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 December 31, 1997

                                       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 January 30, 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 December
            31, 1997 (unaudited) and September 30, 1997 (audited)...........   1

            Consolidated Statements of Income for the three months
            ended December 31, 1997 and 1996 (unaudited)....................   2

            Consolidated Statements of Cash Flows for the three months
            ended December 31, 1997 and 1996 (unaudited)....................   3

            Notes to Unaudited Interim Consolidated Financial
            Statements......................................................   4


Item 2.     Management's Discussion and Analysis of Financial
            Condition and Results of Operations.............................   7



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

Item 1.     Legal Proceedings...............................................  13

Item 2.     Changes in Securities...........................................  13

Item 3.     Defaults upon Senior Securities.................................  13

Item 4.     Submission of Matters to a Vote of Security Holders.............  13

Item 5.     Other Information...............................................  13

Item 6.     Exhibits and Reports on Form 8-K................................  13



SIGNATURES





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

Cash and cash equivalents ........................................................   $    715    $  1,194

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

Investment and mortgage-backed securities available-for-sale .....................     22,019      19,155

Investment and mortgage-backed securities held-to-maturity
  (estimated market value of $7,402 in December 1997 and $9,067 in September 1997)      7,339       9,009

Stock in Federal Home Loan Bank of Seattle, at cost ..............................        867         801

Loans receivable, net ............................................................     28,739      28,636

Accrued interest receivable ......................................................        534         559

Premises and equipment, net ......................................................        432         443

Other assets .....................................................................         30          56
                                                                                     --------    --------

    Total assets .................................................................   $ 60,774    $ 59,952
                                                                                     ========    ========

Liabilities and Stockholders' Equity

Liabilities

  Deposits .......................................................................     30,508      29,507

  Advances from Federal Home Loan Bank ...........................................     15,450      15,700

  Advances from borrowers for taxes and insurance ................................         10          54

  Federal income tax payable .....................................................        117         155

  Deferred income taxes ..........................................................        106         116

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

  Accrued expenses and other liabilities .........................................        123         115
                                                                                     --------    --------

    Total liabilities ............................................................     46,409      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 .....................................................     10,061      10,041

  Unearned ESOP/MSBP shares ......................................................       (783)       (809)

  Retained earnings, substantially restricted ....................................      6,478       6,377

  Unrealized gain(loss) on securities available-for-sale .........................         85          77

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

    Total stockholders' equity ...................................................     14,365      14,210
                                                                                     --------    --------

    Total liabilities and stockholders' equity ...................................   $ 60,774    $ 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
                                                                                 December 31,
                                                                           ------------------------
                                                                              1997           1996
                                                                           ---------       --------
                                                                                  (Unaudited)
Interest Income:                                                          (Dollars in Thousands except
                                                                             earnings per share and
                                                                               dividends declared)
<S>                                                                         <C>              <C> 
  Loans receivable............................................                $599             $552

  Mortgage-backed securities..................................                 179              161

  Investment securities.......................................                 326              236

  Interest-bearing time deposits..............................                   1                1

  Other.......................................................                  25               12
                                                                              ----             ----
     Total interest income....................................               1,130              962
                                                                             -----
Interest expense:

  Deposits....................................................                 382              355

  Advances from FHLB of Seattle...............................                 230              102
                                                                              ----             ----
     Total interest expense...................................                 612              457
                                                                              ----
     Net interest income......................................                 518              505

Provision for loan losses (loan loss benefit).................                   -                -
                                                                             -----          -------
     Net interest income after provision for loan losses......                 518              505

Non-interest income:

  Customer service charges....................................                  12                9

  Other operating income......................................                  10                7
                                                                             -----            -----
     Total non-interest income................................                  22               16

Non-interest expense:

  Compensation and benefits...................................                 138              125

  Occupancy and equipment.....................................                  21               32

  FDIC/SAIF deposit insurance premiums........................                   5               16

  Advertising.................................................                   9               11

  Data processing services....................................                  24               25

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

  Other.......................................................                  57               68
                                                                              ----             ----
     Total non-interest expense...............................                 257              277
                                                                              ----             ----
     Income before income taxes...............................                 283              244

Income tax expense............................................                  93               83
                                                                              ----             ----
     Net income...............................................               $ 190            $ 161
                                                                              ====             ====

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

Earnings per common share.....................................               $0.21            $0.21
                                                                              ====             ====

Earnings per common share - assuming dilution.................               $0.21            $0.16
                                                                              ====             ====
</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>
                                                                                                    Three Months Ended
                                                                                                        December 31,
                                                                                                  --------------------------
                                                                                                    1997              1996
                                                                                                  --------          --------
                                                                                                        (In Thousands)
Cash flows from operating activities:                                                                     (Unaudited)
<S>                                                                                               <C>               <C>    
  Net income.............................................................................         $   190           $   161

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

    Amortization of:

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

    Federal Home Loan Bank stock dividend................................................             (17)               (8)

    Depreciation.........................................................................              11                23

    Dividends reinvested.................................................................             (22)                -

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

    ESOP shares committed to be released.................................................              17                13

    MSBP deferred compensation...........................................................              28                 -

Change in:

        Accrued interest receivable......................................................              25                78

        Other assets.....................................................................              26                13

        Federal income taxes payable.....................................................             (38)               30

        Deferred tax liability...........................................................             (13)                -

        Accrued expenses and other liabilities...........................................               8              (160)
                                                                                                    -----             -----
           Net cash provided by operating activities.....................................             219               150

Cash flows from investing activities:

  Purchases of securities available-for-sale.............................................          (6,997)           (2,205)

  Maturities and calls of securities available-for-sale..................................           4,166             1,979

  Maturities and calls of securities held-to-maturity....................................           1,670               472

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

  Origination of loans receivable........................................................          (1,865)           (2,552)

  Repayment of principal on loans receivable.............................................           1,762             1,774

  Purchase of premises and equipment.....................................................              (3)               (5)
                                                                                                   ------            ------
    Net cash used in investing activities................................................          (1,316)             (537)

Cash flows from financing activities:

  Net change in deposits.................................................................           1,001              (302)

  Net changes in advances from Federal Home Loan Bank....................................            (250)            1,372

  Net change in advances from borrowers for taxes and insurance..........................             (44)              (43)

  Dividends paid to stockholders.........................................................             (89)              (99)
                                                                                                   ------            ------
    Net cash provided in financing activities............................................             618               928
                                                                                                   ------            ------

Net increase (decrease) in cash and cash equivalents.....................................            (479)              541

Cash and cash equivalents at beginning of year...........................................           1,194               451
                                                                                                    -----            ------
Cash and cash equivalents at end of period...............................................         $   715           $   992
                                                                                                   ======            ======
</TABLE>
See notes to unaudited interim consolidated financial statements.

                                      - 3 -
<PAGE>



          Notes to Unaudited Interim Consolidated Financial Statements

                                December 31, 1997


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 on Form 10-KSB 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 December 31, 1997 and 1996
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  interests 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 prepayment,  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 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 to the numerator
and 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
December 31, 1997,  there were 8,001 allocated ESOP shares and 5,628 vested MSBP
shares.  The  weighted-average  common  shares  outstanding  for the three month
period  ended  December  31,  1997  was  computed  at  861,773  which  is net of
weighted-average  unallocated ESOP shares (56,380) and weighted-average unvested
MSBP shares (18,494).  The  weighted-average  common shares  outstanding for the
three month period ended December 31, 1996 was calculated at 955,532 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:


                                         For the period ended December 31, 997
                                        ----------------------------------------
                                          Income          Shares       Per-Share
                                        (Numerator)    (Denominator)    Amount
                                        -----------    -------------   ---------

Net Income                                $190,000
                                          --------

Basic EPS
  Net income available to 
    common stockholders                    190,000        861,773        $0.22
                                                                         =====

Effect of Dilutive Securities
  ESOP shares                                    -              -
  Stock Options - granted                        -         16,997
  Unvested MSBP shares                           -          3,470
                                           -------          -----

Diluted EPS
  Income available to common
  stockholders plus assumed conversions    $190,000       882,240        $0.22
                                           ========       =======        =====

The  weighted-average  number of common shares outstanding was the same for both
basic and diluted EPS for the three  months  ended  December 31, 1997 given that
the assumed conversion of potential common shares would have been anti-dilutive.

                                     - 6 -

<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 loans,  consumer  loans and loans secured by savings  accounts.  The Bank
also  invests  in   mortgage-backed   securities  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
-------------------

The  Corporation's  assets increased by $822,000 from $9.95 million at September
30, 1997 to $60.77 million at December 31, 1997.  Asset growth was attributed to
a $2.86  million  increase in  investment  securities  available-for-sale.  This
increase  was  somewhat  offset  by  a  $1.67  million  decrease  in  investment
securities  held-to-maturity  as well as a  $479,000  decrease  in cash and cash
equivalents. The decline in investment securities held-to-maturity was primarily
caused   by   maturities   and  the   Corporation's   decision   to   invest  in
available-for-sale securities.

From  September  30, 1997 to December 31, 1997,  the  Corporation  experienced a
$1.00 million increase in deposits. This increase in deposits was primarily used
to fund the purchase of investment  securities  available-for-sale  and to repay
advances  from the FHLB.  At December 31, 1997,  FHLB  advances  totaled  $15.45
million compared to $15.70 million at September 30, 1997.

At December 31, 1997,  stockholders'  equity totaled $14.37 million or 23.64% of
total assets  compared to $14.21  million or 23.70% of total assets at September
30, 1997. Stockholders'

                                      - 7 -

<PAGE>



equity  continues to grow as a result of earnings  and a slight  increase in the
market  value of  investment  securities  available-for  sale.  The  increase in
stockholders'  equity  was  offset by a $.10 per share  cash  dividend  that was
declared in December 1997.

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

Non-performing  loans  totaled  $112,000 at December  31, 1997 or 0.18% of total
assets.  This  compares to $225,000 at  September  30,  1997,  or 0.38% of total
assets.  Non-performing  loans  were  comprised  of  two  residential  loans,  a
commercial  loan  secured by a  restaurant/convenience  store and nine  consumer
loans.

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

         Comparison of Three Months Ended December 31, 1997 and 1996.
         ------------------------------------------------------------

Net Income.  The Corporation  posted net income of $190,000 for the three months
ended  December  31,  1997,  as compared to $161,000  for the three months ended
December 31,  1996.  The increase in net income was  attributed,  in part,  to a
greater  increase  in  average  earning  assets  relative  to  the  increase  in
interest-bearing  liabilities for the periods  covered.  This difference  helped
cause a  $13,000  increase  in net  interest  income  from  1996 to  1997.  Also
contributing to the increase in net income was a $6,000 increase in non-interest
income and a $20,000  decline in  non-interest  expense.  These increases in net
income  were  partially  offset by a $10,000  increase  in  federal  income  tax
provisions from 1996 to 1997.

Interest  Income.  Total interest  income  increased by $168,000 or 17.46 % from
$962,000 for the three months ended  December 31, 1996 to $1.13  million for the
three  months  ended  December  31,  1997.  An increase in the volume of average
earning assets from $51.35 million for the three month period ended December 31,
1996 to $59.31 million for the same period in 1997 was the primarily  reason for
the increase in interest income.  This increase in average earning assets caused
interest  income to  increase by  $145,000.  An increase in the yield on average
earning  assets from 7.49% for the three month period ended December 31, 1996 to
7.62% for the three month  period ended  December  31, 1997 also helped  augment
interest income.

Interest  Expense.  Total  interest  expense  increased  by $155,000  during the
covered  periods  primarily as a result of an increase in the average  volume of
advances from the FHLB. Such average  advances  increased from $7.23 million for
the three month period ended  December 31, 1996 to $15.43  million for the three
month period ended December 31, 1997.  This increase in average  advances caused
interest  expense to  increase  by  $116,000.  The  balance of the  increase  in
interest expense for the periods covered was primarily caused by the increase in
the cost of average interest-bearing  liabilities from 5.08% for the three month
period ended December 31, 1996 to 5.41% for the same period in 1997.

Provisions  for Credit  Losses.  There were no  provisions  for loan  losses for
either the three  months ended  December  31, 1997 or 1996.  For the three month
period ended  December 31,  1997,  the  Corporation  recorded  loan  charge-offs
totaling $39,000 while experiencing loan loss recoveries of $3,000. The majority
of the loan charge-offs, $37,000, were attributed to the

                                      - 8 -

<PAGE>



default of one commercial borrower. There were no credit losses during the three
month period ended  December 31, 1996. In  determining  the  provisions 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 reserve for loan
losses will be adequate  to cover  losses,  which may in fact be realized in the
future and that additional provisions will not be required.

Net Interest Income.  Net interest income increased by $13,000 from $505,000 for
the three months ended  December 31, 1996 to $518,000 for the three months ended
December 31, 1997. The increase in net interest income was primarily  attributed
to the fact that  growth  in  average  earning  assets  out paced the  growth in
interest-bearing  liabilities.  Despite the disparity in growth rates, the ratio
of  average  interest-earning  assets to  average  interest-bearing  liabilities
declined from 142.65% to 130.96% for the periods  covered due to the replacement
of interest-free capital with interest-bearing liabilities. In January and April
1997, the Corporation repurchased $1.88 million of its common stock. To maintain
its  asset  size,  the  Corporation   replaced  the  funds  lost  through  stock
repurchases with advances from the FHLB.

Net  interest  margin  declined  from  3.93% for the three  month  period  ended
December 31, 1996 to 3.49% for the three month  period ended  December 31, 1997.
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  out paced the  increase  in the yield on
average earning assets for the periods covered.

Total Non-interest  Income.  Total  non-interest  income improved by $6,000 from
$16,000 for the three  months ended  December  31, 1996 to $22,000 for the three
months  ended  December  31,  1997  primarily  as a result  of  additional  fees
generated through customer service charges and loan originations.

Total Non-interest Expense. Total non-interest expense decreased by $20,000 from
$277,000 for the three months ended  December 31, 1996 to $257,000 for the three
months  ended  December  31,  1997.  The  decrease in  non-interest  expense was
primarily  the result of lower  deposit  insurance  premiums  and a reduction in
advertising costs, equipment expenses and other operating expenses. Compensation
expense  increased by $13,000 from $125,000 for the three months ended  December
31, 1996 to $138,000 for the three  months ended  December 31, 1997 due to costs
associated  with the Bank's  Management  Stock Bonus Plan ("MSBP").  These costs
were not present in the three months ended December 31, 1996.

Other operating  expenses decreased by $11,000 from $68,000 for the three months
ended  December 31, 1996 to $57,000 for the same period in 1997 primarily due to
a decease in legal fees.  Legal fees  totaled  $6,000 for the three months ended
December  31, 1997  compared  to $19,000  for the same period in 1996.  In 1996,
legal fees  included  work done on the Bank's  ESOP and MSBP and on the  special
stockholders' meeting held on October 21, 1996.


                                     - 9 -

<PAGE>



Occupancy and equipment  costs were $9,000 lower in 1997 than in 1996  primarily
due to a decease in  depreciation  expense.  Non-interest  expense for the three
months ended  December 31, 1997 included a $3,000 loss from the  abandonment  of
obsolete equipment.

Non-interest  expense  for the three  months  ended  December  31, 1997 does not
contain any costs associated with the Corporation's  efforts to upgrade its data
processing  systems to address  the change to the year 2000.  Because all of the
Corporation's  data  processing  and  computer  software is provided by outside,
third parties, the Corporation cannot, at this time,  accurately quantify all of
the costs that might be recognized  directly or  indirectly by the  Corporation.
The Corporation does not believe that these costs will have a material effect on
its financial position or results of operation.

Provision  for Income  Taxes.  The effective tax rate for the three months ended
December 31, 1997 and 1996 was 32.86% and 34.02%, respectively.

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

Capital Compliance.  The following table presents the Bank's compliance with its
regulatory capital requirements of December 31, 1997.

<TABLE>
<CAPTION>
                                                                 At December 31, 1997
                                                            -------------------------------
                                                                                 Percentage
                                                             Amount              of Assets
                                                             ------              ---------
                                                                (Dollars in Thousands)

<S>                                                          <C>                   <C>   
GAAP Capital......................................           $11,060               19.74%



Tangible capital..................................           $11,008               18.41%

Tangible capital requirement......................               896                1.50%
                                                             -------              ------

Excess............................................           $10,112               16.91%
                                                              ======               =====



Core capital......................................           $11,008               18.41%

Core capital requirements.........................             1,792                3.00%
                                                              ------               -----

Excess............................................           $ 9,216               15.41%
                                                              ======               =====



Total risk-based capital (1)......................           $11,274               46.36%

Total risk-based capital requirement (1)..........             1,945                8.00%
                                                              ------                ----

Excess (1)........................................           $ 9,329               38.36%
                                                              ======               =====
</TABLE>

------------
(1)      Based on risk-weighted assets of $24,316.

                                      - 10 -

<PAGE>




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.  Increased borrowings were necessary to meet the increased
loan demand.

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 most of its operations internally but supplements with
borrowed funds from the FHLB of Seattle.  As of December 31, 1997, such borrowed
funds totaled $15.45 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  11.17%  and 21.84% at  December  31,  1997 and 1996,
respectively.

The amount of  certificate  accounts  which are  scheduled to mature  during the
twelve months ending December 31, 1997 is approximately  $12.31 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 December 31, 1997,  the Bank had loan  commitments  outstanding  of $474,000.
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.


                                     - 11 -

<PAGE>






KEY OPERATING RATIOS
--------------------



                                                       Three Months Ended
                                                           December 31,
                                                 -------------------------------
                                                  1997 (1)              1996 (1)
                                                  --------              --------
                                                     (Dollars in Thousands,
                                                     except per share data)
                                                           (Unaudited)



Return on average assets........................    1.26%                1.23%

Return on average equity........................    5.31%                4.12%

Interest rate spread............................    2.22%                2.42%

Net interest margin.............................    3.49%                3.93%

Noninterest expense to average assets...........    1.70%                2.11%

Net charge-offs to average outstanding loans....   (0.13)%               0.04%


<TABLE>
<CAPTION>
                                                             At                     At
                                                        December 31,          September 30,
                                                            1997                   1996
                                                        ------------          -------------

<S>                                                      <C>                    <C>
Nonaccrual and 90 days past due loans................         112                    225

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

  Total nonperforming assets.........................         112                    225

Allowance for credit losses to nonperforming assets..      237.50%                134.22%

Nonperforming loans to total loans...................        0.18%                  0.38%

Nonperforming assets to total assets.................        0.39%                  0.79%

Book value per share (2).............................      $15.04                 $14.88

</TABLE>

----------------
(1)      The ratios for the three-month periods are annualized.
(2)      The number of shares outstanding as of December 31, 1997 was 954,875.
         This includes shares purchased by the ESOP.

                                     - 12 -

<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 December 31,  1997.  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
          ---------------------------------------------------

          None.

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

          Not applicable.


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

          (a)  Exhibits

               Exhibit 27 - Financial Disclosure Schedule 
                            (in electronic form only).

          (b)  Reports on Form 8-K

               None.




                                     - 13 -

<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: February 3, 1998     By: /s/Deane D. Bjerke
                               -------------------------------------------------
                               Deane D. Bjerke
                               President and
                               Chief Executive Officer
                               (Principal Executive Officer)


Date: February 3, 1998     By: /s/Dalen C. Slater
                               -------------------------------------------------
                               Dalen C. Slater
                               Senior Vice President and Chief Financial Officer
                               (Principal Accounting and Financial Officer)