SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C.

                                   FORM 10-QSB

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

                  For the quarterly period ended March 31, 1998

                                       OR

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

             For the transition period from            to           
                                            ----------    ----------

                           Commission File No. 0-27714

                     Crazy Woman Creek Bancorp Incorporated
          -----------------------------------------------------------
             (Exact name of registrant as specified in its charter)

          Wyoming                                                83-0315410
--------------------------------------------------------------------------------
  (State or other jurisdiction of                             (I.R.S. Employer
    incorporation or organization)                           Identification No.)

                     106 Fort Street, Buffalo, Wyoming 82834
                     ---------------------------------------
                    (Address of principal executive offices)


                                 (307) 684-5591
                                 --------------
              (Registrant's telephone number, including area code)



Check whether the issuer (1) filed all reports  required to be filed by Sections
13 or 15(d) of the  Exchange  Act 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 issuer's classes of common
equity as of the latest practicable date.

         Class:   Common Stock, par value $.10 per share
                  Outstanding at April 17, 1998:  954,845

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

<PAGE>



                     CRAZY WOMAN CREEK BANCORP INCORPORATED

                              INDEX TO FORM 10-QSB


                                                                            Page
                                                                            ----

PART I      FINANCIAL INFORMATION
            ---------------------
  
Item 1.     Financial Statements

            Consolidated Statements of Financial Condition at March 31,
            1998 (unaudited) and September 30, 1997 (audited)................. 1

            Consolidated Statements of Income for the three and six
            months ended March 31, 1998 and 1997 (unaudited).................. 2

            Consolidated Statements of Cash Flows for the six months
            ended March 31, 1998 and 1997 (unaudited)......................... 3

            Notes to Unaudited Interim Consolidated Financial
            Statements........................................................ 5

Item 2.     Management's Discussion and Analysis of Financial
            Condition and Results of Operations............................... 8



PART II.    OTHER INFORMATION
            -----------------

Item 1.     Legal Proceedings.................................................15

Item 2.     Changes in Securities.............................................15

Item 3.     Defaults upon Senior Securities...................................15

Item 4.     Submission of Matters to a Vote of Security Holders...............15

Item 5.     Other Information.................................................16

Item 6.     Exhibits and Reports on Form 8-K..................................16



SIGNATURES





<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY
                 Consolidated Statements of Financial Condition
<TABLE>
<CAPTION>
                                                                            March 31,  September 30,
                                                                             1998          1997
                                                                          -----------  -------------
                                                                          (unaudited)    (audited)
                                                                              (In Thousands)
<S>                                                                         <C>         <C>     
Assets

Cash and cash equivalents ...............................................   $  1,135    $  1,194

Interest-bearing time deposits ..........................................         99          99

Investment and mortgage-backed securities available-for-sale ............     23,383      19,155

Investment and mortgage-backed securities held-to-maturity
  (estimated market value of $6,255 in 1998 and $9,067 in 1997) .........      6,188       9,009

Stock in Federal Home Loan Bank of Seattle, at cost .....................        883         801

Loans receivable, net ...................................................     28,942      28,636

Accrued interest receivable .............................................        588         559

Premises and equipment, net .............................................        422         443

Other assets ............................................................         41          56
                                                                            --------    --------

    Total assets ........................................................   $ 61,681    $ 59,952
                                                                            ========    ========

Liabilities and Stockholders' Equity

Liabilities

  Deposits ..............................................................     30,628      29,507

  Advances from Federal Home Loan Bank ..................................     16,050      15,700

  Advances from borrowers for taxes and insurance .......................         29          55

  Federal income tax payable ............................................         39         155

  Deferred income taxes .................................................        132         115

  Dividends payable .....................................................         95          95

  Accrued expenses and other liabilities ................................        161         115
                                                                            --------    --------

    Total liabilities ...................................................     47,134      45,742
                                                                            --------    --------

Stockholders' equity

  Preferred stock, par value $.10 per share, 2,000,000 shares authorized;   $     --    $     --
    none issued and outstanding

  Common stock, par value $.10 per share, 5,000,000 shares authorized;
    1,058,000 issued ....................................................        106         106

  Additional paid-in surplus ............................................     10,068      10,041

  Unearned ESOP/MSBP shares .............................................       (757)       (809)

  Retained earnings, substantially restricted ...........................      6,576       6,377

  Unrealized gain(loss) on securities available-for-sale ................        136          77

  Treasury stock, at cost (103,155 shares) ..............................     (1,582)     (1,582)
                                                                            --------    --------

    Total stockholders' equity ..........................................     14,547      14,210
                                                                            --------    --------

    Total liabilities and stockholders' equity ..........................   $ 61,681    $ 59,952
                                                                            ========    ========
</TABLE>


See notes to unaudited interim consolidated financial statements.

                                      - 1 -

<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY
                        Consolidated Statements of Income
<TABLE>
<CAPTION>

                                                             Three Months Ended Six Months Ended
                                                                  March 31,         March 31,
                                                              ----------------   ---------------
                                                                1998     1997     1998     1997
                                                               ------   ------   ------   ------

                                                                (Unaudited)      (Unaudited)

Interest Income:                              (Dollars in thousands except earnings per share and dividends
                                                                   declared per share)

<S>                                                           <C>      <C>      <C>      <C>   
  Loans receivable ........................................   $  609   $  560   $1,208   $1,112

  Mortgage-backed securities ..............................      165      137      344      298

  Investment securities ...................................      316      227      642      464

  Interest bearing time deposits ..........................        1        2        3        3

  Other ...................................................       24       16       49       27
                                                              ------   ------   ------   ------

     Total interest income ................................    1,115      942    2,246    1,904
                                                              ------   ------   ------   ------

Interest expense:

  Deposits ................................................      375      339      757      694

  Advances from FHLB of Seattle ...........................      229      118      459      220
                                                              ------   ------   ------   ------

     Total interest expense ...............................      604      457    1,216      914
                                                              ------   ------   ------   ------
                                                                                        ------

     Net interest income ..................................      511      485    1,030      990

Provision for loan losses .................................        6       --        6       --
                                                              ------   ------   ------   ------

     Net interest income after provision for loan losses ..      505      485    1,024      990

Non-interest income:

  Customer service charges ................................       12       10       24       19

  Gain on sale of investment and mortgage-backed securities        3        1        3        2

  Other operating income ..................................       12        9       21       16
                                                              ------   ------   ------   ------

     Total non-interest income ............................       27       20       48       37

Non-interest expense:

  Compensation and benefits ...............................      129      140      267      265

  Occupancy and equipment .................................       20       26       41       58

  FDIC/SAIF deposit insurance premiums ....................        5        1        9       17

  Advertising .............................................        7        8       16       19

  Data processing services ................................       25       23       50       48

  Loss on sale of premises and equipment ..................       --       --        3       --

  Other ...................................................       62       50      119      118
                                                              ------   ------   ------   ------

     Total non-interest expense ...........................      248      248      505      525
                                                              ------   ------   ------   ------

     Income before income taxes ...........................      284      257      567      502

Income tax expense ........................................       97       89      190      172
                                                              ------   ------   ------   ------

     Net income ...........................................   $  187   $  168   $  377   $  330
                                                              ======   ======   ======   ======






Dividends declared per common share .......................   $ 0.10   $ 0.10   $ 0.20   $ 0.20
                                                              ======   ======   ======   ======

Earnings per common share .................................   $ 0.22   $ 0.18   $ 0.44   $ 0.34
                                                              ======   ======   ======   ======

Earnings per common share - assuming dilution .............   $ 0.21   $ 0.18   $ 0.43   $ 0.34
                                                              ======   ======   ======   ======
</TABLE>

See notes to unaudited interim consolidated financial statements.

                                      - 2 -

<PAGE>
              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY
                      Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
                                                                                                 Six Months Ended
                                                                                                      March 31,
                                                                                                  1998         1997
                                                                                                 ------       -----

                                                                                                 (In Thousands)

Cash flows from operating activities:                                                              (Unaudited)

<S>                                                                                            <C>         <C>     
  Net income ...............................................................................   $    377    $    330

  Adjustments  to  reconcile  net  income  to net  cash  provided  by  operating activities:

    Amortization of:

      Premiums and discounts on securities available-for-sale ..............................          1           8

      Premiums and discounts on securities held-to-maturity ................................          1           2

    Provision for loan losses ..............................................................          6          --

    Federal Home Loan Bank stock dividend ..................................................        (33)        (15)

    Depreciation ...........................................................................         24          37

    Gain on sale of securities .............................................................         (3)         (2)

    Dividends reinvested ...................................................................        (26)         --

    Loss on sale of premises and equipment .................................................          3          --

    ESOP shares committed to be released ...................................................         49          28

    MSBP deferred compensation .............................................................         30          27

Change in:

        Accrued interest receivable ........................................................        (29)         24

        Other assets .......................................................................         15           7

        Federal income taxes payable .......................................................       (116)         85

        Deferred tax liability .............................................................        (13)         (5)

        Accrued expenses and other liabilities .............................................         46        (162)
                                                                                               --------    --------

           Net cash provided by operating activities .......................................        332         364

Cash flows from investing activities:

  Purchases of securities available-for-sale ...............................................    (13,164)     (4,649)

  Maturities and calls of securities available-for-sale ....................................      8,623       3,338

  Proceeds from the sale of securities available-for-sale ..................................        430       2,539

  Maturities and calls of securities held-to-maturity ......................................      2,320         611

  Proceeds from the sale of securities .....................................................        500         650

  Purchase of FHLB stock ...................................................................        (49)        (43)

  Net change in loans receivable ...........................................................       (312)     (1,723)

  Purchase of premises and equipment .......................................................         (6)        (10)
                                                                                               --------    --------

    Net cash used in investing activities ..................................................     (1,658)        713

Cash flows from financing activities:

  Net change in deposits ...................................................................      1,121      (1,240)

  Net changes in advances from Federal Home Loan Bank ......................................        350       2,894

  Net change in advances from borrowers for taxes and insurance ............................        (26)        (25)

  Acquisition of treasury stock, at cost ...................................................         --      (1,203)

  Dividends paid to stockholders ...........................................................       (178)       (194)
                                                                                               --------    --------

    Net cash provided in financing activities ..............................................      1,267         232
                                                                                               --------    --------

Net increase (decrease) in cash and cash equivalents .......................................        (59)      1,309

Cash and cash equivalents at beginning of year .............................................      1,194         451
                                                                                               --------    --------

Cash and cash equivalents at end of period .................................................   $  1,135    $  1,760
                                                                                               ========    ========
</TABLE>

See notes to unaudited interim consolidated financial statements.

                                      - 3 -

<PAGE>



          Notes to Unaudited Interim Consolidated Financial Statements

                                 March 31, 1998


NOTE 1:           BASIS OF PRESENTATION

The accompanying  unaudited interim consolidated  financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information.  Accordingly,  they do not include all of the information
and footnotes required by generally accepted accounting  principles for complete
financial  statements.  For further information,  the reader should refer to the
Annual Report of Crazy Woman Creek Bancorp Incorporated (the "Corporation").

The accompanying  consolidated  financial statements include the accounts of the
Corporation  and Buffalo  Federal  Savings  Bank (the  "Bank"),  a wholly  owned
subsidiary  of  the  Corporation.  All  significant  intercompany  balances  and
transactions have been eliminated in consolidation.

In the opinion of management,  all adjustments  (consisting of normal  recurring
accruals)  considered  necessary for fair presentations have been included.  The
results of operations for the interim  periods ended March 31, 1998 and 1997 are
not  necessarily  indicative  of the results which may be expected for an entire
year or any other period.

NOTE 2:           CONVERSION FROM MUTUAL SAVINGS BANK TO STOCK SAVINGS
                  BANK AND FORMATION OF SAVINGS AND LOAN HOLDING COMPANY

On   March   29,   1996,   the   Bank   consummated   its   conversion   from  a
federally-chartered  mutual savings and loan association to a stock savings bank
pursuant to a Plan of Conversion (the  "Conversion")  via the issuance of common
stock. In connection with the Conversion,  the Corporation sold 1,058,000 shares
of common stock  which,  after  giving  effect to offering  expenses of $410,000
resulting  in net  proceeds  of  $10.13  million  ($9.49  million  net  of  ESOP
purchases).  Pursuant  to  the  Conversion,  the  Bank  transferred  all  of its
outstanding shares to its newly organized holding company,  the Corporation,  in
exchange for 50% of the net proceeds.

Upon consummation of the Conversion,  the preexisting  liquidation rights of the
depositors of the Bank were unchanged.  Specifically,  such rights were retained
and will be  accounted  for by the Bank for the  benefit of such  depositors  in
proportion  to their  liquidation  interest  as of the  Eligibility  Record Date
(November  15, 1994) and  Supplemental  Eligibility  Record Date  (December  31,
1995).






                                      - 4 -

<PAGE>



NOTE 3:           RECENT ACCOUNTING PRONOUNCEMENTS

In June 1996,  the FASB issued  Statement  125,  "Accounting  for  Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities."  Statement No.
125 provides  guidance on  accounting  for  transfers and servicing of financial
assets,  recognition  and  measurement  of  servicing  assets  and  liabilities,
financial assets subject to repayment,  secured  borrowings and collateral,  and
extinguishment of liabilities.

Statement No. 125 generally  requires the  Corporation  to recognize as separate
assets the rights to service  mortgage  loans for others,  whether the servicing
rights are acquired through purchases or loan originations. Servicing rights are
initially  recorded  at fair value  based upon the  present  value of  estimated
future  cash  flows.  Subsequently,   the  servicing  rights  are  assessed  for
impairment,  which is  recognized in the statement of earnings in the period the
impairment  occurs.  For purposes of performing the impairment  evaluation,  the
related   portfolio   must  be   stratified   on  the  basis  of  certain   risk
characteristics  including  loan  type and note  rate.  Statement  No.  125 also
specifies that financial assets subject to prepayment,  including loans that can
be  contractually  prepaid  or  otherwise  settled in such a way that the holder
would not recover  substantially all of its recorded investment be measured like
debt  securities  available for sale or trading  securities  under Statement No.
115. The  Corporation  adopted the provisions of Statement No. 125 on January 1,
1997, and such adoption did not have a material effect on the financial position
or operations of the Corporation.

NOTE 4:           EARNINGS PER SHARE

SFAS No. 128  "Earnings  Per Share" was issued by the FASB in February  1997 and
became  effective for the Corporation for all reporting  periods  beginning with
the interim  reporting  period ended  December  31, 1997.  SFAS No. 128 replaces
presentation  of primary  earnings per share  ("EPS") with the  presentation  of
basic and fully-diluted EPS on the face of the income statement for all entities
with complex capital structures.  SFAS No. 128 also requires a reconciliation of
the numerator and the denominator of the basic EPS computation and the numerator
and the denominator of the diluted EPS computation.

Basic EPS excludes  dilution and is computed by dividing net income available to
common stockholders by the weighted-average  number of common shares outstanding
during the period.  Additionally,  unallocated ESOP shares which are unallocated
and not yet committed to be released  (unallocated) and unvested MSBP shares are
excluded from the  weighted-average  common shares outstanding  calculation.  At
March 31,  1998,  there were 8,001  allocated  ESOP shares and 7,236 vested MSBP
shares. The weighted-average  common shares outstanding for the six month period
ended March 31, 1998 was  computed at 862,948  which is net of  weighted-average
unallocated  ESOP shares  (55,809)  and  weighted-average  unvested  MSBP shares
(17,891).  The  weighted-average  common  shares  outstanding  for the six month
period ended March 31, 1997 was calculated at 963,281 shares.



                                      - 5 -

<PAGE>




Diluted EPS reflects the  potential  dilution  that could occur if securities or
other contracts to issue common stock were exercised or resulted in the issuance
of common  stock  that  would  share in the  earnings  of the  entity.  Dilutive
potential common shares are added to the weighted-average shares used to compute
basic  EPS.  The  following  shows  the  reconciliation  of the  numerators  and
denominators of the basic and diluted EPS computations:
<TABLE>
<CAPTION>

                                                           For the three month period ended March 31, 1998
                                                           -----------------------------------------------
                                                          Income              Shares                Per-Share
                                                        (Numerator)        (Denominator)             Amount
                                                        -----------        -------------             ------
<S>                                                     <C>                   <C>                      <C>  
Net Income                                               $187,000
                                                         --------

Basic EPS

  Net income available to
    common stockholders                                   187,000              864,122                  $0.22
                                                                                                         ====

Effect of Dilutive Securities

  ESOP Shares                                                   -                    -

  Stock Options - granted                                       -               20,443

  Unvested MSBP shares                                          -                4,063
                                                         --------              -------

Diluted EPS

  Income available to common
   stockholders plus assumed conversions                 $187,000              888,628                  $0.21
                                                          =======              =======                   ====
</TABLE>

<TABLE>
<CAPTION>


                                                            For the six month period ended March 31, 1998
                                                            ---------------------------------------------
                                                         Income              Shares                  Per-Share
                                                        (Numerator)        (Denominator)               Amount
                                                        -----------        -------------               ------
<S>                                                     <C>                   <C>                      <C>  

Net Income                                               $377,000
                                                         --------

Basic EPS

  Net income available to
    common stockholders                                   377,000              862,948                  $0.44
                                                                                                         ====

Effect of Dilutive Securities

  ESOP Shares                                                   -                    -

  Stock Options - granted                                       -               19,909

  Unvested MSBP shares                                          -                3,935
                                                         --------              -------

Diluted EPS

  Income available to common
   stockholders plus assumed conversions                 $377,000              886,792                  $0.43
                                                          =======              =======                   ====
</TABLE>






                                      - 6 -

<PAGE>

<TABLE>
<CAPTION>


                                                           For the three month period ended March 31, 1997
                                                           -----------------------------------------------
                                                          Income              Shares                 Per-Share
                                                        (Numerator)        (Denominator)              Amount
                                                        -----------        -------------              ------
<S>                                                     <C>                   <C>                      <C>  
Net Income                                              $168,000
                                                        --------

Basic EPS

  Net income available to
    common stockholders                                  168,000               928,710                  $0.18
                                                                                                         ====

Effect of Dilutive Securities

  ESOP Shares                                                  -                     -

  Stock Options - granted                                      -                 8,437

  Unvested MSBP shares                                         -                 1,531
                                                         -------               -------

Diluted EPS

  Income available to common
   stockholders plus assumed conversions                $168,000               938,678                  $0.18
                                                         =======               =======                   ====
</TABLE>

<TABLE>
<CAPTION>

                                                             For the six month period ended March 31, 1997
                                                             ---------------------------------------------
                                                          Income              Shares                Per-Share
                                                        (Numerator)        (Denominator)             Amount
                                                        -----------        -------------             ------
<S>                                                     <C>                   <C>                      <C>  
Net Income                                              $330,000

Basic EPS

  Net income available to
    common stockholders                                  330,000               963,281                  $0.34
                                                                                                         ====

Effect of Dilutive Securities

  ESOP Shares                                                  -                     -

  Stock Options - granted                                      -                 4,164

  Unvested MSBP shares                                         -                   218
                                                         -------               -------

Diluted EPS

  Income available to common
   stockholders plus assumed conversions                $330,000               967,663                  $0.34
                                                         =======               =======                   ====
</TABLE>




                                      - 7 -

<PAGE>



           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS



GENERAL
-------

The  Corporation is a unitary  savings and loan holding company of the Bank. The
Corporation's  assets are comprised of its investment in the Bank,  loans to the
Bank's  Employee Stock Ownership Plan ("ESOP") and the Bank, and shares in three
mutual funds. The Bank operates as a traditional savings association, attracting
deposit accounts from the general public and using those deposits, together with
other funds, primarily to originate and invest in fixed-rate  conventional loans
secured by single-family  residential real estate. The Bank also originates home
equity,  consumer  loans and loans  secured by savings  accounts.  The Bank also
invests in mortgage-backed  (including Real Estate Mortgage  Investment Conduits
("REMICs"),  and short-term U.S. Agency securities. To a lesser extent, the Bank
originates  commercial  real  estate  loans and  business  loans.  The Bank also
utilizes funds  obtained from the Federal Home Loan Bank of Seattle  ("FHLB") to
purchase investment securities and to originate loans.

The Bank's net earnings  are  dependent  primarily  on its net interest  income,
which is the difference  between interest income earned on its  interest-earning
assets and interest expense paid on interest-bearing  liabilities.  Net interest
income  is  determined  by  (i)  the   difference   between   yields  earned  on
interest-earning assets and rate paid on interest-bearing  liabilities (interest
rate  spread)  and (ii) the  relative  amounts  of  interest-earning  assets and
interest-bearing  liabilities.  The Bank's  interest  rate spread is affected by
regulatory, economic and competitive factors that influence interest rates, loan
demand and deposit flows.  To a lesser extent,  the Bank's net earnings also are
affected  by the level of  non-interest  income,  which  primarily  consists  of
service  charges and other  operating  income.  In  addition,  net  earnings are
affected by the level of non-interest (general and administrative) expenses.

FINANCIAL CONDITION
-------------------

At March 31, 1998,  assets totaled  $61.68  million  compared to total assets of
$60.00 million at September 30, 1997. Asset growth was primarily attributed to a
$4.22  million  increase  in  investments  securities  available-for-sale.  This
increase  was  somewhat  offset  by  a  $2.82  million  decrease  in  investment
securities    held-to-maturity.    The   decline   in   investment    securities
held-to-maturity  was  primarily  caused  by  maturities  and the  Corporation's
decision  to  place  the   majority   of  its   investment   purchases   in  the
available-for-sale portfolio.

Asset growth was primarily funded by an increase in deposits. Deposits increased
by $1.12 million from $29.51  million at September 30, 1997 to $30.63 million at
March 31,  1998  primarily  as a result an increase  in  business  checking  and
certificates  of  deposits.  Meanwhile,  advances  from  the FHLB  increased  by
$350,000 from $15.70  million at September  30, 1997 to $16.05  million at March
31, 1998.

At March  31,  1998,  stockholder's  equity  totaled  $14.55  million  or 23.58%
compared to $14.21  million or 23.70% of total assets at September 30, 1997. The
increase in stockholder's  equity was primarily due to continued earnings and an
increase in the market value of investment  securities  available-for-sale.  The
increase  in  stockholder's  equity was  somewhat  offset by $.10 per share cash
dividends declared in December 1997 and in March 1998.




                                      - 8 -

<PAGE>



ASSET QUALITY
-------------

Non-performing  assets  totaled  $54,000  at March 31,  1998,  or 0.09% of total
assets.  This  compares  to  $225,000  at  September  30, 1997 or 0.38% of total
assets.  Non-performing  loans were comprised of one  residential  home loan and
three consumer loans.

RESULTS OF OPERATIONS
---------------------

         Comparison of Six Months Ended March 31, 1998 and 1997.
         -------------------------------------------------------

Net Income.  Net income for the six months ended March 31, 1998 totaled $377,000
compared to $330,000  for the six months  ended March 31,  1997.  Net income was
higher in 1998 than in 1997 primarily due to a $40,000  increase in net interest
income.  Also contributing to the increase was a $9,000 increase in non-interest
income and a $20,000  decline in  non-interest  expense.  Net income in 1998 was
negatively  affected by a $6,000  provision to loan loss  reserves.  Federal tax
provisions were $18,000 higher in 1998 than in 1997.

Interest Income. For the six months ended March 31, 1998 interest income totaled
$2.25 million compared to $1.90 million for the six months ended March 31, 1997.
An increase in the volume of average  earning assets from $50.97 million for the
six month period  ended March 31, 1997 to $59.71  million for the same period in
1998 caused  interest  income to increase by $318,000.  A slight increase in the
yield on average  earning assets from 7.47% for the six month period ended March
31,  1997 to 7.52%  for the six month  period  ended  March  31,  1998 also help
increase interest income by $24,000.

Interest Expense. Total interest expense increased by $302,000 from $914,000 for
the six months ended March 31, 1997 to $1.22 million for the same period in 1998
primarily  as a result of an increase in the volume of average  interest-bearing
liabilities. This increase in volume resulted in a $253,000 increase in interest
expense. An increase in average advances from the FHLB accounted for $212,000 of
the increase caused by a change in volume.  Such average advances increased from
$7.95  million for the six month period  ended March 31, 1997 to $15.61  million
for the six month period  ended March 31,  1998.  The balance of the increase in
interest  expense for the periods  covered was  attributed to an increase in the
cost of  interest-bearing  deposits  from 5.04% for the six month  period  ended
March 31, 1997 to 5.34% for the six month period ended March 31, 1998.

Provisions for Credit Losses.  The Corporation  made a $6,000  provision to loan
loss reserves for the six months ended March 31, 1997; no provision were made in
1997.  Loan  charge-offs for the six months ended March 31, 1998 totaled $39,000
while recoveries totaled $7,000. In 1997, loan charge-offs  totaled $5,000 while
recoveries  also totaled  $5,000.  In determining the provision for loan losses,
management  analyzes,  among other things,  the  composition  of the Bank's loan
portfolio,  market  conditions  and  the  Bank's  market  area.  Management  has
determined  that  the  reserve  for  loan  losses  was  adequate  to  cover  any
anticipated  credit  losses.  There can be no assurance  that the  allowance for
losses  will be adequate  to cover  losses  which may in fact be realized in the
future and that additional provisions will not be required.







                                      - 9 -

<PAGE>



Net Interest Income.  Net interest income increased by $40,000 from $990,000 for
the six months  ended March 31, 1997 to $1.03  million for the six months  ended
March 31, 1998. The increase in net interest income was primarily  caused by the
growth  in  average   earning  assets   relative  to  the  increase  in  average
interest-bearing liabilities.  Although the increase in average interest-bearing
liabilities  out paced the growth in average  earning assets as evidenced by the
decline  the  ratio  of  average  earning  assets  to  average  interest-bearing
liabilities  from 140.60% in 1997 to 131.04% in 1998, net interest  income still
increased by $66,0000.  The Corporation was able to maintain a positive interest
rate  spread  despite  the  mismatch  in the  growth of average  earning  assets
compared to average interest-bearing  liabilities.  A factor contributing to the
decline in the ratio of average earning assets to  interest-bearing  liabilities
was the Corporation's repurchase of $1.88 million of its common stock in January
and April 1997. The funds lost through  repurchases  were primarily  replaced by
interest-bearing advances from the FHLB.

Net interest margin declined from 3.89% for the six month period ended March 31,
1997 to 3.45% for the six month period ended March 31, 1998. The decrease in net
interest margin was primarily caused by a disproportionate increase in the yield
on  average  earning  assets  compared  to the  increase  in the cost of average
interest-bearing   liabilities;   the   increase   in  the   cost   of   average
interest-bearing  liabilities  increased more than the yield on average interest
earning assets for the periods covered.

Total Non-interest  Income.  Total non-interest  income increased by $9,000 from
$37,000  for the six months  ended  March 31, 1997 to $48,000 for the six months
ended  March 31,  1998  primarily  due to an  increase  in fees  generated  from
customer service charges and loan originations.

Total Non-interest Expense.  Total non-interest expense declined by $20,000 from
$525,000  for the six months ended March 31, 1997 to $505,000 for the six months
ended March 31, 1998.  The decrease was  primarily  attributed  to lower deposit
insurance  premiums,  occupancy and equipment expenses and a slight reduction in
advertising costs.  There was no significant  changes in the other components of
non-interest expense.

Non-interest  expense  for the six months  ended March 31, 1998 does not contain
any direct costs associated with the  Corporation's  efforts to upgrade its data
processing  systems to address the change to the year 2000. The Corporation does
not believe  that its costs to comply with the change to the year 2000 will have
a material  effect on its financial  position or results of operation.  However,
despite the best efforts of management to address this issue, the vast number of
external entities that have direct and indirect business  relationships with the
Corporation,  such as customers,  vendors,  payment  system  providers and other
financial institutions,  makes it impossible to assure that a failure to achieve
compliance by one or more of these  entities  would not have a material  adverse
impact on the results of operation or financial condition of the Corporation.

Provision  for Income  Taxes.  The  effective  tax rate for the six months ended
March 31, 1998 and 1997 was 33.51% and 34.26%, respectively.

         Comparison of Three Months Ended March 31, 1998 and 1997
         --------------------------------------------------------

General. For the three month period ended March 31, 1998, the Corporation posted
net income of $187,000  compared to $168,000  for the three month  period  ended
March 31, 1997. The increase in net income was primarily attributed to a $26,000
increase in net interest income and a $7,000  increase in  non-interest  income.
These  increases  were  partially  offset  by a $6,000  provision  to loan  loss
reserves.




                                     - 10 -

<PAGE>



Interest Income. Interest income increased by $173,000 from $942,000 for the six
months  ended March 31, 1997 to $1.12  million for the same period in 1998.  The
growth in  interest  income was  primarily  the result of an increase in average
earning assets for the periods  covered.  Average earning assets  increased from
$50.58 million for the three month period ended March 31, 1997 to $60.11 million
for the three month period ended March 31, 1998.

Interest Expense.  Interest expense increased from $457,000 for the three months
ended  March 31,  1997 to  $604,000  for the three  months  ended March 31, 1998
resulting  in an  increase of  $137,000.  The  increase in interest  expense was
primarily   attributed  to  an  increase  in  the  volume  of   interest-bearing
liabilities  from $36.49 million for the three month period ended March 31, 1997
to $45.94  million for the same period in 1998.  The  increase in volume  caused
interest  expense to go up by  $124,000.  An  increase in the cost of funds from
5.01% to 5.27% for the  periods  covered  also  attributed  to the  increase  in
interest expense.

Provision for Credit Losses.  The Corporation  made a $6,000 loan loss provision
for the three months ended March 31, 1998; no loan loss provisions were made for
the three  months  ended March 31, 1997.  See also  "--Comparison  of Six Months
Ended March 31, 1998 and 1997 -- Provision for Credit Losses."

Net Interest  Income.  Net interest income increase by $26,000 from $485,000 for
the three  months  ended March 31, 1997 to $511,000  for the three  months ended
March 31,  1998.  The primary  reason for the  increase was due to the fact that
income  generated  by the growth in earning  assets  out paced the  increase  in
expense caused by the growth in  interest-bearing  liabilities.  The Corporation
was able to increase net interest  income despite a drop in net interest  margin
for the periods  covered.  Net interest margin declined from 3.84% for the three
month period ended March 31, 1997 to 3.40% for the same period in 1998.  Today's
relatively flat yield curve has also  contributed to the  Corporation's  drop in
net interest margin from 1997 to 1998.

Total Non-Interest  Income.  Total  non-interest  income improved by $7,000 from
$20,000  for the three  months  ended  March 31,  1997 to $27,000  for the three
months ended March 31, 1998. The improvement was primarily a result of increased
fees from customer service charges and loan originations.

Total Non-Interest  Expense.  The was no change in non-interest expense from the
three  months  ended March 31, 1997 to the three  months  ended March 31,  1998.
Compensation  expense was $11,000  higher in 1997 than in 1998 due to management
bonuses paid in 1997. There were no significant  changes in the other components
of non-interest  income.  See also  "--Comparison  of Six Months Ended March 31,
1998 and 1997 -- Total Non-interest Expense."

Provision  for Income  Taxes.  The effective tax rate for the three months ended
March 31, 1998 and 1997 was 34.15% and 34.63%, respectively.




                                     - 11 -

<PAGE>



CAPITAL COMPLIANCE AND LIQUIDITY
--------------------------------

Capital Compliance.  The following table presents the Bank's compliance with its
regulatory capital requirements of March 31, 1998.


                                           At March 31, 1998
                                           -----------------
                                                     Percentage
                                            Amount   of Assets
                                            ------   ---------
                                          (Dollars in Thousands)

GAAP Capital ...........................   $11,228



Tangible capital .......................   $11,220      18.56%

Tangible capital requirement ...........       907       1.50%
                                           -------      -----

Excess .................................   $10,313      17.06%
                                           =======      =====



Core capital ...........................   $11,220      18.56%

Core capital requirements ..............     1,813       3.00%
                                           -------      -----

Excess .................................   $ 9,407      15.56%
                                           =======      =====



Total risk-based capital (1) ...........   $11,496      47.34%

Total risk-based capital requirement (1)     1,943       8.00%
                                           -------      -----

Excess (1) .............................   $ 9,553      39.34%
                                           =======      =====

------------

(1)      Based on risk-weighted assets of $24,286.


Management  believes that under current  regulations,  the Bank will continue to
meet its minimum capital  requirements in the foreseeable future.  Events beyond
the control of the Bank,  such as increased  interest rates or a downturn in the
economy  in areas in which  the Bank  operates  could  adversely  affect  future
earnings  and, as a result,  the ability of the Bank to meet its future  minimum
capital requirements.








                                     - 12 -

<PAGE>



Liquidity.  The Bank's  liquidity is a measure of its ability to fund loans, pay
withdrawals of deposits, and other cash outflows in an efficient, cost effective
manner.   The  Bank's  primary  source  of  funds  are  deposits  and  scheduled
amortization  and prepayment of loans.  During the past several years,  the Bank
has used such funds  primarily  to fund  maturing  time  deposits,  pay  savings
withdrawals,  fund lending commitments,  purchase new investments,  and increase
liquidity.  The Bank  funds  its  operations  internally  but  supplements  with
borrowed  funds from the FHLB of  Seattle.  As of March 31,  1998 such  borrowed
funds totaled $16.05 million. Loan payments and maturing investments are greatly
influenced by general interest rates, economic conditions and competition.

The Bank is required  under federal  regulations to maintain  certain  specified
levels of "liquid  investments,"  which include certain United States government
obligations and other approved investments. Current regulations require the Bank
to maintain liquid assets of not less than 4% of its net  withdrawable  accounts
plus short-term borrowings. Those levels may be changed from time to time by the
regulators  to  reflect  current  economic  conditions.  The Bank has  generally
maintained  liquidity  far in  excess of  regulatory  requirements.  The  Bank's
regulatory  liquidity  was  66.39%  and  11.17%  at March  31,  1998  and  1997,
respectively.  Recent changes  regulatory  changes regarding assets eligible for
liquidity  caused the significant  increase in the Bank's  regulatory  liquidity
ratios from 1997 to 1998,  generally,  the maturity  restrictions were lifted on
U.S. Agency related securities.

The amount of  certificate  accounts  which are  scheduled to mature  during the
twelve  months ending March 31, 1999 is  approximately  $12.33  million.  To the
extent  that these  deposits do not remain at the Bank upon  maturity,  the Bank
believes that it can replace these funds with deposits,  excess liquidity,  FHLB
advances  or  outside  borrowings.  It has been  the  Bank's  experience  that a
substantial portion of such maturing deposits remain at the Bank.

At March 31, 1998, the Bank had loan commitments outstanding of $883,000.  Funds
required to fill these  commitments  are derived  primarily  from current excess
liquidity,  deposit inflows or loan and investment and mortgage-backed  security
repayments.

IMPACT OF INFLATION AND CHANGING PRICES
---------------------------------------

The  consolidated  financial  statements of the  Corporation  and notes thereto,
presented  elsewhere  herein,  have been prepared in accordance with GAAP, which
require the measurement of financial  position and operating results in terms of
historical  dollars without  considering  the change in the relative  purchasing
power of money over time due to inflation.  The impact of inflation is reflected
in the increased cost of the  Corporation's  operations.  Unlike most industrial
companies,  nearly  all  the  assets  and  liabilities  of the  Corporation  are
financial.   As  a  result,   interest  rates  have  a  greater  impact  on  the
Corporation's  performance  than do the effects of general  levels of inflation.
Interest  rates do not  necessarily  move in the same  direction  or to the same
extent as the prices of goods and services.






                                     - 13 -

<PAGE>



RECENT ANNOUNCEMENTS
--------------------

The Corporation,  in a press release dated April 9, 1998,  announced that it had
received  regulatory  authorization  to  repurchase  up to 47,742  shares of the
Corporation's  common stock.  This repurchase  program follows the repurchase of
103,155  shares of common stock since the Bank's  mutual-to-stock  conversion in
March 1996.

The repurchase will be made in open-market  transactions  over a one-year period
subject  to  the  availability  of  stock  and  pursuant  to  the  terms  of the
Corporation's  repurchase plan.  Repurchased  shares will become  authorized but
unissued  shares and will be utilized for general  corporate and other purposes,
including  the  issuance  of shares in  connection  with the  exercise  of stock
options.

Any repurchase could have an adverse effect on the  Corporation's  ability to be
listed on the Nasdaq SmallCap Market.

KEY OPERATING RATIOS
--------------------
<TABLE>
<CAPTION>
                                                              Three Months Ended              Six Months Ended
                                                                  March 31,                       March 31,
                                                             ---------------------      -------------------------

                                                             1998 (1)     1997 (1)      1998 (1)         1997 (1)
                                                             --------     --------      --------         --------

                                                            (Dollars in Thousands,          (Dollars in Thousands,
                                                            except per share data)          except per share data)
                                                                 (Unaudited)                     (Unaudited)



<S>                                                           <C>           <C>           <C>              <C>  
Return on average assets.............................          1.22%         1.30%         1.24%            1.27%

Return on average equity.............................          5.15%         4.63%         5.23%            4.38%

Interest rate spread.................................          2.15%         2.44%         2.43%            2.43%

Net interest margin..................................          3.40%         3.76%         3.45%            3.81%

Noninterest expense to average assets................          1.62%         1.92%         1.66%            2.02%

Net charge-offs to average outstanding loans.........          0.00%         0.00%         0.01%            0.00%

</TABLE>

<TABLE>
<CAPTION>
                                                              At March 31,         At September 30,
                                                                  1998                   1997

<S>                                                             <C>          <C>
Nonaccrual and 90 days past due loans................                 54           225

Repossessed real estate.............................                   0             0

  Total nonperforming assets.........................                 54           225

Allowance for credit losses to nonperforming assets..            240.34%       134.22%

Nonperforming loans to total loans...................              0.09%         0.12%

Nonperforming assets to total assets.................              0.19%         0.38%

Book value per share (2).............................             $15.23        $14.88
</TABLE>

----------------
(1)  The ratios for the three- and six-month periods are annualized.
(2)  The number of shares  outstanding  as of March 31, 1998 and  September  30,
     1997 were 954,845 shares. These include shares purchased by the ESOP.

                                     - 14 -

<PAGE>



                           PART II - OTHER INFORMATION
                           ---------------------------



Item 1.   Legal Proceedings
          -----------------

          Neither  the  Corporation  nor  the  Bank  was  engaged  in any  legal
          proceeding of a material  nature at March 31, 1998. From time to time,
          the Corporation is a party to legal proceedings in the ordinary course
          of business wherein it enforces its security interest in loans.


Item 2.   Changes in Securities
          ---------------------

          Not applicable.


Item 3.   Defaults Upon Senior Securities
          -------------------------------

          Not applicable.


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

          On January  22,  1998,  the  Corporation  held its  annual  meeting of
          stockholders and the following items were presented:

          Election of Directors  Greg L. Goddard and Douglas D. Osborn for terms
          of three years ending 2001 and the  ratification of the appointment of
          KPMG Peat  Marwick,  LLP as the  Corporation's  auditors  for the 1998
          fiscal year.

          Votes were as follows:

                                              For         Against       Withheld
                                              ---         -------       --------

                  Greg L. Goddard           669,377         5,760           -
                  Douglas D. Osborn         661,325        13,012           -

                  Ratification of
                  Peat Marwick              670,376         3,911         850





                                     - 15 -

<PAGE>




Item 5.  Other Information
         -----------------

         See "Recent Announcements."


Item 6.  Exhibits and Reports on Form 8-K
         --------------------------------

         (a)      Exhibits

                  Exhibit 27 - Financial Disclosure Schedule (in electronic 
                               filing only)

         (b)      Reports on Form 8-K

                  None.




                                     - 16 -

<PAGE>


              CRAZY WOMAN CREEK BANCORP INCORPORATED AND SUBSIDIARY

                                   SIGNATURES


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                           CRAZY WOMAN CREEK BANCORP INCORPORATED



Date: April 17, 1998       By: /s/ Deane D. Bjerke
                               -------------------------------------------------
                               Deane D. Bjerke
                               President and
                               Chief Executive Officer
                               (Principal Executive Officer)



Date: April 17, 1998       By: /s/ Dalen C. Slater
                               -------------------------------------------------
                               Dalen C. Slater
                               Senior Vice President and Chief Financial Officer
                               (Principal Accounting and Financial Officer)