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, 2000
                                                         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 [X]

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 535,426 shares outstanding as of November 8, 2000

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


<PAGE>




                                      INDEX

Part I.  Financial Information

         Item 1.  Consolidated Financial Statements

                  Consolidated Statements of Financial Condition

                  at September 30, 2000 and June 30, 2000

                  Consolidated Statements of Income for the

                  three months ended September 30, 2000 and 1999

                  Consolidated Statements of  Comprehensive Income

                  for the three months ended September 30, 2000 and 1999

                  Consolidated Statements of Cash Flows for the three
                  months ended September 30, 2000 and 1999

                  Notes to Consolidated Financial Statements

         Item 2.  Management's Discussion and Analysis

Part II. Other Information

         Items 1 through 6

         Signatures

         Exhibits
<PAGE>


Item 1.  Consolidated Financial Statements

Washington Bancorp and Subsidiaries

Consolidated Statements of Financial Condition
<TABLE>
                                                        September 30,       June 30,
Assets                                                      2000              2000
--------------------------------------------------------------------------------------
<S>                                                     <C>              <C>
Cash and cash equivalents
      Interest-bearing ..............................   $   2,650,354    $   1,859,278
      Noninterest-bearing ...........................       1,030,787          990,107
Investment securities:
      Held to maturity ..............................         774,080          774,629
      Available- for- sale ..........................      21,479,281       21,602,351
Federal funds, sold .................................         125,000          110,000
Loans receivable, net of allowance for loan losses
      of $657,416 in September 2000 and $647,605
      in June 2000 ..................................      84,775,512       83,988,473
Accrued interest receivable .........................       1,646,722        1,463,838
Federal Home Loan Bank Stock ........................       1,756,200        1,729,600
Foreclosed real estate ..............................         344,528          271,302
Premises and equipment, net .........................         919,441          818,228
Goodwill ............................................       1,162,323        1,185,964
Other assets ........................................         506,447          628,668
                                                        -------------    -------------
      Total assets ..................................   $ 117,170,675    $ 115,422,438
                                                        =============    =============

Liabilities and Stockholders' Equity
--------------------------------------------------------------------------------------
Deposits
      Noninterest-bearing ...........................   $   3,678,739    $   4,145,248
      Interest -bearing .............................      70,696,672       69,151,849
                                                        -------------    -------------
           Total deposits ...........................      74,375,411       73,297,097
Borrowed funds ......................................      30,975,016       30,193,250
Advances from borrowers for taxes and insurance .....          49,600          249,683
Accrued expenses and other liabilities ..............         710,931          632,003
                                                        -------------    -------------
           Total liabilities ........................     106,110,958      104,372,033
                                                        -------------    -------------
Redeemable common stock held by ESOP ................         227,934          228,947
                                                        -------------    -------------
Stockholders' Equity:
     Common Stock
           Common Stock .............................           6,511            6,511
           Additional Paid-in Capital ...............       6,174,092        6,169,796
     Retained Earnings ..............................       7,341,100        7,333,909
     Accumulated other  comprehensive  (loss) .......        (377,583)        (447,899)
     Cost of common shares acquired for the treasury       (1,788,954)      (1,658,017)
     Deferred  compensation .........................         (14,786)         (21,060)
     Maximum cash obligation related to ESOP shares .        (227,934)        (228,947)
     Unearned ESOP shares ...........................        (320,663)        (332,835)
                                                        -------------    -------------
           Total stockholders' equity ...............      10,831,783       10,821,458
                                                        -------------    -------------
           Total liabilities and stockholder's equity   $ 117,170,675    $ 115,422,438
                                                        =============    =============
</TABLE>
See Notes to Financial Statements.
<PAGE>

Washington Bancorp and Subsidiaries

Consolidated Statements of Income
Three months ended September 30, 2000 and 1999
<TABLE>
                                                                                          2000         1999
                                                                                       ----------   ----------
<S>                                                                                    <C>          <C>
Interest and dividend income:
      Loans, including fees:
          First mortgage loans .....................................................   $1,152,092   $1,024,093
          Consumer and other loans .................................................      690,352      562,173
      Investment securities:
          Taxable ..................................................................      352,449      322,167
          Nontaxable ...............................................................       15,716       15,189
      Federal Home Loan Bank stock .................................................       29,680       14,052
                                                                                       ----------   ----------
                   Total interest income ...........................................    2,240,289    1,937,674
                                                                                       ----------   ----------
Interest expense:
      Deposits .....................................................................      845,524      844,717
      Borrowed funds ...............................................................      511,560      241,398
                                                                                       ----------   ----------
                   Total interest expense ..........................................    1,357,084    1,086,115
                                                                                       ----------   ----------
                   Net interest income .............................................      883,205      851,559
Provision for loan losses ..........................................................       34,000       21,500
                                                                                       ----------   ----------
                   Net interest income after provision
                        for loan losses ............................................      849,205      830,059
                                                                                       ----------   ----------
Noninterest income:
      Service charges and fees .....................................................      113,321       89,527
      Insurance commissions ........................................................       15,193       10,988
      Investment commissions .......................................................       10,755
      Other ........................................................................       13,476        2,255
                                                                                       ----------   ----------
                   Total noninterest income ........................................      152,745      102,770
                                                                                       ----------   ----------
Noninterest expense:
      Compensation and benefits ....................................................      308,556      330,225
      Occupancy and equipment ......................................................       67,690       60,255
      FDIC deposit insurance premium ...............................................       11,315       14,183
      Data processing ..............................................................       20,619       28,066
      Goodwill amortization ........................................................       23,640       23,640
      Other ........................................................................      139,152      120,536
                                                                                       ----------   ----------
                   Total noninterest expense .......................................      570,972      576,905
                                                                                       ----------   ----------
                   Income before taxes .............................................      430,978      355,924
Income tax expense .................................................................      171,630      133,160
                                                                                       ----------   ----------
                   Net income ......................................................   $  259,348   $  222,764
                                                                                       ==========   ==========
Earnings per common share:
      Basic ........................................................................   $     0.51   $     0.40
                                                                                       ==========   ==========
      Diluted ......................................................................   $     0.50   $     0.39
                                                                                       ==========   ==========
Weighted average common shares for:
      Basic earnings per share .....................................................      508,693      561,812
                                                                                       ==========   ==========
      Diluted earnings per share ...................................................      516,159      571,813
                                                                                       ==========   ==========
Dividends declared per share .......................................................   $     0.50   $     0.12
                                                                                       ==========   ==========
</TABLE>
See Notes to Financial Statements
<PAGE>

Washington Bancorp and Subsidiaries

Consolidated Statements of Comprehensive Income
Three months ended September 30, 2000 and 1999
<TABLE>

                                                                                 2000         1999
                                                                               ---------    ---------
<S>                                                                            <C>          <C>

Net income .................................................................   $ 259,348    $ 222,764

Other comprehensive income (loss), net of income taxes:
     Unrealized holding gains (losses) arising during
     the period, net of income taxes .......................................     110,316      (95,513)
                                                                               ---------   ----------
               Comprehensive income ........................................   $ 369,664    $ 127,251
                                                                               =========    =========
</TABLE>

See Notes to Financial Statements
<PAGE>

Washington Bancorp and Subsidiaries

Consolidated Statements of Cash Flows
Three months ended September 30, 2000 and 1999
<TABLE>

                                                                                2000              1999
                                                                             -------------    -------------
<S>                                                                          <C>              <C>
Cash Flows from Operating Activities
      Net income .........................................................   $     259,348    $     222,764
      Adjustments to reconcile net income to net cash
          provided by operating activities:
          Amortization of premiums and discounts on
              debt securities ............................................           4,465            7,249
          Amortization of goodwill .......................................          23,641           23,641
          Provision for loan losses ......................................          34,000           21,500
          Loss on sale of foreclosed real estate .........................          20,743                0
          Depreciation ...................................................          22,498           21,857
          Compensation under stock awards ................................           6,274           15,964
          ESOP contribution expense ......................................          16,469           16,377
          (Increase) in accrued interest receivable ......................        (182,884)        (120,432)
          (Increase) decrease in other assets ............................          51,691           10,869
          Increase (decrease) in accrued expenses and
              other liabilities ..........................................          78,928          (50,341)
                                                                             -------------    -------------
                  Net cash provided by operating activities ..............         335,173          169,448
                                                                             -------------    -------------
Cash Flows from Investing Activities
      Held-to-maturity securities:
          Purchases ......................................................            --            (60,000)
      Available-for-sale securities:
          Maturities and calls ...........................................         300,000          850,000
          Purchases ......................................................            --           (950,000)
      Federal funds sold, net ............................................         (15,000)         575,000
      Purchase of Federal Home Loan Bank stock ...........................         (26,600)        (140,700)
      Loans made to customers, net .......................................        (915,008)      (3,569,421)
      Purchase of premises and equipment .................................        (123,711)         (11,850)
                                                                             -------------    -------------
                  Net cash (used in) investing activities ................        (780,319)      (3,306,971)
                                                                             -------------    -------------
Cash Flows from Financing Activities
      Net increase (decrease) in deposits ................................       1,078,314        2,015,413
      Proceeds from Federal Home Loan Bank advances ......................     180,800,000       26,500,000
      Principal payments on Federal Home Loan Bank advances ..............    (180,018,234)     (22,664,304)
      Net increase in advances from borrowers for taxes
          and insurance ..................................................        (200,083)        (123,710)
      Acquisition of common stock for treasury ...........................        (130,937)         (40,875)
      Dividends paid .....................................................        (252,158)         (67,197)
                                                                             -------------    -------------
                  Net cash provided by financing activities ..............       1,276,902        5,619,327
                                                                             -------------    -------------
                  Net increase(decrease) in cash and
                       cash equivalents ..................................         831,756        2,481,804
Cash and cash equivalents:
      Beginning ..........................................................       2,849,385        2,557,430
                                                                             -------------    -------------
      Ending .............................................................   $   3,681,141    $   5,039,234
                                                                             =============    =============
</TABLE>
<PAGE>

Washington Bancorp and Subsidiaries

Consolidated Statements of Cash Flows (continued)
Three months ended September 30, 2000 and 1999


                                                              2000        1999
                                                            --------    --------
Supplemental Disclosures of Cash Flow Information
      Cash payments for:
          Interest paid to depositors ..................    $367,685    $461,291
          Interest paid on other obligations ...........    $490,379    $241,398
          Income taxes, net of refunds .................    $193,400    $143,400

Supplemental Schedule of Noncash Investing and
      Financing Activities
      Transfers from loans to foreclosed real estate ...    $133,969    $ 65,563
      Contract sales of foreclosed real estate .........    $ 40,000    $   --

See Notes to Consolidated Financial Statements.
<PAGE>

Washington Bancorp and Subsidiary
Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Principles of consolidation.  The accompanying consolidated financial statements
include  the  accounts  of  Washington   Bancorp,   Washington  Federal  Savings
Bank("Washington  Federal"), WFSB's wholly-owned subsidiary Washington Financial
Services,  Inc.,  which is a discount  brokerage firm, and Rubio Savings Bank of
Brighton,  Iowa ("Rubio Savings Bank" ). 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,  2000,  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,  2000 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 Savings
Bank 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.

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, 2000 the capital  requirements  of  Washington
Federal  under FIRREA and its actual  capital  ratios.  As of September 30, 2000
Washington  Federal  exceeded  all  current   regulatory   capital   requirement
standards.

                                                          At September 30, 2000
                                                         -----------------------
                                                         Amount         Percent
                                                         ------         --------
                                                         (Dollars in thousands)

Tangible Capital:
         Capital Level .......................           $7,489           7.94%
         Requirement .........................            1,415           1.50%
                                                         ------          ------
         Excess ..............................           $6,074           6.44%
                                                         ======          ======

Core Capital:
         Capital Level .......................           $7,489           7.94%
         Requirement .........................            3,774           4.00%
                                                         ------          ------
         Excess ..............................           $3,715           3.94%
                                                         ======          ======

Risk-Based Capital:
         Capital Level .......................           $7,955          12.36%
         Requirement .........................            5,150           8.00%
                                                         ------          ------
         Excess ..............................           $2,805           4.36%
                                                         ======          ======
<PAGE>

The following table summarizes the capital requirements of Rubio Savings Bank of
Brighton. As of September 30, 2000 Rubio exceeded all current regulatory capital
requirement standards.

                                                          At September 30, 2000
                                                          ----------------------
                                                          Amount        Percent
                                                          ------        --------
                                                          (Dollars in thousands)

Tier 1 or Leverage Capital:
         Capital Level .........................          $2,498         11.13%
         Requirement ...........................             673          3.00%
                                                          ------         ------
         Excess ................................          $1,825          8.13%
                                                          ======         ======

Tier 1 Risk-based Capital:
         Capital Level .........................          $2,498         15.81%
         Requirement ...........................             632          4.00%
                                                          ------         ======
         Excess ................................          $1,866         11.81%
                                                          ======         ======

Risk-Based Capital:
         Capital Level .........................          $2,669         16.89%
         Requirement ...........................           1,264          8.00%
                                                          ------         ------
         Excess ................................          $1,405          8.89%
                                                          ======         ======

<PAGE>

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  is an Iowa  corporation  which  was  organized  in
October 1995 by  Washington  Federal  Savings 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,
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  Savings  Bank  is held as a  separate
subsidiary of Washington Bancorp.  In January 1998,  Washington Bancorp became a
bank holding  company upon the  completion of its  acquisition  of Rubio Savings
Bank. In December  1998,  Washington  Federal  opened a branch  office,  Wellman
Federal Savings, in Wellman,  Iowa. In September 2000, Washington Federal opened
a branch office,  Richland  Federal  Savings,  in Richland,  Iowa. The principal
assets of  Washington  Bancorp are  Washington  Federal and Rubio  Savings  Bank
(collectively,  the  "Banks").  Washington  Bancorp  presently  has no  separate
operations and its business consists primarily of the business of the Banks. All
references to Washington Bancorp,  unless otherwise indicated at or before March
11, 1996, refer to Washington Federal.

         Washington  Bancorp is investigating  the possibility of de-registering
with the SEC in an effort  to reduce  expenses.  De-registering  will  result in
de-listing with Nasdaq. In order to de-register,  Washington  Bancorp must first
have  fewer  than  300  record  holders.   Washington   Bancorp's  shares  trade
infrequently  and  are  widely  held in the  local  area  of  Washington,  Iowa.
Therefore the negative  impact for the liquidity of the shares is expected to be
minimal.

         Washington  Federal  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  Federal  also  invests in federal  agency  bonds,  corporate  bonds,
agricultural loans, commercial loans, consumer loans, and automobile loans.

         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 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
consumer loans.

         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  $1.7 million from $115.4
million at June 30, 2000 to $117.1  million at September 30, 2000.  The increase
was  primarily  due to a  $832,000  increase  in cash  and cash  equivalents,  a
$787,000  increase  in loans  receivable,  net, a $183,000  increase  in accrued
interest  receivable,  and  a  $101,000  increase  in  premises  and  equipment,
partially  offset by a $123,000  decrease  in  available-  for- sale  investment
securities and a $122,000 decrease in other assets.
<PAGE>

Loans receivable. Loans receivable, net increased $787,000 from $84.0 million at
June 30, 2000 to $84.8 million at September 30, 2000. This increase is primarily
due to  increased  loan  demand in the  Company's  market  area.  The  Company's
non-performing  assets were  $876,000 or 0.75 % of total assets at September 30,
2000 as  compared  to  $648,000  or  0.57%  of total  assets  at June 30,  2000.
Non-performing  assets have  increased  primarily due to the  acquisition of one
real estate  property  which was  voluntarily  deeded back to the  Company.  The
Company is in the process of liquidating the asset and no losses are expected.

Investment  securities.  Available-  for- sale investment  securities  decreased
$123,000 from $21.6 million at June 30, 2000 to $21.5 at September 30, 2000. The
portfolio  of  available-  for-  sale  securities  is  comprised   primarily  of
investment  securities  carrying fixed interest  rates.  The fair value of these
securities  was less on September 30, 2000 than their  carrying  value due to an
increase 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.

Deposits. Deposits increased $1.1 million from $73.3 million at June 30, 2000 to
$74.4  million at  September  30, 2000.  The  increase is  primarily  due to the
seasonal  fluctuation  in the  cash  position  of a local  governmental  agency.
Transaction  and savings  deposits  increased as a percentage of total  deposits
from  $26.6  million  or  36.3% at June 30,  2000 to $27.6  million  or 37.1% at
September 30, 2000.  Certificates of deposit  decreased as a percentage of total
deposits  from $46.7 million or 63.7% at June 30, 2000 to $46.8 million or 62.9%
at September 30, 2000.

Total stockholders'  equity.  Total stockholders'  equity increased $10,000 from
$10.8  million at June 30, 2000 to $10.8  million at  September  30,  2000.  The
increase is primarily due to net income of $259,000,  the net unrealized gain in
the available for sale securities of $110,000,  the allocation of ESOP shares of
$17,000,  and the  amortization  of deferred  compensation  of $6,000  partially
offset by  dividends  paid to  shareholders  of  $252,000  and the  $131,000  in
payments for the repurchase of 9,600 shares of the Company's common stock.

Results of Operations - Three Months Ended September 30, 2000 As Compared To The
Three Months Ended September 30, 1999

Performance  summary.  Net earnings  increased $36,000 to $259,000 for the three
months  ended  September  30,  2000 from  $223,000  for the three  months  ended
September  30, 1999.  The  increase is primarily  due to an increase in interest
income of $303,000, an increase in noninterest income of $50,000, and a decrease
in  noninterest  expense of $6,000  partially  offset by an increase in interest
expense of  $271,000,  an  increase  in income tax  expense of  $38,000,  and an
increase in provision for loan loss of $13,000.  For the three months  September
30, 2000 the annualized return on average assets was 0.89% compared to 0.86% for
the three  months  ended  September  30, 1999,  while the  annualized  return on
average equity was 9.58% for the three months ended  September 30, 2000 compared
to 8.34% for the three months ended September 30, 1999.

Net interest income.  Net interest income increased  $19,000 to $849,000 for the
three months ended  September  30, 2000 from $830,000 for the three months ended
September 30, 1999. The increase is primarily due to the increase of $303,000 in
interest  income to $2.2 million for the three months ended  September  30, 2000
from $1.9  million for the three months  ended  September  30, 1999 offset by an
increase in interest  expense of $271,000 to $1.4  million for the three  months
ended  September 30, 2000 from $1.1 million for the three months ended September
30, 1999.

For  the  three  months  ended   September   30,  2000  the  average   yield  on
interest-earning  assets was 8.13%  compared to 7.88% for the three months ended
September 30, 1999. The average cost of  interest-bearing  liabilities was 5.41%
for the three months ended  September  30, 2000  compared to 4.88% for the three
months ended September 30, 1999. The average balance of interest  earning assets
increased  $11.9 million to $110.2 million for the three months ended  September
30, 2000 from $98.3  million for the three  months  ended  September  30,  1999.
During this same period,  the average  balance of  interest-bearing  liabilities
increased  $11.4 million to $100.4 million for the three months ended  September
30, 2000 from $89.0 million for the three months ended September 30, 1999.

Due to an increase in rates paid on the  interest-bearing  liabilities to remain
competitive  locally,  the average  interest rate spread was 2.73% for the three
months  ended  September  30, 2000  compared to 3.00% for the three months ended
September  30,  1999.  The average net  interest  margin was 3.21% for the three
months  ended  September  30, 2000  compared to 3.46% for the three months ended
September 30, 1999.
<PAGE>

Provision for loan loss.  Provision for loan loss  increased  $13,000 to $34,000
for the three months ended  September 30, 2000 from $22,000 for the three months
ended  September 30, 1999.  The primary reason for the increase in the provision
was the increased size of the loan  portfolio,  particularly  in  nonresidential
real estate,  commercial,  and agriculture loans which are considered to carry a
higher risk of default  than  residential  loans.  Despite  this  increase,  the
Company's loan portfolio  remains primarily  residential  mortgage loans and has
experienced  a minimal  amount  of  charge-offs  in the past  three  years.  The
allowance  for loan  losses of  $657,000  or 0.78% of loans  receivable,  net at
September  30, 2000  compares to $495,000 or 0.65% of loans  receivable,  net at
September   30,  1999.   The   allowance  for  loan  loss  as  a  percentage  of
non-performing  assets was 75.05% at September 30, 2000,  compared to 149.17% at
September 30, 1999.

Noninterest  income.  Noninterest  income increased  $50,000 to $153,000 for the
three months ended  September  30, 2000 from $103,000 for the three months ended
September 30, 1999. The increase is primarily due an increase in service charges
and fees of  $24,000,  an increase in other  noninterest  income of $11,000,  an
increase in  investment  commissions  of $11,000  and an  increase in  insurance
commissions of $4,000.

Service  charges and fees  increased  $24,000 to $113,000  for the three  months
ended  September 30, 2000 from $89,000 for the three months ended  September 30,
1999  primarily  due to a $17,000  increase in  overdraft  fee income,  a $4,000
increase in checking  account  service  charges and stop payments,  and a $3,000
increase in late charges on loan payments.  Other  noninterest  income increased
$11,000 to $13,000 for the three months ended September 30, 2000 from $2,000 for
the three months ended September 30, 1999 primarily due to gains realized in the
sale of foreclosed  property and an increase in the penalty for early withdrawal
of a certificate of deposit.  The investment  center  generated  $11,000 for the
three months ended September 30, 2000. Insurance commissions increased $4,000 to
$15,000 for the three months ended  September 30, 2000 from $2,000 for the three
months ended  September  30, 1999  primarily due to an increase in the volume of
credit life and disability sales.

Noninterest  expense.  Noninterest  expense decreased $6,000 to $571,000 for the
three months ended  September  30, 2000 from $577,000 for the three months ended
September  30,  1999.  The decrease is  primarily  due to a $22,000  decrease in
compensation and benefits,  a $7,000 decrease in data  processing,  and a $3,000
decrease in FDIC insurance  premium  partially  offset by a $19,000  increase in
other noninterest expense, and a $7,000 increase in occupancy and equipment.

Compensation  and  benefits  decreased  $22,000 to $309,000 for the three months
ended  September 30, 2000 from $330,000 for the three months ended September 30,
1999  primarily due to the reduction in salaries paid to the  investment  center
and the retirement of an executive officer.  Data processing decreased $7,000 to
$21,000 for the three months ended September 30, 2000 from $28,000 for the three
months ended  September  30, 1999  primarily  due to a reduction in the usage of
data-center  produced  reports.  FDIC  insurance  premiums  decreased  $3,000 to
$11,000 for the three months ended September 30, 2000 from $14,000 for the three
months ended  September  30, 1999  primarily  due to the decrease in  Washington
Federal's regulatory premium rate.

Other  noninterest  expense  increased  $19,000 to $139,000 for the three months
ended  September 30, 2000 from $120,000 for the three months ended September 30,
1999  primarily due to the increased cost of operating a new branch office since
the  opening of  Richland  Federal  Savings in  September  2000.  Occupancy  and
equipment  expense  increased  $7,000  to  $67,000  for the three  months  ended
September  30, 2000 from $60,000 for the three months ended  September  30, 1999
primarily due to the increased  cost of a new branch office  building  since the
opening of Richland Federal Savings in September 2000.

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 has 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.
<PAGE>

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 September 30, 2000, the Washington  Federal's  liquidity ratio was
14.55%.

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  Banks  anticipate  that it will have  sufficient  funds  available  to meet
current  loan  commitments.  At  September  30,  2000,  Washington  Federal  had
outstanding  commitments  to extend  credit  which  amounted to $4.2 million and
Rubio Savings Bank had  outstanding  commitments to extend credit which amounted
to $1.1 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.

         None.

Item 5.  Other Information.

         None.

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 9, 2000                /s/ Stan Carlson
         ----------------                ---------------------------------------
                                         Stan Carlson, President and Chief
                                         Executive Officer

Date     November 9, 2000                /s/ Leisha A. Linge
         ----------------                ---------------------------------------
                                         Leisha A. Linge,Controller