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 March 31, 2001
                                                 --------------

                                       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 May 14, 2001: 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............................. 8

     Signatures............................................................. 9



<PAGE>
                             Ridgewood Financial Inc
                 Consolidated Statements of Financial Condition
                        (In Thousands, Except Share Date)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                               March 31,  December 31,
                                                                                 2001        2000
                                                                                 ----        ----
<S>                                                                          <C>         <C>
                                   Assets
Cash and due from banks                                                        $ 23,167    $  2,454
Federal funds sold                                                                2,100      14,800
                                                                               --------    --------
     Cash and cash equivalents                                                   25,267      17,254

Investment securities:
     Held to maturity (fair values approximates $564 and $624 at
         March 31, 2001 and December 31, 2000, respectively)                        537         616
     Available for sale                                                          39,411      39,607
Mortgage-backed securities:
     Held to maturity (fair values approximates $14,634 and $15,031 at
         March 31, 2001 and December 31, 2000, respectively)                     14,334      14,896
     Available for sale                                                          16,064      17,055
Loans Receivable, net of allowance for loan losses of $1,016 and $1,001 at
     March 31, 2001 and December 31, 2000, respectively                         185,565     184,614
Accrued interest receivable                                                       1,699       1,756
Premise and equipment, net                                                        8,561       8,662
Federal Home Loan Bank stock, at cost                                             2,622       2,622
Other assets                                                                        675         895
                                                                               --------    --------
                                Total Assets                                   $294,735    $287,977
                                                                               ========    ========

                    Liabilities and Shareholders' Equity
Liabilities:
Deposits
     Interest bearing                                                          $236,430    $225,662
     Non-interest bearing                                                         4,439       5,789
                                                                               --------    --------
          Total deposits                                                        240,869     231,451

Borrowed funds                                                                   25,875      28,906
Advances from borrowers for tax and insurance                                     1,356       1,327
Accounts payable and other liabilities                                              887         930
                                                                               --------    --------

                              Total liabilities                                 268,987     262,614
                                                                               --------    --------
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 2001 and 2000                       318         318
Additional paid-in-capital                                                        9,475       9,446
Retained earnings                                                                16,647      16,796
Unallocated common stock held by employee stock ownership plan                     (786)       (811)
Accumulated other comprehensive income (loss)                                        94        (386)
                                                                               --------    --------
                         Total shareholders' equity                              25,748      25,363
                                                                               --------    --------

                 Total liabilities and shareholders' equity                    $294,735    $287,977
                                                                               ========    ========
</TABLE>
                                       1
<PAGE>
                            Ridgewood Financial, Inc.
                      Consolidated Statements of Operations
                        (In Thousands, Except Share Date)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                           Three Months Ended
                                                                 March 31,
                                                      ------------------------
                                                            2001          2000
<S>                                                 <C>           <C>
Interest income:
Loans receivable                                      $    3,364     $   3,025
Investment securities held to maturity                         8             8
Investment securities available for sale
     Taxable                                                 220           252
     Tax-exempt                                              285           285
Mortgage-backed securities held to maturity                  258           285
Mortgage-backed securities available for sale                279           432
Interest on federal funds sold and other short-term
     investments and dividends on FHLB stock                 310           158
                                                      ----------    ----------
                    Total interest income                  4,724         4,445
                                                      ----------    ----------

Interest expense:
Deposits                                                   3,022         2,292
Borrowed funds                                               390           674
                                                      ----------    ----------
                   Total interest expense                  3,412         2,966
                                                      ----------    ----------

          Net interest income before provision
                       for loan losses                     1,312         1,479

Provision for loan losses                                     15            22
                                                      ----------    ----------
                     Net interest income                   1,297         1,457
                                                      ----------    ----------
Non-interest income:
Fees and service charges                                      53            40
Gain on sale of securities                                    13             -
Other                                                          -             4
                                                      ----------    ----------
                     Total non-interest income                66            44
                                                      ----------    ----------
Non-interest expenses:
Salaries and benefits                                        685           632
Occupancy and equipment                                      407           307
Advertising and promotion                                     20            25
SAIF deposit insurance premium                                11            10
Merger expenses                                              133             -
Other expenses                                               174           176
                                                      ----------    ----------
                  Total non-interest expense               1,430         1,150
                                                      ----------    ----------
               (Loss) income before income taxes             (67)          351

Income taxes (benefit) expense                               (41)           50
                                                      ----------    ----------
                   Net (loss) income                         (26)          301
                                                      ==========    ==========

Earnings per common share:
     Basic                                                 (0.01)         0.10
     Diluted                                               (0.01)         0.10
                                                      ==========    ==========

Weighted average shares outstanding:
     Basic                                             3,085,504     3,073,564
     Diluted                                           3,085,504     3,073,564
                                                      ----------    ----------

</TABLE>
                                       2
<PAGE>

                                      Ridgewood Financial Inc.
                                 Consolidated Statements of Cash Flows
                                     (In thousands) (Unaudited)
<TABLE>
<CAPTION>
                                                                             For the Three Months Ended
                                                                                      March 31
                                                                           ------------------------------
                                                                               2001             2000
                                                                           -------------    -------------
<S>                                                                            <C>            <C>
Cash flows from operating activities:
    Net (loss) income                                                               (26)             301
    Adjustments to reconcile net income to net cash
      provided by operating activities:
       Depreciation                                                                 107               48
       Amortization of loan fees                                                    (16)             (24)
       Premiums and discounts on mortgage-backed
         and investment securities                                                   (5)              83
       Gain on sale of securities available for sale                                (14)               -
       Provision for loan losses                                                     15               22
       Increase in deferred taxes                                                   413              160
       Increase in accrued interest receivable                                       57               47
       Increase in other assets, net                                               (463)            (128)
       (Decrease) increase in other liabilities                                     (43)             404
                                                                           -------------    -------------
            Net cash provided by operating activities                                25              913
                                                                           -------------    -------------

Cash flows from investing activities:
    Net increase in first mortgage loans                                           (931)          (5,823)
    Purchases of mortgage-backed securities available for sale                        -            1,909
    Principle collected on mortgage-backed securities                               506                -
    Proceeds from sales of mortgage-backed securities available for sale          1,000                -
    Maturities and call of investments available for sale                         1,003            2,000
    Principal  collected on investment securities                                    73               23
    Purchases of premises and equipment                                              (6)            (954)
    Proceeds from collection of loan fees                                             1                1
    Allocation of employee stock ownership shares                                    53               22
                                                                           -------------    -------------

            Net cash provided by (used in) investing activities                   1,699           (2,822)
                                                                           -------------    -------------

Cash flows from financing activities:
    Net increase in deposits                                                      9,418            2,305
    Repayment of borrowed funds                                                  (3,031)          (2,030)
    Net increase in advances from borrowers for
       taxes and insurance                                                           29               47
    Dividends Paid                                                                 (127)            (127)
                                                                           -------------    -------------

            Net cash provided by financing activities                             6,289              195
                                                                           -------------    -------------
            Net increase (decrease) in cash and cash equivalents                  8,013           (1,714)

Cash and cash equivalents at beginning of year                                   17,254           10,453
                                                                           -------------    -------------
Cash and cash equivalents at end of year                                         25,267            8,739
                                                                           =============    =============

Supplemental disclosures of cash flow information-cash
    payments for:
       Interest on deposits and borrowed funds                                    3,562            2,974
       Income taxes                                                                  63                5

</TABLE>

                                       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 month period ended March 31, 2001,  include the accounts of
Ridgewood  Savings  Bank of New Jersey (the  "Bank"),  which is the wholly owned
subsidiary of Ridgewood  Financial,  Inc. (the  "Company" or  "Ridgewood").  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, 2000.

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

<TABLE>
<CAPTION>
                                                                                    Three Months
                                                                           --------------------------
                                                                               3/31/2001   3/31/2000
                                                                           -------------- -----------
<S>                                                                               <C>         <C>
Comprehensive income
     Net (loss) income                                                             $(26)       $301
                                                                                   ----        ----
     Other comprehensive income - unrealized holding losses on
        securities arising during the period                                        488          61
     Less reclassification adjustment for gains in net income                        (8)          -
                                                                                   ----        ----
                                                                                    480          61
                                                                                   ----        ----
              Total comprehensive income                                           $454        $362
                                                                                   ====        ====

</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  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 March 31, 2001, net (loss) totaled  $26,000,
or a loss of $.01 per diluted share, compared to net income of $301,000, or $.10
per diluted share,  for the  comparative  2000 period.  Lower net income for the
three-month  period ended March 31, 2001 was primarily the result of a lower net
interest margin and increases in operating expenses,  which included $133,000 of
non-recurring merger related expenses.

         In  regard to the  pending  merger  transaction  with  Boiling  Springs
Bancorp  ("Boiling  Springs"),  Boiling  Springs  received  regulatory  approval
regarding the pending regulatory  applications filed with the banking regulators
on March 30, 2001 and April 23, 2001,  respectively.  It is anticipated that the
Boiling Springs merger will close by the end of the second quarter of year 2001.


CHANGES IN FINANCIAL CONDITION

         At March 31,  2001,  total  assets  increased  $6.7  million  to $294.7
million from $288.0  million at December 31, 2000.  The increase in total assets
at March  31,2001 is primarily due to a net increase of $8.0 million in cash and
cash equivalents.

         Total  liabilities  at March 31, 2001  increased $6.4 million to $269.0
million from $262.6  million at December 31, 2000. Of such increase at March 31,
2001,  interest  bearing  deposits  increased $10.7 million which were offset by
repayments of $3.0 million in borrowed funds.  The increase in interest  bearing
deposits was primarily due to the growth in certificates of deposits.

         Total shareholders' equity increased $385,000 to $25.7 million at March
31, 2001 from $25.3 million at December 31, 2000. Such increase in shareholders'
equity was primarily due

                                       5
<PAGE>

to an increase of $480,000 in accumulated other comprehensive  income, offset by
a decrease  in  retained  earnings  consisting  of a net loss of $26,000 and the
quarterly dividend payment of $124,000.  Because of interest rate volatility and
accumulated  other  comprehensive  loss,  stockholder's  equity could materially
fluctuate for each interim period and year-end period.

RESULTS OF OPERATIONS

         Net Interest  Income.  Net interest  income  before  provision for loan
losses  for the  three-  month  period  ended  March 31,  2001 was $1.3  million
compared to $1.5 million for the same  three-month  period ended March 31, 2000.
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,  decreased 36 basis points to 1.84% for the three
months  ended  March 31,  2001,  as  compared  to 2.20% for the same three month
period in 2000. The decrease in interest rate spread for the current three-month
period was  primarily  the result of  increases  in the average cost of interest
bearing liabilities, specifically certificates of deposits and borrowings.

         Interest  Income.  Interest  income on a tax  equivalent  basis for the
three months ended March 31, 2001  increased  $279,000 to $4.9 million from $4.6
million for the same period in 2000.  The increase was  primarily  due to higher
average  balances in loans  receivable,  net and other  interest-earning  assets
offset by a decrease in the average balance of securities available for sale and
held to maturity.

         Interest  income on loans  receivable,  net increased  $339,000 to $3.4
million for the three  months  ended March 31,  2001,  from $3.0 million for the
same three month period in 2000. The increase was due to a rise of $16.0 million
in the average balance of loans  receivable  resulting from  originations of new
loans in excess of prepayments and amortization.  In addition, the average yield
for the current three month period increased 18 basis points to 7.39% from 7.21%
for the same  three  months  one year ago.  Interest  income on other  interest-
earning assets increased  $152,000 to $310,000 due to an increase in the average
balance of $11.1 million,  offset by a decline of 41 basis points in the average
yield as compared to same period of one year ago.  Further,  interest  income on
held to maturity and available for sale securities decreased a total of $212,000
as their average balance declined $2.7 and 11.0 million,  respectively  compared
to the three months ended March 31, 2000.

         Interest  Expense.  Total  interest  expense for the three months ended
March 31, 2001 increased $446,000,  to $3.4 million compared to $3.0 million for
the same period in fiscal 2000.  The increase in interest  expense was primarily
related to increases in the average balances of certificates of deposits coupled
with an increase in average  cost of funds for the current  three-month  period.
The continued  rise in short term interest rates during the second half of 2000,
forced the Company to reprice  deposits,  primarily  certificates of deposits at
much higher rates and incur higher  interest rates for borrowed  funds.  Average
certificates  of deposits  for the current  three-month  period  totaled  $181.7
million,  compared to $145.9 million for the same period in 2000.  Average costs
of funds  for  certificates  of  deposits  for the  current  three-month  period
increased  73 basis  points to 6.04% from  5.31%,  for the same year ago period.
Average  borrowed funds for the current  three-month  period ended totaled $27.0
million  compared  to $48.1  million for the same three  months  ended March 31,
2000.  Average costs of funds on borrowings for the current  three-month  period
increased 21 basis points, to 5.85% from 5.64%.

                                       6
<PAGE>

         Provision  for Loan  Losses.  The  provision  for loan  losses  for the
three-month period ended March 31, 2001 was $15,000 compared to $22,000, for the
same periods in fiscal 2000.  Management  continually  evaluates the adequacy of
the   allowance   for  loan   losses,   which   encompasses   the  overall  risk
characteristics of the various portfolio segments,  past 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 months
ended March 31,  2001 was $1.4  million  compared  to $1.2  million for the same
period in fiscal 2000. The most significant  increases in non-interest  expenses
for the current three-month period were primarily  attributable to non-recurring
merger  related  expense of $133,000.  Additionally,  for the three months ended
March 31, 2001,  salaries  and  benefits  increased  $53,000 and  occupancy  and
equipment increased $100,000 compared to the same 2000 period. Such increases in
these  expenses  were  primarily  due to the  May 1,  2000  opening  of the  new
headquarters and branch.

         Income  Taxes.  For the three months ended March 31, 2001,  the Company
recognized  an income tax  (benefit)  of  $(41,000)  as opposed to an income tax
expense  of  $50,000  for the same  three-month  period in 2000.  The income tax
(benefit) was primarily related to the net loss of $26,000 and tax exempt income
which was offset by $133,000 of non - deductible merger related expenses.



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

                   None

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

                   Not applicable.

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

         (a) 2     Agreement and Plan of Merger between the Company and Boiling
                     Springs, Bancorp, Inc.*
             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**

             *  Incorporated by reference to the definitive proxy statement on
                Schedule 14A (DEFA 14A) filed with the Commission on December
                15, 2000.
             ** Incorporated by reference to the identically numbered exhibits
                of the Registrant's Form SB-2 (333- 62363).

         (b) None


                                       8
<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: May 14, 2001               By:      /s/Susan E. Naruk
                                          --------------------------------------
                                          Susan E. Naruk
                                          President and Chief Executive Officer
                                          (Principal Executive Officer)
                                          (Duly Authorized Officer)



Date: May 14, 2001               By:      /s/John Scognamiglio
                                          --------------------------------------
                                          John Scognamiglio
                                          Senior Vice President and
                                          Chief Financial Officer
                                          (Principal Financial Officer and Chief Accounting Officer)
</TABLE>



                                        9