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, 1999

                                       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  January  28,  2000,  there  were  issued  7,616,877  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, 1999 and September 30, 1999)                     3

         Consolidated Statements of Earnings (For the three months
         ended December 31, 1999 and 1998)                                    4

         Consolidated Statements of Shareholders' Equity
         (For the year ended September 30, 1999 and for
         the three months ended December 31, 1999)                            5

         Consolidated Statements of Cash Flows (For the three
         months ended December 31, 1999 and 1998)                         6 - 7

         Notes to Consolidated Financial Statements                      8 - 11

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                            12 - 15

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

Item 1.  Legal Proceedings                                                   16

Item 2.  Changes in Securities                                               16

Item 3.  Defaults Upon Senior Securities                                     16

Item 4.  Submission of Matters to a Vote of Security Holders                 16

Item 5.  Other Information                                                   16

Item 6.  Exhibits and Reports on Form 8-K                                    16

Signatures                                                                   17











                                        2
<PAGE>
<TABLE>
<CAPTION>

                   KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                 AS OF DECEMBER 31, 1999 AND SEPTEMBER 30, 1999
                                   (Unaudited)



                                                                        December 31, 1999            September 30, 1999
ASSETS                                                                  -----------------            ------------------
<S>                                                                       <C>                           <C>

Cash and due from banks ................................................. $    32,491,201               $    21,123,217
Interest bearing deposits with banks ....................................       3,308,696                     1,231,516
Federal funds sold and securities purchased under agreements to resell ..       5,591,210                     2,167,856
                                                                          ---------------               ---------------
   Total cash and cash equivalents ......................................      41,391,107                    24,522,589


Investment securities available for sale, at fair value
  (amortized cost: $152,138,973 and $161,112,272) .......................     148,456,387                   158,648,057
Investment securities held to maturity, at amortized cost (fair
  value: $571,778 and $577,455) .........................................         559,054                       559,512
Mortgage backed and related securities available for sale, at fair
  value (amortized cost: $69,596,157 and $73,075,553) ...................      68,752,641                    72,695,555
Mortgage backed and related securities held to maturity, at amortized
  cost (fair value: $2,442,028 and $2,596,408) ..........................       2,457,098                     2,600,920
Loans receivable, net ...................................................     740,517,583                   739,793,403
Real estate owned and repossessed assets ................................       1,259,450                     1,494,890
Premises and equipment, net .............................................      12,023,675                    11,581,923
Stock in Federal Home Loan Bank of Seattle, at cost .....................      11,157,500                    10,957,300
Accrued interest receivable .............................................       7,382,370                     7,153,818
Core deposit intangible .................................................       9,365,171                     9,778,341
Other assets ............................................................       1,551,127                     1,855,032
                                                                          ---------------               ---------------
   Total assets ......................................................... $ 1,044,873,163               $ 1,041,641,340
                                                                          ===============               ===============
 Commitments and contingencies

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
  Deposit liabilities ................................................... $   718,237,553               $   720,401,112
  Accrued interest on deposit liabilities ...............................       1,244,649                     1,184,471
  Advances from borrowers for taxes and insurance .......................         664,476                     9,758,627
  Advances from Federal Home Loan Bank of Seattle .......................     213,000,000                   197,000,000
  Accrued interest on borrowings ........................................         929,411                        34,484
  Pension liabilities ...................................................         866,293                       833,644
  Deferred federal and state income taxes ...............................         210,013                       579,727
  Other liabilities .....................................................       2,828,368                     2,263,812
                                                                          ---------------               ---------------
    Total liabilities ...................................................     937,980,763                   932,055,877
                                                                          ---------------               ---------------
   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, 1999 - 7,626,877 issued, 6,781,815 outstanding
   September 30, 1999 - 7,908,377 issued, 7,062,092 outstanding .........          76,269                        79,084
  Additional paid-in capital ............................................      40,498,516                    43,794,535
  Retained earnings-substantially restricted ............................      78,015,102                    76,866,452
  Unearned shares issued to ESOP ........................................      (5,627,238)                   (5,871,900)
  Unearned shares issued to MRDP ........................................      (3,264,067)                   (3,519,296)
  Net unrealized loss on securities available for sale, net of tax ......      (2,806,182)                   (1,763,412)
                                                                          ---------------               ---------------
    Total shareholders' equity ..........................................     106,892,400                   109,585,463
                                                                          ---------------               ---------------
 Total liabilities and shareholders' equity ............................. $ 1,044,873,163               $ 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 Months Ended           Three Months Ended
                                                                                    December 31,                 December 31,
                                                                                            1999                         1998
                                                                                     -----------                  -----------
INTEREST INCOME
<S>                                                                                  <C>                          <C>
  Loans receivable ................................................................. $14,245,591                  $13,839,389
  Mortgage backed and related securities ...........................................   1,083,930                      561,210
  Investment securities ............................................................   2,521,529                    3,429,265
  Federal funds sold and securities purchased under agreements to resell ...........      97,124                      207,560
  Interest bearing deposits ........................................................     102,273                      240,149
                                                                                     -----------                  -----------
    Total interest income ..........................................................  18,050,447                   18,277,573
                                                                                     -----------                  -----------

INTEREST EXPENSE
  Deposit liabilities ..............................................................   7,023,403                    7,418,560
  Advances from FHLB of Seattle ....................................................   2,771,028                    2,211,396
  Other ............................................................................      18,930                      157,660
                                                                                     -----------                  -----------
    Total interest expense .........................................................   9,813,361                    9,787,616
                                                                                     -----------                  -----------
    Net interest income ............................................................   8,237,086                    8,489,957

Provision for loan losses ..........................................................     108,000                      123,000
                                                                                     -----------                  -----------
    Net interest income after provision for
      loan losses ..................................................................   8,129,086                    8,366,957
                                                                                     -----------                  -----------

NON-INTEREST INCOME
  Fees and service charges .........................................................     770,719                      691,677
  Gain on sale of investments ......................................................       6,836                      128,193
  Gain on sale of real estate owned ................................................     117,566                         --
  Other income .....................................................................     137,255                       79,550

                                                                                     -----------                  -----------
    Total non-interest income ......................................................   1,032,376                      899,420
                                                                                     -----------                  -----------
NON-INTEREST EXPENSE
  Compensation, employee benefits and related expense ..............................   2,747,612                    2,413,886
  Occupancy expense ................................................................     551,520                      559,105
  Data processing expense ..........................................................     221,049                      239,805
  Insurance premium expense ........................................................      75,829                       69,975
  Loss on sale of investments ......................................................        --                        112,256
  Amortization of core deposit intangible ..........................................     413,169                      413,169
  Other expense ....................................................................   1,856,922                    1,266,881
                                                                                     -----------                  -----------
    Total non-interest expense .....................................................   5,866,101                    5,075,077
                                                                                     -----------                  -----------

Earnings before income taxes .......................................................   3,295,361                    4,191,300

Provision for income taxes .........................................................   1,266,751                    1,737,485
                                                                                     -----------                  -----------

Net earnings ....................................................................... $ 2,028,610                  $ 2,453,815
                                                                                     ===========                  ===========

Earnings per common share - basic .................................................. $      0.29                  $      0.28
Earnings per common share - diluted ................................................ $      0.29                  $      0.27
Weighted average common shares outstanding - basic .................................   7,021,894                    8,911,878
Weighted average common shares outstanding - with dilution .........................   7,021,894                    9,182,339

<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 THREE MONTHS ENDED DECEMBER 31, 1999
                                                         (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, 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                           --        --          --     (879,960)          --          --            --      (879,960)

Stock repurchased and retired      (281,500)   (2,815) (3,346,185)          --           --          --            --    (3,349,000)

ESOP contribution                        --        --      46,739           --      244,662          --            --       291,401

MRDP contribution                     1,223        --       3,427           --           --     255,229            --       258,656
                                  ---------  -------- -----------  -----------  ----------- ----------- ------------- -------------
                                  6,781,815    76,269  40,498,516   75,986,492   (5,627,238) (3,264,067)   (1,763,412)  105,906,560

Comprehensive income
     Net earnings                                                    2,028,610                                            2,028,610
     Other comprehensive income:
          Unrealized loss on
          securities, net of tax
          and reclassification
          adjustment(2)                                                                                    (1,042,770)   (1,042,770)
                                                                                                                        -----------
          Total comprehensive
          income                                                                                                            985,840
                                  ---------  -------- -----------  -----------  ----------- ----------- ------------- -------------
Balance at December 31, 1999      6,781,815   $76,269 $40,498,516  $78,015,102  $(5,627,238)$(3,264,067)  $(2,806,182) $106,892,400
                                  =========  ======== ===========  ===========  =========== =========== ============= =============
<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 $992,788 (net of $608,483 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 THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998
                                                               (Unaudited)


                                                             Three Months Ended         Three Months Ended
                                                                   December 31,               December 31,
                                                                           1999                       1998
                                                                   ------------              -------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                <C>                        <C>
    Net earnings ................................................. $  2,028,610               $  2,453,815

ADJUSTMENTS TO RECONCILE NET EARNINGS TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
    Depreciation and amortization ................................      722,128                    724,661
    Provision for deferred taxes .................................      269,403                   (585,356)
    Provision for loan losses ....................................      108,000                    123,000
    Provision for losses on real estate owned ....................      120,000                       --
    Compensation expense related to ESOP benefit .................      291,401                    438,264
    Compensation expense related to MRDP Trust ...................      258,656                    251,881
    Net amortization of premiums (discounts)  paid on
      investment and mortgage backed and related securities ......       70,505                   (154,421)
    Increase (decrease) in deferred loan fees, net of amortization      (77,888)                   309,351
    Accretion of discounts on purchased loans ....................       (1,879)                    (3,826)
    Net gain on sale of investment and mortgage
      backed and related securities ..............................       (6,836)                   (15,937)
    Gain on sale of real estate owned ............................     (117,566)                      --
    FHLB stock dividend ..........................................     (200,200)                  (198,700)
CHANGES IN ASSETS AND LIABILITIES
    Accrued interest receivable ..................................     (228,552)                  (209,637)
    Other assets .................................................      263,905                   (722,526)
    Accrued interest on deposit liabilities ......................       60,178                     (9,259)
    Accrued interest on borrowings ...............................      894,927                    (33,947)
    Pension liabilities ..........................................       32,649                     32,649
    Other liabilities ............................................      673,144                  2,525,421
                                                                   ------------               ------------
Net cash provided by operating activities ........................    5,160,585                  4,925,433
                                                                   ------------               ------------
CASH FLOWS FROM INVESTING ACTIVITIES
    Proceeds from maturity of investment securities
      held to maturity ...........................................         --                   30,000,000
    Proceeds from maturity of investment securities
      available for sale .........................................         --                   13,550,000
    Principal repayments received on mortgage backed
       and related securities held to maturity ...................      141,592                    463,483
    Principal repayments received on mortgage backed
       and related securities available for sale .................    3,450,154                  6,483,237
    Principal repayments received on loans .......................   25,629,270                 46,578,685
    Loan originations ............................................  (30,642,882)               (74,617,179)
    Loans sold ...................................................    3,403,823                       --
    Purchase of investment securities held
      to maturity ................................................         --                  (79,711,523)
    Purchase of investment securities available
      for sale ...................................................   (1,110,000)                      --
    Proceeds from sale of investment securities
      available for sale .........................................   10,051,563                  5,109,374
    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 .....................................    1,090,381                       --
    Purchases of premises and equipment ..........................     (710,710)                  (117,713)
                                                                   ------------               ------------
Net cash provided by (used in) investing activities ..............   11,303,191                (42,806,860)
                                                                   ------------               ------------
</TABLE>


                                                                    6
<PAGE>
<TABLE>
<CAPTION>

                                               KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                                                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          FOR THE THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998
                                                               (Unaudited)
                                                               (Continued)


                                                             Three Months Ended         Three Months Ended
                                                                   December 31,               December 31,
                                                                           1999                       1998
                                                                   ------------               ------------
CASH FLOWS FROM FINANCING ACTIVITIES
    Increase (decrease) in deposit
<S>                                                                <C>                        <C>
     liabilities, net of withdrawals ............................. ($ 2,163,559)              $ 26,488,003
    Proceeds from FHLB advances ..................................   92,000,000                  5,000,000
    Repayments of FHLB advances ..................................  (76,000,000)                (5,000,000)
    Proceeds from short term borrowings ..........................         --                    8,595,000
    Repayments of short term borrowings ..........................         --                  (12,112,500)
    Stock repurchase and retirement ..............................   (3,349,000)                      --
    Advances from borrowers for taxes and insurance ..............   (9,094,151)                (8,480,258)
    Dividends paid ...............................................     (988,548)                  (892,509)
                                                                   ------------               ------------
Net cash provided by financing activities ........................      404,742                 13,597,736
                                                                   ------------               ------------
Net increase (decrease) in cash and cash
  equivalents ....................................................   16,868,518                (24,283,691)

Cash and cash equivalents at beginning
  of period ......................................................   24,522,589                 66,985,269
                                                                   ------------               ------------
Cash and cash equivalents at end of period ....................... $ 41,391,107               $ 42,701,578
                                                                   ============               ============
SUPPLEMENTAL SCHEDULE OF INTEREST AND
INCOME TAXES PAID
    Interest paid ................................................ $  8,858,256               $  9,830,823
    Income taxes paid ............................................         --                       50,000

SUPPLEMENTAL SCHEDULE OF NONCASH
  INVESTING AND FINANCING ACTIVITIES
    Net unrealized loss on securities
      available for sale ......................................... ($ 1,042,770)              ($ 1,423,894)
    Dividends declared and accrued in other
      liabilities ................................................      953,360                    753,674

<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 December 31,
1999,  and September 30, 1999,  the results of operations and cash flows for the
three months  ended  December 31, 1999 and 1998.  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, 1999 and 1998 are not  necessarily  indicative of the results which
may be expected for the entire fiscal year.

2. COMPREHENSIVE INCOME

For the three months ended December 31, 1999, the Company's total  comprehensive
income was $1.0  million  compared to $1.1  million for the three  months  ended
December  31,  1998.  Total  comprehensive  income  for the three  months  ended
December  31,  1999 was  comprised  of net  income  of $2.0  million  and  other
comprehensive loss of $1.0 million,  net of tax. Total comprehensive  income for
the three  months ended  December  31, 1998 was  comprised of net income of $2.5
million and other comprehensive loss of $1.4 million, net of tax.

3. ALLOWANCE FOR LOAN LOSSES


Activity in allowance for loan losses is summarized as follows:
<TABLE>
                                Three Months Ended          Year Ended
                                      December 31,       September 30,
                                              1999                1999
                                       -----------         -----------
<S>                                    <C>                 <C>
Balance, beginning of period           $ 2,483,625         $ 1,949,677
Charge-offs ................                (2,414)           (398,052)
Recoveries .................               340,818                --
Additions ..................               108,000             932,000
                                       -----------         -----------
Balance, end of period .....           $ 2,930,029         $ 2,483,625
                                       ===========         ===========
</TABLE>

4. ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings at December 31, 1999 consisted of three short term advances  totaling
$60.0  million and eight long term  advances  totaling  $153.0  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>
<TABLE>
<CAPTION>

Scheduled maturities of advances from the FHLB were as follows:


                                              December 31, 1999                                    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               $60,000,000       5.81%-6.01%             5.88%              $--               --               --
After two but within
five years                         15,000,000       5.70%-6.50%             6.23%       40,000,000      5.39%-5.70%            5.43%
After five but within
ten years                         138,000,000       4.77%-5.94%             5.39%      157,000,000      4.77%-5.87%            5.32%
                               --------------                                       --------------
                                 $213,000,000                                         $197,000,000
                               ==============                                       ==============
</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. SHAREHOLDER' 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.  Five percent represents  approximately
395,000  shares.  As of December 31, 1999,  about 74% of the repurchase plan was
completed, at a weighted average price of $11.88.

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  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

                                        9
<PAGE>

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
quarter  ended  December 31, 1999,  there were no dilutive  MRDP shares or stock
options.

<TABLE>
<CAPTION>

                                                     For the Three     Months Ended
                                                      December 31,     December 31,
                                                              1999             1998
                                                      ------------     ------------
Weighted average common
<S>                                                      <C>              <C>
shares outstanding - basic .......................       7,021,894        8,911,878
                                                                       ------------
Effect of Dilutive Securities on Number of Shares:
MRDP shares ......................................            --             35,184
Stock options ....................................            --            235,277
                                                      ------------     ------------
Total Dilutive Securities ........................            --            270,461
                                                      ------------     ------------
Weighted average common shares
 outstanding - with dilution .....................       7,021,894        9,182,339
                                                      ============     ============
</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, 1999:
<TABLE>
<CAPTION>


                                                                                                    To Be 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:                  $98,066,152        17.8%           $44,048,152         8.0%            $55,060,190      10.0%
  (To Risk Weighted Assets)
 Tier I Capital:                  95,640,343        17.4%                   N/A          N/A             33,036,114       6.0%
  (To Risk Weighted Assets)
 Tier I Capital:                  95,640,343         9.2%            31,090,588         3.0%             51,817,647       5.0%
  (To Total Assets)
 Tangible Capital:                95,640,343         9.2%            15,545,294         1.5%                    N/A        N/A
  (To Tangible Assets)

</TABLE>



                                                        10
<PAGE>

9. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In June 1998,  SFAS No. 133,  Accounting for Derivative  Instruments and Hedging
Activities,  was issued.  SFAS No. 133  establishes the 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 balance sheet 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 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.

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


                                       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,  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 December 31, 1999,  the Company had total
consolidated  assets of $1.04 billion and consolidated  shareholders'  equity of
$106.9  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

                                       12
<PAGE>

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 increased 39% from $12.5
million at December 31, 1998 to $17.4 million at December 31, 1999.  The Company
has recently hired an experienced  commercial loan officer to spearhead the plan
to further increase commercial loan growth. 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.

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 applied for approval to open new
branches in 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.

Year 2000 Review

As with other  organizations,  some of the data processing  programs used by the
Company were originally  designed to recognize  calendar years by their last two
digits. There was concern whether  calculations  performed using these truncated
fields would work  properly with dates beyond 1999.  Correct  processing of date
oriented information is critical to the operation of all financial  institutions
because  computer  systems  track  deposit  account  and loan  balances,  record
transaction  activity in accounts,  and calculate interest amounts,  among other
activities.  Failure of these processes could have severely hindered the ability
to continue  operations and provide  customer  service.  Because of the critical
nature of the  issue,  the  Company  established  a  committee  early in 1997 to
address "Year 2000" issues. The committee,  consisting of executive  management,
technical staff,  and a full time project manager,  has chosen to use the Office
of Thrift  Supervision Year 2000 Checklist as a guide for Year 2000 preparation.
The  committee is also using a Year 2000  Testing  Guide and  Contingency  Guide
provided by Alex Information Systems, Inc. to complement the OTS checklist.

The Company kept customers informed regarding Year 2000 issues and the Company's
preparation  activities,  through  statement  brochures and "Year 2000" bulletin
boards in all the branches,  which contained  information on Year 2000 readiness
for the Company and the financial services industry. Employees were proactive in
reassuring  customers  that their funds were safe with  Klamath  First  Federal,
minimizing large withdrawals of deposits and other adverse customer concerns.

The change over to Year 2000 did not cause  disruption in the Company's  ability
to serve its  customers.  As of December 31, 1999,  the Company  estimated  that
total Year 2000  implementation  costs will be  approximately  $200,000 and have
been expensed over a period of 18 months, affecting fiscal years 1998, 1999, and
2000. This estimate is based on information  available at December 31, 1999, and
may be revised as  additional  information  and actual costs  become  available.
During the quarter  ended  December 31, 1999 and the years ended  September  30,
1999 and 1998, $10,000,  $82,000 and $89,000 of Year 2000 expenses were incurred
and expensed, respectively.


                                       13
<PAGE>

Changes in Financial Condition

At December 31, 1999,  the  consolidated  assets of the Company  totaled  $1.045
billion, up slightly from $1.042 billion at September 30, 1999.

Net loans  receivable  increased  by $724,180 to $740.5  million at December 31,
1999, compared to $739.8 million at September 30, 1999. Rising mortgage interest
rates have dampened mortgage demand, reducing loan originations this quarter. In
addition,  the Company  sold $3.4  million in single  family  mortgage  loans to
Fannie Mae, further reducing loans receivable.

Investment  securities decreased $10.2 million, or 6.40%, from $159.2 million at
September  30, 1999 to $149.0  million at December 31, 1999.  This  decrease was
primarily the result of sale of $10.1 million of investment securities available
for sale.

During the three  months  ended  December  31,  1999,  $3.6 million of principal
payments were  received on mortgage  backed and related  securities  ("MBS") and
market value of MBS  available  for sale  decreased by $463,516,  resulting in a
decrease in the balance of MBS from $75.3 million at September 30, 1999 to $71.2
million at December 31, 1999.

Deposit liabilities decreased $2.2 million, less than 1.00%, from $720.4 million
at September 30, 1999 to $718.2 million at December 31, 1999, the first decrease
in the Company's  history.  The decrease 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  $9.1 million from
September 30, 1999 to December 31, 1999. 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.

The Company's total  borrowings  increased $16.0 million from September 30, 1999
to December  31,  1999.  The  majority of the  increase  was used as part of the
Company's Year 2000 readiness plan to fund anticipated cash needs for the end of
the year date change to year 2000.

Total shareholders' equity decreased $2.7 million, or 2.46%, from $109.6 million
at September 30, 1999 to $106.9 million at December 31, 1999.  This decrease was
primarily  the result of a $3.3 million  reduction  due to the buyback of shares
and a $1.0 million  decrease in  unrealized  gains on  securities  available for
sale, partially offset by $2.0 million in earnings for the first quarter.

Results of Operations

     Comparison of Three Months Ended December 31, 1999 and 1998

General.  Basic  earnings per share  increased  from $.28 for the quarter  ended
December  31,  1998 to $.29 for the same  period of 1999.  Net income  decreased
$425,205,  or 17.33%,  from $2.5 million for the three months ended December 31,
1998 to $2.0 million for the three months ended December 31, 1999. This decrease
was primarily attributable to an increase in non-interest expense.


                                       14
<PAGE>

Interest Income.  The Company  recorded  interest income of $18.1 million in the
first  quarter  ended  December 31, 1999, a slight  decrease of 1.09% from $18.3
million for the same period last year.  While average  interest  earning  assets
increased by $8.5 million,  or 7.88%, yield decreased from 7.34% for the quarter
ended December 31, 1998 to 7.19% for the same period of 1999. The primary factor
contributing  to the  decrease  in yield  was a  decrease  in the yield on loans
receivable  from 8.01% for the quarter ended  December 31, 1998 to 7.60% for the
current  quarter.  Yields on other interest  earning assets  remained  stable or
improved for the period.

Interest  Expense.  Total interest expense remained constant at $9.8 million for
the quarters ended  December 31, 1998 and 1999.  Average  deposits  increased by
$14.0 million  comparing the three months ended December 31, 1998 to 1999, while
the average interest paid on interest-bearing deposits decreased 33 basis points
from 4.54% for the three  months  ended  December 31, 1998 to 4.21% for the same
period ended December 31, 1999. The average  balance of FHLB advances  increased
$33.3 million from $167.1  million for the three months ended  December 31, 1998
to $200.5  million for the same period ended  December 31, 1999  resulting in an
increase in interest on FHLB  advances of $559,632  for the three  months  ended
December 31, 1999  compared  with the same period ended  December 31, 1998.  The
rate paid on borrowings  increased by 21 basis points from 5.32% for the quarter
ended December 31, 1998 to 5.53% for the same period in 1999.

Provision for Loan Losses.  The provision for loan losses was $108,000 and there
were $2,414 of charge offs,  and $340,818 of recoveries  during the three months
ended  December 31, 1999  compared to a $123,000  provision and $3,000 of charge
offs during the three months ended December 31, 1998. 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 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 $132,956, or 14.78%, to $1.0
million for the three months ended December 31, 1999 from $899,420 for the three
months ended December 31, 1998.  Income from fees and service charges  continues
to show  growth,  increasing  by 11.43%  from  $671,677  for the  quarter  ended
December 31, 1998 to $770,719 for the current quarter. Other non-interest income
increased  significantly  due to gains  recorded  on sale of  mortgage  loans to
Fannie Mae.

Non-Interest  Expense.  Non-interest  expense increased $791,024,  or 15.59%, to
$5.9 million for the three months ended December 31, 1999,  from $5.1 million in
the  comparable  period in 1998.  The most  significant  increases were noted in
compensation,  employee  benefits and related expense,  and other 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  December 31, 1999,  less  compensation  cost was allocated to
loan  originations  and  deferred,  resulting  in an  increase  in  compensation
expense.  Other expense increased due to increases in general operating expenses
and  approximately  $400,000 in charges  related to  foreclosure of a commercial
real estate property.  The ratio of non-interest expense to average total assets
was  2.24% and 1.94% for the three  months  ended  December  31,  1999 and 1998,
respectively.

Income Taxes.  The provision for income taxes  decreased  $470,734 for the three
months ended  December 31, 1999 compared with the prior year.  The effective tax
rate was evaluated and revised to 38.44% for the quarter ended December 31, 1999
compared to 41.45% for the same period of 1998.


                                       15
<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) No Current  Reports on Form 8-K were filed during the quarter ended
             December 31, 1999.




                                       16
<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 11, 2000                         By:      /s/ Gerald V. Brown
                                                    ---------------------------
                                                 Gerald V. Brown, President and
                                                        Chief Executive Officer


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






                                       17

<PAGE>