SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB
(Mark One)

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

                  For the quarterly period ended June 30, 2000
                                                 -------------

                                       OR

|_|               TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                  EXCHANGE ACT OF 1934

                  For the transition period from __________ to __________.

                           Commission File No. 0-25149


                            Ridgewood Financial, Inc.
--------------------------------------------------------------------------------
        (Exact name of Small Business Issuer as Specified in Its Charter)


         New Jersey                                              22-3616280
--------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation                 (I.R.S. Employer
 or Organization)                                            Identification No.)


             1124 East Ridgewood Avenue, Ridgewood, New Jersey 07450
         ---------------------------------------------------------------
                    (Address of Principal Executive Offices)


                                 (201) 445-4000
--------------------------------------------------------------------------------
                 Issuer's Telephone Number, Including Area Code

         Check whether the issuer (1) filed all reports  required to be filed by
Section 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
                                 ------------             ------

  Number of shares of Common Stock outstanding as of August 1, 2000: 3,180,000

Transitional Small Business Disclosure Format (check one)

                             YES                       NO   X
                                 ------------             ------


<PAGE>



                            RIDGEWOOD FINANCIAL, INC.

                                    Contents
                                    --------

                                                                         Page(s)
PART I - FINANCIAL INFORMATION

     Item 1.   Consolidated Financial Statements............................1-4

     Item 2.   Management's Discussion and Analysis of Financial Condition
               and Results of Operations....................................5-7

PART II - OTHER INFORMATION

     Item 1.   Legal Proceedings............................................ 8

     Item 2.   Changes in Securities and Use of Proceeds.................... 8

     Item 3.   Defaults upon Senior Securities.............................. 8

     Item 4.   Submission of Matters to a Vote of Security Holders.......... 8

     Item 5.   Other Information............................................ 8

     Item 6.   Exhibits and Reports on Form 8-K............................. 9

     Signatures.............................................................10



<PAGE>

                             Ridgewood Financial Inc
                 Consolidated Statements of Financial Condition
                                  June 30, 2000
                        (In Thousands, Except Share Date)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                    June 30,         December 31,
                                                                                      2000               1999
                                                                                      ----               ----
<S>                                                                               <C>                <C>
                                   Assets
Cash and due from banks                                                               4,522              6,553
Federal funds sold                                                                    3,700              3,900
                                                                                   ---------         ----------
     Cash and cash equivalents                                                        8,222             10,453

Investment securities:
     Held to maturity (fair values approximate $739 and $847 at
         June 30, 2000 and December 31, 1999, respectively)                             718                860
     Available for sale                                                              37,933             39,476
Mortgage-backed securities:
     Held to maturity (fair values approximate $15,877 and $17,088 at
         June 30, 2000 and December 31, 1999, respectively)                          16,139             17,340
     Available for sale                                                              25,300             28,265
Loans receivable, net of allowance for loan losses of $967 and $924 at
     June 30, 2000 and December 31, 1999, respectively                              182,728            167,468
Accrued interest receivable                                                           1,797              1,733
Premise and equipment, net                                                            8,763              7,099
Federal Home Loan Bank stock, at cost                                                 2,622              2,622
Other assets                                                                          1,464              1,530
                                                                                   ---------         ----------
                                Total Assets                                        285,686            276,846
                                                                                   ========          =========

                    Liabilities and Shareholders' Equity
Liabilities:
Deposits
     Interest bearing                                                               201,291            195,467
     Non-interest bearing                                                             6,480              6,470
                                                                                   ---------         ----------
          Total deposits                                                            207,771            201,937

Borrowed funds                                                                       50,618             48,678
Advances from borrowers for tax and insurance                                         1,393              1,247
Accounts payable and other liabilities                                                  663                369
                                                                                   ---------         ----------

                              Total liabilities                                     260,445            252,231
                                                                                   ---------         ----------
Commitments and contingencies                                                             -                  -

Shareholders' equity:
Preferred stock, no par value.  Authorized 5,000,000 shares;
      none issued and outstanding                                                         -                  -
Common Stock, par value $.10.  Authorized 10,000,000 shares;
     3,180,000 shares issued and outstanding in 2000 and 1999                           318                318
Additional paid-in-capital                                                            9,410              9,428
Retained earnings                                                                    18,094             17,802
Unallocated common stock held by employee stock ownership plan                         (862)              (913)
Accumulated other comprehensive loss                                                 (1,719)            (2,020)
                                                                                   ---------         ----------
                         Total shareholders' equity                                  25,241             24,615
                                                                                   ---------         ----------
                 Total liabilities and shareholders' equity                         285,686            276,846
                                                                                   ========          =========
</TABLE>

See accompanying notes to consolidated financial statements.

                                      1

<PAGE>
                                 Ridgewood Financial, Inc.
                        Consolidated Statements of Income (Expense)
                             (In Thousands, Except Share Date)
                                        (Unaudited)
<TABLE>
<CAPTION>
                                                                  Three Months Ended                    Year to Date
                                                                       June 30,                            June 30,
                                                                 2000             1999              2000            1999
                                                                 ----             ----              ----            ----
<S>                                                        <C>              <C>               <C>             <C>
Interest income:
Loans receivable                                                 3,235            2,283             6,260           4,390
Investment Securities held to maturity                               9               12                17              27
Investment Securities available for sale
     Taxable                                                       232               42               484              83
     Tax-exempt                                                    284              336               569             581
Mortgage-backed securities held to maturity                        279              166               564             343
Mortgage-backed securities available for sale                      442              936               874           2,108
Interest on federal funds sold and other short-term
     investments and dividends on FHLB stock                       155              201               313             508
                                                             ---------        ---------         ---------       ---------
                    Total interest income                        4,636            3,976             9,081           8,040
                                                             ---------        ---------         ---------       ---------
Interest expense:
Deposits                                                         2,462            2,177             4,754           4,468
Borrowed funds                                                     676              576             1,350           1,033
                                                             ---------        ---------         ---------       ---------
                   Total interest expense                        3,138            2,753             6,104           5,501
                                                             ---------        ---------         ---------       ---------
          Net interest income before provision                   1,498            1,223             2,977           2,539
                       for loan loss

Provision for loan losses                                           21               36                43              72
                                                             ---------        ---------         ---------       ---------
                     Net interest income                         1,477            1,187             2,934           2,467
                                                             ---------        ---------         ---------       ---------

Non-interest income:
Fees and service charges                                            62               39               102              75
(Loss) gain on sale of securities                                    -           (1,070)                -          (1,070)
Other                                                                5                5                 9               6
                                                             ---------        ---------         ---------       ---------
      Total non-interest income                                     67           (1,026)              111            (989)
                                                             ---------        ---------         ---------       ---------
Non-interest expenses:
Salaries and benefits                                              667              566             1,299           1,175
Occupancy and equipment                                            372              295               679             610
Advertising and promotion                                           65               18                90              45
SAIF deposit insurance premium                                      11               33                21              63
Other expenses                                                     178              188               354             343
                                                             ---------        ---------         ---------       ---------
                  Total noninterest expense                      1,293            1,100             2,443           2,236
                                                             ---------        ---------         ---------       ---------
               Income before income taxes                          251             (939)              602            (758)

Income taxes expense (benefit)                                      16             (415)               66            (415)
                                                             ---------        ---------         ---------       ---------
                       Net Income (Loss)                           235             (524)              536            (343)
                                                             =========        =========         =========       =========

Earnings per common share:
     Basic                                                        0.08            (0.17)             0.17           (0.11)
     Diluted                                                      0.08            (0.17)             0.17           (0.11)
                                                             =========        =========         =========       =========

Weighted average shares outstanding:
     Basic                                                   3,076,516        3,089,872         3,075,037       3,113,803
     Diluted                                                 3,076,516        3,089,872         3,075,037       3,113,803

</TABLE>

See accompanying notes to consolidated financial statements.

                                       2
<PAGE>
                       Ridgewood Financial Inc.
                 Consolidated Statements of Cash Flows
                For the Six Months Ended June 30, 2000
                        (In Thousands) (Unaudited)
<TABLE>
<CAPTION>
                                                                                 6/30/2000            06/30/1999
                                                                                 ---------            ----------
<S>                                                                              <C>                   <C>
Cash flows from operating activities:
     Net Income                                                                      536                   (343)
     Adjustments to reconcile net income to net cash
       provided by operating activities:
        Depreciation                                                                 133                    109
        Amortization of loan fees                                                    (54)                  (104)
        Premiums and discounts on mortgage-backed
          and investment securities                                                  127                  1,827
        Provision for loan losses                                                     43                     72
        Increase in deferred taxes                                                   124                     44
        Decrease in accrued interest receivable                                      (64)                  (277)
        (Increase) decrease in other assets, net                                    (229)                   143
        Increase (decrease) in other liabilities                                     294                    (62)
                                                                                 -------                -------
             Net cash provided by operating activities                               910                  1,409
                                                                                 -------                -------

Cash flows from investing activities:
     Net increase in first mortgage loans                                        (15,261)               (15,348)
     Purchase of first mortgage loans                                                  -                (15,180)
     Principal collected on mortgage-backed securities                             4,075                 22,167
     Purchases of investment securities available for sale                             -                (15,771)
     Maturities and calls of investment securities available for sale              2,000                      -
     Principal collected on investment securities                                    123                    201
     Purchases of premises and equipment                                          (1,797)                (4,109)
     Purchases of Federal Home Loan Bank stock                                         -                   (673)
     Proceeds from collection of loan fees                                            11                     36
     Allocation of employee stock ownership shares                                    33                     48
                                                                                 -------                -------
             Net cash used in investing activities                               (10,816)               (28,629)
                                                                                 -------                -------

Cash flows from financing activities:
     Net increase (decrease) in deposits                                           5,834                (15,217)
     Proceeds from borrowed funds                                                 17,000                 19,774
     Repayment of borrowed funds                                                 (15,060)                     -
     Net increase in advances from borrowers for
        taxes and insurance                                                          146                    154
     Decrease in IPO subscription payable                                              -                (17,809)
     Dividends paid                                                                 (245)                     -
     Net proceeds from initial public offering                                         -                  9,751
     Purchase of employee stock ownership plan stock                                   -                   (968)
     Captialization of mutual holding company                                          -                   (200)
                                                                                 -------                -------
             Net cash provided by (used in) financing activities                   7,675                 (4,515)
                                                                                 -------                -------

             Net decrease in cash and cash equivalents                            (2,231)               (31,735)

Cash and cash equivalents at beginning of year                                    10,453                 43,474
                                                                                 -------                -------
Cash and cash equivalents at end of year                                           8,222                 11,739
                                                                                 =======                =======

Supplemental disclosures of cash flow information-cash
     payments for:
        Interest on deposits and borrowed funds                                    6,104                  5,532
        Income taxes                                                                 203                     48
     Non-cash transactions - writedown of securities                                   -                  1,070


</TABLE>
See accompanying notes to consolidated financial statements.

                                       3
<PAGE>

                           RIDGEWOOD FINANCIAL, INC.
                   Notes to Consolidated Financial Statements
                                  (Unaudited)

(1)      Basis of Presentation

         The  accompanying  unaudited  consolidated  financial  statements  were
prepared in accordance  with  instructions  for Form 10-QSB and therefore do not
include all disclosure necessary for a complete presentation of the consolidated
statements of financial  condition,  statements of income and statements of cash
flows in conformity with generally accepted accounting principles.  However, all
adjustments  which are, in the  opinion of  management,  necessary  for the fair
presentation of the interim  financial  statements have been included.  All such
adjustments are of a normal recurring  nature.  The  consolidated  statements of
income are not  necessarily  indicative of results which may be expected for the
entire year or any other interim period. The condensed  financial  statements as
of and for the three and six month  periods  ended June 30,  2000,  include  the
accounts of Ridgewood  Savings Bank of New Jersey (the "Bank")  which became the
wholly owned subsidiary of Ridgewood Financial,  Inc. (The "Company") on January
7, 1999. The Company's business is conducted principally through the Bank.

         Certain information and footnote  disclosures  normally included in the
financial  statements  prepared in accordance with generally accepted accounting
principles have been condensed or omitted  pursuant to the rules and regulations
of the Securities and Exchange Commission.  It is suggested that these condensed
unaudited  financial  statement be read in conjunction  with the Form 10-KSB for
the year ended December 31, 1999.

(2)      Comprehensive  income (loss) for the three and six month periods ended,
as follows:

<TABLE>
<CAPTION>
                                                 Three Months              Six Months
                                             --------------------      --------------------
                                             6/30/2000  6/30/1999      6/30/2000  6/30/1999
                                             ---------  ---------      ---------  ---------

<S>                                           <C>        <C>             <C>      <C>
Net income                                     $ 235      $  (524)        $ 536    $  (343)
Change in unrealized loss on securities
     available for sale, net of taxes            240         (600)          301       (800)
                                               -----      -------         -----    -------
Comprehensive income (loss)                    $ 475      $(1,124)        $ 837    $(1,143)
                                               =====      =======         =====    =======

</TABLE>


                                       4
<PAGE>

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

GENERAL

         Ridgewood  Financial  Inc.'s  (the  "Company")  business  is  conducted
principally  through  Ridgewood  Savings  Bank of New Jersey (the  "Bank").  All
references to the Company refer collectively to the Company and the Bank.

         The Private  Securities  Litigation  Reform Act of 1995  contains  safe
harbor  provisions  regarding  forward-looking  statements.  When  used  in this
discussion, the words believes, anticipates,  contemplates, expects, and similar
expressions are intended to identify forward-looking statements. Such statements
are subject to certain risks and uncertainties  which could cause actual results
to differ materially from those projected. Those risks and uncertainties include
changes in interest  rates,  the ability to control  costs and  expenses,  risks
associated with the effect of opening a new branch, year 2000 issues and general
economic  conditions.  Ridgewood  Financial  Inc.  undertakes  no  obligation to
publicly  release  the  results  of  any  revisions  to  those   forward-looking
statements which may be made to reflect events or  circumstances  after the date
hereof or to reflect the occurrence of unanticipated events.

OVERVIEW

         For the three months ended June 30, 2000, net income increased $759,000
to $235,000,  or $.08 per diluted share, from a net loss of $524,000,  or a loss
of $.17 per diluted share, for the comparative  1999 period.  For the six months
ended June 30,  2000,  net income  increased  $879,000  to  $536,000 or $.17 per
diluted share, from a net loss of $343,000, or a loss of $.11 per diluted share,
for the comparative  fiscal 1999 period.  In general,  higher net income for the
current  three and six month  periods was  primarily the result of the Company's
continued  efforts  to  increase  net  interest  income by  investing  in higher
yielding  interest  earning  assets.  Also,  in the  prior  three  and six month
periods,  the  Company  incurred  a net loss of $1.1  million on the sale of its
mortgaged backed securities  available for sale.  Non-interest  expenses for the
current three and six month periods increased slightly due to the opening of our
new  headquarters  and branch on May 1, 2000.  Non-interest  expenses  in future
periods may continue to increase due to  additional  costs in operating  the new
headquarters and branch.

CHANGES IN  FINANCIAL CONDITION

         At June 30, 2000, total assets increased $8.9 million to $285.7 million
from $276.8 million at December 31, 1999. Of this increase, net loans receivable
increased  $15.2 million to $182.7  million from $167.5  million at December 31,
1999.  Such  increase  was  due to a  very  strong  local  housing  economy  and
competitive pricing of loan products. In order to fund the new loan originations
at June 30, 2000, the Company used funds from cash and cash  equivalents and the
available for sale and held to maturity securities portfolios. The available for
sale and held to maturity securities portfolios declined a total of $5.9 million
from December 31, 1999 as a result of amortization and prepayments. In addition,
at June 30,  2000,  cash and cash  equivalents  decreased  $2.3  million to $8.2
million.

         Total shareholders'  equity increased $626,000 to $25.2 million at June
30, 2000  primarily  due to net income of $536,000 for the six months ended June
30, 2000 in addition to a $301,000  decrease in unrealized  losses on securities
available  for sale,  net of taxes.  Because of  interest  rate  volatility  and
accumulated  other  comprehensive  loss,  stockholder's  equity could materially
fluctuate for each interim period and year-end period.


                                       5

<PAGE>

RESULTS OF OPERATIONS

         Net Interest  Income.  Net interest  income  before  provision for loan
losses for the three  month and six month  periods  ended June 30, 2000 was $1.5
million  and $3.0  million,  respectively,  compared  to $1.2  million  and $2.5
million,  respectively,  for the same periods in 1999. Net interest income (on a
tax  equivalent  basis)  before  provision for loan losses for the three and six
month   periods  ended  June  30,  2000  was  $1.6  million  and  $3.3  million,
respectively,  compared to $1.3 million and $2.8 million for the same periods in
1999.  The  interest  rate  spread  (on a tax  equivalent  basis),  which is the
difference between the yield on average interest earning assets less the cost of
average interest bearing liabilities,  for the three and six month periods ended
June 30, 2000 were 2.27% and 2.21%,  respectively,  compared to 1.86% and 2.08%,
respectively, for the same periods in 1999. The increase in interest rate spread
for the  current  three and six month  periods  was  primarily  the result of an
increase in the average yield on interest  earning  assets offset by an increase
in average cost of funds on interest bearing liabilities.

         Interest  Income.  Interest  income on a tax  equivalent  basis for the
three and six months  ended June 30,  2000  increased  to $4.8  million and $9.4
million, respectively, from $4.0 million and $8.3 million, respectively, for the
same periods in 1999. The increase was primarily due to higher average  balances
in loans  receivable  offset by a decrease in the average  balance of securities
available for sale.

         Interest  income on loans  receivable,  net  increased  for the current
three and six months periods increased  approximately $952,000 and $1.9 million,
respectively, to $3.2 million and $6.3 million from the same period in 1999. The
increase  was due to $54.3  million  and $56.5  million  increase in the average
balance of loans receivable  resulting from  originations of new loans in excess
of prepayments  and  amortization.  The increase in the average balance of loans
was  offset by a decline  in the  average  yield for the  current  three and six
months  periods of 13 and 57 basis points,  respectively.  For the current three
and six months  periods  average  yields  were  7.32% and  7.30%,  respectively.
Decreases  in the average  yields for the current  three and six months  periods
were due to lower  interest  rates on originated  loans during the first half of
1999 and the prepayment and amortization of higher rate loans.

         Interest  Expense.  Total interest  expense for the three and six month
periods  ended June 30, 2000 was $3.1 million and $6.1 million  compared to $2.8
million and $5.5 million, respectively, for the same periods in fiscal 1999. The
increase in interest  expense for the current  three and six month  periods were
primarily  related to increases in the average balances of time deposits and the
average  balance of borrowed  funds  coupled with an increase in average cost of
funds for the current three month period.  Average time deposits for the current
three  month and six month  periods  ended  totaled  $153.1  million  and $149.5
million,   respectively   compared  to  $143.4   million  and  $146.2   million,
respectively  for the same  period  in  1999.  Average  costs of funds  for time
deposits for the current  three month period  increased 35 basis points to 5.52%
from 5.17%.

         Average  borrowed  funds  for the  current  three  month  and six month
periods ended totaled $46.6 million and $47.4 million,  respectively compared to
$43.0  million and $38.5  million,  respectively,  for the same periods in 1999.
Average cost of funds for  borrowed  funds for the current  three month  periods
increased 44 basis points to 5.82% from 5.38%.

         Provision for Loan Losses.  The provision for loan losses for the three
and six month periods  ended June 30, 2000 was $21,000 and $43,000,  compared to
$36,000  and  $72,000,  respectively,  for the  same  periods  in  fiscal  1999.
Management  continually evaluates the adequacy of the allowance for loan losses,
which  encompasses  the overall risk  characteristics  of the various  portfolio
segments,  past

                                       6

<PAGE>


experience with losses, the impact of economic conditions on borrowers and other
relevant  factors  which may come to the attention of  management.  Although the
Company  maintains its allowance for loan losses at a level that it considers to
be  adequate  to provide for the  inherent  risk of loss in its loan  portfolio,
there can be no assurance that future losses will not exceed  estimated  amounts
or that  additional  provisions  for loan  losses will not be required in future
periods.

         Non-Interest Expenses. Total non-interest expense for the three and six
month periods ended June 30, 2000 was $1.3 million and $2.4 million  compared to
$1.1  million and $2.2  million,  respectively,  for the same  periods in fiscal
1999. The most  significant  increases in non-interest  expenses for the current
three month and six month periods were  primarily  attributable  to salaries and
benefits, occupancy and equipment, and advertising and promotion. Such increases
in the  respective  expenses  for the current  three and six month  periods were
mainly  attributable  to the May 1, 2000  opening  of our new  headquarters  and
branch.






















                                       7


<PAGE>
PART II.  OTHER INFORMATION

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

                   Not applicable.

Item 2.  Changes in Securities and Use of Proceeds
         -----------------------------------------

                   Not applicable.

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

                   Not applicable.

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

                   The Annual Meeting of Shareholders of the Company was held on
                   April 24, 2000 and the following matter was voted upon:

                   Proposal 1 - Election  of  directors  with terms to expire in
                   2003. All directors were elected as follows:
<TABLE>
<CAPTION>

                <S>                                               <C>               <C>
                                                                                        WITHHELD
                                                                                           FROM
                                                                       NOMINEE          NOMINEE
                                                                       -------          -------

                   Michael W. Azzara                                  2,956,294          15,583

                   Jerome Goodman                                     2,957,294          14,583

                   Susan E. Naruk                                     2,957,294          14,583

                   Proposal  2 - To  ratify  the  appointment  of KPMG  LLP,  as
                   independent  accountants  for the Company for the fiscal year
                   December 31, 2000.

                                                                       FOR      AGAINST        ABSTAIN
                                                                       ---      -------        -------
                                                                     2,963,577   5,100          3,200

</TABLE>


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

                   Not applicable.




                                       8


<PAGE>



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

         (a) 3(i)   Certificate of Incorporation of Ridgewood Financial, Inc.*
             3(ii)  Bylaws of Ridgewood Financial, Inc.*
             10.1   Amended Form of Employment  Agreement with Susan E. Naruk*
             10.2   Amended Form of Employment Agreement with Nelson Fiordalisi*
             10.5   Supplemental  Executive  Retirement Plan*
             27     Financial Data Schedule (electronic data filing only)

             *  Incorporated by reference to the identically numbered exhibits
                of the Registrant's Form SB-2 (333- 62363).

         (b) No reports on Form 8-K were filed during the quarter ended June 30,
             2000.
























                                       9

<PAGE>


                                   SIGNATURES


         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                   RIDGEWOOD FINANCIAL, INC.

<TABLE>
<CAPTION>



<S>                                      <C>

Date: August 8, 2000             By:      /s/ Susan E. Naruk
                                          ------------------
                                          Susan E. Naruk
                                          President and Chief Executive Officer
                                          (Principal Executive Officer)
                                          (Duly Authorized Officer)



Date: August 8, 2000             By:      /s/ John Scognamiglio
                                          ---------------------
                                          John Scognamiglio
                                          Senior Vice President and
                                          Chief Financial Officer
                                          (Principal Financial Officer and Chief Accounting Officer)
</TABLE>

















                                       10