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





                                    FORM 10-Q
                                   (Mark One)



[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

For the period ended:          March 31, 2000

[ ]  Transition Report Pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

For the transition period from _______________  to ____________________

Commission file number         00-23063
                               --------

                       First SecurityFed Financial , Inc.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified In Its Charter)

           Delaware                                         36-4177515
---------------------------------------             ----------------------------
(State or Other Jurisdiction of                            (IRS Employer
 Incorporation or Organization)                          Identification No.)

      Chicago, Illinois                                       60622
---------------------------------------             ----------------------------
(Address of Principal Executive Offices)                     (Zip Code)

                                  773/772-4500
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

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
                                      ---      ---

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

              Class                                Outstanding at April 30, 2000
---------------------------------------            -----------------------------
    Common Stock, par value $0.01                         5,232,935 shares



<PAGE>


                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS




                                      INDEX




Part I.  Financial Information

  Item 1.   Financial Statements

     Condensed Consolidated Statements of Financial Condition  as of
      March  31, 2000 and December 31, 1999.................................   3

     Condensed Consolidated Statements of Income for the three months
      ended March 31, 2000 and  1999.......................................... 4

     Statements of Comprehensive Income for the
      three months ended  March 31, 2000 and  1999 ........................... 5

     Condensed Consolidated Statements of Changes in Shareholders Equity for the
      year ended December 31, 1999 and the three months ended March 31, 2000   6

     Condensed Consolidated Statements of Cash Flows for the three
      months ended March 31, 2000 and 1999..................................   8

     Notes to the Condensed Consolidated Financial Statements as of
      March 31, 2000........................................................   9

  Item 2. Management's Discussion and Analysis of Financial Condition
            and Results of Operation........................................  12

  Item 3. Quantitative and Qualitative Disclosures about Market Risk.......   19



Part II.       Other Information

  Item 6. Exhibits and Reports on Form 8-K.................................   21

                                      -2-


<PAGE>


                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
            CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
            (Dollars in thousands, except share and per share data)
                                   Unaudited)
-------------------------------------------------------------------------------
<TABLE>

                                                                                 March 31,           December 31,
                                                                                   2000                1999
<S>                                                                        <C>                 <C>
ASSETS
Cash and due from banks                                                     $          7,374    $         6,057
Federal funds sold                                                                         -                200
                                                                            ----------------    ---------------
     Total cash and cash equivalents                                                   7,374              6,257

Securities available-for-sale                                                         36,376             20,622
Securities held-to-maturity (fair value of
 $75,161 in 2000 and $89,850 in 1999)                                                 78,755             92,908
Loans, net of allowance for loan losses                                              250,024            241,168
Federal Home Loan Bank stock                                                           2,733              2,315
Premises and equipment, net                                                            3,666              3,672
Accrued interest receivable                                                            3,089              2,976
Intangible assets                                                                        180                190
Other assets                                                                           1,968              2,184
                                                                            ----------------    ---------------
     Total assets                                                           $        384,165    $       372,292
                                                                            ================    ===============

LIABILITIES
Deposits
     Non-interest-bearing                                                   $          6,538    $         6,089
     Interest-bearing                                                                237,403            232,034
                                                                            ----------------    ---------------
                                                                                     243,941            238,123
Advance payments by borrowers for taxes and
  insurance                                                                            1,571              2,811
Advances from Federal Home Loan Bank                                                  53,800             46,300
Accrued interest payable and other liabilities                                         2,731              1,902
                                                                            ----------------    ---------------
     Total liabilities                                                               302,043            289,136

SHAREHOLDERS' EQUITY
Preferred stock, $0.01 par value per share, 500,000 shares
     authorized, no shares issued and outstanding                                          -                  -
Common stock, $0.01 par value per share, 8,000,000
      shares authorized, 6,408,000 shares issued                                          64                 64
Additional paid-in capital                                                            64,333             64,324
Unearned ESOP shares                                                                  (4,155)            (4,239)
Unearned stock awards                                                                 (2,895)            (3,075)
Retained earnings, substantially restricted                                           40,720             39,914
Accumulated other comprehensive income                                                  (839)              (605)
Treasury stock, at cost; (1,148,565 shares at March 31, 2000
     and 979,360 shares at December 31,1999)                                         (15,106)           (13,227)
                                                                            -----------------   ----------------

     Total shareholders' equity                                                       82,122             83,156
                                                                            ----------------    ---------------

     Total liabilities and shareholders' equity                             $        384,165    $       372,292
                                                                            ================    ===============
</TABLE>

--------------------------------------------------------------------------------
 See accompanying notes to condensed consolidated financial statements

                                      -3-

<PAGE>

                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
             (Dollars in thousands, except share and per share data)
                                  (Unaudited)
--------------------------------------------------------------------------------
<TABLE>


                                                                             Three months ended
                                                                                 March 31,
                                                                        2000                      1999
                                                                        ----                      ----
<S>                                                              <C>                       <C>
Interest income
    Loans                                                         $        4,984             $       4,440
    Securities                                                             1,202                       833
    Mortgage-backed securities                                               553                       530
    Other interest-earning assets                                             63                       204
                                                                  --------------             -------------
       Total interest income                                               6,802                     6,007

Interest expense
    Deposits                                                               2,519                     2,215
    FHLB advances                                                            688                       384
                                                                  --------------             -------------
       Total interest expense                                              3,207                     2,599
                                                                  --------------             -------------
Net interest income                                                        3,595                     3,408

Provision for loan losses                                                     62                        62
                                                                  --------------             -------------

Net interest income after
  provision for loan losses                                                3,533                     3,346

Noninterest income
    Net gain/(loss) on sale of securities                                    (13)                       19
    Other income                                                             154                       133
                                                                  --------------             -------------
       Total noninterest income                                              141                       152

Noninterest expense
    Compensation and benefits                                                918                       916
    Occupancy and equipment expense                                          173                       150
    Data processing                                                           80                        88
    Federal deposit insurance premiums                                        32                        52
    Professional fees                                                         25                        46
    Other operating expenses                                                 246                       249
                                                                  --------------             -------------
       Total noninterest expense                                           1,474                     1,501
                                                                  --------------             -------------

Income before income tax provision                                         2,200                     1,997

Provision for income taxes                                                   773                       735
                                                                  --------------             -------------


Net income                                                        $        1,427             $       1,262
                                                                  ==============             =============

Earnings per share
    Basic                                                         $          .29              $        .25
                                                                  ==============             =============
    Diluted                                                       $          .29              $        .25

                                                                  ==============             =============
</TABLE>

                                      -4-
--------------------------------------------------------------------------------
 See accompanying notes to condensed consolidated financial statements

<PAGE>

                       FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
                       STATEMENTS OF COMPREHENSIVE INCOME
             (Dollars in thousands, except share and per share data)
                                   (Unaudited)
--------------------------------------------------------------------------------
<TABLE>

                                                                                     Three months ended
                                                                                          March 31,

                                                                                     2000               1999
                                                                                     ----               ----

<S>                                                                                  <C>             <C>
    Net Income                                                                       $ 1,427         $ 1,262

    Other  comprehensive income, net of tax:
       Change  in unrealized gains (losses) on securities
       resulting from the reclassification of securities from
       held-to-maturity to available-for-sale                                           (134)              -

       Change in unrealized holding gains (losses) on
       securities available-for-sale                                                    (108)            (38)

       Reclassification adjustments for (gains) losses
       recognized in income                                                                8             (12)
                                                                                     --------       --------

    Comprehensive Income                                                             $  1,193       $  1,212
                                                                                     ========       ========

</TABLE>
--------------------------------------------------------------------------------
     See accompanying notes to condensed consolidated financial statements

                                      -5-


<PAGE>

                       FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
                      CONDENSED CONSOLIDATED STATEMENTS OF
                         CHANGES IN SHAREHOLDERS' EQUITY
             (Dollars in thousands, except share and per share data)
                                   (Unaudited)
--------------------------------------------------------------------------------
<TABLE>

                                                                                                             Accumulated
                                                                                                             Other          Total
                                               Additional     Unearned     Unearned                          Compre-        Share-
                                   Common      Paid-in        ESOP         Stock     Treasury   Retained     hensive        holders'
                                   Stock       Capital        Shares       Awards    Stock      Earnings     Income         Equity

<S>                                <C>         <C>            <C>          <C>      <C>         <C>          <C>            <C>
Balance at December 31, 1999       $  64       $64,324        $(4,239)     $(3,075) $(13,227)   $39,914      $ (605)        $83,156

ESOP shares earned                    --             9             84           --        --         --          --              93

MRP shares earned                     --            --             --          180        --         --          --             180

Net income                            --            --             --           --        --      1,427          --           1,427

Purchase of treasury stock            --            --             --           --    (1,879)        --          --          (1,879)

Dividends declared ($.12 per share)   --            --             --           --        --       (621)         --            (621)

Change in fair value of securities,
  net of income taxes and
  reclassification effects            --            --             --           --        --         --        (234)           (234)

Balance at March 31, 2000           $      64    $   64,333   $(4,155)     $(2,895) $(15,106)   $40,720     $  (839)     $   82,122
                                    =========    ==========   =======      =======  ========    =======    =========     ==========
</TABLE>
--------------------------------------------------------------------------------
     See accompanying notes to condensed consolidated financial statements

                                      -7-

<PAGE>
                       FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
             (Dollars in thousands, except share and per share data)
                                   (Unaudited)
--------------------------------------------------------------------------------
<TABLE>

                                                                                Three months ended
                                                                                   March 31,
                                                                             2000                      1999
                                                                             ----                      ----
<S>                                                                  <C>                      <C>
Cash flows from operating activities
    Net income                                                       $       1,427             $       1,262
    Adjustments to reconcile net income to net
      cash from operating activities
       Depreciation and amortization                                            80                        96
       Amortization of discounts and premiums
         on securities                                                          24                        42
       Net (gain)/loss on sales and calls of securities                         13                       (19)
       Provision for loan losses                                                62                        62
       ESOP compensation expense                                                93                       107
       Stock award compensation expense                                        180                       175
    Change in
       Deferred loan origination fees                                          103                        (5)
       Accrued interest receivable and other assets                            111                      (408)
       Other liabilities and deferred income taxes                             788                       978
                                                                     -------------             -------------
          Net cash provided by operating activities                          2,881                     2,290

Cash flows from investing activities
    Purchase of securities available-for-sale                               (1,301)                   (1,062)
    Purchase of securities held-to-maturity                                 (2,248)                  (16,336)
    Proceeds from repayment of securities                                      924                     1,915
    Proceeds from sales of securities available-for-sale                       310                     2,968
    Proceeds from calls and maturities of securities                           435                     4,000
    Net change in loans                                                     (9,021)                   (1,566)
    Capital expenditures, net                                                  (64)                       (6)
    Purchase of Federal Home Loan Bank stock                                  (418)                        -
                                                                     --------------            -------------
      Net cash used in investing activities                                (11,383)                  (10,087)

Cash flows from financing activities
    Net increase in deposits                                                 5,818                     1,393
    Net borrowings from FHLB                                                 7,500                         -
    Net decrease in advances from
      borrowers for insurance and taxes                                     (1,240)                   (1,141)
    Dividends paid                                                            (580)                        -
    Purchase of treasury stock                                              (1,879)                   (2,614)
                                                                     --------------            --------------
       Net cash provided by (used in) financing activities                   9,619                    (2,362)
                                                                     -------------             --------------

Net change in cash and cash equivalents                                      1,117                   (10,159)

Cash and cash equivalents at beginning of period                             6,257                    24,830
                                                                     -------------             -------------

Cash and cash equivalents at end of period                           $       7,374             $      14,671
                                                                     =============             =============
</TABLE>
--------------------------------------------------------------------------------
      See accompanying notes to condensed consolidated financial statements

                                      -7-


<PAGE>


                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Financial Statement Presentation
First  SecurityFed  Financial,  Inc.  (the  Company)  is a Delaware  corporation
organized  in July 1997 by First  Security  Federal  Savings  Bank (the Bank) in
connection  with the  conversion of the Bank from a federally  chartered  mutual
savings bank to a federally chartered stock savings bank.

The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial information and with the instructions to Form 10-Q. Accordingly,  they
do not include all the information and footnotes  required by generally accepted
accounting principles for complete financial statements.

In the opinion of management,  the unaudited  consolidated  financial statements
contain  all  adjustments  (consisting  only of  normal  recurring  adjustments)
necessary  to  present  fairly  the  financial  condition  of First  SecurityFed
Financial,  Inc. as of March 31, 2000 and  December  31, 1999 and the results of
its  operations  and cash flows for the three month periods ended March 31, 2000
and 1999. The annualized  results of operations for the three months ended March
31, 2000 are not necessarily indicative of the results expected in the full year
ending December 31, 2000.

NOTE 2 - SECURITIES
Effective  January 1, 2000,  the Company  adopted the provisions of Statement of
Financial  Accounting  Standards  ("SFAS") No. 133,  Accounting  for  Derivative
Instruments  and Hedging  Activities.  As permitted by SFAS No.133,  the Company
reclassified   some   of   its   securities   held-to-maturity   to   securities
available-for-sale. The securities which were reclassified had an amortized cost
of $15,605,733 and a fair value of $15,386,299 at January 1, 2000.


--------------------------------------------------------------------------------
                                      -8-

<PAGE>

                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

NOTE 3 - EARNINGS PER COMMON SHARE
A  reconciliation  of the numerator and  denominator  of the earnings per common
share  computation  for the three month  period ended March 31, 2000 and 1999 is
presented below:

<TABLE>


                                                                 2000           1999
                                                                 ----           ----

<S>                                                              <C>            <C>
Earnings per common share

    Net income attributable to common shareholders               $1,427         $1,262
                                                                 ======         ======


 Weighted average common shares outstanding                       4,723          4,794
 Add: shares committed to be issued to charitable foundation        150            200
                                                                 ------         ------


    Total weighted average common shares outstanding              4,873          4,994
                                                                 ======         ======

        Basic earnings per share                                 $  .29         $  .25
                                                                 ======         ======

</TABLE>


The Company's  outstanding stock options and stock awards were not considered in
the  computations  of diluted  earnings per share because the effects of assumed
exercise  would  have been  antidilutive.  In future  years,  outstanding  stock
options may be exercised which would increase the weighted average common shares
outstanding and, thereby, dilute earnings per share. In addition, if the average
common stock price were to exceed the exercise price of outstanding options in a
future year, the assumed  exercise of the options and/or the assumed issuance of
the stock  awards  would have a dilutive  effect on  earnings  per share for the
future  year.  However,  previously  reported  earnings  per share  and  diluted
earnings per share are not  restated to reflect  change in the status of changes
in the relationship between exercise prices and average stock prices

--------------------------------------------------------------------------------

                                      -9-


<PAGE>

                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

NOTE 4 - CAPITAL REQUIREMENTS
Pursuant to federal  regulations,  savings  institutions  must meet two separate
capital  requirements.  The  following  is a summary  of the  Bank's  regulatory
capital at March 31, 2000.
<TABLE>

                                                            Core                Risk based
                                                            Capital             Capital
                                                            -------             ----------
                                                        (In thousands)


     <S>                                                   <C>                  <C>
     Regulatory capital                                     $70,691             $72,985

     Minimum capital requirement to be considered
      adequately capitalized                                 15,064              14,682
                                                            -------             -------


     Excess regulatory capital over
      minimum requirement                                   $55,627             $58,303
                                                            =======             =======


</TABLE>
--------------------------------------------------------------------------------

                                      -10-

<PAGE>


                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
--------------------------------------------------------------------------------

Comparison of Financial Condition at March 31, 2000 and December 31, 1999

Total assets  increased  $11.9 million to $384.2  million at March 31, 2000 from
$372.3  million at December  31, 1999.  The  increase in total assets  consisted
primarily of increases of $1.6 million in  securities,  $1.1 million in cash and
cash equivalents,  $8.8 million in loans receivable and $400,000 in Federal Home
Loan Bank Stock.

Net loans  receivable  increased by $8.8 million from $241.2 million at December
31,  1999 to $250.0  million at March 31,  2000.  This  increase  was due to the
disbursement  of $1.5  million  to fund  construction  loans and the  continuing
market demand due to current  economic  conditions and the prevailing  favorable
interest rate environment.

Securities  available-for-sale  increased by $15.8 million from $20.6 million at
December 31, 1999 to $36.4 million at March 31, 2000. The increase was primarily
due to the reclassification of $16.6 million of securities from held-to-maturity
to  available-for-sale,  in  connection  with  the  adoption  of SFAS  No.  133,
partially offset by paydowns on mortgage backed securities.

Securities  held-to-maturity  decreased by $14.1  million from $92.9  million at
December 31, 1999 to $78.8 million at March 31, 2000. The decrease was primarily
due to the reclassification of $16.6 million in securities from held-to-maturity
to  available-for-sale,  in  connection  with  the  adoption  of SFAS  No.  133,
partially  offset by  purchases  of  federal  agency  and tax  exempt  municipal
securities.

Total  liabilities  at March 31,  2000 were  $302.0  million  compared to $289.1
million at December 31, 1999, an increase of $12.9 million.  Deposits  increased
by $5.8 million and Federal Home Loan Bank  Advances  increased by $7.5 million.
The weighted  average term to maturity of the  Company's  Federal Home Loan Bank
Advances  was 4.1  years,  with a  weighted  average  term to call of 10 months.
Borrowings  were  increased  in order to fund the  continuing  demand for loans.
During  this  same  period,  accrued  interest  payable  and  other  liabilities
increased by $800,000.  These increases were partially offset by a $1.2 million
decrease in advance  payments by borrowers  for taxes and  insurance  due to the
payment of the first installment of taxes during the quarter.

Shareholders'  equity at March  31,  2000 was $82.1  million  compared  to $83.2
million at December 31, 1999, a decrease of $1.1 million. The decrease in equity
was due primarily to the Company's  repurchase  of  outstanding  common stock of
$1.9  million  partially  offset by net income of $1.4  million  for the period.
Equity at March 31, 2000 was also impacted by the declaration of a $621,000 cash
dividend on common stock. The dividend was paid to stockholders in April 2000.

--------------------------------------------------------------------------------

                                      -11-

<PAGE>

                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
--------------------------------------------------------------------------------

Comparison  of Operating  Results for the Three Months Ended March 31, 2000 and
March 31, 1999

General
Net  earnings  for the three  months  ended March 31, 2000 were  $1,427,000,  an
increase of $165,000 from net earnings of $1,262,000  for the three months ended
March 31, 1999.  The increase in net  earnings is primarily  attributable  to an
increase in net  interest  income due to  increases  in the average  balances of
assets and  liabilities.  Income per share also increased during the period as a
result of the  increase in net  earnings and the  Company's  repurchases  of its
common stock.

Interest Income
Interest  income for the three months ended March 31, 2000 was $6.8 million,  an
increase of $800,000 from  interest  income of $6.0 million for the three months
ended March 31, 1999.  Interest  income on loans increased by $544,000 due to an
increase  in the  volume of loans  receivable.  Interest  income  on  securities
increased  by  $369,000  due to  increases  in the  outstanding  balance  of the
Company's   investment   securities   portfolio.   Interest   income   on  other
interest-earning   assets   decreased  by  $141,000  due  to  decreases  in  the
outstanding  balances  of funds  invested  in  overnight  fed  funds and kept on
deposit in interest bearing accounts with the Federal Home Loan Banks.

Interest Expense
Interest  expense for the three  months  ended  March 31, 2000 was $3.2  million
compared to $2.6 million for the three months ended March 31, 1999,  an increase
of $600,000. Interest expense on deposits increased by $304,000 due to increases
in the outstanding deposit account balances and the rates paid on those balances
 . Interest expense on Federal Home Loan Bank advances also increased by $304,000
due to increases in the balances of Federal Home Loan Bank  advances  which were
used to fund loan growth.

Provision for Loan Losses
The provision for  loan losses for the three months ended March 31, 2000  and
1999 was $62,000.

The amount of the  provision  and  allowance  for  estimated  losses on loans is
influenced by current  economic  conditions,  actual loss  experience,  industry
trends and other factors,  including  real estate  values,  in the Bank's market
area . In addition,  various regulatory  agencies,  as an integral part of their
examination  process ,  periodically  review the Bank's  allowance for estimated
losses on loans.  Such agencies may require the Bank to provide additions to the
allowance based upon judgments  which differ from those of management.  Although
management  uses  the  best  information  available  and  maintains  the  Bank's
allowance  for losses at a level it  believes  adequate  to provide  for losses,
future adjustments to the allowance may be necessary due to economic, operating,
regulatory and other conditions that may be beyond the Bank's control.

Noninterest Income
Noninterest  income  for the three  months  ended  March 31,  2000 was  $141,000
compared to $152,000  for the three  months  ended March 31,  1999.  The $11,000

--------------------------------------------------------------------------------

                                      -12-

<PAGE>

                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
--------------------------------------------------------------------------------

decrease in non-interest  income was due primarily to a $32,000  decrease in the
net gain on the sale of  securities  which  was  partially  offset  by a $21,000
increase in other income. ATM fees and service charges on deposits increased due
to increases in deposits and contributed to the increase in other income.

Noninterest Expense
Noninterest  expense for the three  months ended March 31, 2000 was $1.5 million
and  remained  fairly  consistent  with the three  months  ended March 31, 1999.
Occupancy and equipment expense increased by $23,000 due to a $30,000 refund for
property taxes being included in the totals for the three months ended March 31,
1999. The increase in the property tax expense was partially offset by decreases
in  depreciation  expense  for the  bank's  office  buildings.  Federal  deposit
insurance premiums decreased by $20,000 due to the reduced FDIC assessment which
was effective as of January 1, 2000.  Professional fees decreased by $21,000 due
to a decrease in legal fees which were paid in 1999  primarily for the reduction
of the bank's taxes.

Income Taxes
Income taxes were $773,000 for the three months ended March 31, 2000 compared to
$735,000 for the three months ended March 31, 1999, an increase of $38,000.  The
increase in the provision for income taxes was due to an increase of $203,000 in
pretax earnings.

Liquidity and Capital Resources
The Company's primary resource of funds are deposits and proceeds from principal
and interest payments on loans and mortgage-backed securities.  While maturities
and scheduled  amortization of loans and securities are  predictable  sources of
funds,  deposit flows and mortgage prepayments are greatly influenced by general
interest rates,  economic  conditions and competition.  First Security generally
manages  the  pricing of its  deposits to be  competitive  and to increase  core
deposit relationships.

Liquidity management is both a daily and long-term responsibility of management.
First Security adjusts its investments in liquid assets based upon  management's
assessment  of (i) expected  loan demand,  (ii) expected  deposit  flows,  (iii)
yields available on  interest-earning  deposits and investment  securities,  and
(iv) the  objective of its  asset/liability  management  program.  Excess liquid
assets are invested generally in interest-earning  overnight deposits and short-
and intermediate-term U.S. government and agency obligations and mortgage-backed
securities  of short  duration.  If First  Security  requires  funds  beyond its
ability to generate them internally,  it has additional  borrowing capacity with
the FHLB of Chicago.

Federal  Regulations require First Security to maintain minimum levels of liquid
assets. The required percentage has varied from time to time based upon economic
conditions  and savings  flows and is currently 4% of net  withdrawable  savings
deposits  and  borrowings  payable  on demand or in one year or less  during the
preceding calendar month. Liquid assets for purposes of this ratio include cash,
certain  time  deposits,  U. S.  Government,  government  agency  and  corporate
securities and other obligations  generally having remaining  maturities of less
than five years. First Security has historically  maintained its liquidity ratio
for  regulatory  purposes  at levels in excess of those  required.  At March 31,
2000, First Security's liquidity ratio for regulatory purposes was 10.35%.

--------------------------------------------------------------------------------

                                      -13-
<PAGE>

                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
--------------------------------------------------------------------------------
The Company's  cash flows are comprised of three primary  classifications:  cash
flows from operating activities,  investing activities and financing activities.
Cash flows provided by operating  activities  were $2.9 million and $2.3 million
for the three months ended March 31, 2000 and March 31, 1999  respectively.  Net
cash from investing  activities  consisted  primarily of disbursements  for loan
originations  and the purchase of investments  and  mortgage-backed  securities,
offset by principal  collections on loans, proceeds from maturation and sales of
securities and paydowns on mortgage-backed  securities.  Net cash from financing
activities  consisted primarily from increases in net deposits and advances from
FHLB of Chicago  partially  offset by purchases of treasury stock and payment of
dividends in 2000 and 1999.

The Company's most liquid assets are cash and short-term investments. The levels
of these assets are dependent on the Company's operating, financing, lending and
investing  activities  during  any given  period . At March 31,  2000,  cash and
short-term  investments  totaled $7.4 million.  The Company has other sources of
liquidity if a need for additional funds arises,  including  securities maturing
within one year and the  repayment  of loans.  The Company may also  utilize the
sale of securities available-for-sale and FHLB advances as a source of funds.

At March 31, 2000, the Company had outstanding commitments to originate loans of
$4.1  million,  all of which had fixed  interest  rates.  These  loans are to be
secured by properties  located in its market area. The Company  anticipates that
it will have sufficient  funds  available to meet its current loan  commitments.
Loan  commitments  have, in recent  periods,  been funded  through  liquidity or
through FHLB advances.  Certificates of deposit which are scheduled to mature in
one  year or less  from  March  31,  2000  totaled  $124.6  million.  Management
believes, based on past experience,  that a significant portion of such deposits
will  remain  with the  Company.  Based on the  foregoing,  in  addition  to the
Company's  high level of core  deposits and capital,  the Company  considers its
liquidity and capital  resources  sufficient to meet its outstanding  short-term
and long-term needs.

First Security is subject to various regulatory capital  requirements imposed by
the OTS. At March 31, 2000, First Security was in compliance with all applicable
capital  requirements.  See Note 4 of the  Notes to the  Condensed  Consolidated
Financial Statements.

Impact Of Inflation and Changing Prices
The  consolidated  financial  statements and related data presented  herein have
been prepared in accordance with generally accepted accounting principles, which
require the measurement of financial position and results of operations in terms
of historical  dollars,  without  considering changes in the relative purchasing
power of money over time due to  inflation.  Unlike most  industrial  companies,
virtually  all of the assets and  liabilities  of the  Company  are  monetary in
nature. Therefore,  interest rates have a more significant impact on a financial
institution's  performance  than the  effects  of general  levels of  inflation.
Interest  rates do not  necessarily  move in the same  direction  or in the same
magnitude  as the prices of goods and  services.  In the current  interest  rate
environment,  the liquidity and maturity  structure and quality of the Company's
assets and liabilities are critical to the maintenance of acceptable performance
levels.

--------------------------------------------------------------------------------
                                      -14-

<PAGE>

                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
--------------------------------------------------------------------------------
Safe Harbor Statement
This report contains certain  forward-looking  statements  within the meaning of
Section 27A of the  Securities  Act of 1933, as amended,  and Section 21E of the
Securities   Exchange   Act  of  1934,   as  amended.   The  Bank  intends  such
forward-looking  statements  to be covered  by the safe  harbor  provisions  for
forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995,  and is including  this statement for purposes of these safe harbor
provisions.  Forward-looking statements,  which are based on certain assumptions
and  describe  future  plans,  strategies  and  expectations  of the  Bank,  are
generally  identifiable  by use  of the  words  "believe",  "expect",  "intend",
"anticipate",  "estimate",  "project" or similar expressions. The Bank's ability
to  predict  results  or the  actual  effect of future  plans or  strategies  is
inherently uncertain.  Factors which could have a material adverse affect on the
operations and future  prospects of the Bank and the subsidiaries  include,  but
are not limited to, changes in: interest  rates,  general  economic  conditions,
legislative/regulatory  changes,  monetary  and  fiscal  policies  of  the  U.S.
Government,  including  policies of the U.S.  Treasury  and the Federal  Reserve
Board, the quality or composition of the loan or investment  portfolios,  demand
for loan products, deposit flows, competition,  demand for financial services in
the Bank's market area and accounting principles, policies and guidelines. These
risks and  uncertainties  should be  considered  in  evaluating  forward-looking
statements and undue reliance should not be placed on such  statements.  Further
information  concerning  the  Company  and its  business,  including  additional
factors that could materially affect the Bank's financial  results,  is included
in the Bank's filings with the Securities and Exchange Commission.


--------------------------------------------------------------------------------

                                      -15-


<PAGE>


                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS

--------------------------------------------------------------------------------

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In an attempt to manage its  exposure to changes in interest  rates,  management
monitors the  Company's  interest rate risk.  The Board of Directors  reviews at
least quarterly the Company's interest rate risk position and profitability. The
Board of Directors also reviews the Company's portfolio,  formulates  investment
strategies and oversees the timing and  implementation of transactions to assure
attainment  of  the  Company's  objectives  in the  most  effective  manner.  In
addition,  the Board reviews on a quarterly basis the Company's  asset/liability
position,  including  simulations  of the  effect on the  Company's  capital  of
various interest rate scenarios.

In managing its asset/liability mix, the Company,  depending on the relationship
between long- and  short-term  interest  rates,  market  conditions and consumer
preference,  often  places more  emphasis on  managing  short term net  interest
margin than on better  matching the interest rate  sensitivity of its assets and
liabilities  in an effort to enhance net interest  income.  Management  believes
that the increased net interest income resulting from a mismatch in the maturity
of its asset and liability portfolios can, during periods of declining or stable
interest rates, provide high enough returns to justify the increased exposure to
sudden and unexpected increases in interest rates.

The Board has taken a number of steps to manage the Company's  vulnerability  to
changes in interest rates.  First, the Company has long used community outreach,
customer  service and marketing  efforts to increase the Company's  passbook and
other non-certificate accounts. At March 31, 2000, $99.8 million or 40.9% of the
Company's  deposits  consisted of passbook,  NOW and money market accounts.  The
Company  believes  that  these  accounts  represent  "core"  deposits  which are
generally  somewhat  less interest  rate  sensitive  than other types of deposit
accounts.  Second,  while the Company  continues to originate 30 year fixed rate
residential  loans for portfolio as a result of consumer  demand,  an increasing
proportion of the Company's  residential loans have terms of 15 years or less or
carry adjustable interest rates.  Finally, the Company has focused a significant
portion of its  investment  activities on securities  with  adjustable  interest
rates or terms of five years or less.  At March 31, 2000,  $8.8 million or 54.3%
of the Company's  mortgage-backed  securities had  adjustable  interest rates or
terms to maturity (or  anticipated  average lives in the case of  collateralized
mortgage  obligations)  of five years or less and $20.4  million or 20.6% of the
Company's other securities had adjustable interest rates or terms to maturity of
five years or less.

Management  utilizes  the net  portfolio  value  ("NPV")  analysis  to  quantify
interest rate risk. In essence,  this approach calculates the difference between
the present value of liabilities, expected cash flows from assets and cash flows
from off balance sheet contracts.  Presented below, as of December 31, 1999, the
latest date for which  information  is  available,  is an analysis of the Bank's
estimated interest rate risk as measured by changes in NPV for instantaneous and
sustained parallel shifts in interest rates, up and down 300 basis points in 100
point  increments.  Even though the  information  presented  reflects the Bank's
interest  rate  risk  position  at the close of the  prior  quarter,  management
believes that it is helpful in assessing the Bank's  current  interest rate risk
position.

--------------------------------------------------------------------------------

                                      -16-


<PAGE>


                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS

--------------------------------------------------------------------------------
<TABLE>



          Assumed Change                     $ Change in    % Change in
        In Interest Rates     $ Amount          NPV            NPV
        -----------------     ---------     ------------   ------------
         (Basis Points)          (Dollars in Thousands)

<S>       <C>                 <C>            <C>            <C>
          + 300               48,492         (26,478)       (35)
          + 200               57,325         (17,645)       (24)
          + 100               66,365          (8,605)       (11)
           ----               74,970            ----        ----
          - 100               82,036           7,066          9
          - 200               88,452          13,482         18
          - 300               94,645          19,675         26

</TABLE>



Certain  assumptions  utilized in  assessing  the  interest  rate risk of thrift
institutions  were employed in preparing the preceding table.  These assumptions
relate to interest rates,  loan prepayment  rates,  deposit decay rates, and the
market values of certain assets under the various  interest rate  scenarios.  It
was also assumed that  delinquency  rates will not change as a result of changes
in interest rates although there can be no assurance that this will be the case.
Even if  interest  rates  change  in the  designated  amounts,  there  can be no
assurance that the Company's  assets and liabilities  would perform as set forth
above. In addition,  a change in U.S.  Treasury rates in the designated  amounts
accompanied  by a change in the shape of the  Treasury  yield  curve would cause
significantly different changes to the NPV than indicated above.


--------------------------------------------------------------------------------
                                      -17-


<PAGE>



                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS

--------------------------------------------------------------------------------



Part II    Other Information

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

      a.   Exhibits - Exhibit 27 - Financial Data Schedule
      b.   Reports on Form 8-K - none


--------------------------------------------------------------------------------

                                      -18-




<PAGE>

                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS

--------------------------------------------------------------------------------


                                   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.


                                        FIRST SECURITYFED FINANCIAL, INC
                                        (Registrant)




                                        By: /s/Julian E. Kulas
                                        ----------------------------------------
                                        Julian E. Kulas
                                        Principal Executive Officer
                                        May 12, 2000



                                        By: /s/Harry Kucewicz
                                        ----------------------------------------
                                        Harry Kucewicz
                                        Chief Financial and Accounting Officer
                                        May 12, 2000

--------------------------------------------------------------------------------
                                      -19-

<PAGE>