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 June 30, 2000

                                       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)                                          Identification 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 July 21, 2000, there were issued 7,471,226 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 June 30, 2000 and September 30, 1999)                        3

        Consolidated Statements of Earnings (For the three months
        and nine months ended June 30, 2000 and 1999)                       4

        Consolidated Statements of Shareholders' Equity
        (For the year ended September 30, 1999 and for
        the nine months ended June 30, 2000)                                5

        Consolidated Statements of Cash Flows (For the nine
        months ended June 30, 2000 and 1999)                            6 - 7

        Notes to Consolidated Financial Statements                     8 - 12

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations                           13 - 17

Item 3. Quantitative and Qualitative Disclosures About
        Market Risk                                                        17

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

Item 1. Legal Proceedings                                                  18

Item 2. Changes in Securities                                              18

Item 3. Defaults Upon Senior Securities                                    18

Item 4. Submission of Matters to a Vote of Security Holders                18

Item 5. Other Information                                                  18

Item 6. Exhibits and Reports on Form 8-K                                   18

Signatures                                                                 19











                                        2
<PAGE>
<TABLE>
<CAPTION>

                                             KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                                                     CONSOLIDATED BALANCE SHEETS
                                             AS OF JUNE 30, 2000 AND SEPTEMBER 30, 1999
                                                             (Unaudited)



                                                                              June 30, 2000   September 30, 1999
ASSETS                                                                     ----------------   ------------------

<S>                                                                         <C>                <C>
Cash and due from banks .................................................   $    26,435,601    $    21,123,217
Interest bearing deposits with banks ....................................         1,132,806          1,231,516
Federal funds sold and securities purchased under agreements to resell ..            93,931          2,167,856
                                                                            ---------------    ---------------
   Total cash and cash equivalents ......................................        27,662,338         24,522,589


Investment securities available for sale, at fair value
  (amortized cost: $144,068,844 and $161,112,272) .......................       141,036,470        158,648,057
Investment securities held to maturity, at amortized cost (fair
  value: $897,075 and $577,455) .........................................           894,167            559,512
Mortgage backed and related securities available for sale, at fair
  value (amortized cost: $89,131,113 and $73,075,553) ...................        88,678,241         72,695,555
Mortgage backed and related securities held to maturity, at amortized
  cost (fair value: $2,268,153 and $2,596,408) ..........................         2,297,880          2,600,920
Loans receivable, net ...................................................       737,135,902        739,793,403
Real estate owned and repossessed assets, net ...........................         1,351,498          1,494,890
Premises and equipment, net .............................................        12,588,416         11,581,923
Stock in Federal Home Loan Bank of Seattle, at cost .....................        11,685,600         10,957,300
Accrued interest receivable .............................................         7,389,019          7,153,818
Core deposit intangible .................................................         8,538,833          9,778,341
Other assets ............................................................         2,472,639          1,855,032
                                                                            ---------------    ---------------
   Total assets .........................................................   $ 1,041,731,003    $ 1,041,641,340
                                                                            ===============    ===============

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
  Deposit liabilities ...................................................   $   696,225,187    $   720,401,112
  Accrued interest on deposit liabilities ...............................         1,106,841          1,184,471
  Advances from borrowers for taxes and insurance .......................         6,874,112          9,758,627
  Advances from Federal Home Loan Bank of Seattle .......................       221,750,000        197,000,000
  Short term borrowings .................................................         2,000,000               --
  Accrued interest on borrowings ........................................           946,540             34,484
  Pension liabilities ...................................................           931,591            833,644
  Deferred federal and state income taxes ...............................           774,204            579,727
  Other liabilities .....................................................         2,010,286          2,263,812
                                                                            ---------------    ---------------
    Total liabilities ...................................................       932,618,761        932,055,877
                                                                            ---------------    ---------------


SHAREHOLDERS' EQUITY

  Preferred stock, $.01 par value, 500,000 shares authorized; none issued              --                 --
  Common stock, $.01 par value, 35,000,000 shares authorized,
   June 30, 2000  - 7,471,226 issued, 6,699,563 outstanding
   September 30, 1999 - 7,908,377 issued, 7,062,092 outstanding .........            74,712             79,084
  Additional paid-in capital ............................................        38,821,124         43,794,535
  Retained earnings-substantially restricted ............................        80,021,080         76,866,452
  Unearned shares issued to ESOP ........................................        (5,137,912)        (5,871,900)
  Unearned shares issued to MRDP ........................................        (2,505,910)        (3,519,296)
  Accumulated comprehensive loss ........................................        (2,160,852)        (1,763,412)
                                                                            ---------------    ---------------
    Total shareholders' equity ..........................................       109,112,242        109,585,463
                                                                            ---------------    ---------------
    Total liabilities and shareholders' equity ..........................   $ 1,041,731,003    $ 1,041,641,340
                                                                            ===============    ===============


<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            Three             Nine             Nine
                                                                Months Ended     Months Ended     Months Ended     Months Ended
                                                                    June 30,         June 30,         June 30,         June 30,
                                                                        2000             1999             2000             1999
                                                              --------------   --------------   --------------   --------------
INTEREST INCOME
<S>                                                           <C>              <C>              <C>              <C>
  Loans receivable ........................................   $   14,406,305   $   14,287,654   $   42,935,817   $   42,191,692
  Mortgage backed and related securities ..................        1,366,483          394,188        3,717,088        1,346,490
  Investment securities ...................................        2,387,046        2,680,817        7,378,404        8,973,462
  Federal funds sold ......................................            9,351          260,157          155,795          682,473
  Interest bearing deposits ...............................           65,921          178,988          239,627          571,760
                                                              --------------   --------------   --------------   --------------
    Total interest income .................................       18,235,106       17,801,804       54,426,731       53,765,877
                                                              --------------   --------------   --------------   --------------

INTEREST EXPENSE
  Deposit liabilities .....................................        7,006,675        7,213,918       21,066,552       21,895,479
  FHLB advances ...........................................        3,340,109        2,193,605        9,293,290        6,540,329
  Other ...................................................           67,160           33,030          105,618          253,464
                                                              --------------   --------------   --------------   --------------
    Total interest expense ................................       10,413,944        9,440,553       30,465,460       28,689,272
                                                              --------------   --------------   --------------   --------------
    Net interest income ...................................        7,821,162        8,361,251       23,961,271       25,076,605

Provision for loan losses .................................          228,000          243,000          536,000          669,000

                                                              --------------   --------------   --------------   --------------
    Net interest income after provision for
      loan losses .........................................        7,593,162        8,118,251       23,425,271       24,407,605
                                                              --------------   --------------   --------------   --------------

NON-INTEREST INCOME
  Fees and service charges ................................          812,006          749,074        2,338,893        2,126,966
  Gain on sale of investments .............................             --             22,106            6,836          329,435
  Gain on sale of real estate owned .......................             --               --            118,315           26,179
  Other income ............................................          223,761           55,662          530,112          189,212
                                                              --------------   --------------   --------------   --------------
    Total non-interest income .............................        1,035,767          826,842        2,994,156        2,671,792
                                                              --------------   --------------   --------------   --------------
NON-INTEREST EXPENSE
  Compensation, employee benefits and related expense .....        2,855,907        2,648,891        8,488,034        7,612,394
  Occupancy expense .......................................          621,536          543,532        1,757,259        1,664,089
  Data processing expense .................................          226,263          214,317          690,595          697,100
  Insurance premium expense ...............................           36,685           74,509          150,571          222,147
  Loss on sale of investments .............................             --               --               --            112,256
  Loss on sale of real estate owned .......................             --               --               --              5,398
  Amortization of core deposit intangible .................          413,169          413,169        1,239,508        1,239,508
  Other expense ...........................................        1,505,225        1,868,350        4,769,566        4,348,688
                                                              --------------   --------------   --------------   --------------
    Total non-interest expense ............................        5,658,785        5,762,768       17,095,533       15,901,580
                                                              --------------   --------------   --------------   --------------

Earnings before income taxes ..............................        2,970,144        3,182,325        9,323,894       11,177,817

Provision for income tax ..................................        1,043,681        1,291,968        3,494,680        4,538,194
                                                              --------------   --------------   --------------   --------------

Net earnings ..............................................   $    1,926,463   $    1,890,357   $    5,829,214   $    6,639,623
                                                              ==============   ==============   ==============   ==============

Earnings per common share - basic .........................   $         0.28   $         0.27   $         0.85   $         0.86
Earnings per common share - diluted .......................   $         0.28   $         0.26   $         0.85   $         0.83
Weighted average common shares outstanding - basic ........        6,773,138        7,020,994        6,855,374        7,737,494
Weighted average common shares outstanding - diluted ......        6,773,138        7,164,093        6,855,374        7,952,159


<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, 1999 AND THE NINE MONTHS ENDED JUNE 30, 2000
                                                             (Unaudited)

                                                                                   Unearned     Unearned
                                   Common       Common    Additional                 shares       shares   Accumulated        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, 1998      8,898,972  $    99,168  $82,486,183 $71,051,445 ($6,850,550) ($4,536,865) $ 2,831,574  $145,080,955

Cash dividends ............          --         --            --     (3,340,186)       --           --           --      (3,340,186)

Stock repurchased and retired  (2,008,389)     (20,084) (39,314,056)       --          --           --           --     (39,334,140)

ESOP contribution .........        97,865       --          602,287        --       978,650         --           --       1,580,937

MRDP contribution .........        73,644       --           20,121        --          --      1,017,569         --       1,037,690
                             ------------  ------------  ----------  ----------  ----------  -----------  ----------   ------------
                                7,062,092       79,084   43,794,535  67,711,259  (5,871,900)  (3,519,296)   2,831,574   105,025,256

Comprehensive income
  Net earnings ............                                           9,155,193                                           9,155,193
  Other comprehensive income:
     Unrealized loss on
     securities, net of tax
     and reclassification
     adjustment .........(1)                                                                               (4,594,986)   (4,594,986)
                                                                                                                       ------------
     Total comprehensive
     income ...............                                                                                               4,560,207
                             ------------   ----------  -----------  ----------- ----------  -----------  -----------  ------------
Balance at September 30, 1999   7,062,092       79,084   43,794,535  76,866,452  (5,871,900)  (3,519,296)  (1,763,412)  109,585,463

Cash dividends ............          --          --           --     (2,674,586)       --           --           --      (2,674,586)

Stock repurchased and retired    (437,151)      (4,372)  (5,079,698)      --           --           --           --      (5,084,070)

ESOP contribution .........          --           --         96,006       --        733,988         --           --         829,994

MRDP contribution .........        74,622         --         10,281       --           --      1,013,386         --       1,023,667
                             ------------   ----------  -----------  ----------  ----------  -----------  -----------  ------------
                                6,699,563       74,712   38,821,124  74,191,866  (5,137,912)  (2,505,910)  (1,763,412)  103,680,468

Comprehensive income
  Net earnings ............                                           5,829,214                                           5,829,214
  Other comprehensive income:
     Unrealized loss on
     securities, net of tax
     and reclassification
     adjustment ........(2)                                                                                  (397,440)     (397,440)
                                                                                                                       ------------
     Total comprehensive
     income ...............                                                                                               5,431,774
                             ------------   ----------  ----------- -----------  ----------  -----------  -----------  ------------
Balance at March 31, 2000 .     6,699,563   $   74,712  $38,821,124 $80,021,080 ($5,137,912) ($2,505,910) ($2,160,852) $109,112,242
                             ============   ==========  =========== ===========  ==========  ===========  ===========  ============
<FN>

(1)  Net unrealized holding loss on securities of $4,332,997 (net of $2,655,708 tax benefit) less reclassification adjustment
        for gains included in net earnings of $261,989 (net of $160,574 tax expense).
(2)  Net unrealized holding loss on securities of $347,458 (net of $212,956 tax benefit) less reclassification adjustment
        for gains included in net earnings of $49,982 (net of $30,634 tax expense).


  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 NINE MONTHS ENDED JUNE 30, 2000 AND 1999
                                          (Unaudited)


                                                           Nine Months Ended   Nine Months Ended
                                                                    June 30,            June 30,
                                                                        2000                1999
                                                               -------------      --------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                            <C>                 <C>
    Net earnings ..........................................    $   5,829,214       $   6,639,623

ADJUSTMENTS TO RECONCILE NET EARNINGS TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
    Depreciation and amortization .........................        2,206,667           2,170,315
    Provision for deferred taxes ..........................          438,069            (691,360)
    Provision for loan losses .............................          536,000             669,000
    Provision for loss on real estate owned ...............          120,000                --
    Compensation expense related to ESOP benefit ..........          829,994           1,234,127
    Compensation expense related to MRDP Trust ............        1,023,667           1,026,732
    Net amortization of premiums (discounts)  paid on
      investment and mortgage backed and related securities          213,468              42,134
    Increase in deferred loan fees, net of amortization ...         (373,730)            498,388
    Accretion of discounts on purchased loans .............            1,541                 900
    Net gain on sale of real estate owned and
      premises and equipment ..............................         (138,814)            (20,781)
    Net gain on sale of investment and mortgage
      backed and related securities .......................           (6,836)           (217,179)
    FHLB stock dividend ...................................         (567,400)           (587,800)
CHANGES IN ASSETS AND LIABILITIES
    Accrued interest receivable ...........................         (235,201)             40,835
    Other assets ..........................................         (737,607)           (820,210)
    Accrued interest on deposit liabilities ...............          (77,630)            (20,408)
    Accrued interest on borrowings ........................          912,056            (178,062)
    Pension liabilities ...................................           97,947              97,947
    Other liabilities .....................................           41,650           1,242,143
                                                               -------------       -------------
Net cash provided by operating activities .................       10,113,055          11,126,344
                                                               -------------       -------------
CASH FLOWS FROM INVESTING ACTIVITIES
    Proceeds from maturity of investment securities
      held to maturity ....................................          120,000          82,245,000
    Proceeds from maturity of investment securities
      available for sale ..................................        8,000,000          34,072,000
    Principal repayments received on mortgage
       backed and related securities held to maturity .....          298,361             904,705
    Principal repayments received on mortgage
       backed and related securities available for sale ...       13,242,770          12,816,215
    Principal repayments received on loans ................       73,047,471         127,964,628
    Loan originations .....................................      (77,154,728)       (184,108,981)
    Loans purchased .......................................             --            (4,764,023)
    Loans sold ............................................        5,347,283             119,350
    Purchase of investment securities held
      to maturity .........................................         (457,000)        (79,711,523)
    Purchase of investment securities available
      for sale ............................................       (1,110,000)        (21,361,687)
    Purchase of mortgage backed and related
      securities available for sale .......................      (29,396,069)        (18,827,640)
    Purchase of FHLB stock ................................         (160,900)               --
    Proceeds from sale of investment securities
      available for sale ..................................       10,051,563          11,834,420
    Proceeds from sale of mortgage backed and related
      securities available for sale .......................             --             9,454,776
    Proceeds from sale of real estate owned and
      premises and equipment ..............................        1,415,866             258,865
    Purchases of premises and equipment ...................       (1,853,652)           (294,070)
                                                               -------------       -------------
Net cash provided by (used in) investing activities .......        1,390,965         (29,397,965)
                                                               -------------       -------------

</TABLE>


                                              6
<PAGE>
<TABLE>
<CAPTION>

                          KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                       FOR THE NINE MONTHS ENDED JUNE 30, 2000 AND 1999
                                          (Unaudited)
                                          (Continued)

                                                           Nine Months Ended   Nine Months Ended
                                                                    June 30,            June 30,
                                                                        2000                1999
                                                              --------------      --------------

CASH FLOWS FROM FINANCING ACTIVITIES
    Increase (decrease) in deposit liabilities,
<S>                                                            <C>                 <C>
      net of withdrawals ..................................    ($ 24,175,925)      $  37,287,661
    Proceeds from FHLB advances ...........................      585,250,000         165,000,000
    Repayments of FHLB advances ...........................     (560,500,000)       (145,000,000)
    Proceeds from short term borrowings ...................        2,000,000           8,595,000
    Repayments of short term borrowings ...................             --           (20,707,500)
    Stock repurchase and retirement .......................       (5,084,070)        (39,334,140)
    Advances from borrowers for taxes and insurance .......       (2,884,515)         (2,472,167)
    Dividends paid ........................................       (2,969,761)         (2,598,034)
                                                               -------------       -------------
Net cash provided by (used in) financing activities .......       (8,364,271)            770,820
                                                               -------------       -------------
Net (decrease) increase in cash and cash
  equivalents .............................................        3,139,749         (17,500,801)

Cash and cash equivalents at beginning
  of period ...............................................       24,522,589          66,985,269

                                                               -------------       -------------
Cash and cash equivalents at end of period ................    $  27,662,338       $  49,484,468
                                                               =============       =============
SUPPLEMENTAL SCHEDULE OF INTEREST AND
INCOME
  TAXES PAID
    Interest paid .........................................    $  29,631,034       $  28,887,742
    Income taxes paid .....................................        3,815,000           4,656,000

SUPPLEMENTAL SCHEDULE OF NONCASH
  INVESTING ACTIVITIES
    Net unrealized loss on securities
      available for sale ..................................    ($    397,440)      ($  3,701,705)
    Dividends declared and accrued in other
      liabilities .........................................          970,609             949,005


<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.'s (the "Company")  financial  condition as of June 30, 2000
and September 30, 1999,  the results of operations for the three and nine months
ended June 30, 2000 and 1999 and cash flows for the nine  months  ended June 30,
2000 and 1999. The Company  encompasses  Klamath First Federal  SAvings and Loan
Association (the "Association") and its wholly-owned  subsidiary,  Klamath First
Financial Services.  Certain information and note disclosures  normally included
in  financial  statements  prepared in  accordance  with  accounting  principles
generally accepted in the United States of America have been omitted pursuant to
the rules and  regulations  of the  Securities  and Exchange  Commission.  These
consolidated  financial  statements  should  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 and nine
months ended June 30, 2000 are not  necessarily  indicative of the results which
may be expected for the entire fiscal year.

2.      COMPREHENSIVE INCOME

Comprehensive income is the total of net income and other comprehensive  income,
which for the Company is comprised  entirely of  unrealized  gains and losses on
securities  available  for sale and  realized  gains  and  losses on the sale of
securities available for sale.

For the three months  ended June 30, 2000,  the  Company's  total  comprehensive
income was $1.9 million compared to $148,452 for the three months ended June 30,
1999.  Total  comprehensive  income for the three months ended June 30, 2000 was
comprised of net income of $1.9 million and other comprehensive loss of $21,607,
net of tax. Total comprehensive  income for the three months ended June 30, 1999
was comprised of net income of $1.9 million and other comprehensive loss of $1.7
million, net of tax.

For the nine months  ended June 30,  2000,  the  Company's  total  comprehensive
income was $5.4 million  compared to $2.9 million for the nine months ended June
30, 1999. Total comprehensive income for the nine months ended June 30, 2000 was
comprised  of net  income  of  $5.8  million  and  other  comprehensive  loss of
$397,440,  net of tax. Total comprehensive income for the nine months ended June
30, 1999 was  comprised  of net income of $6.6  million and other  comprehensive
loss of $3.7 million, net of tax.



                                       8
<PAGE>

3.       ALLOWANCE FOR LOAN LOSSES



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

                                        Nine Month Ended        Year Ended
                                                June 30,     September 30,
                                                    2000              1999
                                       -----------------     -------------
<S>                                           <C>               <C>
Balance, beginning of period                  $2,483,625        $1,949,677
Charge-offs                                     (389,267)         (398,052)
Recoveries                                       347,424                --
Additions                                        536,000           932,000
                                          --------------    --------------

Balance, end of period                        $2,977,782        $2,483,625
                                          ==============    ==============
</TABLE>


At June 30,2000,  impaired loans totaled $478,062.  Specifically  allocated loan
loss reserves related to these loans totaled $32,500.  The average investment in
impaired  loans for the three  months and nine  months  ended June 30,  2000 was
$478,062 and $696,227,  respectively.  There were no impaired loans at September
30, 1999 or during the year then ended.

4.      ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings at June 30, 2000 consisted of two short term advances  totaling $53.8
million and seven long term advances  totaling  $168.0  million from the Federal
Home Loan Bank of Seattle ("FHLB"). The advances are collateralized in aggregate
by certain mortgages or deeds of trust and securities of the U.S. Government and
agencies thereof.

Scheduled maturities of advances from the FHLB were as follows:

<TABLE>
<CAPTION>

                                         June 30, 2000                                    September 30, 1999
                       --------------------------------------------------   ---------------------------------------------
                                             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 .   $ 53,750,000      5.70%-6.81%            6.08%               $--              --            --

After one but within
five years ..........     10,000,000            6.38%            6.38%        40,000,000      5.39%-5.70%         5.43%

After five but within
ten years ...........    158,000,000      4.77%-7.05%            5.86%       157,000,000      4.77%-5.87%         5.32%
                        ------------                                        ------------
                        $221,750,000                                        $197,000,000
                        ============                                        ============
</TABLE>

5.      SHORT TERM BORROWINGS

Short term  borrowings at June 30, 2000 consisted of $2.0 million in credit line
borrowing from a financial institution at a rate of 9.50%.


                                                                  9
<PAGE>


6.       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.

7.       SHAREHOLDERS' EQUITY

In  September  1998,  the  Board  of  Directors  authorized  the  repurchase  of
approximately  20  percent  of  the  Company's  outstanding  common  stock.  The
repurchase was completed  through a "Modified Dutch Auction  Tender." Under this
procedure, the Company's shareholders were given the opportunity to sell part or
all of their  shares to the Company at a price of not less than $18.00 per share
and not more than  $20.00 per share.  Results  of the offer  were  finalized  on
January 15,  1999 when the Company  announced  purchase of  1,984,090  shares at
$19.50 per share.  This  represented  approximately  85.9  percent of the shares
tendered at $19.50 per share or below,  and 64.7 percent of all shares tendered.
The value of the shares purchased was approximately $38.7 million.

In December 1999, the Company  announced a five percent stock repurchase plan to
be completed  over a twelve month period.  The repurchase was completed in March
2000 with the purchase of 395,419 shares at an average price of $11.68 per share
and a total cost of $4.6 million.

In May 2000, the Company  announced a five percent stock  repurchase  plan to be
completed over the following twelve months.  As of June 30, 2000,  25,000 shares
of an expected total of 375,648 had been repurchased at a weighted average price
of $11.475.


                                       10
<PAGE>


8.      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  common stock  equivalents  and are included in weighted  average
shares  outstanding  (denominator) for the calculation of basic and diluted 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. For the three months ended June 30, 2000 there were 80,005 MRDP
shares and 916,258  stock  options  that were not  included in the  calculations
because to do so would have been  antidilutive.  For the nine months  ended June
30, 2000 there were 128,845 MRDP shares and 916,258  stock options that were not
included in the calculations because to do so would have been antidilutive.
<TABLE>
<CAPTION>



                                                              For the Three Months Ended
                                                               June 30,           June 30,
                                                                   2000               1999
                                                               ---------           ---------
Weighted average common
<S>                                                           <C>                  <C>
shares outstanding - basic ................................    6,773,138           7,020,994
                                                               ---------           ---------
Effect of Dilutive Securities on Number of Shares:
MRDP shares ...............................................         --                 1,634
Stock options .............................................         --               141,465
                                                               ---------           ---------
Total Dilutive Securities .................................         --               143,099
                                                               ---------           ---------
Weighted average common shares
 outstanding - with dilution ..............................    6,773,138           7,164,093
                                                               =========           =========
</TABLE>
<TABLE>
<CAPTION>


                                                                For the Nine Months Ended
                                                               June 30,             June 30,
                                                                  2000                  1999
                                                               ---------           ---------
Weighted average common
<S>                                                           <C>                  <C>
shares outstanding - basic ................................    6,855,374           7,737,494
                                                               ---------           ---------
Effect of Dilutive Securities on Number of Shares:
MRDP shares ...............................................         --                24,715
Stock options .............................................         --               189,950
                                                               ---------           ---------
Total Dilutive Securities .................................         --               214,665
                                                               ---------           ---------
Weighted average common shares
 outstanding - with dilution ..............................    6,855,374           7,952,159
                                                               =========           =========
</TABLE>


                                             11
<PAGE>

9.      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 June 30, 2000:

<TABLE>
<CAPTION>

                                                                                            Categorized as "Well
                                                                                              Capitalized" Under
                                                                      For Capital              Prompt Corrective
                                          Actual                Adequacy Purposes               Action Provision
                             --------------------------   --------------------------   --------------------------
                                   Amount        Ratio          Amount         Ratio         Amount         Ratio
As of June 30, 2000:         ------------    ----------   ------------    ----------   ------------    ----------
<S>                          <C>                  <C>     <C>                   <C>    <C>                  <C>
Total Capital: ...........   $103,461,784         19.0%   $ 43,486,304          8.0%   $ 54,357,880         10.0%
 (To Risk Weighted Assets)

Tier I Capital: ..........    100,719,226         18.5%            N/A           N/A     32,614,728          6.0%
 (To Risk Weighted Assets)

Tier I Capital: ..........    100,719,226          9.8%     41,341,568          4.0%     51,676,960          5.0%
 (To Total Assets)

Tangible Capital: ........    100,719,226          9.8%     15,503,088          1.5%            N/A           N/A
 (To Tangible Assets)
</TABLE>


10.      RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In June 1998,  SFAS No. 133,  Accounting for Derivative  Instruments and Hedging
Activities,  was  issued.  SFAS No. 133  establishes  accounting  and  reporting
standards for derivative  instruments,  including certain derivative instruments
embedded in other contracts  (collectively referred to as derivatives),  and for
hedging  activities.  It requires that an entity  recognize all  derivatives  as
either assets or liabilities in the statement of financial  position and measure
those instruments at fair value. If certain conditions are met, a derivative may
be specifically designated as (a) a hedge of the exposure to changes in the fair
value of a recognized asset or liability or an unrecognized firm commitment, (b)
a hedge of the exposure to variable cash flows of a forecasted  transaction,  or
(c) a hedge of the foreign  currency  exposure of a net  investment in a foreign
operation, an unrecognized firm commitment, an available-for-sale security, or a
foreign-currency-denominated  forecasted transaction. The effective date of this
Statement  was  deferred  by the  issuance  of  SFAS  No.  137,  Accounting  for
Derivative  Instruments and Hedging  Activities - Deferral of the Effective Date
of FASB  Statement  No. 133.  This  Statement is now  effective for fiscal years
beginning  after June 15,  2000.  SFAS No. 133 was also amended by SFAS No. 138,
Accounting for Certain Derivative Insturments and Certain Hedging Activities.

The Company has  determined  that it currently has no  instruments  or contracts
that meet the scope of SFAS No. 133, as amended.  Accordingly,  the  adoption of
this  Statement  in  2001  is not  expected  to have a  material  impact  on the
financial statements of the Company.



                                                             12
<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,  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,  became the unitary savings and loan holding
company for the Association upon the  Association's  conversion from a federally
chartered  mutual to a federally  chartered  stock savings and loan  association
("Conversion")  on October 4, 1995.  At June 30,  2000,  the  Company  had total
consolidated  assets of $1.04 billion and consolidated  shareholders'  equity of
$109.1  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  traditional,   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  within  its  market  area and to a lesser  extent  on  commercial
property and  multi-family  dwellings.  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,  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.

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.  Consumer  and  commercial  loans  continue  to
increase,  up 43% from $15.0  million at June 30, 1999 to $21.5  million at June
30, 2000. To a lesser degree,  the net earnings of the Company rely on the level
of its non-interest income. The

                                       13
<PAGE>

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.

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 35 office  facilities,  with the main  office  located in
Klamath  Falls,  Oregon.  The  Association  has  received  approval  to open new
branches in south Medford, Central Point, near Medford, and Redmond, 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 June 30, 2000, the consolidated assets of the Company totaled $1.042 billion,
consistent with September 30, 1999.

Net loans  receivable  decreased by $2.7  million to $737.1  million at June 30,
2000, compared to $739.8 million at September 30, 1999. Rising mortgage interest
rates have dampened mortgage demand,  reducing loan originations during the last
nine  months.  In  addition,  the  Company  sold $5.3  million in single  family
mortgage loans to Fannie Mae, further reducing loans receivable.

Investment securities decreased $17.3 million, or 10.85%, from $159.2 million at
September  30,  1999 to $141.9  million  at June 30,  2000.  This  decrease  was
primarily  the  result of the sale of $10.1  million  of  investment  securities
available for sale and $8.1 million in maturities during the period.

During the nine months ended June 30, 2000, $13.5 million of principal  payments
were  received  on  mortgage  backed and  related  securities  ("MBS") and $29.4
million  of MBS  available  for sale were  purchased,  resulting  in an  overall
increase in the balance of MBS from $75.3 million at September 30, 1999 to $91.0
million at June 30, 2000.  The purchased MBS are  adjustable  rate with a margin
over the one year Treasury rate.

Deposit  liabilities  decreased $24.2 million,  or 3.36%, from $720.4 million at
September 30, 1999 to $696.2 million at June 30, 2000. The decrease is primarily
related to certificates  of deposit and reflects the Company's  strategy to rely
on Federal  Home Loan Bank of Seattle  borrowed  funds  which can be acquired at
lower  rates  than  corresponding  maturities  of new  deposits.  This  approach
controls interest expense as well as managing scheduled liability maturities.

Advances  from  borrowers for taxes and  insurance  decreased  $2.9 million from
September  30, 1999 to June 30,  2000.  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.  This  decrease was  partially  offset by the
accumulated  monthly  payments  received  from  borrowers  in the  period  since
November 1999.

The Company's total  borrowings  increased $26.8 million from September 30, 1999
to June 30, 2000.  The majority of the increase was used to purchase MBS as part
of the plan to manage interest rate risk.

Total  shareholders'  equity decreased $473,221 from $109.6 million at September
30, 1999 to $109.1  million at June 30,  2000.  This  decrease  was the combined
result of a $5.1 million  reduction due to the buyback of shares and $397,440 in
unrealized  losses on securities  available for sale,  offset by $5.8 million in
earnings for the nine month period.





                                       14
<PAGE>

Results of Operations

         Comparison of Nine Months Ended June 30, 2000 and 1999

General. The higher interest rate environment, the inverted yield curve, and low
loan volume had an adverse effect on earnings, primarily by lowering loan demand
throughout the Company's statewide market. Net income decreased by $810,409,  or
12.21%,  from $6.6  million  for the nine  months  ended  June 30,  1999 to $5.8
million for the nine months  ended June 30, 2000.  Increases in interest  income
and  non-interest  income  were  offset by  increases  in  interest  expense and
non-interest expense.

Interest  Income.  Additional  interest  income  generated by the $25.1  million
increase  in average  interest  earning  assets  contributed  to an  increase of
$660,584 in interest  income for the nine months ended June 30, 2000 compared to
1999.  Interest income on loans receivable  increased  $744,125,  or 1.76%, from
$42.2  million for the nine months ended June 30, 1999 to $42.9  million for the
same period of 2000. This increase was a result of the $33.9 million increase in
average  loans  receivable.  As noted  above,  $29.4  million  of MBS have  been
purchased  during the nine  months  ended  June 30,  2000,  resulting  in a $2.4
million  increase in interest  income on MBS. The increases in interest on loans
and MBS were  partially  offset by  decreases in interest  income on  investment
securities,  federal funds and interest bearing deposits. Short term investments
matured and interest bearing deposits were liquidated to provide funds for stock
repurchase  programs in December  1999,  January 2000,  and June 2000,  reducing
average investment  balances,  thus generating less income. The average yield on
interest  earning  assets  decreased 9 basis points to 7.20% for the nine months
ended June 30, 2000  compared to 7.29% for the same period  ended June 30, 1999.
Interest  rate  spread  (the  difference  between  the rates  earned on interest
earning  assets and the rates paid on interest  bearing  liabilities)  decreased
from 2.75% to 2.54% and interest  rate margin (net  interest  income  divided by
average  interest  earning  assets)  decreased from 3.40% to 3.17% comparing the
nine month periods.

Interest Expense.  Total interest expense increased $1.8 million,  or 6.19%, for
the nine months  ended June 30, 2000  compared to the same period in 1999.  That
increase was the combined  result of a $828,927  decrease in interest on deposit
liabilities  and a $2.8 million  increase in interest  expense on FHLB advances.
Interest on deposit liabilities declined due to a 9 basis point reduction in the
average  interest  rate paid on deposit  accounts  coupled with a $10.8  million
decrease in the average balance of deposits.  Interest  expense on FHLB advances
increased with the $41.5 million  increase in average  borrowings and a 63 basis
point increase in the average rate paid.

Provision for Loan Losses.  The provision for loan losses was $536,000 and there
were $164,267 of charge offs and $347,424 of  recoveries  during the nine months
ended June 30, 2000  compared to a $669,000  provision and $3,000 of charge offs
during the nine  months  ended June 30,  1999.  As the  Company  has  grown, the
composition  of the loan  portfolio has changed with  increases in  construction
loans and  commercial  and consumer  loans,  which are  considered  to have more
associated risk than the Company's  traditional portfolio of one- to four-family
residential  mortgages.  Because of the Company's history of relatively low loan
loss experience,  it has historically maintained an allowance for loan losses at
a lower  percentage  of total loans as  compared  with other  institutions  with
higher risk loan  portfolios  and higher loss  experience.  During the  previous
fiscal year,  the provision for loan losses was increased to reflect  changes in
the  composition of the loan  portfolio.  The provision has been maintained at a
similar level during the current year,  although the Company's recent experience
has not indicated a deterioration in loan quality. The balance of non-performing
loans has decreased during the current fiscal year, primarily as a result of the
pay off of a $1.5 million land development loan. The Company is not anticipating
any material loss on the remaining non-performing loans at this time.

Non-Interest Income.  Non-interest income increased $322,364, or 12.07%, to $3.0
million for the nine months  ended June 30, 2000 from $2.7  million for the nine
months ended June 30, 1999. Fees and service charges  increased by 10.00% due to
an increase in deposit accounts subject to service charges. In

                                       15
<PAGE>

the time since June 30,  1999 the Company  initiated a program to sell  mortgage
loans and established a retail  investment  subsidiary,  Klamath First Financial
Services.  The results of these  actions can be seen in the 180.17%  increase in
other non-interest  income from $189,212 for the nine months ended June 30, 1999
to $530,112 for the nine months ended June 30, 2000. Of this increase $78,490 is
from  profit on sale of  mortgage  loans  and  $110,094  is income  from the new
investment subsidiary.

Non-Interest Expense.  Non-interest expense increased $1.2 million, or 7.51%, to
$17.1  million for the nine months ended June 30, 2000,  from $15.9  million for
the comparable  period in 1999.  Compensation,  employee  benefits,  and related
expense  increased  $875,640,  or 11.50%  from $7.6  million for the nine months
ended  June 30,  1999 to $8.5  million  for the  same  period  in 2000.  Of this
increase,  $260,541  relates  directly  to an increase  in salary  expense.  The
remaining increase in compensation expense is a function of a routine accounting
procedure wherein a portion of compensation  expense is allocated to the cost of
originating  loans and such cost is deferred  and taken to expense over the life
of the loans.  Because the number of loan originations  decreased  significantly
for the nine months  ended June 30, 2000  compared to the  previous  year,  less
compensation cost was allocated to loan originations and deferred,  resulting in
an increase in compensation  expense.  Other  non-interest  expense increased by
$420,878, or 9.68%,  comparing the nine months ended June 30, 2000 with the same
period  of 1999.  Approximately  $400,000  of this  increase  is due to  charges
related to  foreclosure  of a  commercial  real  estate  property.  The ratio of
non-interest  expense to average  total  assets was 2.17% and 2.06% for the nine
months ended June 30, 2000 and 1999, respectively.

Income Taxes. The provision for income taxes decreased $1.0 million for the nine
months ended June 30, 2000 compared with the prior year.  The effective tax rate
decreased  slightly to 37.5% for the nine months  ended June 30, 2000 from 40.6%
for the same period of 1999.

         Comparison of Three Months Ended June 30, 2000 and 1999

General. Basic earnings per share increased from $.27 for the quarter ended June
30, 1999 to $.28 for the same period of 2000.  Net income was consistent for the
three months ended June 30, 1999 and 2000.

Interest Income.  The Company  recorded  interest income of $18.2 million in the
third  quarter  ended June 30, 2000, an increase of 2.43% from $17.8 million for
the same period last year.  Average  interest  earning assets increased by $22.0
million,  or 2.23%,  while yield  remained  consistent  at 7.23% for the quarter
ended  June 30,  1999 and  7.24%  for the same  period  of 2000.  Yield on loans
receivable decreased from 7.76% for the quarter ended June 30, 1999 to 7.71% for
the current quarter.  Yields on other interest earning assets remained stable or
improved for the period.

Interest Expense.  Total interest expense increased $1.0 million,  or 10.31%, to
$10.4  million for the quarter  ended June 30, 2000 compared to $9.4 million for
the quarter  ended June 30, 1999.  Average  deposits  decreased by $34.2 million
comparing  the three  months  ended  June 30,  1999 to 2000,  while the  average
interest paid on  interest-bearing  deposits increased 9 basis points from 4.25%
for the three months ended June 30, 1999 to 4.34% for the same period ended June
30, 2000. The average balance of borrowings increased $50.6 million, from $171.4
million for the three months ended June 30, 1999 to $222.0  million for the same
period ended June 30, 2000,  resulting in an increase in interest on  borrowings
of $1.1 million for the three months ended June 30, 2000  compared with the same
period ended June 30, 1999.  The rate paid on  borrowings  increased by 98 basis
points  from 5.12% for the  quarter  ended  June 30,  1999 to 6.10% for the same
period in 2000.

Provision for Loan Losses.  The provision for loan losses was $228,000 and there
were $8,551 of charge offs, and $755 of recoveries during the three months ended
June 30,  2000  compared to a $243,000  provision  and no charge offs during the
three  months  ended June 30,  1999.  In previous  periods,  the  provision  was
increased in response to portfolio  growth and changes in the composition of the
portfolio  to include a higher  percentage  of loans,  such as  commercial  real
estate  and  consumer  loans,  which are considered to have more associated risk

                                       16
<PAGE>

than the  Company's  traditional  portfolio of one- to  four-family  residential
mortgages.  The  provision  for loan  losses is being  maintained  at the higher
level.

Non-Interest Income.  Non-interest income increased $208,925, or 25.27%, to $1.0
million for the three  months  ended June 30, 2000 from  $826,842  for the three
months ended June 30, 1999.  Income from fees and service  charges  continues to
show growth,  increasing  by 8.40% from  $749,074 for the quarter ended June 30,
1999 to $812,006 for the current quarter.  Other  non-interest  income increased
significantly  due to gains recorded on sale of mortgage loans to Fannie Mae and
income generated by Klamath First Financial Services.

Non-Interest Expense. Non-interest expense decreased $103,983, or 1.80%, to $5.7
million  for the three  months  ended June 30,  2000,  from $5.8  million in the
comparable  period in 1999.  An  increase  was noted in  compensation,  employee
benefits and related expense.  As a routine accounting  procedure,  a portion of
compensation expense is allocated to the cost of originating loans and such cost
is taken to  expense  over the life of the  loans.  Because  the  number of loan
originations  decreased  significantly  in the quarter ended June 30, 2000, less
compensation cost was allocated to loan originations and deferred,  resulting in
an increase in compensation  expense.  Other expense decreased  primarily due to
non-recurring  losses  recorded  in the  third  quarter  of 1999.  The  ratio of
non-interest  expense to average  total assets was 2.16% and 2.24% for the three
months ended June 30, 2000 and 1999, respectively.

Income Taxes.  The provision for income taxes  decreased  $248,287 for the three
months ended June 30, 2000 compared with the prior year.  The effective tax rate
decreased  to 35.1% for the quarter  ended June 30, 2000 from 40.6% for the same
period of 1999.

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no  material  changes  in the  Company's  market  risk from that
disclosed  in the Annual  Report on Form 10-K for the year ended  September  30,
1999.

                                       17
<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) A Current  Report on Form 8-K was filed on May 26, 2000  announcing
          the  retirement  of Gerald V.  Brown,  President  and Chief  Executive
          Officer.




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<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:    August 11, 2000                   By:            /s/ Gerald V. Brown
                                           ----------------------------------
                                           Gerald V. Brown, President and
                                           Chief Executive Officer


Date:    August 11, 2000                   By:     /s/ Marshall Jay Alexander
                                           ----------------------------------
                                           Marshall Jay Alexander, Senior Vice
                                           President and Chief Financial Officer







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