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 March 31, 1999
                                       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 [ ]

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 600,198 shares outstanding as of May 7, 1999

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 March 31, 1999  (unaudited)  and
                June 30, 1998

                Unaudited Consolidated Statements of Income for the three
                months ended March 31, 1999 and 1998 and for the nine months
                ended March 31, 1999 and 1998

                Unaudited Consolidated Statements of Comprehensive Income
                for the three months ended March 31, 1999 and 1998 and for
                the nine months ended March 31, 1999 and 1998

                Unaudited Consolidated Statements of Cash Flows for the nine
                months ended March 31, 1999 and 1998

                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>

                                                           March 31,                June 30,
                                                             1999                    1998
                                                         -----------              -----------
                                                         (unaudited)
<S>                                                      <C>                      <C>   
Assets
Cash and cash equivalents:
     Interest-bearing...............................    $  2,406,915             $  1,858,527
     Noninterest-bearing............................       1,160,549                1,447,847
                                                        ------------             ------------    
                                                           3,567,464                3,306,374
Investment securities
     Held-to-maturity securities....................       1,129,331                1,131,478
     Available-for-sale securities..................      20,961,131               19,122,283
Federal funds sold..................................       3,582,683                  659,497
Loans receivable, net...............................      70,266,213               65,884,941
Accrued interest receivable.........................       1,078,240                  959,664
Federal Home Loan Bank stock........................         860,000                  812,400
Premises and equipment, net.........................         895,489                  799,806
Foreclosed real estate..............................         197,333                     --
Goodwill............................................       1,304,166                1,375,087
Other assets........................................         378,574                  275,416
                                                        ------------             ------------
         Total assets ..............................    $104,220,624             $ 94,326,945
                                                        ============             ============
Liabilities
Deposits ...........................................    $ 77,671,963             $ 66,595,476
Borrowed funds......................................      15,019,648               15,724,071
Advance payments from borrowers for
 taxes and insurance................................         110,591                  221,911
Accrued expenses and other liabilities..............         583,648                  660,492
                                                        ------------             ------------
         Total liabilities..........................      93,385,850               83,201,950
                                                        ------------             ------------
Redeemable common stock held by Employee
 Stock Ownership Plan (ESOP)........................         204,204                  153,788
                                                        ------------             ------------
Stockholders' Equity
Common stock:
     Common stock...................................           6,511                    6,511
     Additional paid-in capital.....................       6,146,461                6,122,664
Retained earnings...................................       6,141,597                5,825,363
Unrealized (loss) gain on securities
 available for sale.................................        (25,300)                    (507)
Less:
Cost of common shares acquired for treasury.........       (948,616)                (300,944)
Deferred compensation...............................        (94,889)                (104,962)
Maximum cash obligation related to ESOP shares......       (204,204)                (153,788)
Unearned ESOP shares................................       (390,990)                (423,130)
                                                        ------------             ------------
         Total stockholders' equity.................      10,630,570               10,971,207
                                                        ------------             ------------
         Total liabilities and
          stockholders' equity .....................    $104,220,624             $ 94,326,945
                                                        ============             ============
</TABLE>
See Notes to Consolidated Financial Statements .....
<PAGE>
Washington Bancorp and Subsidiaries
Unaudited Consolidated Statements of Income
<TABLE>
                                                          Three Months Ended       Nine Months Ended
                                                              March 31,                March 31,
                                                          1999          1998       1999         1998
                                                        ----------------------   -----------------------
<S>                                                     <C>         <C>          <C>          <C>   
Interest income:
  Loans receivable:
    First mortgage loans...........................     $ 937,944   $ 957,205    $2,948,121   $2,738,509
    Consumer and other loans.......................       486,893     403,888     1,463,305      948,534
  Investment securities:
    Taxable........................................       361,647     265,151     1,048,014      530,772
    Non-taxable....................................        19,641      18,112        61,088       28,845
                                                        ---------   ---------    ----------   ----------
             Total interest income.................     1,806,125   1,644,356     5,520,528    4,246,660
                                                        ---------   ---------    ----------   ----------
Interest expense:
  Deposits.........................................       853,990     727,134     2,560,475    1,827,409
  Borrowed funds...................................       211,363     173,665       666,717      439,997
                                                        ---------   ---------    ----------   ----------
             Total interest expense................     1,065,353     900,799     3,227,192    2,267,406
                                                        ---------   ---------    ----------   ----------
             Net interest income...................       740,772     743,557     2,293,336    1,979,254
Provision for loan losses                                  18,000      18,000        74,000       71,000
                                                        ---------   ---------    ----------   ----------
             Net interest income after
               provision for loan losses...........       722,772     725,557     2,219,336    1,908,254
                                                        ---------   ---------    ----------   ----------
Noninterest income:
  Security gains, net..............................         3,961       --           15,315        --
  Loan origination and commitment fees.............         2,792       2,843         6,155        8,147
  Service charges and fees.........................        62,944      59,210       207,968      141,308
  Insurance commisions.............................        15,782      11,691        37,554       57,400
  Other............................................         8,615       8,819        18,839       11,134
                                                        ---------   ---------    ----------   ----------
             Total noninterest income..............        94,094      82,563       285,831      217,989
                                                        ---------   ---------    ----------   ----------
Noninterest expense:
  Compensation and benefits.......................        320,140     253,476       900,259      661,827
  Occupancy and equipment.........................         56,850      49,332       170,403      124,268
  SAIF/BIF deposit insurance premium..............         14,292      12,947        43,473       36,829
  Data processing.................................         22,989      21,233        65,805       60,444
  Goodwill........................................         23,640      19,700        70,921       19,700
  Other...........................................        141,187     113,524       426,510      351,222
                                                        ---------   ---------    ----------   ----------
             Total noninterest expense............        579,098     470,212     1,677,371    1,254,290
                                                        ---------   ---------    ----------   ---------
             Income before income taxes...........        237,768     337,908       827,796      871,953
Income tax expense................................         84,619     121,935       307,059      299,530
                                                        ---------   ---------    ----------   ----------
             Net income...........................      $ 153,149   $ 215,973    $  520,737   $  572,423
                                                        =========   =========    ==========   ==========
Earnings per common share:
  Basic...........................................      $    0.27   $    0.36    $    0.92    $     0.94
                                                        =========   =========    =========    ==========
  Diluted.........................................      $    0.27   $    0.35    $    0.90    $     0.92
                                                        =========   =========    =========    ==========
Dividends per common share........................      $    0.12   $    0.12    $    0.36    $     0.34
                                                        =========   =========    =========    ==========
Weighted average common shares for:
  Basic earnings per share........................        560,073     605,969      563,817       605,869
                                                        =========   =========    =========    ==========
  Diluted earnings per share......................        573,926     624,776      578,744       623,390
                                                        =========   =========    =========    ==========
</TABLE>
See Notes to Consolidated Financial Statements.
<TABLE>
                                                          Three Months Ended        Nine months ended
                                                               March 31,               March 31,
                                                          1999          1998        1999         1998
                                                        ---------------------    -----------------------

<S>                                                     <C>          <C>          <C>            <C>  
Net income .......................................      $153,149     $215,973     $520,737      $572,423
Gross unrealized gains (losses) on
  securities available for sale ..................      (65,559)       20,233     (24,355)        31,350
Less reclassification adjustments for
  gains included in net income....................       (3,961)         --       (15,315)          --
Income tax expense related to items
  of other comprehensive income ..................        26,320      (7,587)       14,877      (11,756)
                                                        ---------    --------    ---------     ---------
Comprehensive income .............................      $109,949     $192,164     $495,944      $592,017
                                                        =========    ========    =========     =========
</TABLE>
<PAGE>
Washington Bancorp and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
Nine months ended March 31, 1999 and 1998
<TABLE>
                                                                   1999            1998
                                                               ------------    ------------
<S>                                                             <C>             <C> 
Cash Flows from Operating Activities
  Net Income .....................................              $  520,737      $  572,423
  Adjustments to reconcile net income to
    net cash provided by operating activities:
    Amortization of premiums and discounts
      on debt securities..........................                (51,599)           8,673
    Amortization of goodwill......................                  70,921          19,700
    Provision for loan losses.....................                  74,000          71,000
    (Gain) on sale of investment securities.......                (15,205)            --
    (Gain)loss on sale of foreclosed real estate..                 (9,899)         (3,381)
    Depreciation..................................                  55,450          48,371
    Compensation under stock awards...............                  46,524          39,442
    ESOP contribution expense.....................                  55,937          52,135
    Deferred income tax...........................                (76,153)        (31,383)
    (Increase) in accrued interest receivable.....               (118,576)          13,228
    (Increase)decrease in other assets............               (103,158)        (17,615)
    Increase(decrease) in accrued expenses
      and other liabilities.......................                  14,187          20,729
                                                               ------------    ------------
            Net cash provided by operating 
              activities..........................                 463,166         793,322
                                                               ------------    ------------
Cash Flows from Investing Activities
  Held to maturity:
    Purchases.....................................                    --          (65,000)
  Available for sale securities:
    Sales.........................................              1,800,000            --
    Maturities and calls..........................             20,050,432        8,330,029
    Purchases.....................................           (23,660,000)      (5,250,000)
  Federal funds sold, net.........................            (2,923,186)      (1,226,295)
  Purchase of Federal Home Loan Bank stock........               (47,600)        (225,200)
  Loans made to customers, net....................            (4,642,706)      (3,573,890)
  Purchase of premises and equipment..............              (151,133)         (51,056)
  Purchase of stock of Rubio Savings Bank
    of Brighton, Iowa net of cash received........                   --        (2,466,021)
                                                             --------------    ------------
            Net cash (used in) investing
              activities..........................            (9,574,193)      (4,527,433)
                                                             --------------    ------------
Cash Flows from Financing Activities
  Net increase in deposits........................             11,076,487        2,652,730
  Proceeds from Federal Home Loan Bank advances...              6,250,000       43,950,000
  Principal payments on Federal Home Loan Bank 
   advances.......................................             (6,954,423)    (38,809,926)
                                                                                           
  Net increase (decrease) in advances from 
    borrowers for taxes and insurance.............               (111,320)        (84,758)
  Acquisition of common stock.....................               (684,125)        (93,750)
  Dividends paid..................................               (204,503)       (197,364)
                                                             --------------    ------------
             Net cash provided by financing
               activities.........................               9,372,116       7,416,932
                                                             --------------    ------------
             Net increase(decrease) in cash and 
               cash equivalents...................                 261,090       3,682,821

Cash and cash equivalents:
             Beginning............................               3,306,374         807,805
                                                             --------------    ------------
             Ending...............................            $  3,567,464      $4,490,626
                                                             ==============    ============
</TABLE>
<PAGE>
<TABLE>
Supplemental Disclosures of Cash Flow Information
<S>                                                           <C>             <C>   
  Cash payments for:
    Interest paid to depositors...................            $  2,169,304    $  1,437,901
    Interest paid on other obligations............                 666,717          439,998
    Income taxes, net of refunds..................                 334,312          310,164

Supplemental Schedule of Noncash Investing
  and Financing Activities
  Transfers from loans to foreclosed
    real estate...................................            $    360,667    $      61,619
  Contract sales of foreclosed real estate........                 173,233           65,000

  Acquisition  of  assets  and  liabilities from
    Rubio  Savings  Bank  of Brighton, Iowa:
    Assets acquired:
      Cash and cash equivalents...................            $       --      $   2,331,668
      Federal funds sold..........................                    --          1,186,769
      Investment securities, held to maturity.....                    --          1,221,156
      Investment securities, available for sale...                    --         10,530,323
      Loans receivable............................                    --          7,848,923
      Premises and equipment......................                    --            226,634
      Goodwill....................................                    --          1,418,428
      Other assets................................                    --            304,762
                                                                              -------------
                                                                      --         25,068,663
    Liabilities assumed:
      Deposits....................................                    --       (19,959,320)
      Other liabilities...........................                    --          (311,655)
                                                                              -------------
                                                                      --          4,797,689
                                                                              =============
</TABLE>
See Notes to Consolidated Financial Statements.

Washington Bancorp and Subsidiary
Notes to Consolidated Financial Statements

Principles of consolidation.  The accompanying consolidated financial statements
include  the  accounts of  Washington  Bancorp("Washington"  or the  "Company"),
Washington  Federal  Savings   Bank("Washington   Federal"  or  "WFSB"),  WFSB's
wholly-owned subsidiary Washington Financial Services, Inc., which is a discount
brokerage firm, and Rubio Savings Bank of Brighton, Iowa ("Rubio" or "RSB"). 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 March 31,
1999 and for the nine months period ended March 31, 1999, 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, 1998 and all related amendments and exhibits  (including all
financial  statements  and  notes  therein),  filed  by  the  Company  with  the
Securities and Exchange Commission.

Goodwill.  Goodwill  resulting from the Company's  acquisition of Rubio is being
amortized by the  straight-line  method over 15 years.  Goodwill is periodically
reviewed for impairment based upon an assessment of future  operations to ensure
that it is appropriately valued.

Foreclosed real estate. Real estate properties acquired through loan foreclosure
are initially recorded at the lower of cost or fair value less estimated selling
expenses  at  the  date  of  foreclosure.  Costs  relating  to  development  and
improvement  of property  are  capitalized,  whereas  costs  relating to holding
property are expensed.

Earnings per common share.  In 1997, the Financial  Accounting  Standards  Board
issued Statement No. 128,  "Earnings Per Share."  Statement No. 128 replaced the
calculation  of  primary  and fully  diluted  earnings  per share with basic and
diluted earnings per share. Basic per share amounts are computed by dividing net
income by the weighted-average number of common shares outstanding.  Diluted per
share  amounts  assume the  conversion,  exercise or  issuance of all  potential
common stock  instruments  unless the effect is to reduce a loss or increase the
income per common share from continuing operations. 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.
<PAGE>
Unearned ESOP shares and expense.  The  receivable  from the Company=s  ESOP has
been treated as a reduction of equity. This amount is reduced as the ESOP shares
are allocated. 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.

Comprehensive  Income. In 1997, the Financial  Accounting Standards Board issued
Statement  No.  130,  "Reporting   Comprehensive   Income."  Statement  No.  130
establishes  standards for reporting and display of comprehensive income and its
components   (revenue,   expenses,   gains,   and  losses)  in  a  full  set  of
general-purpose  financial  statements.  The Company initially applied Statement
No. 130 for the three  months  ended  September  30, 1998 and the  statement  of
comprehensive income has been added to the accompanying financial statements.

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 March 31, 1999 the capital requirements of Washington Federal
under  FIRREA and its actual  capital  ratios.  As of March 31, 1999  Washington
Federal exceeded all current regulatory capital requirement standards.
<TABLE>
                                                     At March 31, 1999
                                                     -----------------
                                                   Amount        Percent
                                                   ---------------------
                                                   (Dollars in thousands)
                                                        (unaudited)
<S>                                               <C>            <C>   
Tangible Capital:   
  Capital Level...........................        $ 6,594         8.26%
  Requirement.............................          1,197         1.50%
                                                  --------       -------
  Excess..................................        $ 5,397         6.76%
                                                  --------       -------
Core Capital:
  Capital Level...........................        $ 6,594         8.26%
  Requirement.............................          3,193         4.00%
                                                  --------       -------
  Excess..................................        $ 3,401         4.26%
                                                  --------       -------
Risk-Based Capital:
  Capital Level...........................        $ 6,909        12.83%
  Requirement.............................          4,308         8.00%
                                                  --------       -------
  Excess..................................        $ 2,601         4.83%
                                                  --------       -------
</TABLE>
The following table summarizes the capital requirements of Rubio Savings Bank of
Brighton.  As of  March  31,  1999  Rubio  substantially  exceeded  all  current
regulatory capital requirement standards.
<TABLE>
                                                      At March 31, 1999
                                                      -----------------
                                                    Amount        Percent
                                                    ----------------------
                                                    (Dollars in thousands)
                                                         (unaudited)
<S>                                                 <C>            <C>    
Tier 1 or Leverage Capital:
  Capital Level..........................           $ 2,609        11.11%
  Requirement............................               704         3.00%
                                                   ---------       -------
  Excess.................................           $ 1,905         8.11%
                                                   ---------       -------
Tier 1 Risk-based Capital:
  Capital Level..........................           $ 2,609        21.55%
  Requirement............................               484         4.00%
                                                   ---------       -------
  Excess.................................           $ 2,125        17.55%
                                                   ---------       -------
Risk-Based Capital:
  Capital Level..........................           $ 2,741        22.64%
  Requirement............................               969         8.00%
                                                   ---------       -------
  Excess.................................           $ 1,772        14.64%
                                                   ---------       -------
</TABLE>
<PAGE>
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 Awill likely
result,@ Aare  expected  to,@ Awill  continue,@  Ais  anticipated,@  Aestimate,@
Aproject,@   Abelieve@   or  similar   expressions   are  intended  to  identify
Aforward-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.

Impact of the Year 2000

     The Banks have conducted a comprehensive  review of their computer  systems
to identify  applications  that could be affected by the "Year 2000" issue,  and
have  developed   implementation  plans  to  address  the  issue.  Rubio's  data
processing  is  performed  by an  in-house  system.  Washington  Federal's  data
processing  is  out-sourced.   Washington  Federal's  primary  software  vendor,
Intrieve, has fully renovated its programs to be Year 2000 compliant. Washington
Federal has  participated  in two major tests of the Intrieve  software  system.
Testing on Rubio's data processing system was performed on October 12, 1998. The
testing for both Banks was successful with few applications requiring additional
attention. All "mission-critical " applications have been tested and replaced or
updated and are now Year 2000  compliant.  Also,  large loan customers have been
assessed  for Year  2000  status.  Businesses  and  individuals  which  were not
compliant are being  reviewed  quarterly.  New loan customers are being assessed
for Year 2000 compliance at the time of application.  Management does not expect
the costs of preparing for the Year 2000 to have a significant  impact on either
Bank's financial position or results of operations. Despite assurances, however,
there can be no guarantee that the vendors' systems will be Year 2000 compliant.
Consequently  the Banks  could  incur  incremental  costs to  convert to another
vendor.  The Banks  have  identified  certain  of their  hardware  and  software
equipment  that will not be Year 2000  compliant and have already  purchased new
equipment  and  software.  The  capital  expenditures  to March  31,  1999  were
approximately $91,000 and are not expected to exceed $120,000.

General

     Washington  Bancorp  ("Washington" or the "Company") is an Iowa corporation
which  was  organized  in  October  1995  by  Washington  Federal  Savings  Bank
("Washington  Federal")  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, Washington Federal 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,   Washington  Federal  converted  to  the  stock  form  of
organization  through the sale and  issuance of its common stock to the Company.
On June 24, 1997,  Washington  entered into a merger  agreement to acquire Rubio
Savings Bank of Brighton, Iowa ("Rubio"). Rubio is held as a separate subsidiary
of Washington.  In January 1998,  Washington  became a bank holding company upon
the completion of its acquisition of Rubio.  The principal assets of the Company
are  Washington  Federal  and Rubio  (collectively,  the  "Banks").  The Company
presently has no separate  operations and its business consists primarily of the
business of the Banks. All references to the Company, unless otherwise indicated
at or before March 11, 1996 refer to Washington Federal.

     Washington  Federal attracts  deposits from the general public in its local
market area and uses such deposits primarily to invest in owner occupied one- to
-four  family  residential  loans  secured  by  owner  occupied  properties  and
non-residential  properties,  as well as construction  loans on such properties.
Washington Federal also makes  agricultural  loans,  commercial loans,  consumer
loans,  automobile  loans, and has  occasionally  been a purchaser of fixed-rate
mortgage-backed  securities.  Washington  Federal  filed  applications  with the
Office of Thrift  Supervision  (the  "OTS") on August  19,  1998 for two  branch
offices. The applications to branch into Wellman,  Iowa and Richland,  Iowa have
been approved.  Washington Federal opened the Wellman branch in December of 1998
and intends to open the Richland branch in 1999.

     Rubio  attracts  deposits from the general  public in its local market area
and the businesses in the Brighton area. The deposits are primarily  invested in
United States  Treasury  bonds,  Federal  Agency bonds,  agricultural  operating
loans, commercial loans, one- to- four family residential real estate loans, and
farm  real  estate  loans.  Rubio  also  makes  commercial  real  estate  loans,
automobile loans and other consumer loans.
<PAGE>
     The executive office of the Company is located at 102 East Main Street,
Washington, Iowa 52353, telephone (319)653-7256.

Financial Condition

Total  assets.  Total  consolidated  assets  increased  $9.9  million from $94.3
million at June 30, 1998 to $104.2  million at March 31, 1999.  The increase was
primarily  due to a $4.4 million  increase in loans  receivable,  a $2.9 million
increase  in federal  funds sold,  and a $1.8  million  increase  in  investment
securities funded by a $11.1 million increase in deposits  partially offset by a
$604,000  decrease in borrowed  funds and a $341,000  decrease in  stockholder's
equity.

Loans  receivable.  Loans  receivable,  net  increased  $4.4  million from $65.9
million at June 30, 1998 to $70.3  million at March 31, 1999.  This  increase is
primarily  due to  increased  loan  demand in the  Company=s  market  area.  The
Company's  non-performing assets were $52,000 or 0.05 % of total assets at March
31,  1999 as  compared  to  $89,000 or 0.09% of total  assets at June 30,  1998.
Management remains committed to maintaining the  non-performing  assets to total
assets ratio within industry standards.

Investment securities. Available-for-sale securities increased $1.8 million from
$19.1 million at June 30, 1998 to $20.9 million at March 31, 1999. 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 less on March
31,  1999 than their  carrying  value due to a  fluctuation  in market  rates of
interest since the purchase date of the securities. Therefore, the total balance
of available  for sale  securities  includes the gross effect of the  unrealized
loss.

Accrued interest receivable. Accrued interest receivable increased $119,000 from
$960,000 at June 30, 1998 to $1.1  million at March 31,  1999.  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 $11.1 million from $66.6 million at June 30, 1998
to $77.7  million at March 31,  1999.  This  increase  is  primarily  due to the
seasonal deposits of local government and the competitive pricing of certificate
of deposit  products.  Interest  credited  to  customer  accounts  totaled  $2.2
million,  while deposits exceeded  withdrawals by $8.9 million.  Transaction and
savings deposits  decreased as a percentage of total deposits from $24.3 million
or 36.4%  at June  30,  1998 to $28.1  million  or  36.2%  at  March  31,  1999.
Certificates  of deposit  increased as a percentage of total deposits from $42.3
million or 63.6% at June 30, 1998 to $49.5 million or 63.8% at March 31, 1999.

FHLB Borrowings.  The total principal  balance in advances from the Federal Home
Loan Bank of Des Moines (FHLB) decreased $704,000 from $15.7 million at June 30,
1998 to $15.0  million at March 31, 1999.  The decrease is primarily  due to the
reduced  need to borrow to fund loan  activity  and  investment  activity due to
increased 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 $111,000 from $222,000 at June
30,  1998 to  $111,000  at  March  31,  1999  primarily  due to the  payment  of
semi-annual real estate taxes which were due March 31, 1999.

Total stockholders'  equity.  Total stockholders' equity decreased $341,000 from
$11.0 million at June 30, 1998 to $10.6 million at March 31, 1999.  The decrease
is primarily due to the purchase of 37,000 shares of the Company's  common stock
at a total cost of $684,000, dividends paid of $205,000, the net unrealized loss
in  available-  for- sale  securities  of $25,000  and the change in  redeemable
common stock held by the ESOP of $50,000.  The decrease was partially  offset by
net income of $521,000, the allocation of shares in the Employee Stock Ownership
Plan of  $56,000,  and the  amortization  of  deferred  compensation  under  the
Recognition and Retention Plan of $46,000.  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  and the fair  value of these  securities  was less  than  their
carrying value as of March 31, 1999.

Results of  Operations  - Three  Months  Ended March 31, 1999 As Compared To The
Three Months Ended March 31, 1998

Performance  summary.  Net earnings  decreased $63,000 to $153,000 for the three
months  ended March 31, 1999 from  $216,000 for the three months ended March 31,
1998.  The  decrease is  primarily  due to an  increase  in interest  expense of
$165,000 and an increase in noninterest  expense of $109,000 partially offset by
an increase in interest income of $162,000, an increase in noninterest income of
$12,000,  and a decrease in income tax expense of $37,000.  For the three months
ended March 31, 1999 the annualized  return on average assets was 0.60% compared
to 1.02% for the three months ended March 31, 1998, while the annualized  return
on average  equity was 5.77% for the three months ended March 31, 1999  compared
to 7.87% for the three months ended March 31, 1998.
<PAGE>
Net interest  income.  Net interest income  decreased $3,000 to $741,000 for the
three months ended March 31, 1999 from $744,000 for the three months ended March
31, 1998.  The decrease is primarily due to the increase of $165,000 in interest
expense to $1.1 million for the three months ended March 31, 1999 from  $901,000
for the three  months  ended March 31, 1998  partially  offset by an increase in
interest income of $162,000 to $1.8 million for the three months ended March 31,
1999 from $1.6 million for the three months ended March 31, 1998.

For the three months ended March 31, 1999 the average yield on interest  earning
assets was 7.54% compared to 8.13% for the three months ended March 31, 1998 due
to  declining  loan  and  bond  rates.  The  average  cost  of  interest-bearing
liabilities  was 4.93% for the three  months  ended March 31,  1999  compared to
5.20% for the three months ended March 31, 1998. The average balance of interest
earning  assets  increased  $15.2  million to $97.2 million for the three months
ended March 31, 1999 from $82.0  million  for the three  months  ended March 31,
1998.  During  this  same  period,  the  average  balance  of   interest-bearing
liabilities  increased $17.3 million to $87.6 million for the three months ended
March 31, 1999 from $70.3 million for the three months ended March 31, 1998.

Due to the decrease in yield on the interest-earning  assets and the decrease in
rates paid on the interest-bearing liabilities, the average interest rate spread
was 2.61% for the three  months  ended March 31, 1999  compared to 2.93% for the
three  months  ended March 31,  1998.  Due to the  increase in  interest-bearing
liabilities as a percentage of interest-earning assets, the average net interest
margin was 3.09% for the three months ended March 31, 1999 compared to 3.68% for
the three months ended March 31, 1998.

Provision for loan loss. Provision for loan loss was constant at $18,000 for the
three months ended March 31, 1999 and for the three months ended March 31, 1998.
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 was $442,000 or .63% of loans receivable, net at March
31, 1999  compared to  $366,000  or .57% of loans  receivable,  net at March 31,
1998. The allowance for loan loss as a percentage of  non-performing  assets was
949.47% at March 31, 1999, compared to 180.97% at March 31, 1998.

Noninterest  income.  Noninterest  income  increased  $11,000 to $94,000 for the
three  months ended March 31, 1999 from $83,000 for the three months ended March
31, 1998. The increase is primarily due to an increase in insurance  commissions
of $4,000, an increase in security gains, net of $4,000, and an increase in bank
service charges of $3,000.

Insurance  commissions  increased  $4,000 to $16,000 for the three  months ended
March 31, 1999 from $12,000 for the three months ended March 31, 1998  primarily
due to the  fluctuations  in the volume of sales of credit  life and  disability
products.  Gain on the sale of  available  securities  increased  $4,000 for the
three months ended March 31, 1999 due to the sale of U.S.  Treasury  securities.
Bank service  charges and fees increased  $3,000 to $62,000 for the three months
ended March 31,  1999 from  $59,000  for the three  months  ended March 31, 1998
primarily due to a $2,000  increase in checking  account  service  charges and a
$1,000 increase in late charges collected on loan payments.

Noninterest expense.  Noninterest expense increased $109,000 to $579,000 for the
three months ended March 31, 1999 from $470,000 for the three months ended March
31, 1998.  The increase is primarily due to a $67,000  increase in  compensation
and  benefits,  a $28,000  increase  in other  expenses,  an $8,000  increase in
occupancy  and  equipment,  a $4,000  increase  in  goodwill  expense,  a $2,000
increase in data processing , and a $1,000  increase in FDIC insurance  premium.
These  increases were primarily due to the acquisition of Rubio and the addition
of Washington Federal's branch in Wellman, Iowa.

Income tax  expense.  Income tax  expense  decreased  $37,000 to $85,000 for the
three months ended March 31, 1999 from $122,000 for the three months ended March
31, 1998. The decrease in income tax expense is primarily due to the decrease in
income before income taxes.

Results of Operations - Nine months ended March 31, 1999 As Compared To The Nine
Months Ended March 31, 1998

Performance  summary.  Net earnings  decreased  $52,000 to $521,000 for the nine
months  ended March 31, 1999 from  $572,000  for the nine months ended March 31,
1998.  The decrease is primarily  due to an increase in  noninterest  expense of
$423,000 and an increase in provision for loan loss of $3,000  partially  offset
by an increase in net interest  income of $314,000,  an increase in  noninterest
income of $68,000,  and a decrease in income tax expense of $8,000. For the nine
months ended March 31, 1999 the  annualized  return on average  assets was 0.70%
compared to 1.02% for the nine months ended March 31, 1998, while the annualized
return on average  equity was 6.50% for the nine  months  ended  March 31,  1999
compared to 7.02% for the nine months ended March 31, 1998.

Net interest income.  Net interest income increased $314,000 to $2.3 million for
the nine months ended March 31, 1999 from $2.0 million for the nine months ended
March 31, 1998. The increase is primarily due to the increase of $1.3 million in
interest  income to $5.5  million for the nine months  ended March 31, 1999 from
$4.2  million for the nine months  ended March 31, 1998  partially  offset by an
increase  in interest  expense of  $960,000 to $3.2  million for the nine months
ended March 31, 1999 from $2.3 million for the nine months ended March 31, 1998.
<PAGE>
For the nine months ended March 31, 1999 the average  yield on interest  earning
assets was 7.77%  compared to 8.03% for the nine months ended March 31, 1998 due
to  declining  loan  and  bond  rates.  The  average  cost  of  interest-bearing
liabilities was 5.06% for the nine months ended March 31, 1999 compared to 5.11%
for the nine  months  ended  March 31,  1998.  The  average  balance of interest
earning  assets  increased  $24.2  million to $94.7  million for the nine months
ended  March 31, 1999 from $70.5  million  for the nine  months  ended March 31,
1998.  During  this  same  period,  the  average  balance  of   interest-bearing
liabilities  increased  $25.9 million to $85.1 million for the nine months ended
March 31, 1999 from $59.2 million for the nine months ended March 31, 1998.

Due to the  decrease  in yield on the  interest-earning  assets and  despite the
decrease in rate paid on the interest-bearing  liabilities, the average interest
rate spread was 2.71% for the nine months ended March 31, 1999 compared to 2.92%
for  the  nine  months   ended  March  31,   1998.   Due  to  the   increase  in
interest-bearing  liabilities as a percentage of  interest-earning  assets,  the
average net  interest  margin was 3.23% for the nine months ended March 31, 1999
compared to 3.74% for the nine months ended March 31, 1998.

Provision for loan loss. Provision for loan loss increased $3,000 to $74,000 for
the nine  months  ended March 31,  1999 from  $71,000 for the nine months  ended
March 31, 1998.  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 was $442,000 or .63% of loans
receivable,  net at  March  31,  1999  compared  to  $366,000  or .57% of  loans
receivable,  net at March 31, 1998.  The allowance for loan loss as a percentage
of non-performing  assets was 949.47% at March 31, 1999,  compared to 180.97% at
March 31, 1998.

Noninterest  income.  Noninterest  income increased  $68,000 to $286,000 for the
nine months  ended March 31, 1999 from  $218,000 for the nine months ended March
31, 1998.  The increase is primarily due an increase in bank service  charges of
$67,000,  an increase in gains on the sale of available  for sale  securities of
$15,000 and an increase in other  noninterest  income of $8,000 partially offset
by a  decrease  in  insurance  commissions  of $20,000  and a  decrease  in loan
origination and commitment fees of $2,000.

Bank service charges and fees increased  $67,000 to $208,000 for the nine months
ended March 31,  1999 from  $141,000  for the nine  months  ended March 31, 1998
primarily  due to an increase  in  overdraft  income of $41,000,  an increase in
checking  account  service  charges of  $14,000,  an increase in credit card and
merchant fees of $5,000,  an increase in check cashing and  commercial  exchange
fees of $3,000,  and increase in late fees collected of $3,000,  and an increase
in safe deposit rental income of $1,000.

Gain on the sale of available-  for- sale securities  increased  $15,000 for the
nine months  ended March 31, 1999 due to the sale of U.S.  Treasury  securities.
Other  noninterest  income increased $8,000 to $19,000 for the nine months ended
March 31, 1999 from $11,000 for the nine months  ended March 31, 1998  primarily
due to the gain on REO  property.  Insurance  commissions  decreased  $20,000 to
$38,000  for the nine  months  ended  March 31,  1999 from  $57,000 for the nine
months ended March 31, 1998 primarily due to the  fluctuations  in the volume of
sales of credit life and disability  products.  Loan  origination and commitment
fee income  decreased  $2,000 to $6,000 for the nine months ended March 31, 1999
from $8,000 for the nine months ended March 31, 1998 due to the  fluctuations in
volume of loans sold to the secondary market.

Noninterest expense.  Noninterest expense increased $423,000 to $1.7 million for
the nine months ended March 31, 1999 from $1.3 million for the nine months ended
March 31, 1998. The increase is primarily due to an increase in compensation and
benefits of $238,000,  an increase in other  expense of $75,000,  an increase in
goodwill expense of $51,000,  an increase in occupancy and equipment of $46,000,
an  increase  in FDIC  insurance  premium of  $7,000,  and an  increase  in data
processing of $5,000.

Compensation  and  benefits  increased  $238,000 to $900,000 for the nine months
ended March 31,  1999 from  $662,000  for the nine  months  ended March 31, 1998
primarily due to the increase in full-time  equivalent  employees as a result of
the acquisition of Rubio,  Washington Federal's new branch in Wellman, Iowa, and
to a lesser extent the normal salary increases effective in January.

Other  noninterest  expense  increased  $75,000 to $427,000  for the nine months
ended March 31,  1999 from  $351,000  for the nine  months  ended March 31, 1998
primarily due to the increased  cost of operating  additional  offices since the
acquisition of Rubio and the opening of Washington  Federal's branch in Wellman,
Iowa.  The increase is primarily  due to an increase in supplies of $31,000,  an
increase in fees paid for services  provided by outside  contractors of $14,000,
an increase  in ATM and debit card  processing  fees of $12,000,  an increase in
postage  and  delivery  expense of $10,000,  and an increase in  non-capitalized
expenses related to the Year 2000 issue of $8,000.
<PAGE>
Goodwill  expense  increased  $51,000 to $71,000 for the nine months ended March
31,  1999 from  $20,000  for the nine  months  ended  March 31,  1998 due to the
acquisition of Rubio.  Occupancy and equipment increased $46,000 to $170,000 for
the nine months  ended March 31, 1999 from  $124,000  for the nine months  ended
March 31, 1998 primarily due to the addition of Washington  Federal's  branch in
Wellman,  Iowa and the addition of the Rubio Savings Bank of  Brighton's  office
building.  FDIC  insurance  premiums  increased  $7,000 to $43,000  for the nine
months  ended  March 31, 1999 from  $37,000 for the nine months  ended March 31,
1998 primarily due to the increase in deposits  since the  acquisition of Rubio.
Data processing  increased $5,000 to $66,000 for the nine months ended March 31,
1999 from $61,000 for the nine months ended March 31, 1998.

Income tax expense. Income tax expense increased $8,000 to $307,000 for the nine
months  ended March 31, 1999 from  $299,000  for the nine months ended March 31,
1998 despite the decrease in income  before  income taxes  primarily  due to the
non-deductible goodwill expense.

Liquidity  and  capital  resources.  The Banks'  principal  sources of funds are
deposits,  amortization  and prepayment of loan principal,  borrowings,  and the
sale and maturity 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 Banks  generally  manage the  pricing of the  deposits  to maintain a steady
deposit  balance,  but have from time to time  decided not to pay deposit  rates
that are as high as those of the competition,  and when necessary, to supplement
deposits with alternative sources of funds.

Federal  regulations  historically have required  Washington Federal 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 4% 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.   Washington   Federal  has
historically  maintained  its  liquidity  ratio at  levels  in  excess  of those
required. At March 31, 1999, Washington Federal's liquidity ratio was 19.73%.

Liquidity management is both a daily and long-term responsibility of management.
Washington   Federal  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 Washington Federal 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 Banks  anticipate  that they will have  sufficient  funds  available to meet
current loan commitments.  At March 31, 1999, Washington Federal had outstanding
commitments  to extend  credit which  amounted to $2.2 million and Rubio Savings
Bank had outstanding commitments to extend credit which amounted to $561,000.
<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.

         None

Item 5.  Other Information.

     Employee Benefit Plans. In conjunction with Washington Federal's conversion
to stock  ownership,  the Company  established an Employee Stock  Ownership Plan
(ESOP) for eligible  employees.  The plan was established by amending Washington
Federal's existing profit sharing plan. Employees of the Company 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 March 31,  1999 the ESOP held  52,602  shares  of the  Company's  common
stock,  12,376 of which were  allocated,  1,127 and the  remaining  40,226  were
unreleased (unearned) shares. The 40,226 unreleased (unearned) shares had a fair
market value of approximately $709,000 at March 31, 1999.

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   May 7, 1999                           /s/ Stan Carlson 
         ------------                          ---------------------------------
                                               Stan Carlson, President and Chief
                                               Executive Officer

   Date   May 7, 1999                          /s/ Leisha A. Linge
         ------------                          ---------------------------------
                                               Leisha A. Linge,Controller