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, 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 597,198 shares outstanding as of November 12, 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 September 30,
                      1999 (unaudited) and June 30, 1999
                    Unaudited Consolidated Statements of Income for the
                      three months ended September 30, 1999 and 1998
                    Unaudited Consolidated Statements of Comprehensive
                      Income for the three months ended September 30,
                      1999 and 1998
                    Unaudited Consolidated Statements of Cash Flows for the
                      three months ended September 30, 1999 and 1998
                    Notes to Consolidated Financial Statements

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

Part II.   Other Information

           Signatures

           Exhibits


<PAGE>


Item 1.  Financial Information
WASHINGTON BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>

                                                                          September 30,     June 30,
                                                                              1999            1999
                                                                          ----------------------------
<S>                                                                       <C>             <C>
ASSETS                                                                    (unaudited)
Cash and cash equivalents
      Interest-bearing ................................................   $  3,276,515    $    901,346
      Noninterest-bearing .............................................      1,762,720       1,656,084
Investment securities:
      Held to maturity ................................................        819,992         760,520
      Available for sale ..............................................     20,635,926      20,695,366
Fed funds, sold .......................................................        765,000       1,340,000
Loans receivable, net of allowance for loan losses
      of $495,249 in 1999 and $472,187 in 1998 ........................      76,261,535     72,779,177
Accrued interest receivable ...........................................       1,311,032      1,190,600
Federal Home Loan Bank stock ..........................................       1,000,700        860,000
Foreclosed real estate ................................................         301,477        235,914
Premises and equipment, net ...........................................         864,544        874,551
Goodwill, net .........................................................       1,256,885      1,280,526
Other assets ..........................................................         541,284        409,996
                                                                           ---------------------------
      Total assets ....................................................    $108,797,610   $102,984,080
                                                                           ===========================

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
      Noninterest-bearing .............................................    $  4,155,990   $  2,596,143
      Interest-bearing ................................................      73,548,889     73,093,323
                                                                           ---------------------------
      Total deposits ..................................................      77,704,879     75,689,466
Borrowed funds ........................................................      19,541,986     15,706,290
Advances from borrowers for taxes and insurance .......................          99,323        223,033
Accrued expenses and other liabilities ................................         499,248        464,638
                                                                           ---------------------------
      Total liabilities ...............................................      97,845,436     92,083,427
                                                                           ---------------------------
Redeemable common stock held by ESOP ..................................         179,823        189,972
                                                                           ---------------------------
Stockholders' Equity
Common Stock
      Common Stock ....................................................           6,511          6,511
      Additional Paid-in Capital ......................................       6,155,417      6,150,310
Retained Earnings .....................................................       6,540,431      6,384,863
Unrealized loss on securities .........................................        (331,291)      (235,778)
Treasury shares .......................................................        (987,310)      (946,435)
Deferred Compensation .................................................         (63,134)       (79,098)
Maximum cash obligation ESOP ..........................................        (179,823)      (189,972)
Unearned ESOP shares ..................................................        (368,450)      (379,720)
                                                                           ---------------------------
      Total stockholders' equity ......................................      10,772,351     10,710,681
                                                                           ---------------------------
      Total liabilities and stockholders' equity ......................    $108,797,610   $102,984,080
                                                                           ===========================
</TABLE>

See Notes to Consolidated Financial Statements
<PAGE>



WASHINGTON BANCORP AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended September 30, 1999 and 1998
<TABLE>

                                                                                 1999           1998
                                                                              -------------------------
<S>                                                                           <C>            <C>
Interest income:
     Loans receivable:
         First mortgage loans .............................................   $1,024,093     $ 1,017,251
         Consumer and other loans .........................................      562,173         479,159
     Investment securities:
         Taxable ..........................................................      336,219         308,490
         Non-taxable ......................................................       15,189          19,644
                                                                              --------------------------
                  Total interest income ...................................    1,937,674       1,824,544
                                                                              --------------------------
Interest expense:
     Deposits .............................................................      844,717         801,132
     Borrowed funds .......................................................      241,398         228,776
                                                                              --------------------------
                  Total interest expense ..................................    1,086,115       1,029,908
                                                                              --------------------------
                  Net interest income .....................................      851,559         794,636
Provision for loan losses .................................................       21,500          22,000
                                                                              --------------------------
                  Net interest income after
                    provision for loan losses .............................      830,059         772,636
                                                                              --------------------------
Noninterest income:
     Loan origination and commitment fees .................................        1,850             600
     Service charges and fees .............................................       87,978          85,522
     Insurance commisions .................................................       10,988           7,479
     Other ................................................................        1,954             985
                                                                              --------------------------
                  Total noninterest income ................................      102,770          94,586
                                                                              --------------------------
Noninterest expense:
     Compensation and benefits ............................................      330,225         290,491
     Occupancy and equipment ..............................................       60,255          53,464
     SAIF/BIF deposit insurance premium ...................................       14,183          14,196
     Data processing ......................................................       28,066          23,136
     Goodwill amortization ................................................       23,640          23,640
     Other ................................................................      120,535         127,071
                                                                              --------------------------
                  Total noninterest expense ...............................      576,904         531,998
                                                                              --------------------------
                  Income before income taxes ..............................      355,925         335,224
Income tax expense ........................................................      133,160         140,061
                                                                              --------------------------
                  Net income ..............................................   $  222,765      $  195,163
                                                                              ==========================

Earnings per common share:
     Basic ................................................................   $     0.40      $     0.34
                                                                              ==========================

     Diluted ..............................................................   $     0.39      $     0.33
                                                                              ==========================

Tangible earnings per common share: .......................................   $     0.43      $     0.37
                                                                              ==========================

Dividends per common share: ...............................................   $       --      $     0.12
                                                                              ==========================
Weighted average common shares for:
     Basic earnings per share .............................................      561,812         574,072
                                                                              ==========================

     Diluted earnings per share ...........................................      571,813         590,800
                                                                              ==========================
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>



WASHINGTON BANCORP AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended September 30, 1999 and 1998

<TABLE>

                                                                                         1999       1998
                                                                                       -------------------
<S>                                                                                    <C>        <C>
Net income .........................................................................   $222,765   $195,163
Other comprehensive income, net of income taxes:
     Unrealized holding gains (losses) arising during the
           three months ended September 30, 1999 and 1998,
           net of income taxes 1999 $57,206; 1998 $43,482 ..........................    (95,513)    72,471
                                                                                       -------------------
Comprehensive income ...............................................................   $127,252   $267,634
                                                                                       ===================
</TABLE>
<PAGE>



WASHINGTON BANCORP AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended September 30, 1999 and 1998
<TABLE>

                                                                                   1999            1998
                                                                               ----------------------------
<S>                                                                            <C>             <C>
Cash Flows from Operating Activities
       Net Income ..........................................................   $    222,765    $    195,163
       Adjustments to reconcile net income to
            net cash provided by operating activities:
            Amortization of premiums and discounts
              on debt securities ..........................................           7,249           1,964
            Amortization of goodwill .......................................         23,641          23,640
            Provision for loan losses ......................................         21,500          22,000
            Depreciaton ....................................................         21,857          13,878
            Compensation under stock awards ................................         15,964          19,469
            ESOP contribution expense ......................................         16,377          18,945
            (Increase) in accrued interest receivable ......................       (120,432)       (120,432)
            Decrease in other assets .......................................         10,869           6,446
            (Decrease) in accrued expenses
              and other liabilities ........................................        (50,342)        (41,246)
                                                                               ----------------------------
                          Net cash provided by operating activities ........        169,448          19,529
                                                                               ----------------------------
Cash Flows from Investing Activities
       Held to maturity securities:
            Purchases ......................................................        (60,000)            - -
       Available for sale securities:
            Maturities and calls ...........................................        850,000       6,320,359
            Purchases ......................................................       (950,000)     (9,600,000)
       Federal funds sold, net .............................................        575,000        (874,763)
       Purchase of Federal Home Loan Bank stock ............................       (140,700)        (47,600)
       Loans made to customers, net ........................................     (3,569,421)     (3,139,117)
       Purchase of premises and equipment ..................................        (11,850)        (28,700)
                          Net cash (used in) investing activities ..........     (3,306,971)     (7,369,821)
                                                                               ----------------------------
Cash Flows from Financing Activities
       Net increase in deposits ............................................      2,015,413       6,670,497
       Proceeds from Federal Home Loan Bank advances .......................     26,500,000       6,510,900
       Principal payments on Federal Home Loan Bank advances ...............    (22,664,304)     (5,901,136)
       Net increase (decrease) in advances from borrowers
            for taxes and insurance ........................................       (123,710)       (105,558)
       Acquisition of common stock .........................................        (40,875)       (684,125)
       Dividends paid ......................................................        (67,197)        (77,184)
                          Net cash provided by financing activities ........      5,619,327       6,413,394
                                                                               ----------------------------
                          Net increase(decrease) in cash and cash
                               equivalents .................................      2,481,804        (936,898)

Cash and cash equivalents:
                          Beginning ........................................      2,557,430       3,306,374
                                                                               ----------------------------
                          Ending ...........................................   $  5,039,234    $  2,369,476
                                                                               ============================

Supplemental Disclosures of Cash Flow Information
       Cash payments for:
            Interest paid to depositors ....................................   $    461,291    $    389,951
            Interest paid on other obligations .............................        241,398         228,776
            Income taxes, net of refunds ...................................        143,400         169,100

Supplemental Schedule of Noncash Investing
       and Financing Activities
       Transfers from loans to foreclosed
            real estate ....................................................   $     65,563    $    100,079
       Contract sales of foreclosed real estate ............................            - -             - -

</TABLE>
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"  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 September
30,  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,  1999 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.  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 Company's  Employee Stock  Ownership Plan
(the  "ESOP") that have not been  committed  to be released  are not  considered
outstanding for the purpose of computing earnings per share.

In addition to the earnings per share ("EPS") information  typically  disclosed,
the Company provided "tangible" EPS as an alternative measure for evaluating the
Company's  ability to grow its tangible capital.  The Company's  tangible EPS is
calculated  by  dividing  the total of goodwill  expense  plus net income by the
weighted average number of diluted common shares outstanding.

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.  The Company  adopted the
recognition  and retention  plan in October 1996 whereby 26,300 shares of common
stock  have been  reserved  for  issuance  to  certain  executive  officers  and
directors.  During the year  ended June 30,  1999,  1998 and 1997,  awards  were
granted for 2,192 shares,  2,127 shares and 19,914 shares  respectively,  with a
fair  value of  $16.63,  $18.94  and  $11.25 per share at the date of the grant,
respectively.

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.
<PAGE>


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 September  30, 1999 the capital  requirements  of  Washington
Federal  under FIRREA and its actual  capital  ratios.  As of September 30, 1999
Washington  Federal  exceeded  all  current   regulatory   capital   requirement
standards.

                                                         At September 30, 1999
                                                         -----------------------
                                                         Amount         Percent
                                                         -----------------------
                                                         (Dollars in thousands)
                                                               (unaudited)
Tangible Capital:
         Capital Level .......................           $6,927           8.14%
         Requirement .........................            1,276           1.50%
                                                         ------           -----
         Excess ..............................           $5,651           6.64%
                                                         ------           -----
Core Capital:
         Capital Level .......................           $6,927           8.14%
         Requirement .........................            3,404           4.00%
                                                         ------           -----
         Excess ..............................           $3,523           4.14%
                                                         ------           -----
Risk-Based Capital:
         Capital Level .......................           $7,281          12.39%
         Requirement .........................            4,701           8.00%
                                                         ------           -----
         Excess ..............................           $2,580           4.39%
                                                         ------           -----

The following table summarizes the capital requirements of Rubio Savings Bank of
Brighton.  As of  September  30, 1999 Rubio  substantially  exceeded all current
regulatory capital requirement standards.

                                                          At September 30, 1999
                                                          ----------------------
                                                          Amount         Percent
                                                          ----------------------
                                                          (Dollars in thousands)
                                                                 (unaudited)
Tier 1 or Leverage Capital:
         Capital Level .........................          $2,670         11.46%
         Requirement ...........................             699          3.00%
                                                          ------         ------
         Excess ................................          $1,971          8.46%
                                                          ------         ------
Tier 1 Risk-based Capital:
         Capital Level .........................          $2,670         20.48%
         Requirement ...........................             522          4.00%
                                                          ------         ------
         Excess ................................          $2,148         16.48%
                                                          ------         ------
Risk-Based Capital:
         Capital Level .........................          $2,828         21.69%
         Requirement ...........................           1,043          8.00%
                                                          ------         ------
         Excess ................................          $1,785         13.69%
                                                          ------         ------

<PAGE>


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

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.

Impact of the Year 2000

In preparation  for the century date change,  the Banks have completed  upgrades
and  replacements  of all computer  systems and software  that did not meet Year
2000 standards. Testing of the new products has been completed and the Banks are
satisfied  that the products meet Year 2000  compliance.  Four separate  special
examinations  for Year 2000 issues have been conducted by regulators  since July
1, 1998 and the Banks have  utilized  the  guidance  of the OTS and the  Federal
Deposit  Insurance  Corporation  (the "FDIC") in applying their Year 2000 plans.
Communication  with  vendors and  service  providers  is an on-going  process to
assure  uninterrupted  services.  The Banks have worked with local  officials in
developing  community-wide  contingency plans for vital community-wide  services
and have communicated with customers with regard to their Year 2000 preparations
and  concerns.  The  Banks  are  committed  to  achieving  the goal of Year 2000
readiness.

A cash management plan has been formulated to meet  anticipated  additional cash
needs of our  customers.  Capital  expenditures  for Year 2000 readiness to date
have been  approximately  $91,000,  with an expected  total of  $120,000.  These
expenses are not expected to have a significant  impact on financial position or
results of operations.

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.  In December  1998,  Wellman  Federal
Savings,  a  full-service  branch of  Washington  Federal was opened in Wellman,
Iowa. In July 1999, Washington Federal formed a collaborative  relationship with
Eagle One Financial  Services,  LLC, to provide financial  planning services and
the sale of annuities,  mutual funds,  stocks and bonds. 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.
<PAGE>


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

Washington  Federal filed an application  with the Office of Thrift  Supervision
(the  "OTS") on August  19,  1998 to branch to  Richland,  Iowa,  a small  rural
community of 500,  which  currently has only a branch of a large  regional bank.
The application is being evaluated by the OTS with plans to extend the period to
branch through October of 2000.

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, corporate 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.

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  $5.8 million from $103.0
million at June 30, 1999 to $108.8  million at September 30, 1999.  The increase
was primarily due to a $3.5 million increase in loans receivable, a $2.5 million
increase in cash and cash equivalents,  a $141,000 increase in Federal Home Loan
Bank stock,  a $131,000  increase in other  assets,  and a $120,000  increase in
accrued interest  receivable  partially offset by a $575,000 decrease in federal
funds,  sold.  The increase was primarily  funded by a $3.8 million  increase in
borrowed funds and a $2.0 million increase in deposits.

Loans  receivable.  Loans  receivable,  net,  increased  $3.5 million from $72.8
million at June 30, 1999 to $76.3 million at September  30, 1999.  This increase
is primarily  due to increased  loan demand in the  Company's  market area.  The
Company's  non-performing  assets  were  $332,000  or 0.31% of total  assets  at
September  30, 1999 as compared to $326,000 or 0.32% of total assets at June 30,
1999.  Management remains committed to maintaining the non-performing  assets to
total assets ratio within industry standards.

Investment  securities.   Investment  securities   available-for-sale  decreased
$59,000 from $20.7  million at June 30, 1999 to $20.6  million at September  30,
1999.  Securities classified as held to maturity increased $59,000 from $761,000
at  June  30,  1999  to  $820,000  at  September  30,  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
September  30, 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 $120,000 from
$1.2  million  at June 30,  1999 to $1.3  million at  September  30,  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 $2.0 million from $75.7 million at June 30, 1999 to
$77.7  million at September  30,  1999.  This  increase is primarily  due to the
seasonal deposits of local government and the competitive pricing of certificate
of deposit products.  Transaction and savings deposits increased as a percentage
of total  deposits from $25.7 million or 34.0% at June 30, 1999 to $27.6 million
or  35.5%  at  September  30,  1999.  Certificates  of  deposit  decreased  as a
percentage  of total  deposits  from $50.0  million or 66.0% at June 30, 1999 to
$50.1 million or 64.5% at September 30, 1999.
<PAGE>


FHLB Borrowings.  The total principal  balance in advances from the Federal Home
Loan Bank of Des Moines (FHLB) increased $3.8 million from $15.7 million at June
30, 1999 to $19.5 million at September  30, 1999.  The increase is primarily due
to the increased need to borrow to fund loan activity and  investment  activity.
Washington  has  utilized  the FHLB  advances for this loan growth in efforts to
control  cost of funds and  interest  rate risk.  The  portfolio  of  borrowings
contains both long and short term borrowings.

Advances from borrowers for taxes and  insurance.  The total balance in advances
from borrowers for taxes and insurance  decreased $124,000 from $223,000 at June
30,  1999 to $99,000 at  September  30,  1999  primarily  due to the  payment of
semi-annual real estate taxes which were due September 30, 1999.

Total stockholders'  equity.  Total stockholders'  equity increased $61,000 from
$10.7  million at June 30, 1999 to $10.8  million at  September  30,  1999.  The
increase is primarily due to net income of $223,000, the allocation of shares in
the ESOP of  $16,000,  the  amortization  of  deferred  compensation  under  the
Recognition and Retention Plan of $16,000,  and the change in redeemable  common
stock held by the ESOP of $10,000,  partially  offset by the net unrealized loss
in available-for-sale  securities of $96,000, dividends paid of $67,000, and the
purchase  of 3,000  shares  of the  Company's  common  stock at a total  cost of
$41,000.

Results of Operations - Three Months Ended September 30, 1999 As Compared To The
Three Months Ended September 30, 1998

Performance  summary.  Net earnings  increased $28,000 to $223,000 for the three
months  ended  September  30,  1999 from  $195,000  for the three  months  ended
September  30, 1998.  The  increase is primarily  due to an increase in interest
income of $113,000,  an increase in noninterest income of $8,000, and a decrease
in income tax expense of $7,000,  which was  partially  offset by an increase in
interest expense of $56,000,  and an increase in noninterest expense of $45,000.
For the three months ended September 30, 1999, the annualized  return on average
assets was 0.86% as compared to 0.83% for the three months ended  September  30,
1998.  The  annualized  return on average  equity was 8.34% for the three months
ended  September  30,  1999,  as  compared to 7.26% for the three  months  ended
September 30, 1998.

Net interest income.  Net interest income increased  $57,000 to $852,000 for the
three months ended  September  30, 1999 from $795,000 for the three months ended
September 30, 1998. The increase is primarily due to the increase of $113,000 in
interest  income to $1.9 million for the three months ended  September  30, 1999
from $1.8  million for the three  months ended  September  30,  1998,  which was
partially  offset by an increase in interest  expense of $56,000 to $1.1 million
for the three  months ended  September  30, 1999 from $1.0 million for the three
months ended September 30, 1998.

For the three months ended  September  30, 1999,  the average  yield on interest
earning assets was 7.88% compared to 8.13% for the three months ended  September
30,  1998  due  to  declining   loan  and  bond  rates.   The  average  cost  of
interest-bearing  liabilities was 4.88% for the three months ended September 30,
1999  compared to 5.14% for the three  months  ended  September  30,  1998.  The
average  balance of interest  earning  assets  increased  $8.5  million to $98.3
million for the three months ended September 30, 1999 from $89.8 million for the
three months ended  September  30,  1998.  During this same period,  the average
balance of interest-bearing  liabilities increased $9.0 million to $89.0 million
for the three months ended  September  30, 1999 from $80.0 million for the three
months ended September 30, 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 3.00% for the three months ended  September  30, 1999  compared to 2.98% for
the  three  months   ended   September   30,  1998.   Due  to  the  increase  in
interest-bearing  liabilities as a percentage of  interest-earning  assets,  the
average net interest  margin was 3.46% for the three months ended  September 30,
1999 compared to 3.54% for the three months ended September 30, 1998.
<PAGE>


Provision  for loan loss.  Provision  for loan loss  decreased  slightly for the
three  months  ended  September  30,  1999  compared to the three  months  ended
September  30,  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 $495,000
or 0.65% of loans receivable,  net at September 30, 1999 compared to $415,000 or
0.60% of loans  receivable,  net at September  30, 1998.  The allowance for loan
loss as a percentage of non-performing assets was 149.17% at September 30, 1999,
as compared to 126.62% at September 30, 1998.

Noninterest  income.  Noninterest  income  increased  $8,000 to $103,000 for the
three  months ended  September  30, 1999 from $95,000 for the three months ended
September  30, 1998.  The increase is primarily  due to an increase in insurance
commissions  of $4,000,  an increase in bank service  charges of $2,000,  and an
increase in loan origination and commitment fees of $1,000 and other noninterest
income of $1,000.

Insurance  commissions  increased  $4,000 to $11,000 for the three  months ended
September  30, 1999 from $7,000 for the three  months ended  September  30, 1998
primarily  due to the  fluctuations  in the  volume of sales of credit  life and
disability  products.  Bank service charges and fees increased $2,000 to $88,000
for the three months ended  September 30, 1999 from $86,000 for the three months
ended September 30, 1998 primarily due to continued efforts in restructuring fee
schedules..

Noninterest  expense.  Noninterest expense increased $45,000 to $577,000 for the
three months ended  September  30, 1999 from $532,000 for the three months ended
September  30,  1998.  The increase is  primarily  due to a $40,000  increase in
compensation and benefits,  a $7,000 increase in occupancy and equipment expense
and a $5,000 increase in data processing, which was partially offset by a $7,000
decrease in other noninterest expense. These increases were primarily due to the
expansion of Washington  Federal's  service area through the opening of a branch
in Wellman, Iowa in November 1998.

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,   other
governmental  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, 1999,  Washington  Federal's  liquidity  ratio was
12.89%.

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  September  30,  1999,  Washington  Federal  had
outstanding  commitments  to extend  credit  which  amounted to $2.7 million and
Rubio had outstanding commitments to extend credit which amounted to $833,000.


<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.

                  None

Item 6.  Exhibits and Reports on Form 8-K

                  (a)      Exhibits

                          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
                  ended September 30, 1999


<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 12, 1999                  /s/ Stan Carlson
         -----------------                  ------------------------------------
                                            Stan Carlson, President and Chief
                                            Executive Officer

Date     November 12, 1999                  /s/ Leisha A. Linge
         -----------------                  ------------------------------------
                                            Leisha A. Linge, Vice President and
                                              Controller