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, 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 May 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 Operation........................5-6

PART II - OTHER INFORMATION

         Item 1.   Legal Proceedings.........................................  7

         Item 2.   Changes in Securities and Use of Proceeds.................  7

         Item 3.   Defaults upon Senior Securities...........................  7

         Item 4.   Submission of Matters to a Vote of Security Holders.......  7

         Item 5.   Other Information.........................................  7

         Item 6.   Exhibits and Reports on Form 8-K..........................  7

         Signatures..........................................................  8


<PAGE>
                                 Ridgewood Financial, Inc.
                      Consolidated Statements of Financial Condition
                                      March 31, 2000
                           (In Thousands, Except Per Share Data)

<TABLE>
<CAPTION>

                                                                      03/31/2000   12/31/1999
                                                                      ----------  -----------
                                                                     (Unaudited)
<S>                                                                 <C>         <C>
                           Assets
Cash and due from banks                                                  4,939       6,553
Federal funds sold                                                       3,800       3,900
                                                                      --------    --------
     Cash and cash equivalents                                           8,739      10,453

Investment securities:
     Held to maturity (fair values approximates $824 and $847 at           826         860
         March 31, 2000 and December 31, 1999, respectively)
     Available for sale                                                 37,665      39,476
Mortgage-backed securities:
     Held to maturity (fair values approximates $16,417 and $17,088     16,735      17,340
       at March 31, 2000 and December 31, 1999, respectively)
     Available for sale                                                 26,798      28,265
Loans receivable, net of allowance for loan losses of $946 and $924
     at March 31, 2000 and December 31, 1999, respectively             173,255     167,468
Accrued interest receivable                                              1,686       1,733
Premise and equipment, net                                               8,005       7,099
Federal Home Loan Bank stock, at cost                                    2,622       2,622
Other assets                                                             1,498       1,530
                                                                      --------    --------
                        Total assets                                   277,829     276,846
                                                                      ========    ========

            Liabilities and Shareholders' Equity
Liabilities:
Deposits
     Interest bearing                                                  198,377     195,467
     Non-interest bearing                                                5,865       6,470
                                                                      --------    --------
          Total deposits                                               204,242     201,937
Borrowed funds                                                          46,648      48,678
Advances from borrowers for tax and insurance                            1,294       1,247
Accounts payable and other liabilities                                     773         369
                                                                      --------    --------
                      Total liabilities                                252,957     252,231
                                                                      --------    --------

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                                               9,420       9,428
Retained earnings                                                       17,980      17,802
Unallocated common stock held by employee stock ownership plan            (887)       (913)
Accumulated other comprehensive loss                                    (1,959)     (2,020)
                                                                      --------    --------
                 Total shareholders' equity                             24,872      24,615
                                                                      --------    --------
         Total liabilities and shareholders' equity                    277,829     276,846
                                                                      ========    ========
</TABLE>

See accompanying notes to consolidated financial statements.

                                       1
<PAGE>
                            Ridgewood Financial, Inc.
                        Consolidated Statements of Income
                For the three months ended March 31,2000 and 1999
                                   (Unaudited)
                      (In Thousands, Except Per Share Data)

                                                       03/31/2000 03/31/1999
                                                       ---------- ----------
Interest income:
Loans receivable                                          3,025       2,107
Investment securities held to maturity                        8          15
Investment securities available for sale
     Taxable                                                252          41
     Tax-exempt                                             285         245
Mortgage-backed securities held to maturity                 285         177
Mortgage-backed securities available for sale               432       1,172
Interest on federal funds sold and other short-term
     investments and dividends on FHLB stock                158         307
                                                      ---------   ---------

                    Total interest income                 4,445       4,064
                                                      ---------   ---------

Interest expense:
Deposits                                                  2,292       2,291
Borrowed funds                                              674         457
                                                      ---------   ---------
                    Total interest expense                2,966       2,748
                                                      ---------   ---------
          Net interest income before provision
                       for loan loss                      1,479       1,316
                                                      ---------   ---------

Provision for loan losses                                    22          36
                                                      ---------   ---------
                     Net interest income                  1,457       1,280
                                                      ---------   ---------
Non-interest income:
Fees and service charges                                     40          36
Other                                                         4           1
                                                      ---------   ---------
                    Total non-interest income                44          37
                                                      ---------   ---------
Non-interest expenses:
Salaries and benefits                                       632         609
Occupancy and equipment                                     307         315
Advertising and promotion                                    25          27
SAIF deposit insurance premium                               10          30
Other expenses                                              176         155
                                                      ---------   ---------
                    Total non-interest expense            1,150       1,136
                                                      ---------   ---------
               Income before income taxes                   351         181

Income tax expense                                           50           -
                                                      ---------   ---------
                       Net Income                           301         181
                                                      =========   =========
Earnings per common share:
     Basic                                                 0.10        0.06
     Diluted                                               0.10        0.06
                                                      =========   =========
Weighted average shares outstanding:
     Basic                                            3,073,564   3,138,912
     Diluted                                          3,073,564   3,138,912

See accompanying notes to consolidated financial statements.

                                       2
<PAGE>
                                 Ridgewood Financial, Inc.
                           Consolidated Statements of Cash Flows
                    For the three months ended March 31, 2000 and 1999
                                        (Unaudited)
                                       (In Thousands)


<TABLE>
<CAPTION>
                                                                       03/31/2000 03/31/1999
                                                                       ---------- ----------
<S>                                                                  <C>         <C>
Cash flows from operating activities:
     Net Income                                                             301        181
     Adjustments to reconcile net income to net cash
       provided by operating activities:
        Depreciation                                                         48         57
        Amortization of loan fees                                           (24)       (67)
        Premiums and discounts on mortgage-backed
          and investment securities                                          83        400
        Provision for loan losses                                            22         36
        Increase in deferred taxes                                          160        235
        Decrease (increase) in accrued interest receivable                   47        (40)
        (Increase) decrease in other assets, net                           (128)       137
        Increase (decrease) in other liabilities                            404        (31)
                                                                        -------    -------
             Net cash provided by operating activities                      913        908
                                                                        -------    -------
Cash flows from investing activities:
     Net increase in first mortgage loans                                (5,823)    (7,472)
     Principal collected on mortgage-backed securities                    1,909     12,854
     Purchases of investment securities available for sale                    -    (15,771)
     Proceeds from sales of investment securities available for sale          -        127
     Maturities and calls of investment securities available for sale     2,000          -
     Principal collected on investment securities                            23          -
     Purchases of premises and equipment                                   (954)    (4,034)
     Proceeds from collection of loan fees                                    1         22
     Allocation of employee stock ownership shares                           22         25
                                                                        -------    -------

             Net cash used by investing activities                       (2,822)   (14,249)
                                                                        -------    -------
Cash flows from financing activities:
     Net increase (decrease) in deposits                                  2,305     (9,984)
     Proceeds from borrowed funds                                             -      4,487
     Repayment of borrowed funds                                         (2,030)         -
     Net increase in advances from borrowers for
        taxes and insurance                                                  47         87
     Decrease in IPO subscription payable                                     -    (17,809)
     Dividends Paid                                                        (127)         -
     Net proceeds from initial public offering                                -      9,751
     Purchase of employee stock ownership plan stock                          -       (601)
     Captialization of mutual holding company                                 -       (200)
                                                                        -------    -------
             Net Cash provided (used) by financing activities               195    (14,269)
                                                                        -------    -------
             Net decrease in cash and cash equivalents                   (1,714)   (27,610)

Cash and cash equivalents at beginning of year                           10,453     43,474
                                                                        -------    -------
Cash and cash equivalents at end of year                                  8,739     15,864
                                                                        =======    =======
Supplemental disclosures of cash flow information-cash payments for:
        Interest on deposits and borrowed funds                           2,974      2,782
        Income taxes                                                          5        477

</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 month  period  ended  March 31, 2000 and 1999,  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 months ended

                                                    03/31/2000    03/31/1999
                                                ---------------   -----------

Net income                                            $ 301         $ 181
Change in unrealized gain on securities
     available for sale, net of taxes                    61          (200)
                                                      -----         -----
Comprehensive income (loss)                           $ 362         $ (19)
                                                      =====         =====


                                       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 month period ended March 31, 2000,  net income  increased
$120,000  to $301,000  or$.10 per  diluted  share,  from  $181,000,  or $.06 per
diluted  share,  for the same period in 1999. In general,  higher net income for
the current year three month  period was  primarily  the result of  management's
efforts to increase net interest income.  Total non-interest  income and expense
remained  relatively  unchanged  for the  current  year  three  month  period as
compared to the same period in 1999. Effective January 1, 2000, the FDIC reduced
deposit  insurance  premiums  assessments  from an annual rate of  approximately
 .059% to an annual rate of approximately .021% on total deposits.

CHANGES IN  FINANCIAL CONDITION

     At March 31, 2000,  total  assets  remained  relatively  constant at $277.8
million from $276.8 million at December 31, 1999.  Though total assets  remained
relatively  constant at March 31,  2000,  premises  and  equipment  was the most
significant  increase.  At March 31,  2000,  premises  and  equipment  increased
approximately $910,000 to $8.01 million from $7.10 million at December 31, 1999,
as the Company continued  construction  renovations on its new branch office and
corporate  headquarters on East Ridgewood Avenue. At March 31, 2000, the Company
estimated that additional costs to complete the renovations of this new location
to be  $620,000.  The new  location  was  opened  for  business  on May 1, 2000.
Non-interest bearing deposits decreased  approximately $600,000 to $5.87 million
at March 31, 2000 from $6.47  million at December 31, 1999 as a result of normal
periodic fluctuations.

RESULTS OF OPERATIONS

     Net Interest  Income.  Net interest income before provision for loan losses
for the  three  month  period  ended  March  31,  2000  increased  approximately
$160,000,  or12.1%,  to $1.48  million  compared  to $1.32  million for the same
period in 1999. Net interest income (on a tax equivalent basis) before provision
for  loan  losses  for  the  three  month  period   March  31,  2000   increased
approximately  $190,000,  or 13.2 %, to $1.63 million  compared to $1.44 million
for the same  period 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 interest  bearing  liabilities,  increased to 2.20 % for
the three month  period  ended March 31, 2000 from 1.86 % for the same period in
1999. The improved net interest rate spread for the

                                       5
<PAGE>

current  year  period was  primarily  attributed  to the  increase  in the total
average  balance of loans  receivable,  net and the  average  costs of funds for
total  average  interest-bearing   liabilities  remaining  relatively  constant.
Competitive  pressure and higher  interest  rates paid on deposits in the future
may reduce the spread between asset yields and the cost of funds.

     Interest  Income.  Total interest income increased to $4.45 million for the
three  months  ended  March 31,  2000 from $4.06  million for the same period in
1999. Interest income on a tax equivalent basis,  increased to $4.59 million for
the three months ended March 31, 2000 from $4.19  million for the same period in
1999. The average  interest rate yield earned for total interest  earning assets
for the current year three month period was 7.01% compared to 6.68% for the same
period in 1999. The increase in total interest  income was primarily  related to
the increase in the total average balance of loans  receivable,  net offset by a
decline  in the total  average  balance  of the  securities  available  for sale
portfolio.

     Interest income on loans receivable,  net increased  approximately $920,000
to $3.03  million for the current year three month period from $2.11 million for
the same  period  in 1999.  Total  average  balances  of loan  receivables,  net
increased $58.8 million resulting from new net loan  originations  including the
purchase  of $15.2  million  in  residential  mortgage  loans in May 1999.  Such
increase in interest  income on loans was offset by a decline of 56 basis points
in the average interest rate yield. For the current year three month period, the
average  interest rate yield was 7.21%  compared to 7.77% for the same period in
1999.

     Interest  income on securities  available  for sale declined  approximately
$491,000 to $969,000 for the current year three month period from $1.46  million
for the same period in 1999. Interest income on securities available for sale on
a tax equivalent basis declined  approximately $460,000 to $1.12 million for the
current year three month period from $1.58  million for the same period in 1999.
Lower  interest  income was due to a $40.8 million  decline in the total average
balance of the  securities  for sale  portfolio.  Such  decline  in the  average
balance was related to the sale of mortgage backed  securities during July 1999.
The  average  interest  rate yield for the current  year three month  period was
6.72% compared to 5.98% for the same period in 1999.

     Interest  expense.  Total interest expense for the three month period ended
March 31, 2000  increased  approximately  $220,000 to $2.97  million  from $2.75
million for the same period in 1999.  The increase was  primarily  related to an
increase in the average  balance of borrowed  funds  totaling  $14.2  million to
$48.1  million at March 31, 2000 . Average cost of funds for borrowed  funds was
5.64% for the  current  year three month  period  compared to 5.46% for the same
period in 1999. Average cost of funds for total interest-bearing liabilities for
the  current  year three month  period was 4.81%  compared to 4.82% for the same
period in 1999.

     Provision for loan losses.  For the three months ended March 31, 2000,  the
provision  for loan loss was $22,000 as  compared to $36,000 for the  comparable
1999 period.  Non-performing  loans at March 31, 2000 were  $69,000  compared to
$133,000 at December 31, 1999. 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.


                                       6
<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
         ---------------------------------------------------

                  Not applicable.

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

                  Not applicable.

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
             March 31, 2000.


                                       7
<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.



Date:  May 12, 2000            By: /s/Susan E. Naruk
                                   ---------------------------------------------
                                   Susan E. Naruk
                                   President and Chief Executive Officer
                                   (Principal Executive Officer)
                                   (Duly Authorized Officer)



Date:  May 12, 2000            By:  /s/John Scognamiglio
                                    --------------------------------------------
                                    John Scognamiglio
                                    Senior Vice President and
                                    Chief Financial Officer
                                    (Principal Financial Officer and
                                       Chief Accounting Officer)



                                       8