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, 2000

                                       OR

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

                         Commission File Number: 0-26556

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

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

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

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

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

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

     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. YES X NO .

     As of  January  29,  2001,  there  were  issued  7,206,297  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, 2000 and September 30, 2000)                3

               Consolidated Statements of Earnings (For the three months
               ended December 31, 2000 and 1999)                               4

               Consolidated Statements of Shareholders' Equity
               (For the year ended September 30, 2000 and for
               the three months ended December 31, 2000)                       5

               Consolidated Statements of Cash Flows (For the three
               months ended December 31, 2000 and 1999)                    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, 2000 AND SEPTEMBER 30, 2000
                                   (Unaudited)



                                                                            December 31, 2000    September 30, 2000
ASSETS                                                                    --------------------  --------------------

<S>                                                                       <C>                   <C>
Cash and due from banks ................................................. $         26,354,502  $         19,998,788
Interest bearing deposits with banks ....................................              440,382             2,077,359
Federal funds sold and securities purchased under agreements to resell ..            2,097,006             7,870,453
                                                                          --------------------  --------------------
   Total cash and cash equivalents ......................................           28,891,890            29,946,600


Investment securities available for sale, at fair value
  (amortized cost: $119,821,880 and $118,689,247) .......................          119,146,609           116,627,756
Investment securities held to maturity, at amortized cost (fair
  value: $727,083 and $726,889) .........................................              723,576               723,838
Mortgage backed and related securities available for sale, at fair
  value (amortized cost: $68,633,079 and $75,483,569) ...................           69,040,121            75,331,311
Mortgage backed and related securities held to maturity, at amortized
  cost (fair value: $2,062,580 and $2,145,918) ..........................            2,071,333             2,159,868
Loans receivable, net ...................................................          725,612,067           729,036,847
Real estate owned and repossessed assets ................................              768,649               788,400
Premises and equipment, net .............................................           13,004,547            12,727,570
Stock in Federal Home Loan Bank of Seattle, at cost .....................           12,070,500            11,876,500
Accrued interest receivable .............................................            7,001,061             6,432,073
Deferred federal and state income taxes .................................                 --                 230,893
Core deposit intangible .................................................            7,712,494             8,125,664
Other assets ............................................................            1,497,930             1,567,318
                                                                          --------------------  --------------------
   Total assets ......................................................... $        987,540,777  $        995,574,638
                                                                          ====================  ====================

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
  Deposit liabilities ................................................... $        692,850,745  $        695,380,871
  Accrued interest on deposit liabilities ...............................            1,311,279             1,185,076
  Advances from borrowers for taxes and insurance .......................              326,044             9,653,376
  Advances from Federal Home Loan Bank of Seattle .......................          173,000,000           173,000,000
  Short term borrowings .................................................            5,400,000             3,000,000
  Accrued interest on borrowings ........................................              892,751               857,163
  Pension liabilities ...................................................              920,545               887,896
  Deferred federal and state income taxes ...............................              508,404                  --
  Other liabilities .....................................................            2,944,796             2,885,695
                                                                          --------------------  --------------------
    Total liabilities ...................................................          878,154,564           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,
   December 31, 2000 - 7,206,297 issued, 6,530,917 outstanding
   September 30, 2000 - 7,366,226 issued, 6,692,428 outstanding .........               72,063                73,662
  Additional paid-in capital ............................................           35,885,629            37,701,796
  Retained earnings-substantially restricted ............................           80,534,609            79,713,255
  Unearned shares issued to ESOP ........................................           (4,696,637)           (4,893,250)
  Unearned shares issued to MRDP ........................................           (2,243,149)           (2,498,378)
  Net unrealized loss on securities available for sale, net of tax ......             (166,302)           (1,372,524)
                                                                          --------------------  --------------------
    Total shareholders' equity ..........................................          109,386,213           108,724,561
                                                                          --------------------  --------------------
 Total liabilities and shareholders' equity ............................. $        987,540,777  $        995,574,638
<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,
                                                                                          2000                  1999
                                                                          --------------------  --------------------
INTEREST INCOME
<S>                                                                       <C>                   <C>
  Loans receivable ...................................................... $         14,244,031  $         14,245,591
  Mortgage backed and related securities ................................            1,236,056             1,083,930
  Investment securities .................................................            2,046,535             2,521,529
  Federal funds sold and securities purchased under agreements to resell               185,063                97,124
  Interest bearing deposits .............................................              104,664               102,273
                                                                          --------------------  --------------------
    Total interest income ...............................................           17,816,349            18,050,447
                                                                          --------------------  --------------------

INTEREST EXPENSE
  Deposit liabilities ...................................................            7,603,335             7,023,403
  Advances from FHLB of Seattle .........................................            2,609,469             2,771,028
  Other .................................................................              125,417                18,930
                                                                          --------------------  --------------------
    Total interest expense ..............................................           10,338,221             9,813,361
                                                                          --------------------  --------------------
    Net interest income .................................................            7,478,128             8,237,086

Provision for loan losses ...............................................              228,000               108,000
                                                                          --------------------  --------------------
    Net interest income after provision for
      loan losses .......................................................            7,250,128             8,129,086
                                                                          --------------------  --------------------

NON-INTEREST INCOME
  Fees and service charges ..............................................              870,656               770,719
  Gain on sale of investments ...........................................                7,918                 6,836
  Gain on sale of real estate owned .....................................               14,491               117,566
  Other income ..........................................................              220,415               137,255

                                                                          --------------------  --------------------
    Total non-interest income ...........................................            1,113,480             1,032,376
                                                                          --------------------  --------------------
NON-INTEREST EXPENSE
  Compensation, employee benefits and related expense ...................            2,908,944             2,747,612
  Occupancy expense .....................................................              581,392               551,520
  Data processing expense ...............................................              231,024               221,049
  Insurance premium expense .............................................               34,792                75,829
  Loss on sale of investments ...........................................               30,632                  --
  Amortization of core deposit intangible ...............................              413,169               413,169
  Other expense .........................................................            1,582,733             1,856,922
                                                                          --------------------  --------------------
    Total non-interest expense ..........................................            5,782,686             5,866,101
                                                                          --------------------  --------------------

Earnings before income taxes ............................................            2,580,922             3,295,361

Provision for income taxes ..............................................              895,877             1,266,751
                                                                          --------------------  --------------------

Net earnings ............................................................ $          1,685,045  $          2,028,610
                                                                          ====================  ====================

Earnings per common share - basic .......................................               $ 0.25                $ 0.29
Earnings per common share - diluted .....................................               $ 0.25                $ 0.29
Weighted average common shares outstanding - basic ......................            6,652,096             7,021,894
Weighted average common shares outstanding - with dilution ..............            6,653,266             7,021,894

<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, 2000 AND THE THREE MONTHS ENDED DECEMBER 31, 2000
                                   (Unaudited)


                                   Common    Common   Additional                   Unearned     Unearned         Other        Total
                                    stock     stock      paid-in     Retained shares issuedshares 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 .............           --        --           --     (863,691)          --           --           --       (863,691)

Stock repurchased and retired    (159,929)   (1,599)  (1,862,051)          --           --           --           --     (1,863,650)

ESOP contribution ..........       (4,805)       --       42,457           --      196,613           --           --        239,070

MRDP contribution ..........        3,223        --        3,427           --           --      255,229           --        258,656
                               ----------  --------  -----------  -----------  -----------   -----------  -----------   -----------
                                6,530,917    72,063   35,885,629   78,849,564   (4,696,637)  (2,243,149)  (1,372,524)   106,494,946

Comprehensive income
   Net earnings ............                                        1,685,045                                             1,685,045
   Other comprehensive income:
      Unrealized gain on
      securities, net of tax
      and reclassification
      adjustment (2)........                                                                               1,206,222      1,206,222
                                                                                                                        -----------
      Total comprehensive
      income ...............                                                                                              2,891,267
                               ----------  --------  -----------  -----------  -----------   -----------   -----------  -----------
Balance at December 31, 2000    6,530,917  $ 72,063  $35,885,629  $80,534,609  ($4,696,637)  ($2,243,149)  ($  166,302)$109,386,213
                               ==========  ========  ===========  ===========  ===========   ===========   ===========  ===========
<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 loss on securities of $1,224,427 (net of $750,456 tax expense) less reclassification
      adjustment for gains included in net earnings of $18,205 (net of $11,158 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, 2000 AND 1999
                                   (Unaudited)


                                                                            Three Months Ended    Three Months Ended
                                                                                  December 31,          December 31,
                                                                                          2000                  1999
                                                                                --------------        --------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                             <C>                   <C>
    Net earnings ........................................................       $    1,685,045        $    2,028,610

ADJUSTMENTS TO RECONCILE NET EARNINGS TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
    Depreciation and amortization .......................................              714,933               722,128
    Provision for loan losses ...........................................              228,000               108,000
    Provision for losses on real estate owned ...........................                 --                 120,000
    Compensation expense related to ESOP benefit ........................              239,070               291,401
    Compensation expense related to MRDP Trust ..........................              258,656               258,656
    Net amortization of premiums (discounts)  paid on
      investment and mortgage backed and related securities .............               31,837                70,505
    Increase (decrease) in deferred loan fees, net of amortization ......             (108,358)              (77,888)
    Accretion of discounts on purchased loans ...........................                2,192                (1,879)
    Net gain (loss) on sale of investment and mortgage
      backed and related securities .....................................               22,714                (6,836)
    Gain on sale of real estate owned and fixed assets ..................              (16,157)             (117,566)
    FHLB stock dividend .................................................             (194,000)             (200,200)
CHANGES IN ASSETS AND LIABILITIES
    Accrued interest receivable .........................................             (568,988)             (228,552)
    Other assets ........................................................               29,388               263,905
    Accrued interest on deposit liabilities .............................              126,203                60,178
    Accrued interest on borrowings ......................................               35,588               894,927
    Pension liabilities .................................................               32,649                32,649
    Other liabilities ...................................................              153,019               942,547
                                                                          --------------------  --------------------
Net cash provided by operating activities ...............................            2,671,791             5,160,585
                                                                          --------------------  --------------------
CASH FLOWS FROM INVESTING ACTIVITIES
    Principal repayments received on mortgage backed
       and related securities held to maturity ..........................               87,316               141,592
    Principal repayments received on mortgage backed
       and related securities available for sale ........................            6,829,421             3,450,154
    Principal repayments received on loans ..............................           21,253,492            25,629,270
    Loan originations ...................................................          (24,457,738)          (30,642,882)
    Loans sold ..........................................................            6,366,479             3,403,823
    Purchase of investment securities available
      for sale ..........................................................          (11,532,379)           (1,110,000)
    Proceeds from sale of investment securities
      available for sale ................................................           10,367,746            10,051,563
    Proceeds from sale of real estate owned and
      premises and equipment ............................................              192,057             1,090,381
    Capitalized improvements to real estate owned .......................              (15,437)                 --
    Purchases of premises and equipment .................................             (538,741)             (710,710)
                                                                          --------------------  --------------------
Net cash provided by investing activities ...............................            8,552,216            11,303,191
                                                                          --------------------  --------------------

</TABLE>

                                        6
<PAGE>

<TABLE>
<CAPTION>

                   KLAMATH FIRST BANCORP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE THREE MONTHS ENDED DECEMBER 31, 2000 AND 1999
                                   (Unaudited)
                                   (Continued)


                                                                            Three Months Ended    Three Months Ended
                                                                                  December 31,          December 31,
                                                                                          2000                  1999
                                                                                --------------       ---------------
CASH FLOWS FROM FINANCING ACTIVITIES
    Decrease in deposit
<S>                                                                      <C>                   <C>
     liabilities, net of withdrawals ....................................($          2,530,126)($          2,163,559)
    Proceeds from FHLB advances .........................................                 --              92,000,000
    Repayments of FHLB advances .........................................                 --             (76,000,000)
    Proceeds from short term borrowings .................................            2,400,000                  --
    Stock repurchase and retirement .....................................           (1,863,650)           (3,349,000)
    Advances from borrowers for taxes and insurance .....................           (9,327,332)           (9,094,151)
    Dividends paid ......................................................             (957,609)             (988,548)
                                                                          --------------------  --------------------
Net cash provided by (used in) financing activities .....................          (12,278,717)              404,742
                                                                          --------------------  --------------------
Net increase (decrease) in cash and cash
  equivalents ...........................................................           (1,054,710)           16,868,518

Cash and cash equivalents at beginning
  of period .............................................................           29,946,600            24,522,589
                                                                          --------------------  --------------------
Cash and cash equivalents at end of period .............................. $         28,891,890  $         41,391,107
                                                                          ====================  ====================
SUPPLEMENTAL SCHEDULE OF INTEREST AND
  INCOME TAXES PAID
    Interest paid ....................................................... $         10,176,430  $          8,858,256
    Income taxes paid ...................................................                 --                    --

SUPPLEMENTAL SCHEDULE OF NONCASH
  INVESTING AND FINANCING ACTIVITIES
    Net unrealized gain (loss) on securities
      available for sale, net of tax .................................... $          1,206,222 ($         1,042,770)
    Dividends declared and accrued in other
      liabilities .......................................................              956,852               953,360
    Loans transferred to real estate owned ..............................              140,712               642,286
    Write down of real estate owned .....................................                 --                 120,000





<FN>

    See notes to consolidated financial statements

</FN>
</TABLE>

                                        7
<PAGE>


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

1.     BASIS OF PRESENTATION

In the opinion of management,  the accompanying unaudited consolidated financial
statements contain all adjustments  necessary for a fair presentation of Klamath
First Bancorp,  Inc. and subsidiary's (the "Company")  financial condition as of
December 31, 2000, and September 30, 2000, and the results of its operations and
cash  flows for the three  months  ended  December  31,  2000 and 1999.  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,  2000 and 1999 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, 2000, the Company's total  comprehensive
income was $2.9  million  compared to $1.0  million for the three  months  ended
December  31,  1999.  Total  comprehensive  income  for the three  months  ended
December  31,  2000 was  comprised  of net  income  of $1.7  million  and  other
comprehensive income of $1.2 million, net of tax. 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.

3.     ALLOWANCE FOR LOAN LOSSES

<TABLE>
<CAPTION>

Activity in allowance for loan losses is summarized as follows:

                               Three Months Ended                    Year Ended
                                     December 31,                 September 30,
                                             2000                          2000
                                   --------------                --------------
<S>                                    <C>                           <C>
Balance, beginning of period           $4,082,265                    $2,483,625
Charge-offs                               (16,253)                     (606,999)
Recoveries                                    777                       441,639
Additions                                 228,000                     1,764,000
                                   --------------                --------------
Balance, end of period                 $4,294,789                    $4,082,265
                                   ==============                ===============
</TABLE>
At December 31, 2000 and 1999,  impaired loans totaled  $78,376 and  $1,453,545,
respectively.  Specifically  allocated loan loss reserves related to these loans
totaled $8,500 and $302,566,  respectively.  The average investment in impaired
loans for the three  months  ended  December  31, 2000 and 1999 was $79,717 and
$484,515, respectively.

4.     ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings  at December 31, 2000  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,  securities  of the U.S.
Government and agencies thereof.



                                        8
<PAGE>


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

                                           December 31, 2000                                   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           6.82%              6.82%       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>


5.     COMMITMENTS AND CONTINGENCIES

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

6.     SHAREHOLDERS' EQUITY

In May 2000, the Company  announced a five percent stock  repurchase  plan to be
completed  over a twelve month  period.  Five percent  represents  approximately
375,648  shares.  As of December 31, 2000,  about 76% of the repurchase plan was
completed, at a weighted average price of $11.45.

7.     EARNINGS PER SHARE

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


                                        9
<PAGE>
<TABLE>
<CAPTION>

                                                  For the Three Months Ended
                                                  ---------------------------
                                                  December 31,   December 31,
                                                          2000          1999
                                                     ---------     ---------
Weighted average common
<S>                                                  <C>           <C>
shares outstanding - basic .......................   6,652,096     7,021,894
                                                     ---------     ---------
Effect of Dilutive Securities on Number of Shares:
MRDP shares ......................................       1,170            --
Stock options ....................................          --            --
                                                     ---------     ---------
Total Dilutive Securities ........................       1,170            --
                                                     ---------     ---------
Weighted average common shares
 outstanding - with dilution .....................   6,653,266     7,021,894
                                                     =========     =========
</TABLE>

Options to purchase 916,258 shares of common stock were outstanding at September
30 and December 31, 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. Additionally, 80,006 shares awarded under the MRDP but not
yet released to the individuals  were not included in the computation of diluted
EPS at December 31, 1999 because their effect would not have been dilutive.

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, 2000:

<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: ...........   $108,671,257     20.8% $ 41,831,200     8.0% $ 52,289,000     10.0%
 (To Risk Weighted Assets)
Tier I Capital: ..........    104,500,265     20.0%          N/A     N/A    31,373,400      6.0%
 (To Risk Weighted Assets)
Tier I Capital: ..........    104,500,265     10.7%   39,107,117     4.0%   48,883,896      5.0%
 (To Total Assets)
Tangible Capital: ........    104,500,265     10.7%   14,665,169     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  accounting  and  reporting
standards for derivative  instruments,  including certain derivative instruments
embedded in other contracts  (collectively referred to as derivatives),  and for
hedging  activities.  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. SFAS No.
133 was  also  amended  by SFAS  No.  138,  Accounting  for  Certain  Derivative
Instruments and Certain Hedging Activities. The Company adopted SFAS No. 133, as
amended,  on October 1,  2000.  The  adoption  of the  Statement  did not 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, is the unitary savings and loan holding
company  for the  Association.  At  December  31,  2000,  the  Company had total
consolidated assets of $987.5 million and consolidated  shareholders'  equity of
$109.4  million.  The Company is currently not engaged in any business  activity
other than holding the stock of the  Association.  Accordingly,  the information
set forth in this  report,  including  financial  statements  and related  data,
relates primarily to the Association.

     The  Association  is a  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 and loans on  commercial  real  estate,  multi-family  residential
properties,  and to consumers and small businesses within its market area. While
the Association has historically  emphasized fixed rate mortgage lending, it has
been  diversifying  its loan  portfolio by focusing on increasing  the number of
originations of commercial real estate loans,  multi-family  residential  loans,
residential  construction loans, 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.

                                       12
<PAGE>


     Such  strategies  include the  Association's  expansion of its consumer and
commercial loan products. Consumer and commercial loans increased 27% from $17.4
million at December 31, 1999 to $22.1  million at December 31, 2000. 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 36 office  facilities,  with the main  office
located in Klamath Falls,  Oregon.  Construction  is under way on a full service
branch in Redmond,  Oregon.  The primary market areas of the Association are the
state of Oregon and adjoining areas of California and Washington.

Changes in Financial Condition

     At December 31, 2000, the consolidated assets of the Company totaled $987.5
billion, down slightly from $995.6 million at September 30, 2000.

     Net  loans  receivable  decreased  by $3.4  million  to $725.6  million  at
December 31, 2000,  compared to $729.0  million at  September  30, 2000.  Rising
mortgage interest rates have continued to dampen mortgage demand,  reducing loan
originations this quarter. In addition,  the Company sold $4.1 million in single
family  mortgage loans to Fannie Mae and $2.3 million in commercial  real estate
loans, further reducing loans receivable.

     Investment securities increased $2.5 million, or 2.15%, from $117.4 million
at September 30, 2000 to $119.9 million at December 31, 2000.  This increase was
the result of sale of $10.4 million of investment  securities available for sale
offset by the purchase of $11.5 million of securities.

     During the three months ended December 31, 2000,  $6.9 million of principal
payments  were  received on  mortgage  backed and  related  securities  ("MBS"),
resulting  in a decrease in the balance of MBS from $77.5  million at  September
30, 2000 to $71.1 million at December 31, 2000.

     Deposit  liabilities  decreased $2.5 million,  less than 1.00%, from $695.4
million at  September  30, 2000 to $692.9  million at  December  31,  2000.  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 $9.3 million from
September 30, 2000 to December 31, 2000. The decrease is the result of using the
reserves to pay the required  real estate taxes due on the  Association's  loans
receivable portfolio in November.

     The Company's  total  borrowings  increased $2.4 million from September 30,
2000 to  December  31,  2000.  The  increase is the result of  borrowing  by the
holding company to fund payment of common stock dividends and for the repurchase
of shares.


                                       13
<PAGE>


     Total  shareholders'  equity  increased  $661,652  from  $108.7  million at
September 30, 2000 to $109.4 million at December 31, 2000. This increase was the
combined  result of $1.7  million in earnings  for the  quarter,  a $1.2 million
increase in unrealized gains on securities available for sale and a $1.9 million
reduction due to the buyback of shares.

Results of Operations

     Comparison of Three Months Ended December 31, 2000 and 1999

General. The interest rate environment characterized by a flat to inverted yield
curve made it difficult to improve spread income or maintain  margins during the
quarter  ended  December 31, 2000.  Net  interest  income for the quarter  ended
December 31, 2000 decreased by $758,958,  or 9.21%,  compared to the same period
of 1999.  This decrease  impacted net earnings which decreased from $2.0 million
for the three  months  ended  December  31,  1999 to $1.7  million for the three
months ended December 31, 2000.

Interest Income.  The Company  recorded  interest income of $17.8 million in the
first  quarter  ended  December 31, 2000, a decrease of 1.30% from $18.1 million
for the same period last year.  While average  interest earning assets decreased
by $41.8  million,  or 4.16%,  yield  increased from 7.19% for the quarter ended
December  31, 1999 to 7.40% for the same period of 2000.  Yields on all interest
earning assets have improved from a year ago.

Interest Expense.  Total interest expense  increased  $524,860 from $9.8 million
for the quarter  ended  December 31, 1999 to $10.3 million for the quarter ended
December 31, 2000.  Average  deposits  decreased by $24.7 million  comparing the
three months ended December 31, 1999 to 2000, while the average interest paid on
interest-bearing  deposits  increased  53 basis  points from 4.21% for the three
months ended  December 31, 1999 to 4.74% for the same period ended  December 31,
2000.  The average  balance of  borrowings  decreased  $23.2 million from $200.5
million for the three months ended  December 31, 1999 to $177.3  million for the
same period  ended  December  31,  2000.  However,  the rate paid on  borrowings
increased by 58 basis points from 5.53% for the quarter ended  December 31, 1999
to 6.11% for the same period in 2000.

Provision for Loan Losses.  The provision for loan losses was $228,000 and there
were  $16,253 of charge  offs,  and $777 of  recoveries  during the three months
ended  December 31, 2000 compared to a $108,000  provision with $2,414 of charge
offs and $340,818 of recoveries during the three months ended December 31, 1999.
During the fiscal year ended  September 30, 2000, 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.

Non-Interest   Income.   Non-interest  income  continues  to  show  improvement,
increasing  $81,104,  or  7.86%,  to $1.1  million  for the three  months  ended
December  31, 2000 from $1.0  million for the three  months  ended  December 31,
1999. Income from fees and service charges continues to show growth,  increasing
by 12.97% from $770,719 for the quarter ended  December 31, 1999 to $870,656 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 decreased $83,415, or 1.42%, to $5.8
million for the three months ended  December 31, 2000,  from $5.9 million in the
comparable period in 1999.  Compensation,  employee benefits and related expense
showed a modest increase of 5.87% which reflects salary  increases  and addition

                                       14
<PAGE>


of staff. Other expense decreased by $274,189 primarily due to one-time expenses
related to foreclosure of a commercial  real estate  property during the quarter
ended December 31, 1999, which were not repeated during the current quarter.

Income Taxes.  The provision for income taxes  decreased  $370,874 for the three
months ended  December 31, 2000 compared with the prior year.  The effective tax
rate was 34.7% for the quarter ended December 31, 2000 compared to 38.4% for the
same period of 1999.  The decrease in effective  tax rate is primarily due to an
increase in income on tax-exempt municipal securities.


                                       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) Reference is made to the Company's Current Report on From 8-K dated
          November  2,  2000,  announcing  that  Kermit  K.  Houser  was the new
          President  and  Chief  Executive   Officer  of  the  Company  and  the
          Association, effective November 15, 2000, which is incorporated herein
          by reference.




                                       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 13, 2001             By: /s/ Kermit K. Houser
                                             ---------------------------
                                             Kermit K. Houser, President and
                                             Chief Executive Officer


Date:          February 13, 2001             By: /s/ Marshall Jay Alexander
                                             ---------------------------
                                             Marshall Jay Alexander, Senior Vice
                                             President and Chief Financial
                                             Officer






























                                       17
<PAGE>