UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB

(Mark One)

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

For the quarterly period ended      September 30, 2001
                               -------------------------------

                                       OR

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ____________ to _______________

Commission File Number:    1-13904
                       --------------

                          KENTUCKY FIRST BANCORP, INC.
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

             Delaware                                    61-1281483
-------------------------------                ---------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)

                308 North Main Street, Cynthiana, Kentucky 41031
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (859) 234-1440
--------------------------------------------------------------------------------
                           (Issuer's telephone number)


--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the issuer filed all documents and reports required to be filed by
Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
under a plan confirmed by a court.

Yes [  ]        No  [  ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

        November 7, 2001 - 932,465 shares of common stock
--------------------------------------------------------------------

Transitional Small Business Disclosure Format (Check one):  Yes [ ]   No [X]


                               Page 1 of 14 pages


<PAGE>



                                      INDEX

                                                                            Page
                                                                            ----
PART I

  ITEM I   -   FINANCIAL STATEMENTS

               Consolidated Statements of Financial Condition                3

               Consolidated Statements of Earnings                           4

               Consolidated Statements of Comprehensive Income               5

               Consolidated Statements of Cash Flows                         6

               Notes to Consolidated Financial Statements                    7

  ITEM II      MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION     10


PART II  -     OTHER INFORMATION                                             13

SIGNATURES                                                                   14

                                        2



<PAGE>

ITEM I  FINANCIAL STATEMENTS


                          KENTUCKY FIRST BANCORP, INC.

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                        (In thousands, except share data)
<TABLE>
<CAPTION>
                                                                     SEPTEMBER 30,            JUNE 30,
         ASSETS                                                               2001                2001
<S>                                                                      <C>                 <C>
Cash and due from banks                                                    $   565             $   507
Interest-bearing deposits in other financial institutions                    1,280               2,069
                                                                           -------             -------
         Cash and cash equivalents                                           1,845               2,576

Investment securities available for sale - at market                         6,755               8,179
Mortgage-backed securities available for sale - at market                   20,376              14,635
Loans receivable - net                                                      46,364              45,720
Office premises and equipment - at depreciated cost                          1,133               1,137
Federal Home Loan Bank stock - at cost                                       1,424               1,399
Accrued interest receivable                                                    527                 464
Prepaid expenses and other assets                                               74                  81
Prepaid federal income taxes                                                    --                   7
                                                                           -------             -------
         Total assets                                                      $78,498             $74,198
                                                                           =======             =======

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                   $53,165             $52,430
Advances from the Federal Home Loan Bank                                    11,807               8,811
Accrued interest payable                                                       162                 158
Other liabilities                                                              216                 190
Accrued federal income taxes                                                    51                  --
Deferred federal income taxes                                                  212                  69
                                                                           -------             -------
         Total liabilities                                                  65,613              61,658

Shareholders' equity
  Preferred stock - authorized 500,000 shares of $.01 par value;
    no shares issued                                                            --                  --
  Common stock - authorized 3,000,000 shares of $.01 par value;
    1,388,625 shares issued                                                     14                  14
  Additional paid-in capital                                                 9,264               9,264
  Retained earnings - restricted                                             9,062               8,986
  Less shares acquired by stock benefit plans                                 (555)               (555)
  Less 448,460 shares of treasury stock - at cost                           (5,254)             (5,254)
  Accumulated comprehensive income, unrealized gains on securities
    designated as available for sale, net of related tax effects               354                  85
                                                                           -------             -------
         Total shareholders' equity                                         12,885              12,540
                                                                           -------             -------

         Total liabilities and shareholders' equity                        $78,498             $74,198
                                                                           =======             =======
</TABLE>

                                        3
<PAGE>
                          KENTUCKY FIRST BANCORP, INC.

                       CONSOLIDATED STATEMENTS OF EARNINGS

                    For the three months ended September 30,
                        (In thousands, except share data)
<TABLE>
<CAPTION>
                                                            2001      2000
<S>                                                        <C>       <C>
Interest income
  Loans                                                    $   933   $   906
  Mortgage-backed securities                                   227       252
  Investment securities                                        114       134
  Interest-bearing deposits and other                           39        31
                                                           -------   -------
         Total interest income                               1,313     1,323

Interest expense
  Deposits                                                     562       566
  Borrowings                                                   111       106
                                                           -------   -------
         Total interest expense                                673       672
                                                           -------   -------

         Net interest income                                   640       651

Provision for losses on loans                                    3        12
                                                           -------   -------

         Net interest income after provision
           for losses on loans                                 637       639

Other income
  Gain on investment securities transactions                    --         3
  Service charges on deposit accounts                           38        44
  Other operating                                               14        13
                                                           -------   -------
         Total other income                                     52        60

General, administrative and other expense
  Employee compensation and benefits                           228       251
  Occupancy and equipment                                       43        41
  Data processing                                               36        34
  State franchise tax                                           15        16
  Other operating                                               79        81
                                                           -------   -------
         Total general, administrative and other expense       401       423
                                                           -------   -------

         Earnings before income taxes                          288       276

Federal income taxes
  Current                                                       78        90
  Deferred                                                       5       (12)
                                                           -------   -------
         Total federal income taxes                             83        78
                                                           -------   -------

         NET EARNINGS                                      $   205   $   198
                                                           =======   =======

         EARNINGS PER SHARE
           Basic                                           $  0.23   $  0.20
                                                           =======   =======

           Diluted                                         $  0.22   $  0.20
                                                           =======   =======
</TABLE>
                                        4
<PAGE>
                          KENTUCKY FIRST BANCORP, INC.

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                    For the three months ended September 30,
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                          2001    2000

<S>                                                                      <C>     <C>
Net earnings                                                             $ 205   $ 198

Other comprehensive income, net of tax:
  Unrealized holding gains on securities during the period, net
    of taxes of $139 and $95 in 2001 and 2000, respectively                269     185

  Reclassification adjustment for realized gains included in earnings,
    net of tax of $1 in 2000                                                --      (2)
                                                                         -----   -----

Comprehensive income                                                     $ 474   $ 381
                                                                         =====   =====

Accumulated comprehensive income (loss)                                  $ 354   $(258)
                                                                         =====   =====

</TABLE>

                                        5

<PAGE>
                          KENTUCKY FIRST BANCORP, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                    For the three months ended September 30,
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                                 2001              2000
<S>                                                                                           <C>               <C>
Cash flows from operating activities:
  Net earnings for the period                                                                 $   205           $   198
  Adjustments to reconcile net earnings to net cash
  provided by (used in) operating activities:
    Amortization of discounts and premiums on loans,
      investments and mortgage-backed securities - net                                             (5)               (3)
    Depreciation and amortization                                                                  19                21
    Amortization of deferred loan origination fees                                                 (3)               (3)
    Provision for losses on loans                                                                   3                12
    Gain on investment securities transactions                                                     --                (3)
    Federal Home Loan Bank stock dividends                                                        (25)              (25)
    Increase (decrease) in cash due to changes in:
      Accrued interest receivable                                                                 (63)              (92)
      Prepaid expenses and other assets                                                             7               432
      Accrued interest payable                                                                      4                (8)
      Other liabilities                                                                            26              (318)
      Federal income taxes
        Current                                                                                    58               101
        Deferred                                                                                    5               (12)
                                                                                              -------           -------
         Net cash provided by operating activities                                                231               300

Cash flows provided by (used in) investing activities:
  Proceeds from maturity of investment securities                                               1,514               116
  Purchase of mortgage-backed securities                                                       (6,093)               --
  Principal repayments on mortgage-backed securities                                              674               465
  Purchase of loans                                                                              (970)             (583)
  Loan principal repayments                                                                     2,889             2,733
  Loan disbursements                                                                           (2,563)           (1,438)
  Purchase of office premises and equipment                                                       (15)               (1)
                                                                                              -------           -------
         Net cash provided by (used in) investing activities                                   (4,564)            1,292

Cash flows provided by (used in) financing activities:
  Net increase (decrease) in deposits                                                             735            (1,636)
  Proceeds from borrowed funds                                                                  3,000             1,100
  Repayment of borrowed funds                                                                      (4)           (1,004)
  Purchase of treasury stock                                                                       --              (250)
  Dividends on common stock                                                                      (129)             (131)
                                                                                              -------           -------
         Net cash provided by (used in) financing activities                                    3,602            (1,921)
                                                                                              -------           -------

Net decrease in cash and cash equivalents                                                        (731)             (329)

Cash and cash equivalents at beginning of period                                                2,576             1,601
                                                                                              -------           -------

Cash and cash equivalents at end of period                                                    $ 1,845           $ 1,272
                                                                                              =======           =======
</TABLE>
                                        6
<PAGE>


                          KENTUCKY FIRST BANCORP, INC.

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

                    For the three months ended September 30,
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                                                 2001            2000
<S>                                                                                             <C>             <C>
Supplemental disclosure of cash flow information: Cash paid (refunded) during
  the period for:
    Federal income taxes                                                                        $  20           $   (11)
                                                                                                =====           =======

    Interest on deposits and borrowings                                                         $ 669           $   680
                                                                                                =====           =======

Supplemental disclosure of noncash investing activities:
  Transfer of investment and mortgage-backed securities from
    held to maturity to available for sale classification                                       $  --           $10,310
                                                                                                =====           =======

  Unrealized gains on securities designated as available for sale,
    net of related tax effects                                                                  $ 269           $   185
                                                                                                =====           =======
</TABLE>

                                        7
<PAGE>


                          KENTUCKY FIRST BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

             For the three months ended September 30, 2001 and 2000


1.   Basis of Presentation
     ---------------------

     The accompanying  unaudited consolidated financial statements were prepared
     in accordance  with  instructions  for Form 10-QSB and,  therefore,  do not
     include information or footnotes  necessary for a complete  presentation of
     consolidated  financial  position,  results of operations and cash flows in
     conformity  with  accounting  principles  generally  accepted in the United
     States of America.  Accordingly,  these financial statements should be read
     in conjunction with the consolidated financial statements and notes thereto
     of Kentucky First Bancorp, Inc. (the "Corporation")  included in the Annual
     Report on Form  10-KSB for the year ended June 30,  2001.  However,  in the
     opinion of management, all adjustments (consisting of only normal recurring
     accruals)  which are  necessary  for a fair  presentation  of the financial
     statements  have been  included.  The results of  operations  for the three
     month period ended September 30, 2001 are not necessarily indicative of the
     results which may be expected for an entire fiscal year.

2.   Principles of Consolidation
     ---------------------------

     The accompanying  consolidated financial statements include the accounts of
     the Corporation and First Federal  Savings Bank (the "Savings  Bank").  All
     significant intercompany items have been eliminated.

3.   Earnings Per Share
     ------------------

     Basic earnings per share is computed based upon the weighted-average shares
     outstanding during the period, less shares in the ESOP that are unallocated
     and not  committed to be released.  Weighted-average  common  shares deemed
     outstanding,  which gives effect to 45,810 unallocated ESOP shares, totaled
     894,355  for  the  three   month   period   ended   September   30,   2001.
     Weighted-average  common shares deemed  outstanding,  which gives effect to
     56,229 unallocated ESOP shares,  totaled 984,060 for the three month period
     ended September 30, 2000.

     Diluted  earnings per share is computed  taking into  consideration  common
     shares  outstanding and dilutive potential common shares to be issued under
     the Corporation's stock option plan.  Weighted-average common shares deemed
     outstanding  for purposes of computing  diluted  earnings per share totaled
     927,512 and 991,183 for the three month  periods  ended  September 30, 2001
     and 2000, respectively.  Incremental shares related to the assumed exercise
     of stock options  included in the calculation of diluted earnings per share
     totaled  33,157 and 7,123 for the three month periods  ended  September 30,
     2001 and 2000, respectively.

4.   Effects of Recent Accounting Pronouncements
     -------------------------------------------

     In September  2000, the Financial  Accounting  Standards Board (the "FASB")
     issued  Statement  of  Financial  Accounting  Standards  ("SFAS")  No.  140
     "Accounting   for  Transfers   and   Servicing  of  Financial   Assets  and
     Extinquishments of Liabilities", which revises the standards for accounting
     for  securitizations and other transfers of financial assets and collateral
     and requires certain  disclosures,  but carries over most of the provisions
     of SFAS No. 125 without  reconsideration.  SFAS No. 140 is effective  after
     March  31,  2001.   The   Statement  is  effective  for   recognition   and
     reclassification   of   collateral   and  for   disclosures   relating   to
     securitization  transactions  and  collateral for fiscal years ending after
     December 15, 2000. Management adopted SFAS No. 140 effective April 1, 2001,
     as  required,  without  material  effect  on  the  Corporation's  financial
     position or results of operations.


                                        8
<PAGE>

                          KENTUCKY FIRST BANCORP, INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

             For the three months ended September 30, 2001 and 2000


4.   Effects of Recent Accounting Pronouncements (continued)
     -------------------------------------------

     In June 2001, the FASB issued SFAS No. 141 "Business  Combinations,"  which
     requires that all business  combinations  initiated  after June 30, 2001 be
     accounted for using the purchase method. The pooling-of-interests method of
     accounting is prohibited except for combinations  initiated before June 30,
     2001.  The  remaining  provisions  of SFAS No.  141  relating  to  business
     combinations accounted for by the purchase method, including identification
     of intangible assets, accounting for negative goodwill, financial statement
     presentation and disclosure, are effective for combinations completed after
     June 30, 2001.  Management  adopted SFAS No. 141  effective  June 30, 2001,
     without material effect on the Corporation's  financial position or results
     of operations.

     In June  2001,  the FASB  issued  SFAS No.  142  "Goodwill  and  Intangible
     Assets,"  which  prescribes  accounting  for  all  purchased  goodwill  and
     intangible  assets.  Pursuant  to SFAS No.  142,  acquired  goodwill is not
     amortized,  but is  tested  for  impairment  at the  reporting  unit  level
     annually and whenever an impairment  indicator arises.  All goodwill should
     be  assigned  to  reporting  units that are  expected  to benefit  from the
     goodwill.  When an entity  reorganizes  its reporting  structure,  goodwill
     should be reallocated to reporting  units based on the relative fair values
     of the  units.  Goodwill  impairment  should  be  tested  with  a  two-step
     approach. First, the fair value of the reporting unit should be compared to
     its carrying value,  including  goodwill.  If the reporting unit's carrying
     value  exceeds  its fair  value,  then any  goodwill  impairment  should be
     measured as the excess of goodwill's  carrying  value over its implied fair
     value.  The implied fair value of goodwill should be calculated in the same
     manner as  goodwill is  calculated  for a business  combination,  using the
     reporting unit's fair value as the "purchase price." Therefore,  goodwill's
     implied  fair  value will be the excess of the  "purchase  price"  over the
     amounts allocated to assets,  including unrecognized intangible assets, and
     liabilities of the reporting  unit.  Goodwill  impairment  losses should be
     reported in the income statement as a separate line item within operations,
     except for such losses  included in the  calculation of a gain or loss from
     discontinued operations.

     An acquired intangible asset, other than goodwill, should be amortized over
     its  useful  economic  life.  The  useful  life of an  intangible  asset is
     indefinite if it extends beyond the foreseeable horizon. If an asset's life
     is  indefinite,  the  asset  should  not be  amortized  until  the  life is
     determined to be finite. Intangible assets being amortized should be tested
     for impairment in accordance with SFAS No. 121. Intangible assets not being
     amortized should be tested for impairment,  annually and whenever there are
     indicators  of  impairment,  by  comparing  the  asset's  fair value to its
     carrying amount.

     SFAS No. 142 is effective  for fiscal years  beginning  after  December 15,
     2001.  SFAS  No.  142 is not  expected  to have a  material  effect  on the
     Corporation's financial position or results of operations.

     The foregoing discussion of the effects of recent accounting pronouncements
     contains  forward-looking  statements that involve risks and uncertainties.
     Changes in economic circumstances could cause the effects of the accounting
     pronouncements to differ from management's foregoing assessment.


                                        9
<PAGE>


                          KENTUCKY FIRST BANCORP, INC.

ITEM II              MANAGEMENT'S DISCUSSION AND ANALYSIS
                              OR PLAN OF OPERATION


Forward-Looking Statements
--------------------------

In addition to historical information contained herein, the following discussion
contains  forward-looking  statements  that  involve  risks  and  uncertainties.
Economic  circumstances,  the  Corporation's  operations  and the  Corporation's
actual  results  could  differ   significantly   from  those  discussed  in  the
forward-looking  statements.  Some of the factors that could cause or contribute
to such differences are discussed herein but also include changes in the economy
and interest rates in the nation and the Corporation's market area generally.

Some of the  forward-looking  statements  included  herein  are  the  statements
regarding management's determination of the amount and adequacy of the allowance
for losses on loans and the effect of recent accounting pronouncements.


Discussion  of Financial  Condition  Changes from June 30, 2001 to September 30,
--------------------------------------------------------------------------------
2001
----

At September 30, 2001, the Corporation's  consolidated  total assets amounted to
$78.5 million,  an increase of $4.3 million, or 5.8%, over the total at June 30,
2001.  The increase in assets was funded  primarily from an increase of $735,000
in deposits and an increase in advances  from the Federal Home Loan Bank of $3.0
million.

Liquid assets (i.e. cash,  interest-bearing  deposits and investment securities)
decreased by $2.2 million,  or 20.0%,  during the three month period, to a total
of $8.6 million at September 30, 2001.  Mortgage-backed securities totaled $20.4
million at September 30, 2001, an increase of $5.7 million,  or 39.2%, over June
30, 2000 levels. The increase in mortgage-backed  securities  resulted primarily
from purchases  totaling $6.1 million,  which were partially offset by principal
repayments of $674,000.

Loans receivable increased by $644,000,  or 1.4%, during the three month period,
to a total of $46.4 million at September 30, 2001. Loan  disbursements  and loan
purchases  amounted  to $3.5  million  and were  partially  offset by  principal
repayments of $2.9 million.  The allowance for loan losses  totaled  $483,000 at
September 30, 2001,  compared to $480,000 at June 30, 2001.  Nonperforming loans
totaled  $275,000 at September 30, 2001,  compared to $286,000 at June 30, 2001.
The allowance for loan losses  represented  175.6% of nonperforming  loans as of
September  30, 2001 and 167.8% at June 30, 2001.  Although  management  believes
that its allowance for loan losses at September 30, 2001 is adequate  based upon
the available facts and circumstances,  there can be no assurance that additions
to such allowance will not be necessary in future periods, which could adversely
affect the Corporation's results of operations.

Deposits  totaled  $53.2 million at September 30, 2001, an increase of $735,000,
or 1.4%,  over  June 30,  2001  levels.  The  increase  in  deposits  was due to
managements' continuing marketing efforts.  Borrowed funds totaled $11.8 million
at September 30, 2001, an increase of $3.0 million,  or 34.0%, over the total at
June 30, 2001.  Proceeds from  borrowings  and growth in deposits were generally
used to fund new loan originations and purchases of mortgage-backed securities.

The  Corporation's  shareholders'  equity amounted to $12.9 million at September
30, 2001,  an increase of  $345,000,  or 2.8%,  over June 30, 2001  levels.  The
increase  resulted  primarily  from net  earnings  during the three months ended
September 30, 2001 of $205,000 and an increase in unrealized  gains on available
for sale securities of $269,000,  which were partially  offset by dividends paid
on common stock totaling $129,000.

                                       10
<PAGE>

                          KENTUCKY FIRST BANCORP, INC.

                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                        OR PLAN OF OPERATION (CONTINUED)


Discussion of Financial Condition Changes from June 30, 2001 to September 30,
-----------------------------------------------------------------------------
2001 (continued)
----------------

The Savings  Bank is required to meet each of three  minimum  capital  standards
promulgated by the Office of Thrift Supervision ("OTS"),  hereinafter  described
as the  tangible  capital  requirement,  the core  capital  requirement  and the
risk-based  capital  requirement.  The  tangible  capital  requirement  mandates
maintenance of shareholders'  equity less all intangible assets equal to 1.5% of
adjusted total assets. The core capital requirement provides for the maintenance
of tangible capital plus certain forms of supervisory  goodwill  generally equal
to 4% of adjusted total assets,  except for those  associations with the highest
examination  rating  and  acceptable  levels  of risk.  The  risk-based  capital
requirement  mandates  maintenance  of  core  capital  plus  general  loan  loss
allowances equal to 8% of risk-weighted assets as defined by OTS regulations.

At September  30, 2001,  the Savings  Bank's  tangible and core capital  totaled
$11.2 million,  or 14.4%,  of adjusted total assets,  which exceeded the minimum
tangible and core capital requirements of $1.2 million and $3.1 million by $10.0
million and $8.1 million, respectively. The Savings Bank's risk-based capital of
$11.5  million,   or  27.2%  of  risk-weighted   assets,   exceeded  the  8%  of
risk-weighted assets requirement by $8.1 million.


Comparison of Operating Results for the Three Month Periods Ended September 30,
--------------------------------------------------------------------------------
2001 and 2000
-------------

General
-------

Net earnings amounted to $205,000 for the three months ended September 30, 2001,
an increase of $7,000,  or 3.5%, over the $198,000 of net earnings  reported for
the three months ended  September 30, 2000. The increase in net earnings was due
to a $9,000 decrease in the provision for losses on loans and a $22,000 decrease
in general  administrative and other expense,  which were partially offset by an
$11,000 decrease in net interest income,  an $8,000 decrease in other income and
a $5,000 increase in the provision for federal income taxes.

Net Interest Income
-------------------

Total  interest  income  amounted  to $1.3  million for the three  months  ended
September 30, 2001, a decrease of $10,000,  or .8%, compared to the same quarter
in 2000, due to a decrease in the average yield on interest-earning assets, from
7.48%  to  7.24%,   offset  by  a  $1.9  million,   or  2.6%,  increase  in  the
weighted-average  balance of  interest-earning  assets outstanding year to year.
Interest income on loans  increased by $27,000,  or 3.0%, due to a $1.7 million,
or 3.8%, increase in the  weighted-average  balance of loans outstanding year to
year, offset by a decrease in the average yield on loans, from 8.05% to 7.99%

Interest income on mortgage-backed securities decreased by $25,000, or 9.9%, due
to a decrease in the average yield on mortgage-backed  securities, from 6.88% in
the 2000 quarter to 6.23% in the 2001  quarter.  Interest  income on  investment
securities and interest-bearing deposits decreased by $12,000, or 7.3%, due to a
decrease in yield year to year.

Total interest expense amounted to $673,000 for the three months ended September
30, 2001, an increase of $1,000,  or .1%,  over the 2000 quarter,  due to a $2.3
million, or 3.9%, increase in the  weighted-average  balance of interest-bearing
liabilities  outstanding year to year,  offset by a decrease in the average cost
of funds,  from 4.56% in 2001 to 4.40% in 2000.  Interest  expense  on  deposits
decreased by $4,000, or .7%, due to a 6 basis point decrease in the average cost
of  deposits,   partially  offset  by  a  $430,000,  or  .8%,  increase  in  the
weighted-average  balance of deposits outstanding year to year. Interest expense
on borrowings  increased by $5,000,  or 4.7%,  due to a $1.9 million,  or 26.7%,
increase in the  weighted-average  balance of borrowed funds outstanding year to
year,  which was partially  offset by a decrease in the average cost of borrowed
funds, from 6.01% to 4.96%.

                                       11
<PAGE>

                          KENTUCKY FIRST BANCORP, INC.

                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                        OR PLAN OF OPERATION (CONTINUED)


Comparison of Operating Results for the Three Month Periods Ended September 30,
-------------------------------------------------------------------------------
2001 and 2000 (continued)
-------------------------

Net Interest Income (continued)
-------------------------------

As a result of the foregoing  changes in interest  income and interest  expense,
net interest  income  decreased by $11,000,  or 1.7%, to a total of $640,000 for
the three months ended  September 30, 2001,  compared to a total of $651,000 for
the three months ended  September 30, 2000. The interest rate spread amounted to
approximately 2.84% and 2.93% during the three month periods ended September 30,
2001  and  2000,  respectively,  while  the  net  interest  margin  amounted  to
approximately 3.53% and 3.68% during the three month periods ended September 30,
2001 and 2000, respectively.

Provision for Losses on Loans
-----------------------------

A  provision  for  losses on loans is  charged  to  earnings  to bring the total
allowance for loan losses to a level considered  appropriate by management based
on  historical  experience,  the  volume and type of  lending  conducted  by the
Savings Bank,  the status of past due principal and interest  payments,  general
economic  conditions,  particularly  as such  conditions  relate to the  Savings
Bank's  market area,  and other  factors  related to the  collectibility  of the
Savings Bank's loan portfolio. As a result of such analysis, management recorded
a $3,000  and  $12,000  provision  for losses on loans  during  the three  month
periods ended  September 30, 2001 and 2000,  respectively.  The provision in the
current period was predicated upon growth in the loan portfolio, integrated with
an analysis of the Bank's  nonperforming  loans.  There can be no assurance that
the loan loss  allowance of the Savings Bank will be adequate to cover losses on
nonperforming assets in the future.

Other Income
------------

Other income decreased by $8,000, or 13.3%, for the three months ended September
30, 2001,  compared to the three months ended September 30, 2000,  primarily due
to a $6,000,  or 13.6%,  decrease in service charges on deposit accounts and due
to a $3,000 gain on investment securities  transactions recorded during the 2000
period.

General, Administrative and Other Expense
-----------------------------------------

General,  administrative and other expense decreased by $22,000, or 5.2%, during
the three months ended  September  30, 2001,  compared to the three months ended
September 30, 2000.  The decrease in general,  administrative  and other expense
resulted primarily from a $23,000,  or 9.2%,  decrease in employee  compensation
and benefits due primarily to the  expiration of a stock benefit plan  effective
April 2001.

Federal Income Taxes
--------------------

The provision for federal  income taxes  increased by $5,000,  or 6.4%,  for the
three  months  ended  September  30,  2001,  compared to the three  months ended
September 30, 2000.  The increase  resulted  primarily  from the increase in net
earnings  before taxes of $12,000,  or 4.3%.  The effective tax rates were 28.8%
and  28.3%  for the three  month  periods  ended  September  30,  2001 and 2000,
respectively.

                                       12
<PAGE>


                          KENTUCKY FIRST BANCORP, INC.

                                     PART II


ITEM 1.  Legal Proceedings
         -----------------

The Savings  Bank is party to a lawsuit  captioned  Family  Bank,  FSB and First
                                                    ----------------------------
Federal Savings Bank v. Oscar S. Blankenship  a/k/a O. Sam Blankenship and Jenny
--------------------------------------------------------------------------------
Blankenship filed in the Johnson Circuit Court, Division No. II, Commonwealth of
----------
Kentucky.  The lawsuit is a collection action seeking recovery of three loans of
which the Savings  Bank has an interest in two. The suit also asks for the court
to sell the  property  securing  the loans with the proceeds to be used to repay
all  amounts  owed.  The  defendants  filed an answer on February 3, 2000 making
various counterclaims alleging breach of contract,  breach of fiduciary duty and
unspecified  violations of the federal  banking laws. The defendants are seeking
money damages (including punitive damages) of an unspecified amount.  Certain of
the counterclaims relate only to the one loan in which the Savings Bank does not
have any interest. While the Savings Bank does not believe there is any merit in
the counterclaims,  it is preparing an appropriate defense to them. A hearing on
a Motion for Partial  Summary  Judgment is scheduled for November 16, 2001.  The
case  is  currently  in  the  discovery   stage  of  litigation  and  settlement
discussions are ongoing.


ITEM 2.  Changes in Securities and Use of Proceeds
         -----------------------------------------

                  Not applicable


ITEM 3.  Defaults Upon Senior Securities
         -------------------------------

                  Not applicable


ITEM 4.  Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------

                  None


ITEM 5.  Other Information
         -----------------

                  None


ITEM 6.  Exhibits and Reports on Form 8-K
         --------------------------------

                  Reports on Form 8-K:               None.

                  Exhibits:                          None.


                                       13
<PAGE>


                          KENTUCKY FIRST BANCORP, INC.

                                   SIGNATURES
                                   ----------

In accordance  with the  requirements  of the Exchange Act, the  registrant  has
caused this report to be signed on its behalf by the undersigned  thereunto duly
authorized.





Date:  November 12, 2001                By: /s/ Betty J. Long
       -----------------                    ------------------------------------
                                            Betty J. Long
                                            President and Chief
                                            Executive Officer




Date:  November 12, 2001                By: /s/ Russell M. Brooks
       -----------------                    ------------------------------------
                                            Russell M. Brooks
                                            Executive Vice President and
                                            Financial Officer


                                       14