  "is  anticipated,"  "estimate,"
"project,"   "believe"   or  similar   expressions   are  intended  to  identify
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation  Reform Act of 1995.  The  Company  wishes to caution  readers not to
place undue reliance on any such forward-looking statements, which speak only as
of the date made, and to advise readers that various factors, including regional
and national  economic  conditions , changes in levels of market interest rates,
credit risks of lending  activities,  and  competitive  and regulatory  factors,
could affect the Company's  financial  performance and could cause the Company's
actual results for future periods to differ materially from those anticipated or
projected.

The Company does not undertake,  and specifically disclaims any obligations,  to
revise any  forward-looking  statements to reflect the occurrence of anticipated
or unanticipated events or circumstances after the date of such statements.

General

Washington Bancorp  ("Washington" or the "Company") is an Iowa corporation which
was organized in October 1995 by Washington  Federal  Savings Bank  ("Washington
Federal" or the  "Bank") for the purpose of becoming a savings and loan  holding
company.  Washington Federal is a federally chartered savings bank headquartered
in  Washington,  Iowa.  Originally  chartered in 1934,  the Bank  converted to a
federal  savings bank in 1994.  Its  deposits  are insured up to the  applicable
limits by the Federal Deposit Insurance Corporation ("FDIC").

In March 1996, the Bank converted to the stock form of organization  through the
sale and issuance of its common stock to the Company. The principal asset of the
Company is the outstanding stock of the Bank, its wholly-owned  subsidiary.  The
Company presently has no separate operations and its business consists primarily
of the business of the Bank.  All  references to the Company,  unless  otherwise
indicated at or before March 11, 1996 refer to the Bank.

Washington  attracts  deposits from the general  public in its local market area
and uses such deposits  primarily to invest in one- to  four-family  residential
loans secured by owner occupied  properties and non-residential  properties,  as
well as construction loans on such properties.  Washington also makes commercial
loans,  consumer loans,  automobile loans, and has occasionally been a purchaser
of fixed-rate mortgage-backed securities.

In  anticipation  of  possible  federal  legislation  that  may  inhibit  future
branching  opportunities  for savings  associations,  Washington  Federal  filed
applications with the Office of Thrift  Supervision  ("OTS") on October 20, 1995
for three  branch  offices.  These  applications  were  approved  and have since
expired.  The purpose of the  applications was to possibly  preserve  Washington
Federal's  branching  opportunities.  If future  applications are submitted,  no
assurance can be given that the  applications  will satisfy the  legislation nor
that Washington Federal will open any branch offices.

On June 24, 1997,  the Company  entered  into a definitive  agreement to acquire
Rubio  Savings  Bank of  Brighton  ("Rubio")  pursuant  to a merger in which the
Company will pay Rubio  stockholders  a total of  approximately  $4.6 million in
cash (the "Rubio Merger").  Rubio is  headquartered in Brighton,  Iowa and as of
September  30,  1997 had assets of  approximately  $21.7  million,  deposits  of
approximately  $18.2  million and  stockholders'  equity of  approximately  $3.3
million.  The Rubio  Merger will be accounted  for as a purchase,  is subject to
regulatory and stockholders'  approval and is expected to close by calendar year
end. On November 3, 1997 Washington  received  approval for the acquisition from
the Board of Governor's of the Federal Reserve System.

Financial Condition

Total  assets.  Total  consolidated  assets  increased  $1.2  million from $64.9
million at June 30, 1997 to $66.1  million at September  30, 1997.  The increase
was  primarily  due to a $2.2 million  increase in loans  receivable  and a $1.5
million increase in cash and cash equivalents partially offset by a $2.5 million
decrease in investment  securities.  The increase was primarily funded by a $1.5
million seasonal increase in deposits.
<PAGE>


Loans  receivable.  Loans  receivable,  net  increased  $2.2  million from $52.5
million at June 30, 1997 to $54.7 million at September  30, 1997.  This increase
is  primarily  due  to  increased  loan  demand  in  Washington's  market  area.
Washington's  non-performing  assets were  $139,000  or .21% of total  assets at
September  30, 1997 as compared to $229,000 or .35% of total  assets at June 30,
1997.

Investment securities. Available-for-sale securities decreased $2.5 million from
$9.8  million at June 30,  1997 to $7.3  million at  September  30,  1997.  This
decrease  is  primarily  due to the call of $2.0  million in  government  agency
securities  and the  maturity  of  $600,000  in U.S.  Treasuries  and  corporate
securities.  The funds were  primarily  used to fund loan  activity and decrease
FHLB  borrowings.  The portfolio of  available-for-sale  securities is comprised
primarily of investment securities carrying fixed interest rates. The fair value
of these  securities is subject to changes in interest rates.  The fair value of
these securities was more on September 30, 1997 than their carrying value due to
a  decline  in  interest  yields  since  the  purchase  date of the  securities.
Therefore, the total balance of available for sale securities includes the gross
effect of the unrealized gain..

Accrued interest receivable. Accrued interest receivable increased $112,000 from
$568,000 at June 30, 1997 to $680,000 at  September  30,  1997.  The increase is
primarily due to the increase in loans receivable,  net and the level of accrued
interest on available-for-sale securities with semi-annual interest payments.

Deposits. Deposits increased $1.5 million from $44.8 million at June 30, 1997 to
$46.3  million at September  30, 1997.  Interest  credited to customer  accounts
totalled $437,000,  while deposits exceeded withdrawals by $1.1 million. This is
primarily  due to the  seasonal  fluctuation  in the  cash  position  of a local
governmental  agency.  Transaction and savings  deposits rose as a percentage of
total  deposits from $14.3 million or 32.0% at June 30, 1997 to $15.9 million or
34.4% at September  30, 1997.  As a result of the  increase in  transaction  and
savings  deposits,  certificates  of deposit  decreased as a percentage of total
deposits  from $30.4 million or 68.0% at June 30, 1997 to $30.4 million or 65.6%
at September 30, 1997.

FHLB Borrowings.  The total principal  balance in advances from the Federal Home
Loan Bank of Des Moines (FHLB) decreased  $300,000 from $8.6 million at June 30,
1997 to $8.3 million at September 30, 1997. The decrease is primarily due to the
decreased  need to borrow to fund loan  activity  because  of the  reduction  in
investment  security holdings and an increase in total deposits.  The borrowings
are primarily long-term advances.

Advances from borrowers for taxes and  insurance.  The total balance in advances
from borrowers for taxes and insurance  decreased $117,000 from $205,000 at June
30, 1997 to $88,000 at September 30, 1997.  The decrease is primarily due to the
payment of the first installment of the 1997-98 county real estate tax bills due
September 30, 1997.

Total stockholders'  equity.  Total stockholders' equity increased $144,000 from
$10.7  million at June 30, 1997 to $10.8  million at  September  30,  1997.  The
increase  is  primarily  due to net  income of  $157,000,  the  amortization  of
deferred  compensation under the Recognition and Retention Plan of $26,000,  the
net  unrealized  gain in the  available  for sale  securities of $13,000 and the
allocation of shares in the Employee Stock  Ownership Plan of $12,000  partially
offset by the cash dividend paid to  stockholders  on August 15, 1997  totalling
$64,000.

Results of Operations - Three Months Ended September 30, 1997 As Compared To The
Three Months Ended September 30, 1996

Performance  summary.  Net earnings increased $186,000 to $157,000 for the three
months  ended  September  30, 1997 from  ($29,000)  for the three  months  ended
September 30, 1996. The increase is primarily due to an increase in net interest
income of $38,000 and a decrease in noninterest  expense of $267,000,  partially
offset by an  increase  in  provision  for loan loss of  $22,000,  a decrease in
noninterest  income of $5,000 and an increase in income tax expense of $121,000.
For the three months September 30, 1997 the annualized  return on average assets
was 0.96%  compared to (.19%) for the three  months  ended  September  30, 1996,
while the  annualized  return on average  equity was 5.81% for the three  months
ended  September  30,  1997  compared  to  (1.12%)  for the three  months  ended
September 30, 1996.
<PAGE>


Net interest income.  Net interest income increased  $38,000 to $603,000 for the
three months ended  September  30, 1997 from $565,000 for the three months ended
September 30, 1996.  The increase is primarily due to the increase of $93,000 in
interest income to $1,285,000 for the three months ended September 30, 1997 from
$1,192,000  for the three months ended  September 30, 1996 offset by an increase
in interest  expense of $55,000 to $682,000 for the three months ended September
30, 1997 from $627,000 for the three months ended September 30, 1996.

For  the  three  months  ended   September   30,  1997  the  average   yield  on
interest-earning  assets was 8.07%  compared to 8.16% for the three months ended
September 30, 1996. The average cost of  interest-bearing  liabilities was 5.18%
for the three months ended  September  30, 1997  compared to 4.99% for the three
months ended September 30, 1996. The average balance of interest  earning assets
increased $5.3 million to $63.7 million for the three months ended September 30,
1997 from $58.4 million for the three months ended  September  30, 1996.  During
this same period, the average balance of interest-bearing  liabilities increased
$2.4 million to $52.6 million for the three months ended September 30, 1997 from
$50.2 million for the three months ended September 30, 1996.

Due to the decrease in yield on the interest-earning  assets and the increase in
rates paid on the interest-bearing liabilities, the average interest rate spread
was 2.89% for the three months ended  September  30, 1997  compared to 3.17% for
the three months ended  September 30, 1996. The average net interest  margin was
3.79% for the three months ended  September  30, 1997  compared to 3.66% for the
three months ended September 30, 1996.

Provision for loan loss.  Provision for loan loss  increased  $22,000 to $25,000
for the three months ended  September  30, 1997 from $3,000 for the three months
ended  September  30, 1996.  The increase is primarily due to an increase in the
size of the loan portfolio.  Washington's loan portfolio  consists  primarily of
residential   mortgage  loans  and  it  has  experienced  a  minimal  amount  of
charge-offs  in the past three years.  The allowance for loan losses of $247,000
or .46% of loans  receivable,  net at September 30, 1997 compares to $212,000 or
 .47% of loans receivable, net at September 30, 1996. The allowance for loan loss
as a percentage  of  non-performing  assets was 177.69% at  September  30, 1997,
compared to 275.32% at September 30, 1996.

Noninterest income. Noninterest income decreased $5,000 to $52,000 for the three
months  ended  September  30,  1997  from  $57,000  for the three  months  ended
September  30,  1996.  The  decrease is  primarily  due a decrease in  insurance
commissions  of $4,000,  and a decrease in other  noninterest  income of $9,000,
partially offset by an increase in bank service charges of $8,000.

Insurance  commission  income  decreased  $4,000 to $9,000 for the three  months
ended  September 30, 1996 from $13,000 for the three months ended  September 30,
1997  primarily  due to a decrease  in the volume of the sale of credit life and
disability products. Other noninterest income decreased $9,000 to $1,000 for the
three  months ended  September  30, 1997 from $10,000 for the three months ended
September  30,  1996  primarily  due to a  decrease  in the  gains  realized  on
foreclosed properties in 1996. Bank service charges and fees increased $8,000 to
$39,000 for the three months ended September 30, 1997 from $31,000 for the three
months ended  September 30, 1996 primarily  from a $3,200  increase in late fees
collected,  a $2,400 increase in overdraft fee income,  and a $1,200 increase in
checking account monthly charges.

Noninterest expense.  Noninterest expense decreased $297,000 to $369,000 for the
three months ended  September  30, 1997 from $666,000 for the three months ended
September 30, 1996. The decrease is primarily due to a $315,000 decrease in SAIF
deposit insurance  premium and a $40,000 decrease in other noninterest  expense,
offset by a $47,000 increase in compensation and benefits,  a $3,000 increase in
occupancy and equipment, and a $7,000 increase in data processing.

SAIF  deposit  insurance  premiums  decreased  $315,000 to $12,000 for the three
months  ended  September  30,  1997 from  $327,000  for the three  months  ended
September  30, 1996  primarily  due to the  $294,000  one-time  SAIF  assessment
accounted  for as of  September  30, 1996 as well as the  decrease in the annual
assessment  rate to 6.48  basis  points  from 23 basis  points  charged  for the
protection of FDIC insurance.  Other  noninterest  expense  decreased $40,000 to
$91,000 for the three  months  ended  September  30, 1997 from  $131,000 for the
three months ended  September  30, 1996  primarily due to a decrease in auditing
and accounting fees of $21,000,  a decrease in other  professional fees incurred
as a result of being a public  company of  $10,000,  and a decrease  in bad debt
expense of $9,000.  Compensation and benefits  increased $47,000 to $207,000 for
the three months  ended  September  30, 1997 from  $160,000 for the three months
ended  September 30, 1996  primarily due to an increase in the  Recognition  and
Retention Plan expense of $26,000, an increase in the Employee Stock Option Plan
expense of $7,000,  an increase in employee  salaries of $9,000,  an increase in
employee  incentives of $2,000,  an increase in employee  insurance  benefits of
$2,000 and an increase in work  expenses  related to travel and meals of $2,000.
Occupancy and equipment  increased  $3,000 to $38,000 for the three months ended
September  30, 1997 from $35,000 for the three months ended  September  30, 1996
primarily due to an increase in depreciation  expense. Data processing increased
$7,000 to $21,000 for the three months ended September 30, 1997 from $14,000 for
the three months ended  September  30, 1996  primarily due to the timing of bill
payments.
<PAGE>


Liquidity  and  capital  resources.  The Bank's  principal  sources of funds are
deposits,  amortization  and prepayment of loan principal,  borrowings,  and the
sale and maturities of investment  securities.  While  scheduled loan repayments
and maturing  investments  are relatively  predictable,  deposit flows and early
loan  repayments  are  more  influenced  by  interest  rates,  general  economic
conditions, and competition, and, most recently, the restructuring of the thrift
industry.  The Bank generally  manages the pricing of its deposits to maintain a
steady  deposit  balance,  but has from time to time  decided not to pay deposit
rates  that are as high as  those of its  competition,  and when  necessary,  to
supplement deposits with alternative sources of funds.

Federal  regulations  historically  have  required the Bank to maintain  minimum
levels of liquid  assets.  The required  percentage has varied from time to time
based upon  economic  conditions  and savings  flows and is  currently 5% of net
withdrawable  savings deposits and borrowings payable upon demand or in one year
or less during the proceeding  calendar month.  Liquid assets for the purpose of
this ratio include cash,  certain time  deposits,  U.S.  Government,  government
agency,  and  corporate  securities  and  other  obligations   generally  having
remaining  maturities  of less  than  five  years.  The  Bank  has  historically
maintained  its  liquidity  ratio at  levels in  excess  of those  required.  At
September 30, 1997, the Bank's liquidity ratio was 8.19%.

Liquidity management is both a daily and long-term responsibility of management.
The Bank  adjusts  its  investments  in liquid  assets  based upon  management's
assessment  of (i) expected  loan demand,  (ii) expected  deposit  flows,  (iii)
yields  available on  interest-bearing  deposits,  and (iv) the objective of its
asset/liability  management  program.  Excess liquidity is invested generally in
interest-bearing  overnight deposits and other short-term  government and agency
obligations.  If the Bank  requires  funds  beyond its ability to generate  them
internally, it has additional borrowing capacity with the FHLB of Des Moines and
collateral eligible for reverse repurchase agreements.

The Bank  anticipates  that it will  have  sufficient  funds  available  to meet
current loan  commitments.  At  September  30,  1997,  the Bank had  outstanding
commitments to extend credit which amounted to $1.7 million.
<PAGE>





Part II - Other Information


Item 1.   Legal Proceedings.

          None

Item 2.   Changes in Securities.

          None

Item 3.   Defaults Upon Senior Securities.

          None

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

          At the  annual  meeting  on  October  15,  1997  the  stockholders  of
          Washington   Bancorp  re-elected  three  directors  and  ratified  the
          appointment  of  McGladrey  and Pullen,  LLP as the  auditors  for the
          fiscal year ending June 30, 1998. Total voting by proxy was 533,129 of
          the 651,133 shares outstanding.

          Director  Rick  R.  Hofer  received  528,074  "for"  votes  and  5,055
          "withhold"  votes.  Director  Myron L. Graber  received  528,674 "for"
          votes and 4,455  "withhold"  votes.  Director  Stan  Carlson  received
          528,464 "for votes and 4,665 "withhold"  votes.  McGladrey and Pullen,
          LLP received  513,169 "for" votes,  6,930  "against"  votes and 13,030
          "abstain" votes.

Item 5.   Other Information.

          Employee Benefit Plans. In conjunction  with the Bank's  conversion to
          stock ownership,  the Company  established an Employee Stock Ownership
          Plan  (ESOP)  for  eligible  employees.  The plan was  established  by
          amending the Savings Bank's existing profit sharing plan. Employees of
          the Bank are  eligible  to  participate  after they  attain age 21 and
          complete  one year of service  during  which they work at least  1,000
          hours. The Company issued 52,602 shares of common stock to the ESOP on
          the date of the conversion and reorganization.

          At  September  30, 1997 the ESOP held 52,602  shares of the  Company's
          common  stock,  4,337 of which  were  allocated,  2,898 of which  were
          released  for  allocation  and the  remaining  45,367 were  unreleased
          (unearned) shares. The 45,367 unreleased  (unearned) shares had a fair
          market value of approximately $771,000 at September 30, 1997.

Item 6.   Exhibits and Reports on Form 8-K

          (a) Exhibits (listed by numbers  corresponding to the Exhibit Table of
              Item 601 on Regulation S-B)

              11   Computation of Earnings Per Share

              27   Financial Data Schedule

          (b) Reports on Form 8-K

              No reports in Form 8-K have been filed  during the quarter for
              which this report was filed.



<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.


                                               Washington Bancorp
                                              (Registrant)

Date     November 10, 1997                     /s/ Stan Carlson
         -----------------                     ---------------------------------
                                               Stan Carlson, President and Chief
                                               Executive Officer

Date     November 10, 1997                     /s/ Leisha A. Linge
         -----------------                     -------------------
                                               Leisha A. Linge,Controller