SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-Q

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

                For the Quarterly Period Ended December 31, 2001

                                       OR

[  ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

                         Commission File Number: 0-26556

                           KLAMATH FIRST BANCORP, INC.
             (Exact name of registrant as specified in its charter)

                     Oregon                                      93-1180440
---------------------------------------------------         -------------------
(State or other jurisdiction of incorporation                 (I.R.S. Employer
or organization)                                                I.D. Number)

540 Main Street, Klamath Falls, Oregon                             97601
---------------------------------------------------         -------------------
 (Address of principal executive offices)                       (Zip Code)

Registrant's telephone number, including area code:           (541) 882-3444
---------------------------------------------------         -------------------

Securities registered pursuant to
  Section 12 (b) of the Act:                                       None
---------------------------------                           -------------------

Securities registered pursuant to
  Section 12 (g) of the Act:             Common Stock, par value $.01 per share
---------------------------------        --------------------------------------
                                                      (Title of Class)


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 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 .

As of January 29, 2002,  there were issued  7,060,667 shares of the Registrant's
Common Stock.  The Registrant's  voting common stock is traded  over-the-counter
and is listed on the Nasdaq National Market under the symbol "KFBI."
<PAGE>


                   KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY

                                TABLE OF CONTENTS

                         Part I. Financial Information
-------  ----------------------
Item 1.  Financial Statements                                              Page
                                                                           ----
         Consolidated Balance Sheets
         (As of December 31, 2001 and September 30, 2001)                     3

         Consolidated Statements of Earnings (For the three months
         ended December 31, 2001 and 2000)                                    4

         Consolidated Statements of Shareholders' Equity
         (For the year ended September 30, 2001 and for
         the three months ended December 31, 2001)                            5

         Consolidated Statements of Cash Flows (For the three
         months ended December 31, 2001 and 2000)                         6 - 7

         Notes to Consolidated Financial Statements                      8 - 11

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                            12 - 16

Part II. Other Information
-------- -------------------

Item 1.  Legal Proceedings                                                   17

Item 2.  Changes in Securities                                               17

Item 3.  Defaults Upon Senior Securities                                     17

Item 4.  Submission of Matters to a Vote of Security Holders                 17

Item 5.  Other Information                                                   17

Item 6.  Exhibits and Reports on Form 8-K                                    17

Signatures                                                                   18











                                        2
<PAGE>
<TABLE>
<CAPTION>

                   KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                 AS OF DECEMBER 31, 2001 AND SEPTEMBER 30, 2001
                                   (Unaudited)



                                                                        December 31, 2001                    September 30, 2001
                                                                        -----------------                    ------------------
ASSETS
<S>                                                                       <C>                                   <C>
Cash and due from banks                                                       $38,167,131                           $40,446,042
Interest bearing deposits with banks                                            3,637,014                             3,791,252
Federal funds sold and securities purchased under agreements to resell            280,701                            74,151,272
                                                                        -----------------                    ------------------
   Total cash and cash equivalents                                             42,084,846                           118,388,566


Investment securities available for sale, at fair value
  (amortized cost: $160,091,320 and $154,190,612)                             156,675,158                           154,675,760
Investment securities held to maturity, at amortized cost (fair
  value: $593,824 and $594,429)                                                   592,245                               592,388
Mortgage backed and related securities available for sale, at fair
  value (amortized cost: $495,855,883 and $419,639,650)                       495,937,565                           421,637,670
Mortgage backed and related securities held to maturity, at amortized
  cost (fair value: $1,451,999 and $1,642,174)                                  1,434,104                             1,620,612
Loans receivable, net                                                         671,143,803                           679,990,308
Real estate owned and repossessed assets                                          462,947                               445,855
Premises and equipment, net                                                    21,505,084                            16,911,912
Stock in Federal Home Loan Bank of Seattle, at cost                            12,922,000                            12,698,000
Accrued interest receivable                                                     8,906,843                             8,657,586
Deferred federal and state income taxes                                           696,950                                    --
Core deposit intangible and other intangible assets                            44,205,459                            44,088,926
Other assets                                                                    4,392,781                             8,864,227
                                                                        -----------------                    ------------------
   Total assets                                                            $1,460,959,785                        $1,468,571,810
                                                                        =================                    ==================

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
  Deposit liabilities                                                      $1,155,990,942                        $1,152,824,144
  Accrued interest on deposit liabilities                                       1,129,395                             1,574,606
  Advances from borrowers for taxes and insurance                                 663,358                             6,637,994
  Advances from Federal Home Loan Bank of Seattle                             170,425,000                           168,000,000
  Short term borrowings                                                         1,700,000                             1,700,000
  Accrued interest on borrowings                                                  818,177                               801,743
  Pension liabilities                                                             974,797                               942,148
  Deferred federal and state income taxes                                              --                               597,345
  Other liabilities                                                             5,339,877                             6,799,241
                                                                        -----------------                    ------------------
    Total liabilities                                                       1,337,041,546                         1,339,877,221
                                                                        -----------------                    ------------------
Mandatorily redeemable preferred securities issued by subsidiary               14,565,079                            14,553,684

   Commitments and contingencies

SHAREHOLDERS' EQUITY

  Preferred stock, $.01 par value, 500,000 shares authorized; none issued              --                                    --
  Common stock, $.01 par value, 35,000,000 shares authorized,
   December 31, 2001 - 7,060,667 issued, 6,341,663 outstanding
   September 30, 2001 - 7,366,226 issued, 6,561,461 outstanding                    68,287                                70,607
  Additional paid-in capital                                                   30,947,930                            33,926,796
  Retained earnings-substantially restricted                                   83,800,564                            83,816,307
  Unearned shares issued to ESOP                                               (3,668,915)                           (3,913,510)
  Unearned shares issued to MRDP                                               (1,222,527)                           (1,298,859)
  Accumulated other comprehensive income (loss)                                  (572,179)                            1,539,564
                                                                        -----------------                    ------------------
    Total shareholders' equity                                                109,353,160                           114,140,905
                                                                        -----------------                    ------------------
 Total liabilities and shareholders' equity                                $1,460,959,785                        $1,468,571,810
                                                                        =================                    ==================

<FN>
      See notes to consolidated financial statements.
</FN>
</TABLE>
                                                             3
<PAGE>
<TABLE>
<CAPTION>

                                         KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                                             CONSOLIDATED STATEMENTS OF EARNINGS
                                                         (Unaudited)





                                                                  Three Months Ended                         Three Months Ended
                                                                        December 31,                               December 31,
                                                                                2001                                       2000
                                                                      --------------                             --------------
INTEREST INCOME
<S>                                                                      <C>                                        <C>
  Loans receivable                                                       $13,959,972                                $14,244,031
  Mortgage backed and related securities                                   6,583,010                                  1,236,056
  Investment securities                                                    2,167,245                                  2,046,535
  Federal funds sold and securities purchased
    agreements to resell                                                     221,440                                    185,063
  Interest bearing deposits                                                   63,232                                    104,664
                                                                      --------------                             --------------
    Total interest income                                                 22,994,899                                 17,816,349
                                                                      --------------                             --------------

INTEREST EXPENSE
  Deposit liabilities                                                      9,247,378                                  7,603,335
  Advances from FHLB of Seattle                                            2,430,408                                  2,609,469
  Other                                                                       41,268                                    125,417
                                                                      --------------                             --------------
    Total interest expense                                                11,719,054                                 10,338,221
                                                                      --------------                             --------------
    Net interest income                                                   11,275,845                                  7,478,128

Provision for loan losses                                                    153,000                                    228,000
                                                                      --------------                             --------------
    Net interest income after provision for
      loan losses                                                         11,122,845                                  7,250,128
                                                                      --------------                             --------------

NON-INTEREST INCOME
  Fees and service charges                                                 1,802,872                                    870,656
  Gain on sale of investments                                                     --                                      7,918
  Gain on sale of real estate owned                                            8,019                                     14,491
  Other income                                                               470,682                                    220,415

                                                                      --------------                             --------------
    Total non-interest income                                              2,281,573                                  1,113,480
                                                                      --------------                             --------------
NON-INTEREST EXPENSE
  Compensation, employee benefits and related expense                      5,375,511                                  2,908,944
  Occupancy expense                                                        1,205,745                                    581,392
  Data processing expense                                                    373,088                                    231,024
  Insurance premium expense                                                   32,275                                     34,792
  Loss on sale of investments                                                     --                                     30,632
  Amortization of core deposit intangible and other intangible assets      1,378,135                                    413,169
  Other expense                                                            3,764,648                                  1,582,733
                                                                      --------------                             --------------
    Total non-interest expense                                            12,129,402                                  5,782,686
                                                                      --------------                             --------------

Earnings before income taxes                                               1,275,016                                  2,580,922

Provision for income taxes                                                   453,907                                    895,877
                                                                      --------------                             --------------

Net earnings                                                               $ 821,109                                 $1,685,045
                                                                           =========                                  =========

Earnings per common share - basic                                              $0.13                                      $0.25
Earnings per common share - diluted                                            $0.13                                      $0.25
Weighted average common shares outstanding - basic                         6,473,649                                  6,652,096
Weighted average common shares outstanding - with dilution                 6,483,860                                  6,653,266
<FN>


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

                                                             4
<PAGE>
<TABLE>
<CAPTION>
                                         KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                                       CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                     FOR THE YEAR ENDED SEPTEMBER 30, 2001 AND THE THREE MONTHS ENDED DECEMBER 31, 2001
                                                         (Unaudited)


                                                                                Unearned     Unearned
                                  Common   Common   Additional                    shares       shares           Other         Total
                                   stock    stock      paid-in     Retained       issued       issued   comprehensive  shareholders'
                                  shares   amount      capital     earnings      to ESOP      to MRDP   income (loss)        equity
                               ---------  -------  -----------  -----------    ----------    ----------  ------------   -----------
<S>                            <C>        <C>      <C>          <C>          <C>           <C>            <C>          <C>
Balance at October 1, 2000     6,692,428  $73,662  $37,701,796  $79,713,255  ($4,893,250)  ($2,498,378)   ($1,372,524) $108,724,561

Cash dividends                        --       --           --   (3,467,950)          --            --             --    (3,467,950)

Stock repurchased and
   retired                      (550,221)  (5,502)  (7,393,921)          --           --            --             --    (7,399,423)

ESOP contribution                 97,974       --      396,471           --      979,740            --             --     1,376,211

MRDP contribution                 76,618       --       13,708           --           --     1,199,519             --     1,213,227

Exercise of stock options        244,662    2,447    3,208,742           --           --            --             --     3,211,189
                               ---------  -------  -----------  -----------    ----------    ----------  ------------   -----------
                               6,561,461   70,607   33,926,796   76,245,305   (3,913,510)   (1,298,859)    (1,372,524)  103,657,815

Comprehensive income
   Net earnings                                                   7,571,002                                               7,571,002
   Other comprehensive
      income:
        Unrealized gain
        on securities,
        net of tax and
        reclassification
        adjustment   (1)                                                                                    2,912,088     2,912,088
                                                                                                                        -----------
   Total comprehensive income                                                                                            10,483,090
                               ---------  -------  -----------  -----------    ----------    ----------  ------------   -----------
Balance at September 30, 2001  6,561,461   70,607   33,926,796   83,816,307   (3,913,510)   (1,298,859)     1,539,564   114,140,905

Cash dividends                        --       --           --     (836,852)          --            --             --      (836,852)

Stock repurchased and retired   (232,000)  (2,320)  (3,054,530)          --           --            --             --    (3,056,850)

ESOP contribution                     --       --       72,237           --      244,595            --             --       316,832

MRDP contribution                 12,202       --        3,427           --           --        76,332             --        79,759
                               ---------  -------  -----------  -----------    ----------    ----------  ------------   -----------
                               6,341,663   68,287   30,947,930   82,979,455   (3,668,915)   (1,222,527)     1,539,564   110,643,794

Comprehensive loss
     Net earnings                                                   821,109                                                 821,109
     Other comprehensive
        loss:
          Unrealized loss on
          securities, net of
          tax and
          reclassification
          adjustment   (2)                                                                                 (2,111,743)   (2,111,743)
                                                                                                                        -----------
      Total comprehensive loss                                                                                           (1,290,634)
                               ---------  -------  -----------  -----------    ----------    ----------  ------------   -----------
Balance at December 31, 2001   6,341,663  $68,287  $30,947,930  $83,800,564  ($3,668,915)  ($1,222,527)     ($572,179) $109,353,160
                               =========  =======  ===========  ===========    ==========    ==========  ============   ===========
<FN>

     (1)  Net  unrealized  holding  gain on  securities  of  $2,893,883  (net of
          $1,773,670  tax expense) less  reclassification  adjustment  for gains
          included in net earnings of $18,205 (net of $11,158 tax benefit).

     (2)  Net  unrealized  holding  loss on  securities  of  $2,111,743  (net of
          $1,294,294 tax benefit).

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

                                                                    5
<PAGE>
<TABLE>
<CAPTION>



                                               KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                                                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          FOR THE THREE MONTHS ENDED DECEMBER 31, 2001 AND 2000
                                                               (Unaudited)


                                                                           Three Months Ended                  Three Months Ended
                                                                                 December 31,                        December 31,
                                                                                         2001                                2000
                                                                               --------------                      --------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                               <C>                                 <C>
    Net earnings                                                                     $821,109                          $1,685,045

ADJUSTMENTS TO RECONCILE NET EARNINGS TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
    Depreciation and amortization                                                   1,879,032                             714,933
    Provision for loan losses                                                         153,000                             228,000
    Compensation expense related to ESOP benefit                                      316,832                             239,070
    Compensation expense related to MRDP Trust                                         79,759                             258,656
    Net amortization of premiums (discounts)  paid on
      investment and mortgage backed and related securities                           646,997                              31,837
    Increase (decrease) in deferred loan fees, net of                                  24,664                            (108,358)
      amortization
    Accretion of discounts on purchased loans                                           3,802                               2,192
    Net gain on sale of investment and mortgage
      backed and related securities                                                        --                              22,714
    Gain on sale of real estate owned and fixed assets                                 (8,019)                            (16,157)
    FHLB stock dividend                                                              (224,000)                           (194,000)
CHANGES IN ASSETS AND LIABILITIES
    Accrued interest receivable                                                      (249,257)                           (568,988)
    Other assets                                                                    2,936,778                              29,388
    Accrued interest on deposit liabilities                                          (445,211)                            126,203
    Accrued interest on borrowings                                                     16,434                              35,588
    Pension liabilities                                                                32,649                              32,649
    Other liabilities                                                              (1,350,588)                            153,019
                                                                               --------------                      --------------
Net cash provided by operating activities                                           4,633,981                           2,671,791
                                                                               --------------                      --------------
CASH FLOWS FROM INVESTING ACTIVITIES
    Principal repayments received on mortgage backed
       and related securities held to maturity                                        183,645                              87,316
    Principal repayments received on mortgage backed
       and related securities available for sale                                   19,546,625                           6,829,421
    Principal repayments received on loans                                         70,404,303                          21,253,492
    Loan originations                                                             (71,313,970)                        (24,457,738)
    Loans sold                                                                      9,511,459                           6,366,479
    Purchase of investment securities available
      for sale                                                                     (3,580,137)                        (11,532,379)
    Purchase of mortgage-backed and related securities
      available for sale                                                          (96,315,809)                                 --
    Proceeds from sale of investment securities
      available for sale                                                                   --                          10,367,746
    Proceeds from sale of real estate owned and
      premises and equipment                                                           54,173                             192,057
    Capitalized improvements to real estate owned                                          --                             (15,437)
    Purchases of premises and equipment                                            (5,054,069)                           (538,741)
                                                                               --------------                      --------------
Net cash provided by (used in) investing activities                               (76,563,780)                          8,552,216
                                                                               --------------                      --------------

</TABLE>


                                                                    6
<PAGE>
<TABLE>
<CAPTION>


                                               KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                                                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          FOR THE THREE MONTHS ENDED DECEMBER 31, 2001 AND 2000
                                                               (Unaudited)
                                                               (Continued)


                                                                           Three Months Ended                  Three Months Ended
                                                                                 December 31,                        December 31,
                                                                                         2001                                2000
                                                                               --------------                      --------------
<S>                                                                               <C>                                 <C>
CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase (decrease) in deposit
     liabilities                                                                   $3,166,798                         ($2,530,126)
    Proceeds from FHLB advances                                                    10,200,000                                  --
    Repayments of FHLB advances                                                    (7,775,000)                                 --
    Proceeds from short term borrowings                                               200,000                           2,400,000
    Repayments of short term borrowings                                              (200,000)                                 --
    Stock repurchase and retirement                                                (3,056,850)                         (1,863,650)
    Advances from borrowers for taxes and insurance                                (5,974,636)                         (9,327,332)
    Dividends paid                                                                   (934,233)                           (957,609)
                                                                               --------------                      --------------
Net cash used in financing activities                                             ( 4,373,921)                        (12,278,717)
                                                                               --------------                      --------------
Net  decrease  in cash and cash
  equivalents                                                                     (76,303,720)                         (1,054,710)

Cash and cash equivalents at beginning
  of period                                                                       118,388,566                          29,946,600
                                                                               --------------                      --------------
Cash and cash equivalents at end of period                                        $42,084,846                         $28,891,890
                                                                               ==============                      ==============
SUPPLEMENTAL SCHEDULE OF INTEREST AND
  INCOME TAXES PAID
    Interest paid                                                                 $12,147,830                         $10,176,430
    Income taxes paid                                                                 425,000                                  --

SUPPLEMENTAL SCHEDULE OF NONCASH
  INVESTING AND FINANCING ACTIVITIES
    Net unrealized gain (loss) on securities
      available for sale, net of tax                                              ($2,111,743)                         $1,206,222
    Dividends declared and accrued in other
      liabilities                                                                     905,927                             956,852
    Loans transferred to real estate owned                                             64,322                             140,712
<FN>













    See notes to consolidated financial statements
</FN>
</TABLE>



                                                                    7
<PAGE>


                   KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.       BASIS OF PRESENTATION

In the opinion of management,  the accompanying unaudited consolidated financial
statements contain all adjustments  necessary for a fair presentation of Klamath
First Bancorp,  Inc. and subsidiaries' (the "Company") financial condition as of
December 31, 2001, and September 30, 2001, and the results of its operations and
cash  flows for the three  months  ended  December  31,  2001 and 2000.  Certain
information  and note  disclosures  normally  included in  financial  statements
prepared in accordance with generally accepted  accounting  principles have been
omitted  pursuant to the rules and  regulations  of the  Securities and Exchange
Commission. It is suggested that these consolidated financial statements be read
in  conjunction  with the  consolidated  financial  statements and notes thereto
included in the Company's  Annual Report on Form 10-K. The results of operations
for the  three  months  ended  December  31,  2001 and 2000 are not  necessarily
indicative of the results which may be expected for the entire fiscal year.

2.       COMPREHENSIVE INCOME (LOSS)

For the three months ended December 31, 2001, the Company's total  comprehensive
loss was $1.3 million compared to total comprehensive income of $2.9 million for
the three months ended December 31, 2000. Total comprehensive loss for the three
months ended December 31, 2001 was comprised of net income of $821,109 and other
comprehensive loss of $2.1 million,  net of tax. Total comprehensive  income for
the three  months ended  December  31, 2000 was  comprised of net income of $1.7
million and other comprehensive income of $1.2 million, net of tax.

3.       ALLOWANCE FOR LOAN LOSSES


Activity in allowance for loan losses is summarized as follows:
<TABLE>
<CAPTION>

                                                                 Three Months Ended                          Year Ended
                                                                       December 31,                       September 30,
                                                                               2001                                2001
                                                                         ----------                          ----------
<S>                                                                      <C>                                 <C>
Balance, beginning of period                                             $7,950,681                          $4,082,265
Charge-offs                                                                 (44,230)                            (90,173)
Recoveries                                                                       --                              42,406
Additions                                                                   153,000                             387,000
Acquisitions                                                                     --                           3,761,025
Allowance reclassified with loan securitization                                  --                            (231,842)
                                                                         ----------                          ----------
Balance, end of period                                                   $8,059,451                          $7,950,681
                                                                         ==========                          ==========
<FN>

There were no impaired loans at December 31, 2001 and no specifically allocated loan loss reserves.  At
December 31, 2000, impaired loans totaled $78,376.  Specifically allocated loan loss reserves related to these
loans totaled $8,500.  The average investment in impaired loans for the three months ended December 31,
2001 and 2000 was zero and $79,717, respectively.
</FN>
</TABLE>

4.       ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings at December 31, 2001  consisted of two short term  advances  totaling
$12.4  million and five long term  advances  totaling  $158.0  million  from the
Federal Home Loan Bank of Seattle ("FHLB").  The advances are  collateralized in
aggregate  by  certain  mortgages  or deeds  of  trust,  securities  of the U.S.
Government and agencies thereof.
                                       8
<PAGE>

Scheduled maturities of advances from the FHLB were as follows:
<TABLE>
<CAPTION>


                                       December 31, 2001                                      September 30, 2001
                     -----------------------------------------------------     ------------------------------------------------
                                                Range of          Weighted                            Range of         Weighted
                                                interest           average                            interest          average
                                Amount             rates     interest rate             Amount            rates    interest rate
                     -----------------   ---------------    --------------     --------------   --------------   --------------
<S>                       <C>                <C>                     <C>         <C>               <C>                    <C>
Due within one year        $12,425,000       1.88%-2.14%             2.09%        $10,000,000            3.60%            3.60%
After five but within
ten years                  158,000,000       4.77%-7.05%             5.86%        158,000,000      4.77%-7.05%            5.86%
                        --------------                                         --------------
                          $170,425,000                                           $168,000,000
                        ==============                                         ==============
</TABLE>


5.       COMMITMENTS AND CONTINGENCIES

In the  ordinary  course  of  business,  the  Company  has  various  outstanding
commitments  and  contingencies  that  are  not  reflected  in the  accompanying
consolidated  financial statements.  In addition,  the Company is a defendant in
certain claims and legal actions arising in the ordinary course of business.  In
the opinion of management,  after consultation with legal counsel,  the ultimate
disposition  of these matters is not expected to have a material  adverse effect
on the consolidated financial condition of the Company.

6.       SHAREHOLDERS' EQUITY

On September 27, 2001,  the Company  announced a five percent  stock  repurchase
plan to be  completed  over a  twelve  month  period.  Five  percent  represents
approximately  340,800  shares.  As of  December  31,  2001,  about  68%  of the
repurchase plan was completed, at a weighted average price of $13.18.

7.       EARNINGS PER SHARE

Earnings per share ("EPS") is computed in accordance with Statement of Financial
Accounting  Standards ("SFAS") No. 128, "Earnings per Share." Shares held by the
Company's  Employee Stock Ownership Plan ("ESOP") that are committed for release
are considered  contingently issuable shares and are included in the computation
of basic EPS.  Diluted EPS is computed using the treasury  stock method,  giving
effect to potential  additional  common shares that were outstanding  during the
period. Potential dilutive common shares include shares awarded but not released
under the Company's  Management  Recognition and Development Plan ("MRDP"),  and
stock options granted under the Stock Option Plan. Following is a summary of the
effect of dilutive securities on weighted average number of shares (denominator)
for the basic and diluted EPS calculations.  There are no resulting  adjustments
to net earnings.


                                                         9
<PAGE>
<TABLE>
<CAPTION>




                                                      For the Three Months Ended

                                                     December 31,      December 31,
                                                             2001              2000
                                                    -------------      ------------
Weighted average common
<S>                                                     <C>               <C>
shares outstanding - basic                              6,473,649         6,652,096
                                                    -------------      ------------
Effect of Dilutive Securities on Number of Shares:
MRDP shares                                                     7             1,170
Stock options                                              10,204                --
                                                    -------------      ------------
Total Dilutive Securities                                  10,211             1,170
                                                    -------------      ------------
Weighted average common shares
 outstanding - with dilution                            6,483,860         6,653,266
                                                    =============      ============
<FN>

Options to purchase  779,096 shares of common stock were outstanding at December
31,  2001 but were not  included in the  computation  of diluted EPS because the
options'  exercise  prices were  greater  than the average  market  price of the
common  shares.  Additionally,  61,290 shares awarded under the MRDP but not yet
released to the individuals  were not included in the computation of diluted EPS
at December 31, 2001 because their effect would not have been dilutive.
</FN>
</TABLE>

8.       REGULATORY CAPITAL

The following table  illustrates the compliance by Klamath First Federal Savings
and Loan Association (the  "Association") with currently  applicable  regulatory
capital requirements at December 31, 2001:

<TABLE>
<CAPTION>

                                                                                               Categorized as "Well
                                                                                                Capitalized" Under
                                                                     For Capital                 Prompt Corrective
                                         Actual                Adequacy Purposes                 Action Provision
                                -------------------------  -----------------------------   ---------------------------

                                      Amount        Ratio            Amount        Ratio             Amount      Ratio
                                ------------   ----------  ----------------     --------   ----------------   --------
<S>                              <C>                <C>         <C>                 <C>         <C>              <C>
 Total Capital:                  $82,203,144        11.1%       $59,168,000         8.0%        $73,960,000      10.0%
  (To Risk Weighted Assets)
 Tier I Capital:                  74,210,572        10.0%               N/A          N/A         44,376,000       6.0%
  (To Risk Weighted Assets)
 Tier I Capital:                  74,210,572         5.3%        56,507,871         4.0%         70,634,839       5.0%
  (To Total Assets)
 Tangible Capital:                74,210,572         5.3%        21,190,452         1.5%                N/A        N/A
  (To Tangible Assets)
</TABLE>




                                                        10
<PAGE>


9.       RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In June 2001, the Financial  Accounting Standards Board ("FASB") issued SFAS No.
142, Goodwill and Other Intangible  Assets,  which is effective for fiscal years
beginning  after  December 15, 2001.  SFAS No. 142 will require that goodwill no
longer be amortized and instead be tested for impairment at least  annually.  In
addition,  the standard includes  provisions for the accounting and reporting of
certain existing  recognized  intangibles and goodwill.  Management is currently
evaluating the effect that SFAS No. 142 may have on its  consolidated  financial
statements.

In August 2001,  the FASB issued SFAS No. 144,  Accounting for the Impairment or
Disposal of Long-Lived  Assets,  which is effective  for fiscal years  beginning
after  December  15,  2001.  This  statement  supersedes  SFAS  No.  121 and the
accounting and reporting  provisions of Accounting  Principles Board Opinion No.
30 for the  disposal  of a segment  of a  business.  Management  is  currently
evaluating the effect that adoption of SFAS No. 144 may have on its consolidated
financial statements.


                                       11
<PAGE>


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

Special Note Regarding Forward-Looking Statements

Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations and other portions of this report  contain  certain  "forward-looking
statements"  concerning  the future  operations of Klamath First  Bancorp,  Inc.
Management  desires to take  advantage of the "safe  harbor"  provisions  of the
Private Securities Litigation Reform Act of 1995 and is including this statement
for the express  purpose of availing the Company of the protections of such safe
harbor  with  respect  to all  "forward-looking  statements"  contained  in this
quarterly report. We have used "forward- looking  statements" to describe future
plans  and  strategies,  including  our  expectations  of the  Company's  future
financial  results.  Management's  ability to  predict  results or the effect of
future plans or strategies is inherently  uncertain.  Factors which could affect
actual results include interest rate trends, the general economic climate in the
Company's  market  area  and the  country  as a whole  which  could  affect  the
collectibility  of loan balances,  the ability to increase  non-interest  income
through  expansion  of new lines of  business,  the  ability  of the  Company to
control costs and expenses,  the success and costs of  integration  of branches,
competitive products and pricing, loan delinquency rates, and changes in federal
and state  regulation.  These factors  should be  considered  in evaluating  the
"forward-looking  statements,"  and undue reliance  should not be placed on such
statements.

General

The  Company,  an Oregon  corporation,  is the unitary  savings and loan holding
company  for the  Association.  At  December  31,  2001,  the  Company had total
consolidated  assets of $1.5 billion and  consolidated  shareholders'  equity of
$109.4  million.  The Company is currently not engaged in any business  activity
other than holding the stock of the  Association.  Accordingly,  the information
set forth in this  report,  including  financial  statements  and related  data,
relates primarily to the Association.

The   Association  is  a  progressive,   community-oriented   savings  and  loan
association  that focuses on customer  service  within its primary  market area.
Accordingly,  the Association is primarily  engaged in attracting  deposits from
the general  public  through  its  offices  and using those and other  available
sources of funds to originate  permanent  residential  one- to four-family  real
estate  loans and loans on  commercial  real  estate,  multi-family  residential
properties,  and to consumers and small businesses within its market area. While
the Association has historically  emphasized fixed rate mortgage lending, it has
been  diversifying  its loan  portfolio by focusing on increasing  the number of
originations of commercial real estate loans,  multi-family  residential  loans,
residential  construction loans, commercial and industrial loans, small business
loans and non-mortgage consumer loans. A significant portion of these newer loan
products  carry  adjustable  rates,  higher  yields,  or shorter  terms than the
traditional  fixed rate mortgages.  This lending strategy is designed to enhance
earnings,  reduce  interest  rate risk,  and  provide a more  complete  range of
financial  services  to  customers  and  the  local  communities  served  by the
Association.  The  acquisition  of  13  branches  from  Washington  Mutual  Bank
("WAMU"),  which was completed in September 2001,  moves the Company strongly in
this direction.  Net interest income,  which is the difference  between interest
and dividend income on interest-earning  assets,  primarily loans and investment
securities, and interest expense on interest-bearing deposits and borrowings, is
the  major  source  of profit  for the  Company.  Because  the  Company  depends
primarily on net interest  income for its  earnings,  the focus of the Company's
management  is to create and  implement  strategies  that will  provide  stable,
positive  spreads between the yield on  interest-earning  assets and the cost of
interest-  bearing  liabilities.   Such  strategies  include  the  Association's
expansion of its consumer and commercial loan products.  To a lesser degree, the
net earnings of the Company rely on the level of its  non-interest  income.  The
Company is  aggressively  pursuing  strategies to improve its service charge and
fee income,  and control  its  non-interest  expense,  which  includes  employee
compensation and benefits,  occupancy and equipment  expense,  deposit insurance
premiums and miscellaneous other expenses.

During the last 12 months,  new  management  has been updating many areas of the
Company  that had  been  negatively  affected  by very  conservative  historical
spending patterns.  Projects to update existing branches and make needed repairs
were  completed.  Programs  necessary for training  employees and updating phone
systems and information technology have been implemented. These initiatives have
resulted in increased  non-interest  expense  comparing the current  period with
that a year ago. The Company believes these improvements in strategic areas will
contribute to the bottom line in the future.  The Company intends to continue to
focus on  efficiency  issues and the effort to  capitalize  on the  training and
technology put in place.

                                       12
<PAGE>

The Association is regulated by the Office of Thrift Supervision ("OTS") and its
deposits  are insured up to  applicable  limits  under the  Savings  Association
Insurance Fund ("SAIF") of the Federal Deposit Insurance Corporation ("FDIC").

The Association is a member of the Federal Home Loan Bank of Seattle, conducting
its  business  through 53 office  facilities,  with the main  office  located in
Klamath Falls, Oregon. The primary market areas of the Association are the state
of Oregon and adjoining areas of California and Washington.

Changes in Financial Condition

At December  31,  2001,  the  consolidated  assets of the Company  totaled  $1.5
billion, unchanged from $1.5 billion at September 30, 2001.

Cash and cash  equivalents  decreased  $76.3  million,  or 64.45%,  from  $118.4
million at September  30, 2001 to $42.1  million at December 31, 2001.  The high
balance at September 30, 2001 related to cash received in the acquisition of the
WAMU branches  which was held in federal funds and had not yet been  transferred
to other investment vehicles.  By December 31, 2001 the funds had been placed in
appropriate investment and mortgage-backed securities ("MBS").

Net loans  receivable  decreased  $8.9 million,  or 1.30%,  to $671.1 million at
December 31, 2001, compared to $680.0 million at September 30, 2001. The Company
is selling much of its single family  mortgage loan  production,  so those loans
are not adding to the portfolio balance. The Company sold $9.5 million in single
family mortgage loans with servicing  released during the quarter ended December
31, 2001.


                                       13
<PAGE>
<TABLE>
<CAPTION>




Loans receivable consisted of the following:
                                                                    At December 31,                    At September 30,
                                                                               2001                                2001
                                                                    ---------------                    ----------------
Secured by real estate:
<S>                                                                    <C>                                 <C>
  1-4 family                                                           $409,802,265                        $421,499,010
  Construction                                                           19,829,697                          21,673,519
  Multi-family and commercial real estate loans                         131,743,344                         130,490,333
Non-real estate loans
  Home improvement and home equity                                       49,898,264                          50,464,521
  Other consumer                                                         19,932,031                          20,787,466
  Commercial business loans                                              58,578,602                          56,098,520
                                                                    ---------------                    ----------------

Total gross loans outstanding                                          $689,784,203                        $701,013,369
                                                                    ===============                    ================
</TABLE>
<TABLE>
<CAPTION>


Allowance for loan losses by loan type is as follows:
                                                                    At December 31,                    At September 30,
                                                                               2001                                2001
                                                                    ---------------                    ----------------
<S>                                                                      <C>                                 <C>
1-4 family mortgage loans                                                $1,285,163                          $1,275,163
Multi-family and commercial real estate loans                             4,701,803                           4,661,803
Commercial business loans                                                 1,396,916                           1,301,916
Consumer loans                                                              675,569                             711,799
                                                                     --------------                      --------------

Total allowance for loan losses                                          $8,059,451                          $7,950,681
                                                                     ==============                      ==============
</TABLE>

Investment  securities  increased $2.0 million, or 1.29%, from $155.3 million at
September 30, 2001 to $157.3 million at December 31, 2001. This increase was the
result of the purchase of $3.6 million of  securities  during the quarter  ended
December  31, 2001 offset by a decrease  in the market  value of the  investment
portfolio.

During the three months ended  December  31,  2001,  $19.7  million of principal
payments were received on MBS and $96.3 million in MBS were purchased, resulting
in an increase in the balance of MBS from $423.3  million at September  30, 2001
to $497.4 million at December 31, 2001.

Premises and  equipment  increased  $4.6 million from $16.9 million at September
30, 2001 to $21.5  million at December  31,  2001.  The  increase  reflects  the
acquisition  of real  estate  for the  WAMU  branches  which  were  acquired  in
September 2001.

Other assets  decreased  from $8.9 million at September 30, 2001 to $4.4 million
at December 31, 2001.  The balance at September 30, 2001 included a $4.1 million
receivable from WAMU related to the final settlement for the branch acquisition.
This amount was received by the Company in October 2001.

Deposit liabilities  increased $3.2 million, less than 1.00%, from $1.15 billion
at  September  30, 2001 to $1.16  billion at December  31,  2001.  The  increase
reflects the Company's  continued efforts to increase demand deposits throughout
the branch network.

Advances  from  borrowers for taxes and  insurance  decreased  $6.0 million from
September 30, 2001 to December 31, 2001. The decrease is the result of using the
reserves to pay the required  real estate taxes due on the  Association's  loans
receivable portfolio in November 2001.

The Company's total borrowings increased $2.4 million from September 30, 2001 to
December 31, 2001.  The increase is the result of a short term FHLB borrowing at
the end of the quarter ended December 31, 2001.

                                       14
<PAGE>

Total  shareholders'  equity  decreased  $4.8  million  from  $114.1  million at
September 30, 2001 to $109.4 million at December 31, 2001. This decrease was the
combined result of $821,109 in earnings for the quarter, a $2.1 million decrease
in unrealized gains on securities  available for sale, a $3.1 million  reduction
due to the repurchase of shares, and $836,852 reduction for payment of dividends
on common stock.

Results of Operations

           Comparison of Three Months Ended December 31, 2001 and 2000

General.  The impact of the  September  2001  acquisition  of 13  branches  from
Washington  Mutual is clearly seen during the quarter  ended  December 31, 2001.
Interest income and interest  expense both showed  significant  increases due to
the acquired loans and deposits. The acquisition and the addition of six de novo
branches in the last year also  resulted in  significant  increases in operating
expenses.

Interest Income.  The Company  recorded  interest income of $23.0 million in the
first quarter ended  December 31, 2001, an increase of 29.07% from $17.8 million
for the same period last year.  Average  interest  earning  assets for the first
quarter  increased by $421.3 million,  or 43.74%,  compared to the first quarter
last year,  due  primarily  to the branch  acquisition.  During the same period,
yield  decreased 76 basis points,  from 7.40% for the quarter ended December 31,
2000 to 6.64% for the same period in 2001.

Interest  Expense.  Total  interest  expense  increased  $1.4 million from $10.3
million for the quarter ended December 31, 2000 to $11.7 million for the quarter
ended December 31, 2001.  Average deposits increased by $390.9 million comparing
the three months ended  December 31, 2000 to the same period in 2001,  while the
average interest paid on  interest-bearing  deposits  decreased 115 basis points
from 4.73% for the three  months  ended  December 31, 2000 to 3.58% for the same
period ended December 31, 2001. As noted above, the increase in average deposits
was a direct result of the branch acquisition. The average balance of borrowings
decreased  $7.3 million from $177.3  million for the three months ended December
31, 2000 to $170.0 million for the same period ended December 31, 2001. However,
the rate paid on  borrowings  decreased  by 34 basis  points  from 6.11% for the
quarter ended December 31, 2000 to 5.77% for the same period in 2001.

Provision for Loan Losses.  The provision for loan losses was $153,000 and there
were $44,230 of charge  offs,  and no  recoveries  during the three months ended
December 31, 2001 compared to a $228,000  provision  with $16,253 of charge offs
and $777 of recoveries during the three months ended December 31, 2000.

At December 31, 2001, the allowance for loan losses was equal to 699.6% of total
non-performing  assets  compared to 275.3% at December 31, 2000. The increase in
the coverage ratio was the result of a decrease in  non-performing  assets and a
higher  allowance  which  incorporates  the  risk  factors  associated  with the
significant  increase in commercial  and consumer loans over the last 12 months.
The ratio of  non-performing  assets to total  assets  decreased  from  0.16% at
December 31, 2000 to 0.08% at December 31, 2001. The decrease  primarily relates
to a decrease in real estate owned, which is included in non-performing  assets.
At December 31, 2001, the Company had no restructured loans.

                                       15
<PAGE>

Non-Interest  Income.  Non-interest income improved  significantly over the last
year,  increasing $1.2 million, or 104.90%, to $2.3 million for the three months
ended  December 31, 2001 from $1.1  million for the three months ended  December
31,  2000.  Income from fees and service  charges  provided  the majority of the
growth,  increasing by 107.07% from $870,656 for the quarter ended  December 31,
2000 to $1.8 million for the current quarter.  The increase is the result of the
increase  in  the  number  of  deposit  accounts  related  to  the  WAMU  branch
acquisition in September 2001.

Non-Interest Expense. In large part due to the September 2001 branch acquisition
and the  opening of six de novo  branches  during  the past  year,  non-interest
expense  increased  $6.3  million,  or 109.75%,  to $12.1  million for the three
months ended December 31, 2001,  from $5.8 million for the comparable  period in
2000. Compensation, employee benefits and related expense increased 84.79% which
reflects addition of staff both at the acquired branches and in support and back
office  areas.  The acquired and  newly-built  branches  were  operating for the
entire quarter ended December 31, 2001, increasing occupancy expense by 107.39%.
Data  processing  expense  also  increased  due to the  additional  accounts and
locations. Other expense increased by $2.2 million, or 137.86%, primarily due to
increased costs associated with the addition of branches and expenses related to
termination of the Company's defined benefit pension.

Income Taxes.  The provision for income taxes  decreased  $441,970 for the three
months ended  December 31, 2001 compared with the prior year.  The effective tax
rate was 35.6% for the quarter ended December 31, 2001 compared to 34.7% for the
same period of 2000.  The increase in effective  tax rate is primarily  due to a
lowered  rate in the prior  year due to tax  refunds  received  on  amended  tax
returns from previous periods.


                                       16
<PAGE>


                           PART II - OTHER INFORMATION

Item 1.   Legal Proceedings

          The Company is involved in various claims and legal actions arising in
          the  normal  course  of  business.   Management  believes  that  these
          proceedings will not result in a material loss to the Company.


Item 2.   Changes in Securities

          Not applicable.


Item 3.   Defaults Upon Senior Securities

          Not applicable.


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

          Not applicable.


Item 5.   Other Information

          Not applicable.


Item 6.   Exhibits and Reports on Form 8-K

          a)  Not applicable.

          b) Reference  is made to the  following Reports on Form 8-K

               (1) The Company's Current Report on Form 8-K/A dated September 7,
               2001,  and filed on November 21, 2001,  containing  the financial
               statements of the branches  acquired from Washington Mutual Bank,
               which is incorporated herein by reference.

               (2) The Company's Current Report on Form 8-K filed on October 16,
               2001  announcing  the  retirement of Robert A. Tucker,  Executive
               Vice President and Chief Credit  Officer,  and the appointment of
               Ben A. Gay as his successor.




                                       17
<PAGE>


                                   SIGNATURES


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

                                                     KLAMATH FIRST BANCORP, INC.

Date:    February 14, 2002                       By:        /s/ Kermit K. Houser
                                                     ---------------------------
                                                 Kermit K. Houser, President and
                                                         Chief Executive Officer


Date:    February 14, 2002                       By:  /s/ Marshall Jay Alexander
                                                     ---------------------------
                                                         Marshall Jay Alexander,
                                                    Executive Vice President and
                                                         Chief Financial Officer






























                                       18