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 March 31, 2001

                                       OR

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

                         Commission File Number: 0-26556

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

         Oregon                                                       93-1180440
State or other jurisdiction of incorporation                    (I.R.S. Employer
or organization)                                          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 April 20, 2001, there were issued 7,174,742 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
                                                                         -------
               Condensed Consolidated Balance Sheets
               (As of March 31, 2001 and September 30, 2000)                   3

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

               Condensed Consolidated Statements of Shareholders' Equity
               (For the year ended September 30, 2000 and for
               the six months ended March 31, 2001)                            5

               Condensed Consolidated Statements of Cash Flows (For the six
               months ended March 31, 2001 and 2000)                       6 - 7

               Notes to Condensed Consolidated Financial Statements       8 - 11

Item 2.        Management's Discussion and Analysis of Financial
               Condition and Results of Operations                       12 - 18

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

Item 1.        Legal Proceedings                                              19

Item 2.        Changes in Securities                                          19

Item 3.        Defaults Upon Senior Securities                                19

Item 4.        Submission of Matters to a Vote of Security Holders            19

Item 5.        Other Information                                              19

Item 6.        Exhibits and Reports on Form 8-K                               20

Signatures                                                                    21











                                        2

<PAGE>
<TABLE>
<CAPTION>



                   KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                   AS OF MARCH 31, 2001 AND SEPTEMBER 30, 2000
                                   (Unaudited)


                                                                                 March 31, 2001  September 30, 2000
ASSETS                                                                           --------------- ------------------

<S>                                                                              <C>                <C>
Cash and due from banks ......................................................   $    20,524,357    $  19,998,788
Interest bearing deposits with banks .........................................        10,157,224        2,077,359
Federal funds sold and securities purchased under agreements to resell .......        16,998,376        7,870,453
                                                                                 ---------------    -------------
   Total cash and cash equivalents ...........................................        47,679,957       29,946,600

Investment securities available for sale, at fair value
  (amortized cost: $135,502,219 and $118,689,247) ............................       135,071,029      116,627,756
Investment securities held to maturity, at amortized cost (fair
  value: $727,539 and $726,889) ..............................................           723,309          723,838
Mortgage backed and related securities available for sale, at fair
  value (amortized cost: $241,407,264 and $75,483,569) .......................       244,325,272       75,331,311
Mortgage backed and related securities held to maturity, at amortized
  cost (fair value: $1,938,300 and $2,596,408) ...............................         1,925,810        2,159,868
Loans receivable, net ........................................................       527,458,226      729,036,847
Real estate owned and repossessed assets .....................................         1,003,234          788,400
Premises and equipment, net ..................................................        13,764,585       12,727,570
Stock in Federal Home Loan Bank of Seattle, at cost ..........................        12,263,900       11,876,500
Accrued interest receivable ..................................................         6,399,257        6,432,073
Deferred income taxes ........................................................              --            230,893
Core deposit intangible ......................................................         7,299,325        8,125,664
Other assets .................................................................         3,383,914        1,567,318
                                                                                 ---------------    -------------
   Total assets ..............................................................   $ 1,001,297,818     $995,574,638
                                                                                 ===============    =============

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
  Deposit liabilities ........................................................   $   701,800,577    $ 695,380,871
  Accrued interest on deposit liabilities ....................................         1,232,580        1,185,076
  Advances from borrowers for taxes and insurance ............................         2,636,475        9,653,376
  Advances from Federal Home Loan Bank of Seattle ............................       173,000,000      173,000,000
  Short term borrowings ......................................................         1,700,000        3,000,000
  Accrued interest on borrowings .............................................           865,553          857,163
  Pension liabilities ........................................................           953,194          887,896
  Deferred income taxes ......................................................         1,555,322             --
  Other liabilities ..........................................................         3,900,331        2,885,695
                                                                                 ---------------    -------------
    Total liabilities ........................................................       887,644,032      886,850,077
                                                                                 ---------------    -------------
    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,
    March 31, 2001 - 7,196,197 issued, 6,521,796 outstanding
    September 30, 2000 - 7,366,226 issued, 6,692,428 outstanding .............            71,962           73,662
  Additional paid-in capital .................................................        35,820,748       37,701,796
  Retained earnings-substantially restricted .................................        82,618,143       79,713,255
  Unearned shares issued to ESOP .............................................        (4,451,975)      (4,893,250)
  Unearned shares issued to MRDP .............................................        (1,946,920)      (2,498,378)
  Net unrealized gain (loss) on securities available for sale, net of tax ....         1,541,828       (1,372,524)
                                                                                 ---------------    -------------
    Total shareholders' equity ...............................................       113,653,786      108,724,561
                                                                                 ---------------    -------------
    Total liabilities and shareholders' equity ...............................   $ 1,001,297,818    $ 995,574,638
                                                                                 ===============    =============
<FN>


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

</TABLE>
                                        3

<PAGE>

<TABLE>
<CAPTION>


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


                                                                 Three Months Ended           Six Months Ended
                                                                March 31,     March 31,     March 31,     March 31,
                                                                     2001          2000          2001          2000
                                                             ------------   -----------   -----------   -----------
INTEREST INCOME
<S>                                                           <C>           <C>           <C>           <C>
  Loans receivable ........................................   $11,927,271   $14,283,921   $26,171,302   $28,529,511
  Mortgage backed and related securities ..................     3,236,880     1,266,675     4,472,936     2,350,605
  Investment securities ...................................     1,925,899     2,469,830     3,972,434     4,991,358
  Federal funds sold ......................................       218,545        49,320       403,608       146,444
  Interest bearing deposits ...............................       141,618        71,432       246,282       173,706
                                                              -----------   -----------   -----------   -----------
    Total interest income .................................    17,450,213    18,141,178    35,266,562    36,191,624
                                                              -----------   -----------   -----------   -----------

INTEREST EXPENSE
  Deposit liabilities .....................................     7,491,515     7,036,474    15,094,850    14,059,877
  FHLB advances ...........................................     2,533,302     3,182,153     5,142,770     5,953,181
  Other ...................................................       128,570        19,529       253,988        38,458
                                                              -----------   -----------   -----------   -----------
    Total interest expense ................................    10,153,387    10,238,156    20,491,608    20,051,516
                                                              -----------   -----------   -----------   -----------
    Net interest income ...................................     7,296,826     7,903,022    14,774,954    16,140,108

Provision for loan losses .................................       153,000       200,000       381,000       308,000

                                                              -----------   -----------   -----------   -----------
    Net interest income after provision for
      loan losses .........................................     7,143,826     7,703,022    14,393,954    15,832,108
                                                              -----------   -----------   -----------   -----------

NON-INTEREST INCOME
  Fees and service charges ................................       935,358       756,168     1,806,014     1,526,887
  Gain on sale of investments .............................     2,501,874          --       2,509,793         6,836
  Gain on sale of real estate owned .......................         1,938           748        16,429       118,314
  Other income ............................................       268,203       169,097       488,617       306,352
                                                              -----------   -----------   -----------   -----------
    Total non-interest income .............................     3,707,373       926,013     4,820,853     1,958,389
                                                              -----------   -----------   -----------   -----------
NON-INTEREST EXPENSE
  Compensation, employee benefits and related expense .....     3,121,325     2,884,515     6,030,270     5,632,127
  Occupancy expense .......................................       644,578       584,203     1,225,969     1,135,723
  Data processing expense .................................       257,484       243,283       488,509       464,331
  Insurance premium expense ...............................        33,879        38,057        68,670       113,886
  Loss on sale of investments .............................          --            --          30,632          --
  Amortization of core deposit intangible .................       413,169       413,169       826,339       826,339
  Other expense ...........................................     1,738,165     1,407,419     3,320,898     3,264,341
                                                              -----------   -----------   -----------   -----------
    Total non-interest expense ............................     6,208,600     5,570,646    11,991,287    11,436,747
                                                              -----------   -----------   -----------   -----------

Earnings before income taxes ..............................     4,642,599     3,058,389     7,223,520     6,353,750

Provision for income tax ..................................     1,687,796     1,184,248     2,583,673     2,450,999
                                                              -----------   -----------   -----------   -----------

Net earnings ..............................................   $ 2,954,803   $ 1,874,141   $ 4,639,847   $ 3,902,751
                                                              ===========   ===========   ===========   ===========

Earnings per common share - basic .........................   $      0.45   $      0.28   $      0.70   $      0.57
Earnings per common share - fully diluted .................   $      0.45   $      0.28   $      0.70   $      0.57
Weighted average common shares outstanding - basic ........     6,567,352     6,769,260     6,610,189     6,896,199
Weighted average common shares outstanding -  with dilution     6,585,719     6,769,260     6,623,185     6,896,199


<FN>

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

                                        4

<PAGE>

<TABLE>
<CAPTION>


                   KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
            CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
  FOR THE YEAR ENDED SEPTEMBER 30, 2000 AND THE SIX MONTHS ENDED MARCH 31, 2001
                                   (Unaudited)

                                                                                Unearned     Unearned
                                  Common   Common   Additional                    shares       shares           Other          Total
                                   stock    stock      paid-in     Retained       issued       issued   comprehensive  shareholders'
                                  shares   amount      capital     earnings      to ESOP      to MRDP   income (loss)         equity
                              -----------  ------- -----------   -----------  ----------   -----------    -----------   ------------
<S>                            <C>        <C>      <C>          <C>          <C>           <C>           <C>           <C>
Balance at October 1, 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                        --       --           --   (3,579,349)          --            --            --     (3,579,349)

Stock repurchased and retired   (542,151)  (5,422)  (6,249,273)          --           --            --            --     (6,254,695)

ESOP contribution                 97,865       --      142,826           --      978,650            --            --      1,121,476

MRDP contribution                 74,622       --       13,708           --           --     1,020,918            --      1,034,626
                              -----------  ------- -----------   -----------  ----------   -----------    -----------   ------------
                               6,692,428   73,662   37,701,796   73,287,103   (4,893,250)   (2,498,378)   (1,763,412)   101,907,521

Comprehensive income
  Net earnings                                                    6,426,152                                               6,426,152
  Other comprehensive income:
    Unrealized gain on
    securities, net of tax
    and reclassification
    adjustment   (1)                                                                                         390,888        390,888
                                                                                                                        ------------
    Total comprehensive
    income                                                                                                                6,817,040
                              -----------  ------- -----------   -----------  ----------   -----------    -----------   ------------
Balance at September 30, 2000  6,692,428   73,662   37,701,796   79,713,255   (4,893,250)    (2,498,378)   (1,372,524)  108,724,561

Cash dividends                        --       --           --   (1,734,959)          --             --            --    (1,734,959)

Stock repurchased and retired   (170,029)  (1,700)  (2,009,385)          --           --             --            --    (2,011,085)

ESOP contribution                 (4,805)      --      121,483           --      441,275             --            --       562,758

MRDP contribution                  4,202       --        6,854           --           --        551,458            --       558,312
                              -----------  ------- -----------   -----------  ----------    -----------   -----------   ------------
                               6,521,796   71,962   35,820,748   77,978,296   (4,451,975)    (1,946,920)   (1,372,524)  106,099,587

Comprehensive income
  Net earnings                                                    4,639,847                                               4,639,847
  Other comprehensive income:
     Unrealized gain on
     securities, net of tax
     and reclassification
     adjustment   (2)                                                                                       2,914,352     2,914,352
                                                                                                                        ------------
     Total comprehensive
     income                                                                                                               7,554,199
                              -----------  ------- -----------   -----------  ----------    -----------    ----------   ------------
Balance at March 31, 2001      6,521,796  $71,962  $35,820,748  $82,618,143  ($4,451,975)   ($1,946,920)   $1,541,828  $113,653,786
                               =========  ======== ===========  ===========  ===========    ===========    ==========  ============
<FN>

(1)  Net unrealized  holding gain on securities of $440,870 (net of $270,211
     tax expense) less  reclassification  adjustment  for gains  included in net
     earnings of $49,982  (net of $30,634  tax  expense).
(2)  Net  unrealized holding gain on  securities  of $2,932,557 (net of $1,797,374 tax expense) less
     reclassification  adjustment  for gains included in net earnings of $18,205
     (net of $11,158 tax expense).

</FN>

<FN>

  See notes to condensed consolidated financial statements.
</FN>
</TABLE>
                                        5

<PAGE>

<TABLE>
<CAPTION>


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


                                                           Six Months Ended  Six Months Ended
                                                                  March 31,         March 31,
                                                                       2001              2000
                                                             --------------   ---------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                           <C>              <C>
    Net earnings ..........................................   $   4,639,847    $  3,902,751

ADJUSTMENTS TO RECONCILE NET EARNINGS TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
    Depreciation and amortization .........................       1,446,629       1,455,295
    Provision for deferred taxes ..........................            --           343,721
    Provision for loan losses .............................         381,000         308,000
    Disposition of allowance for loan losses ..............        (231,842)           --
    Provision for loss on real estate owned ...............            --           120,000
    Compensation expense related to ESOP benefit ..........         562,758         560,742
    Compensation expense related to MRDP Trust ............         558,312         517,313
    Net amortization of premiums (discounts)  paid on
      investment and mortgage backed and related securities          62,488         128,325
    Decrease in deferred loan fees, net of amortization ...      (2,547,764)       (270,335)
    Accretion of discounts on purchased loans .............           3,999            (689)
    Net (gain) loss on sale of real estate owned and
      premises and equipment ..............................           3,494        (129,314)
    Net gain on sale of investment and mortgage
      backed and related securities .......................      (2,479,160)         (6,836)
    FHLB stock dividend ...................................        (387,400)       (381,800)
CHANGES IN ASSETS AND LIABILITIES
    Accrued interest receivable ...........................          32,816         (90,527)
    Other assets ..........................................      (1,896,596)       (754,391)
    Accrued interest on deposit liabilities ...............          47,504          (2,071)
    Accrued interest on borrowings ........................           8,390       1,043,684
    Pension liabilities ...................................          65,298          65,298
    Other liabilities .....................................       1,194,137       9,977,914
                                                              -------------    ------------
Net cash provided by operating activities .................       1,463,910      16,787,080
                                                              -------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES
    Proceeds from maturity of investment securities
      available for sale ..................................      20,000,000            --
    Principal repayments received on mortgage
       backed and related securities held to maturity .....         230,666         196,011
    Principal repayments received on mortgage
       backed and related securities available for sale ...      18,006,036       5,333,869
    Principal repayments received on loans ................      51,021,891      49,032,568
    Loan originations .....................................     (48,292,954)    (51,915,658)
    Loans sold ............................................     200,747,467       4,108,823
    Purchase of investment securities available
      for sale ............................................     (47,211,334)     (1,110,000)
    Purchase of mortgage backed and related
      securities available for sale .......................    (259,486,468)    (29,197,384)
    Purchase of FHLB stock ................................            --          (117,500)
    Proceeds from sale of investment securities
      available for sale ..................................      10,367,746      10,051,563
    Proceeds from sale of mortgage backed and related
      securities available for sale .......................      78,007,947            --
    Proceeds from sale of real estate owned and
      premises and equipment ..............................         347,706       1,406,366
    Investment in real estate owned .......................         (69,210)           --
    Purchases of premises and equipment ...................      (1,577,305)     (1,063,876)
                                                              -------------    ------------
Net cash provided by (used in) investing activities .......      22,092,188     (13,275,218)
                                                              -------------    ------------
</TABLE>


                                        6

<PAGE>

<TABLE>
<CAPTION>


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

                                                           Six Months Ended  Six Months Ended
                                                                  March 31,         March 31,
                                                                       2001              2000
                                                             --------------   ---------------
CASH FLOWS FROM FINANCING ACTIVITIES
<S>                                                           <C>              <C>
    Increase (decrease) in deposit liabilities.............   $   6,419,706    ($11,097,919)
    Proceeds from FHLB advances ...........................            --       429,500,000
    Repayments of FHLB advances ...........................            --      (403,500,000)
    Proceeds from short term borrowings ...................       3,400,000       1,000,000
    Repayments of short term borrowings ...................      (4,700,000)           --
    Stock repurchase and retirement .......................      (2,011,085)     (4,618,984)
    Advances from borrowers for taxes and insurance .......      (7,016,901)     (5,982,960)
    Dividends paid ........................................      (1,914,461)     (1,977,097)
                                                              -------------    ------------
Net cash provided by (used in) financing activities .......      (5,822,749)      3,323,040
                                                              -------------    ------------
Net increase in cash and cash
  equivalents .............................................      17,733,357       6,834,902

Cash and cash equivalents at beginning
  of period ...............................................      29,946,600      24,522,589

                                                              -------------    ------------
Cash and cash equivalents at end of period ................   $  47,679,957    $ 31,357,491
                                                              =============    ============
SUPPLEMENTAL SCHEDULE OF INTEREST AND
INCOME
  TAXES PAID
    Interest paid .........................................   $  20,435,714    $ 19,009,603
    Income taxes paid .....................................       1,730,000       2,940,000

SUPPLEMENTAL SCHEDULE OF NONCASH
  INVESTING ACTIVITIES
    Net unrealized gain (loss) on securities
      available for sale ..................................      $2,914,352    ($   375,833)
    Dividends declared and accrued in other
      liabilities .........................................         936,806         976,685



<FN>


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


                                        7

<PAGE>



                   KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
              NOTES TO CONDENSED 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 March 31, 2001
and September 30, 2000, the results of operations for the three and six months
ended March 31, 2001 and 2000 and cash flows for the six months ended March 31,
2001 and 2000. 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 six months ended March
31, 2001 are not necessarily indicative of the results which may be expected for
the entire fiscal year.

2.   COMPREHENSIVE INCOME

For the three months ended March 31, 2001,  the  Company's  total  comprehensive
income was $4.7  million  compared to $2.5  million for the three  months  ended
March 31, 2000. Total comprehensive  income for the three months ended March 31,
2001 was comprised of net income of $3.0 million and other comprehensive  income
of $1.7 million,  net of tax.  Total  comprehensive  income for the three months
ended  March 31,  2000 was  comprised  of net income of $1.9  million  and other
comprehensive income of $666,937, net of tax.

For the six months  ended March 31,  2001,  the  Company's  total  comprehensive
income was $7.6 million  compared to $3.5 million for the six months ended March
31, 2000. Total comprehensive income for the six months ended March 31, 2001 was
comprised of net income of $4.6 million and other  comprehensive  income of $2.9
million,  net of tax. Total comprehensive  income for the six months ended March
31, 2000 was  comprised  of net income of $3.9  million and other  comprehensive
loss of $375,833, net of tax.

3.   ALLOWANCE FOR LOAN LOSSES



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

                                                            Six Month Ended      Year Ended
                                                                  March 31,   September 30,
                                                                       2001            2000
                                                             --------------   --------------
<S>                                                           <C>              <C>
Balance, beginning of period ..............................   $   4,082,265    $  2,483,625
Charge-offs ...............................................         (47,247)       (606,999)
Recoveries ................................................          34,866         441,639
Provision for loss ........................................         381,000       1,764,000
Dispositions ..............................................        (231,842)           --
                                                              -------------    ------------
Balance, end of period ....................................   $   4,219,042    $  4,082,265
                                                              =============    ============
</TABLE>

The  disposition  of  allowance  for loan  losses  relates to general  valuation
allowances  allocated to $190.3  million in mortgages  sold to Federal  National
Mortgage  Association  ("FNMA")  during the quarter  ended March 31, 2001.  This
allowance was included in the basis of the loans for  determination of the basis
to be recorded for the resulting MBS. See Note 4.

At March 31, 2001 and 2000, impaired loans totaled zero and $445,562,
respectively. Specifically allocated loan loss reserves related to these loans
totaled zero and $32,500, respectively. The average investment in impaired loans
for the three months and six months ended March 31, 2001 was $52,251 and
$65,983, respectively. The average investment in impaired loans for the three
months and six months ended March 31, 2000 was $913,560 and $648,610,
respectively.

                                        8

<PAGE>




There were no troubled debt restructurings at March 31, 2001 and 2000 or for the
six months then ended.

4.    MORTGAGE LOAN SECURITIZATION

During the quarter  ended March 31,  2001,  the Company  sold $190.3  million in
seasoned  fixed-rate single- family loans to FNMA. The mortgages were aggregated
into 14 pools and  securitized  with the  resulting  mortgage-backed  securities
("MBS")  being  retained by the Company and  classified  as available  for sale.
Securitization of the loans provided more liquid  instruments that could be sold
when the  market  conditions  were  considered  favorable.  Sale of the MBS will
reduce the long-term assets in the Company's portfolio,  thus improving interest
rate risk. The loans were sold with servicing retained by the Company.

Because the Company was retaining an interest in the loans by receiving the MBS,
various items associated with the loans were combined with the principal balance
of the loans to arrive at the  Company's  basis in the MBS.  These items include
deferred  origination fees,  mortgage  servicing rights,  and allowance for loan
losses.  Deferred loan  origination  fees associated with the sold loans totaled
$2.3 million.  The fair value of mortgage  servicing rights was determined using
the  Company's  model,  which  incorporates  the  expected  life  of the  loans,
estimated costs to service the loans,  servicing fees to be received,  and other
factors.  Mortgage  servicing  rights were valued at $1.7  million.  The general
valuation allowance associated with these loans was $231,842. The Company pays a
guarantee fee to FNMA as part of the  securitization and servicing of the loans,
thus  transferring all credit risk to FNMA. The final resulting basis in the MBS
recorded was $185.9  million.  Gain on the  transaction  will not be  recognized
until such time as the individual  MBS are sold.  During the quarter ended March
31, 2001, $75.5 million in MBS were sold with a gain of $2.5 million.

5.    ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings at March 31, 2001 consisted of one short term advance totaling $5.0
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.
<TABLE>
<CAPTION>

Scheduled maturities of advances from the FHLB were as follows:


                                          March 31, 2001                                        September 30, 2000
                     ------------------------------------------------------ --------------------------------------------------
                                              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 .   $  5,000,000              5.70%             5.70%$       5,000,000             5.70%             5.70%

After one but within
five years ..........     10,000,000              5.31%             5.31%       10,000,000             6.65%             6.65%

After five but within
ten years ...........    158,000,000        4.77%-7.05%             5.86%      158,000,000       4.77%-7.05%             5.86%
                      ---------------                                       --------------
                       $ 173,000,000                                         $ 173,000,000
                      ===============                                       ===============
</TABLE>

6.             SHORT TERM BORROWINGS

Short term borrowings at March 31, 2001 consisted of $1.7 million in credit line
borrowing from a financial institution at a rate of 7.26%.
                                        9

<PAGE>

7.    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.

8.    SHAREHOLDERS' EQUITY

In May 2000, the Company announced a five percent stock repurchase plan to be
completed over a twelve month period. As of April 26, 2001, the Company had
repurchased 294,200 shares, or 78.32% of the shares to be repurchased, at a
weighted average price per share of $11.52.

9.    EARNINGS PER SHARE

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

                                                            For the Three Months Ended
                                                              March  31,   March 31,
                                                                    2001        2000
                                                               ---------   ---------
<S>                                                            <C>         <C>
Weighted average common shares outstanding - basic .........   6,567,352   6,769,260
                                                               ---------   ---------
Effect of Dilutive Securities on Number of Shares:
MRDP shares ................................................      18,367        --
                                                               ---------   ---------
Total Dilutive Securities ..................................      18,367        --
                                                               ---------   ---------
 Weighted average common shares outstanding - with dilution    6,585,719   6,769,260
                                                               =========   =========
</TABLE>
<TABLE>
<CAPTION>


                                                              For the Six Months Ended
                                                               March 31,   March 31,
                                                                    2001        2000
                                                               ---------   ---------
<S>                                                            <C>         <C>
Weighted average common shares outstanding - basic .........   6,610,189   6,896,199
                                                               ---------   ---------
Effect of Dilutive Securities on Number of Shares:
MRDP shares ................................................      12,996        --
                                                               ---------   ---------

Total Dilutive Securities ..................................      12,996        --
                                                               ---------   ---------
Weighted average common shares outstanding-with dilution ...   6,623,185   6,896,199
                                                               =========   =========
</TABLE>

Options to purchase 916,258 shares of common stock were outstanding at March 31,
2001 and September 30, 2000 but were not included in the computation of diluted
EPS because the options' exercise prices were greater than the average market
price of the common shares.


                                       11

<PAGE>




10.   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 March 31, 2001:
<TABLE>
<CAPTION>


                                                                                        Categorized as "Well
                                                                                          Capitalized" Under
                                                                         For Capital       Prompt Corrective
                                                     Actual         Adequacy Purposes       Action Provision
                                           ---------------------- -------------------- ---------------------
                                                 Amount    Ratio       Amount   Ratio       Amount    Ratio
As of March 31, 2001:                      ------------   ------- -----------   ------ -----------    ------
<S>                                        <C>              <C>   <C>             <C>  <C>             <C>
 Total Capital: ........................   $106,480,404     21.6% $39,376,032     8.0% $49,220,040     10.0%
  (To Risk Weighted Assets)
 Tier I Capital: .......................    102,411,847     20.8%         N/A     N/A   29,532,024      6.0%
  (To Risk Weighted Assets)
 Tier I Capital: .......................    102,411,847     10.4%  39,527,913     4.0%  49,409,891      5.0%
  (To Total Assets)
 Tangible Capital: .....................    102,411,847     10.4%  14,822,967     1.5%         N/A      N/A
  (To Tangible Assets)

</TABLE>


11.            RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In September 2000, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial  Accounting  Standards ("SFAS") No. 140,  "Accounting for
Transfers  of  Financial  Assets  and   Extinguishments  of  Liabilities."  This
pronouncement  replaces  SFAS No.  125,  issued in June  1996.  SFAS No.  140 is
effective  for  transfers  occurring  after March 31,  2001 and for  disclosures
relating to  securitization  transactions and collateral for fiscal years ending
after  December 15, 2000. The Company does not believe that the adoption of SFAS
No.  140 will have a material  impact on its  financial  position  or results of
operations.



                                       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,  is the unitary  savings and loan holding
company  for  Klamath  First   Federal   Savings  and  Loan   Association   (the
"Association").  At March 31, 2001, the Company had total consolidated assets of
$1.0  billion  and  consolidated  shareholders'  equity of $113.7  million.  The
Company is currently not engaged in any business activity other than holding the
stock of the Association. Accordingly, the information set forth in this report,
including  financial  statements  and related  data,  relates  primarily  to the
Association.

The Association is a progressive, community-oriented savings and loan
association that focuses on customer service within its primary market area.
Accordingly, the Association is primarily engaged in attracting deposits from
the general public through its offices and using those and other available
sources of funds to originate permanent residential one- to four-family real
estate loans and loans on commercial real estate, multi- family residential
properties, and to consumers and small businesses within its market area. While
the Association has historically emphasized fixed rate mortgage lending, it has
been diversifying its loan portfolio by focusing on increasing the number of
originations of commercial real estate, 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.  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.

                                       13

<PAGE>



As part of the strategy to reduce  interest rate risk,  the Company  securitized
$190.3  million of single  family loans  through  FNMA during the quarter  ended
March 31, 2001. The resulting MBS were retained by the Company and classified as
available for sale. In March 2001,  $75.5  million of the  securities  were sold
with a gain of $2.5 million.

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 36 office  facilities,  with the main  office  located in
Klamath  Falls,  Oregon.  A new branch is scheduled  to open in Redmond,  Oregon
during the third  quarter.  The Company has also  announced  its agreement with
retailer  Wal-Mart to place  branches in certain of the  Wal-Mart  locations  in
Oregon and  Washington  state.  Currently,  locations in Pendleton  and Ontario,
Oregon are scheduled to be in operation  before the fiscal year end. The primary
market areas of the  Association  are the state of Oregon and adjoining areas of
California and Washington.

Market Risk and Asset/Liability Management

Because  the  majority of the  Company's  assets  have  historically  been 15 to
30-year fixed rate mortgages which were funded by shorter term liabilities,  the
Company's  interest rate risk sensitivity has been high. In order to reduce that
sensitivity,  the Company completed a loan  securitization,  as discussed above.
The  impact  of this  transaction  can be seen in the  following  comparison  of
interest rate  sensitivity  at September 30, 2000 and March 31, 2001.  After the
end of the quarter,  additional  MBS were sold,  which should  result in further
reductions in interest rate sensitivity.
<TABLE>
<CAPTION>

PROJECTED CHANGES IN NET PORTFOLIO VALUE
as of September 30, 2000

                                                                        NPV     Sensitivity
Change in Interest Rates                                              Ratio         Measure
                                                                              (Basis points)
-----------------------------------------------------------   -------------    ------------
<S>                                                                   <C>              <C>
200 basis point rise ......................................           10.79%           (352)
100 basis point rise ......................................           12.61%           (170)
Base Rate Scenario ........................................           14.31%           --
100 basis point decline ...................................           15.20%             89
200 basis point decline ...................................           14.81%             50
</TABLE>


<TABLE>
<CAPTION>

PROJECTED CHANGES IN NET PORTFOLIO VALUE
as of March 31, 2001


                                                                        NPV     Sensitivity
Change in Interest Rates                                              Ratio         Measure
                                                                              (Basis points)
-----------------------------------------------------------   -------------    ------------
<S>                                                                    <C>             <C>
200 basis point rise ......................................            9.99%           (263)
100 basis point rise ......................................           11.87%            (75)
Base Rate Scenario ........................................           12.62%           --
100 basis point decline ...................................           13.23%             61
200 basis point decline ...................................           11.85%            (76)

</TABLE>




                                       14

<PAGE>



Changes in Financial Condition

At March 31, 2001, the consolidated assets of the Company totaled $1.0 billion,
up slightly from $995.6 million at September 30, 2000.

Net loans receivable  decreased by $201.6 million to $527.5 million at March 31,
2001, from $729.0 million at September 30, 2000.  During the quarter ended March
31,  2001,  the Company  converted  $190.3  million in fixed rate single  family
mortgages to MBS through a  securitization  transaction  with FNMA. In addition,
the  Company  has sold $10.4  million in single  family  mortgage  loans to FNMA
during the six months ended March 31, 2001, further reducing loans receivable.

Investment securities increased $18.4 million, or 15.72% from $117.4 million at
September 30, 2000 to $135.8 million at March 31, 2001. This increase was
primarily the result of purchase of investment securities available for sale.

During the six months ended March 31, 2001, the Company purchased $259.5 million
of MBS resulting from the loan securitization. Of these MBS, $75.5 million were
sold during the period. In addition, $18.0 million was received in principal
repayments on MBS, resulting in an overall increase in the balance of MBS from
$77.5 million at September 30, 2000 to $246.3 million at March 31, 2001.

Other assets increased by $1.8 million, or 115.90%, from $1.6 million at March
31, 2000 to $3.4 million at March 31, 2001. The increase is primarily due to the
recording of $1.7 million in mortgage servicing rights related to the loans sold
to FNMA during the period.

Deposit liabilities increased $6.4 million, or 0.92%, from $695.4 million at
September 30, 2000 to $701.8 million at March 31, 2001. The increase reflects
the Company's marketing efforts and the public's movement of funds to
investments more secure than the volatile equity markets.

Advances from borrowers for taxes and insurance decreased $7.0 million from
September 30, 2000 to March 31, 2001. The decrease is the result of using the
reserves to pay the required real estate taxes due on the Association's loans
receivable portfolio in November.

The Company's total borrowings decreased $1.3 million from September 30, 2000 to
March 31, 2001. Borrowings from the FHLB remained consistent while borrowings on
correspondent bank credit lines were reduced with proceeds of the sale of MBS.

Total shareholders' equity increased $5.0 million, or 4.53%, from $108.7 million
at September 30, 2000 to $113.7 million at March 31, 2001. This increase was
primarily the result of earnings of $4.6 million and a $2.9 million increase in
the unrealized gains on securities available for sale, partially offset by $2.0
million reduction due to repurchase and retirement of shares and payment of $1.7
million in common stock dividends for the six month period.

Results of Operations

               Comparison of Six Months Ended March 31, 2001 and 2000

General. The FNMA loan securitization and sale of a portion of the MBS helped
increase net earnings to $4.6 million for the six months ended March 31, 2001
compared to $3.9 million for the same period of 2000. The higher interest rate
environment, the inverted yield curve, and low loan volume had an adverse effect
on net interest income.

                                       15

<PAGE>




Interest Income. Interest income decreased by $925,062 showing the combined
effects of a $47.2 million decrease in average interest earning assets and a 16
basis point increase in yield from March 31, 2000 to March 31, 2001. Interest
income on loans receivable decreased $2.3 million, or 8.27%, from $28.5 million
for the six months ended March 31, 2000 to $26.2 million for the same period of
2001. This decrease was a result of the $76.8 million decrease in average loans
receivable due to the loan securitization in February 2001. Since these loans
were converted to MBS, a corresponding $2.1 million increase in interest
income on MBS is noted for the period. Investments matured and funds were
reinvested in federal funds and were also used to reduce borrowings. The average
yield on interest earning assets increased 16 basis points to 7.34% for the six
months ended March 31, 2001 compared to 7.18% for the same period ended March
31, 2000. Interest rate spread (the difference between the rates earned on
interest earning assets and the rates paid on interest bearing liabilities)
decreased from 2.59% to 2.35% and interest rate margin (net interest income
divided by average interest earning assets) decreased from 3.20% to 3.07%
comparing the six month periods.

Interest Expense. Total interest expense increased $440,092, or 2.19%, for the
six months ended March 31, 2001 compared to the same period in 2000. That
increase was the combined result of a $1.0 million increase in interest on
deposit liabilities and a $594,881 decrease in interest expense on FHLB
advances and other liabilities. Interest on deposit liabilities increased due to
a 46 basis point increase in the average interest rate paid on deposit accounts.
The average balance of borrowings decreased $32.4 million from $210.2 million
for the six months ended March 31, 2000 to $177.8 million for the same period
ended March 31, 2001. However, the rate paid on borrowings increased by 36 basis
points from 5.67% for the six months ended March 31, 2000 to 6.03% for the same
period in 2001.

Provision for Loan Losses. The provision for loan losses was $381,000 and there
were $47,247 of charge offs and $34,866 of recoveries during the six months
ended March 31, 2001 compared to a $308,000 provision with $155,716 of charge
offs and $346,669 of recoveries during the six months ended March 31, 2000.
During the quarter ended March 31, 2001, the allowance for loan losses
associated with the mortgage loans sold to FNMA, totaling $231,842, was
transferred from the allowance accounts as a disposition. The balance of
non-performing loans has decreased during the current fiscal year as the Company
has foreclosed on properties and sold them. The Company is not anticipating any
material loss on the remaining non-performing loans at this time.

Non-Interest Income. Non-interest income increased $2.8 million, or 146.16%, to
$4.8 million for the six months ended March 31, 2001 from $2.0 million for the
six months ended March 31, 2000. The most significant factor in this increase
was the sale of MBS resulting from the loan securitization at a gain of $2.5
million. Fees and service charges continued to improve, increasing by 18.28%
over the same period last year due to an increase in deposit accounts subject to
service charges and increased loan servicing income. Income from sale of
mortgage loans and retail investment activities can be seen in the 59.50%
increase in other non-interest income from $306,352 for the six months ended
March 31, 2000 to $488,617 for the six months ended March 31, 2001.

Non-Interest Expense. Non-interest expense increased $554,540, or 4.85%, to
$12.0 million for the six months ended March 31, 2001, from $11.4 million for
the comparable period in 2000. Compensation, employee benefits, and related
expense increased $398,143, or 7.07% from $5.6 million for the six months ended
March 31, 2000 to $6.0 million for the same period in 2001. The increase
primarily relates to modest salary increases and the addition of employees as
new corporate initiatives were enacted. Occupancy expense increased by $90,246,
or 7.95%, comparing the six months ended March 31, 2001 with the same period of
2000 due to the addition of the new Central Point branch in August 2000. The
ratio of non-interest expense to average total assets was 2.40% and 2.18% for
the six months ended March 31, 2001 and 2000, respectively.


                                       16

<PAGE>



Income Taxes. The provision for income taxes increased $132,674 for the six
months ended March 31, 2001 compared with the prior year. The effective tax rate
was 35.77% for the six months ended March 31, 2001 compared to 38.57% for the
same period of 2000. The decrease in effective tax rate is primarily due to an
increase in income on tax-exempt municipal securities.

               Comparison of Three Months Ended March 31, 2001 and 2000

General.  Basic and  diluted  earnings  per share  increased  from $0.28 for the
quarter  ended March 31,  2000 to $0.45 for the same period of 2001.  Net income
increased $1.1 million,  or 57.66%, from $1.9 million for the three months ended
March 31, 2000 to $3.0 million for the three  months ended March 31, 2001.  This
increase was the combined  result of the $2.5 million gain on sale of MBS and an
increase in other non-interest  income  partially offset by a decrease in net
interest income.

Interest Income.  The Company  recorded  interest income of $17.5 million in the
second  quarter ended March 31, 2001, a decrease of 3.81% from $18.1 million for
the same period last year.  Average  interest  earning assets decreased by $52.5
million,  or 5.19%,  and yield  increased from 7.17% for the quarter ended March
31, 2000 to 7.27% for the same period of 2001.  Yields  increased  on both loans
and MBS,  comparing  the  quarter  ended  March 31, 2001 to the same period last
year.

Interest Expense. Total interest expense remained stable at $10.2 million for
the quarters ended March 31, 2001 and 2000. Average deposits decreased by $13.4
million comparing the three months ended March 31, 2000 to 2001, while the
average interest paid on interest-bearing deposits increased 38 basis points
from 4.29% for the three months ended March 31, 2000 to 4.67% for the same
period ended March 31, 2001. The average balance of borrowings decreased $41.7
million, from $220.1 million for the three months ended March 31, 2000 to $178.4
million for the same period ended March 31, 2001, resulting in a decrease in
interest on borrowings of $542,240 for the three months ended March 31, 2001
compared with the same period ended March 31, 2000. The rate paid on borrowings
increased by 14 basis points from 5.80% for the quarter ended March 31, 2000 to
5.94% for the same period in 2001.

Provision for Loan Losses. The provision for loan losses was $153,000 and there
were $30,994 of charge offs, and $34,089 of recoveries during the three months
ended March 31, 2001 compared to a $200,000 provision with $153,303 of charge
offs and $5,581 of recoveries during the three months ended March 31, 2000. As
noted above, the $231,842 of the allowance for loan losses was transferred out
as part of the basis of loans sold to FNMA and securitized during the second
quarter ended March 31, 2001.

Non-Interest Income. Non-interest income increased $2.8 million, or 300.36%, to
$3.7 million for the three months ended March 31, 2001 from $926,013 for the
three months ended March 31, 2000. Again, the $2.5 million gain on sale is the
primary cause of the increase. However, income from fees and service charges
continues to show growth, increasing by 23.70% from $756,168 for the quarter
ended March 31, 2000 to $935,358 for the current quarter. Other non-interest
income increased significantly due to profit on the sale of mortgage loans
(separate from the securitization) and interest on a tax refund for the tax
year 1996.

Non-Interest Expense. Non-interest expense increased $637,954, or 11.45%, to
$6.2 million for the three months ended March 31, 2001, from $5.6 million in the
comparable period in 2000. The most significant increases were noted in
compensation, employee benefits and related expense, and other expense.
Compensation expense increased due to annual salary increases and the addition
of staff at a new branch as well as the addition of management personnel to help
implement the Company's strategic initiatives. Other expense increased due to
increases in general operating expenses and approximately $10,000 in one-time
expenses for consulting and executive search fees. The ratio of non-interest
expense to average total assets was 2.48% and 2.12% for the three months ended
March 31, 2001 and 2000, respectively.


                                       17

<PAGE>



Income Taxes. The provision for income taxes increased $503,548 for the three
months ended March 31, 2001 compared with the prior year. The effective tax rate
was 36.35% for the quarter ended March 31, 2001 compared to 38.72% for the same
period of 2000. The decrease in effective tax rate is primarily due to an
increase in income on tax-exempt municipal securities.



                                       18

<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

               The Company held an annual meeting on January 26, 2001. The
               election of three directors was brought before the security
               holders for vote. The following two directors were nominated and
               elected for three-year terms:

                                                Vote For           Vote Withheld
               Rodney N. Murray                6,148,310              260,552
               Bernard Z. Agrons               6,179,787              229,075

               The following individual was nominated and elected for a one-year
               term:

                                                Vote For           Vote Withheld
               Kermit K. Houser                6,149,107              259,755

               The following directors continue in office for their respective
               remaining terms: Timothy A. Bailey (two-year term), James D.
               Bocchi (two-year term), William C. Dalton (two-year term), J.
               Gillis Hannigan (one-year term), and Dianne E. Spires (one-year
               term).

               Approval of the appointment of Deloitte & Touche LLP as
               independent accountants for the fiscal year ending September 30,
               2001 was brought before the security holders for vote. The
               appointment was approved as follows:

                         Vote For             Vote Against         Vote Withheld
                        6,337,890                   9,670              61,302

               No additional items were on the agenda of the annual meeting and
               no items were brought to a vote during the meeting.

Item 5.     Other Information

               Not applicable.


                                       19

<PAGE>



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 March 31, 2001.




                                       20

<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:    May 14, 2001                         By:   /s/ Kermit K. Houser
                                              ----------------------------------
                                              Kermit K. Houser, President and
                                              Chief Executive Officer


Date:    May 14, 2001                         By:   /s/ Marshall Jay Alexander
                                              ----------------------------------
                                              Marshall Jay Alexander,
                                              Executive Vice President
                                              and Chief Financial Officer