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


                                    FORM 10-Q


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

       For the period ended:          September 30, 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  October 31, 2000
--------------------------------------------------------------------------------
Common Stock, par value $0.01                        5,029,135 shares

                                                                               1

<PAGE>


                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS




<TABLE>
                                      INDEX




Part I.  Financial Information
<S>                                                                                                      <C>
  Item 1.    Financial Statements

    Condensed Consolidated Statements of Financial Condition  as of
    September 30, 2000 and December 31,1999........................................................       3

    Condensed Consolidated Statements of Income for the nine months  and three months
    ended September  30, 2000 and  1999............................................................       4

    Statements of Comprehensive Income for the nine months and  three months
    ended  September 30, 2000 and  1999 ...........................................................       5

    Condensed Consolidated Statements of Changes in Shareholders' Equity for the
    nine months ended September  30, 2000..........................................................       6

    Condensed Consolidated Statements of Cash Flows for the nine
    months ended September  30, 2000 and 1999......................................................       7

    Notes to the Condensed Consolidated Financial Statements as of
    September  30, 2000............................................................................       8

  Item 2.    Management's Discussion and Analysis of Financial Condition
             and Results of Operation..............................................................      11

  Item 3.    Quantitative and Qualitative Disclosures about Market Risk............................      18


Part II.       Other Information

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

</TABLE>

                                                                               2

<PAGE>


                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
            CONSENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
            (Dollars in thousands, except share and per share data)
                                  (unaudited)
--------------------------------------------------------------------------------
<TABLE>
                                                                              September  30,         December 31,
                                                                                   2000                1999
                                                                                   ----                ----
<S>                                                                              <C>                  <C>
ASSETS
Cash and due from banks                                                     $          2,334    $         6,057
Federal funds sold                                                                        76                200
                                                                            ----------------    ---------------
     Total cash and cash equivalents                                                   2,410              6,257

Securities available-for-sale                                                         31,807             20,622
Securities held-to-maturity (fair value of
       $76,216 - 2000 and $89,850 - 1999)                                             78,606             92,908
Loans, net of allowance for loan losses                                              270,035            241,168
Federal Home Loan Bank stock                                                           3,090              2,315
Premises and equipment, net                                                            3,583              3,672
Accrued interest receivable                                                            3,196              2,976
Intangible assets                                                                        161                190
Other assets                                                                           1,851              2,184
                                                                            ----------------    ---------------
     Total assets                                                           $        394,739    $       372,292
                                                                            ================    ===============

LIABILITIES
Deposits
     Non-interest bearing                                                   $          7,864    $         6,089
     Interest-bearing                                                                241,464            232,034
                                                                            ----------------    ---------------
                                                                                     249,328            238,123
Advance payments by borrowers for taxes and
     insurance                                                                         1,673              2,811
Advances from Federal Home Loan Bank                                                  60,650             46,300
Accrued interest payable and other liabilities                                         1,971              1,902
                                                                            ----------------    ---------------
     Total liabilities                                                               313,622            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                                                            62,512             64,324
Unearned ESOP shares                                                                  (3,989)            (4,239)
Unearned stock awards                                                                 (2,534)            (3,075)
Treasury stock, at cost; (1,313,865 shares - 2000
     and 979,360 shares - 1999 )                                                     (16,901)           (13,227)
Retained earnings, substantially restricted                                           42,407             39,914
Accumulated other comprehensive income                                                  (442)              (605)
                                                                            -----------------   ----------------

     Total shareholders' equity                                                       81,117             83,156
                                                                            ----------------    ---------------

     Total liabilities and shareholders' equity                             $        394,739    $       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>
                                                      Nine months ended                    Three months ended
                                                        September 30,                        September 30,
                                                      2000           1999                  2000             1999
                                                      ----           ----                  ----             ----
<S>                                                  <C>              <C>                 <C>               <C>
Interest income
    Loans                                       $      15,702   $     13,636         $       5,494   $        4,701
    Securities                                          3,723          2,710                 1,267            1,015
    Mortgage-backed securities                          1,635          1,700                   537              593
    Other interest-earning assets                         210            362                    77               52
                                                -------------   ------------         -------------   --------------
       Total interest income                           21,270         18,408                 7,375            6,361

Interest expense
    Deposits                                            7,982          6,739                 2,829            2,299
    FHLB advances                                       2,411          1,287                   915              512
                                                -------------   ------------         -------------   --------------
       Total interest expense                          10,393          8,026                 3,744            2,811
                                                -------------   ------------         -------------   --------------

Net interest income                                    10,877         10,382                 3,631            3,550

Provision for loan losses                                 185            185                    61               61
                                                -------------   ------------         -------------   --------------

Net interest income after
  provision for loan losses                            10,692         10,197                 3,570            3,489

Noninterest income
    Net gain/(loss) on sale of securities                 (43)            19                   (15)               -
    Gain on sale of real estate owned                      41              -                     -                -
    Other income                                          471            545                   158              223
                                                -------------   ------------         -------------   --------------
       Total noninterest income                           469            564                   143              223

Noninterest expense
    Compensation and benefits                           2,804          2,677                   960              900
    Occupancy and equipment expense                       511            514                   171              183
    Data processing expense                               227            266                    71               84
    Federal deposit insurance premiums                     96            152                    33               50
    Professional fees                                     100            105                    22               33
    Other operating expenses                              770            736                   261              221
                                                -------------   ------------         -------------   --------------
       Total noninterest expense                        4,508          4,450                 1,518            1,471
                                                -------------   ------------         -------------   --------------

Income before income tax provision                      6,653          6,311                 2,195            2,241

Provision for income taxes                              2,254          2,289                   709              795
                                                -------------   ------------         -------------   --------------


Net income                                      $       4,399   $      4,022         $       1,486   $        1,446
                                                =============   ============         =============   ==============

Earnings per share
    Basic                                       $         .93   $        .82         $         .32   $          .30
                                                =============   ============         =============   ==============
    Diluted                                     $         .93   $        .82         $         .32   $          .30
                                                =============   ============         =============   ==============
</TABLE>


 See accompanying notes to condensed consolidated financial statements
                                                                               4

<PAGE>

                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
                       STATEMENTS OF COMPREHENSIVE INCOME
             (Dollars in thousands, except share and per share data)
                                   (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
                                                                   Nine Months Ended               Three Months Ended
                                                                     September  30,                   September 30,
                                                                 2000             1999            2000             1999
                                                                 ----             ----            ----             ----
<S>                                                              <C>             <C>             <C>               <C>

Net Income                                                       $4,399         $4,022         $1,486           $1,446

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                             271           (518)           331             (136)

       Reclassification adjustment for (gains) losses
       recognized in income                                          26            (11)             9                -
                                                                 ------         ------         ------           ------


    Other comprehensive income                                      163           (529)           340             (136)
                                                                 ------         ------         ------           ------


    Comprehensive Income                                         $4,562         $3,493         $1,826           $1,310
                                                                 ======         ======         ======           ======
</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                    -         51        250          -          -         -        -         301

Stock awards earned                   -          -          -        541          -         -        -         541

Issuance of stock to Foundation,
  net of related tax benefit          -     (1,863)         -          -      2,054         -        -         191

Net income                            -          -          -          -          -     4,399        -       4,399

Purchase of treasury stock            -          -          -          -     (5,728)        -        -      (5,728)

Dividends  ($.38 per share)           -          -          -          -          -    (1,906)       -      (1,906)

Change in fair value of securities,
  net of income taxes and
  reclassification effects            -          -          -          -          -         -      163         163
                                    ---    -------    -------    -------   --------   -------    -----     -------

Balance at September 30, 2000       $64    $62,512    $(3,989)   $(2,534)  $ (16,901) $42,407    $(442)    $81,117
                                    ===    =======    =======    =======   =========  =======    =====     =======
</TABLE>

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

                                                                               6

<PAGE>

                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
             (Dollars in thousands, except share and per share data)
                                   (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
                                                                                Nine months ended
                                                                                 September  30,
                                                                              2000                       1999
                                                                              ----                       ----
<S>                                                                          <C>                       <C>
Cash flows from operating activities
    Net income                                                       $       4,399             $       4,022
    Adjustments to reconcile net income to net
      cash from operating activities
       Depreciation and amortization                                           239                       289
       Amortization of discounts and premiums
         on securities                                                         114                       114
       Net (gain)/loss on sales and calls of securities                         43                       (19)
       Provision for loan losses                                               185                       185
       ESOP compensation expense                                               301                       307
       Stock award compensation expense                                        541                       555
       Federal Home Loan Bank stock dividend                                  (109)                        -
    Change in
          Deferred loan origination fees                                       336                        21
          Accrued interest receivable and other assets                        (104)                   (1,339)
          Other liabilities and deferred income taxes                          196                       796
                                                                     -------------             -------------
              Net cash provided by operating activities                      6,141                     4,931

Cash flows from investing activities
    Purchase of securities available-for-sale                               (1,551)                   (1,062)
    Purchase of securities held-to-maturity                                 (3,333)                  (45,627)
    Proceeds from repayment of securities                                    3,201                     5,705
    Proceeds from sales of securities available-for-sale                     2,479                     2,968
Proceeds from calls and maturities of securities                             2,480                     9,900
    Net change in loans                                                    (29,313)                  (18,013)
Capital expenditures, net                                                     (121)                      (25)
    Purchase of Federal Home Loan Bank stock                                  (666)                      (63)
                                                                     -------------             -------------
      Net cash used in investing activities                                (26,824)                  (46,217)

Cash flows from financing activities
    Net increase in deposits                                                11,205                    12,253
    Net borrowings from FHLB                                                14,350                    13,300
    Net change in advances from
      borrowers for insurance and taxes                                     (1,138)                    1,672
    Dividends paid                                                          (1,853)                   (1,002)
    Purchase of treasury stock                                              (5,728)                   (4,011)
                                                                     --------------            -------------
       Net cash provided by  financing activities                           16,836                    22,212
                                                                     -------------             -------------

Net change in cash and cash equivalents                                     (3,847)                  (19,074)

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

Cash and cash equivalents at end of period                           $       2,410             $       5,756
                                                                     =============             =============
</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 condensed 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  condensed  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 September 30, 2000 and December 31, 1999, and
the  results  of its  operations  for the three  and nine  month  periods  ended
September  30, 2000 and 1999 and cash flows for the nine months ended  September
30, 2000 and 1999.  The  annualized  results of  operations  for the nine months
ended September 30, 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 nine and three month periods ended September 30, 2000
and 1999 is presented below:
<TABLE>

                                                                    Nine Months Ended             Three Months Ended
                                                                      September  30                   September 30,
                                                                2000             1999            2000               1999
                                                                ----             ----            ----              -----
<S>                                                             <C>               <C>             <C>                <C>
    Earnings per common share
          Net income attributable to
          common shareholders                                  $   4,399     $   4,022         $   1,486        $   1,446
                                                               =========     =========         =========        =========

       Weighted average common
       shares outstanding                                          4,754         4,676             4,620            4,593

       Add: Shares committed to be issued
       to charitable foundation                                        -           200                 -              200
                                                               ---------     ---------         ---------        ---------

          Total weighted average common
          shares outstanding                                       4,754         4,876             4,620            4,793
                                                               =========     =========         =========        =========


                     Basic earnings per share                  $     .93     $     .82         $     .32        $     .30
                                                               =========     =========         =========        =========
</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 September 30, 2000:

<TABLE>
                                                                                        Core        Risk based
                                                                                      Capital        Capital
                                                                                      -------       ---------
                                                                                          (In thousands)
     <S>                                                                             <C>             <C>
       Regulatory capital                                                           $   67,052    $   69,452

       Minimum capital requirement                                                      15,440        15,362
                                                                                    ----------     ---------

       Excess regulatory capital over
         minimum requirement                                                        $   51,612    $   54,090
                                                                                    ==========    ==========
</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 September 30, 2000 and December 31, 1999

Total assets  increased  $22.4  million to $394.7  million at September 30, 2000
from $372.3 million at December 31,1999.  The increase in total assets consisted
primarily  of  increases of $28.8  million in loans  receivable  and $775,000 in
Federal  Home Loan Bank Stock  partially  offset by decreases of $3.1 million in
securities and $3.9 million in cash and cash equivalents.

Net loans receivable  increased by $28.8 million from $241.2 million at December
31,1999 to $270.0  million at September  30,  2000.  The increase was due to the
disbursement  of $7.5  million  to fund  construction  loans and the  continuing
market demand for 1-4 family  mortgage loans  resulting in disbursement of $29.7
million for 1 to 4 family  loans   due to current  economic  conditions  and the
prevailing  interest rate  environment.  The  disbursements to fund new mortgage
loans were partially  offset by monthly  paydowns of  outstanding  mortgage loan
balances.

Securities  available-for-sale  increased by $11.2 million from $20.6 million at
December  31,1999 to $31.8  million at  September  30,  2000.  The  increase was
primarily  due to the  reclassification  of $15.6  million  of  securities  from
held-to-maturity to available-for-sale,  in connection with the adoption of SFAS
No.133.  This  increase  was  partially  offset by paydowns  on  mortgage-backed
securities and the sale of $2.5 million of securities.

Securities  held-to-maturity  decreased by $14.3  million from $92.9  million at
December  31,1999 to $78.6  million at  September  30,  2000.  The  decrease was
primarily  due to the  reclassification  of $15.6  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.

Cash  and  cash  equivalents  decreased  by $3.9  million  due to the  Company's
continued  repurchase  of  outstanding  common stock and to fund the  continuing
demand for loans.

Total  liabilities at September 30, 2000 were $313.6 million  compared to $289.1
million at December 31,1999, an increase of $24.5 million. Deposits increased by
$11.2  million and Federal Home Loan Bank advances  increased by $14.4  million.
The weighted  average term to maturity of the  Company's  Federal Home Loan Bank
advances at September  30, 2000 was 3.3 years,  with a weighted  average term to
call of 5 months.  Borrowings  were  increased  in order to fund the  continuing
demand for loans.  During this same period,  advance  payments by borrowers  for
taxes and insurance  decreased by $1.1 million due to the payment of real estate
taxes.

Shareholders'  equity at September 30, 2000 was $81.1 million  compared to $83.2
million at December 31,1999, a decrease of $2.1 million.  The decrease in equity
was due primarily to the Company's  repurchase  of  outstanding  common stock of
$5.7 million partially offset by net income of $4.4 million. Equity at September
30, 2000 was also  impacted by dividends on the Company's  common  stock.  Three
cash dividends  totaling $1.9 million were declared during the nine month period
ending  September 30, 2000.  The dividends were paid to  stockholders  in April,
July and October 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 Nine Months Ended September 30, 2000 and
September 30,1999

General
Net earnings for the nine months ended September 30, 2000 were $4.4 million,  an
increase of $377,000 from net earnings of $4.0 million for the nine months ended
September 30,1999. 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. The increase in net interest income was partially offset
by a decrease in noninterest  income.  Earnings per share also increased  during
the  period  as a result  of the  increase  in net  earnings  and the  Company's
repurchase of its common stock.

Interest Income
Interest  income for the nine months ended September 30, 2000 was $21.3 million,
an increase of $2.9 million from  interest  income of $18.4 million for the nine
months  ended  September  30,1999.  Interest  income on loans  increased by $2.1
million due to  increases  in the volume of loans  receivable  and the  weighted
average yields earned on the loans.  Interest income on securities  increased by
$1.0  million  due to  increases  in the  average  outstanding  balances  of the
Company's investment securities portfolio and the weighted average yields earned
on the securities. Interest income on other interest-earning assets decreased by
$152,000  due to  decreases  in the  outstanding  balances of funds  invested in
overnight federal funds and interest bearing accounts with the Federal Home Loan
Banks.

Interest Expense
Interest  expense for the nine months ended September 30, 2000 was $10.4 million
compared  to $8.0  million  for the nine  months  ended  September  30,1999,  an
increase of $2.4 million. Interest expense on deposits increased by $1.3 million
due to increases  in  outstanding  deposit  balances and the rates paid on those
balances.  Interest expense on Federal Home Loan Bank advances increased by $1.1
million 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 nine months ended  September 30, 2000 was
$185,000 and remained consistent with the $185,000 provision for loan losses for
the nine months ended September 30,1999.

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 judgements 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.

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

                                                                              12
<PAGE>

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

Noninterest Income
Noninterest  income for the nine months  ended  September  30, 2000 was $469,000
compared to $564,000 for the nine months ended  September  30,1999.  The $95,000
decrease in non-interest  income was due primarily to a $62,000  decrease in net
gain on the sale of  securities  and a $33,000  decrease in other  income due to
decreases in safety deposit and ATM fee income.

Noninterest Expense
Noninterest  expense  for the nine  months  ended  September  30,  2000 was $4.5
million and remained  fairly  consistent  with the nine months  ended  September
30,1999.  Compensation and benefits expense increased by $127,000  partially due
to the hiring of additional bank personnel as a result of the continuing  growth
of the bank and due to standard  annual  salary  adjustments  for existing  bank
personnel.  Data  processing  expense  decreased  by  $39,000  primarily  due to
non-recurring  costs associated with Y2K testing and revisions which occurred in
1999. Federal deposit insurance premiums decreased by $56,000 due to the reduced
FDIC assessment which was effective as of January 1,2000.

Income Taxes
Income taxes were $2.3 million for the nine months ended  September 30, 2000 and
remained  fairy  consistent  with the income tax  provision  for the nine months
ended September 30,1999.


Comparison  of Operating  Results for the Three Months Ended  September 30, 2000
and September 30,1999

General
Net earnings for the three months ended September 30, 2000 were $1.5 million, an
increase of $40,000 from net earnings of $1.4 million for the three months ended
September 30,1999. 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  . The  increase  in net  interest  income  along with a
decrease in the provision for income taxes was partially offset by a decrease in
noninterest  income.  Income  per share  also  increased  during the period as a
result of the  increase in net  earnings  and the  Company's  repurchase  of its
common stock.

Interest Income
Interest  income for the three months ended  September 30, 2000 was $7.4 million
compared to $6.4  million  for the three  months  ended  September  30,1999,  an
increase of $1.0 million.  Interest income on loans increased by $793,000 due to
increases in the volume of loans  receivable and weighted  average yields earned
on the loans.  Interest income on securities increased $252,000 due to increases
in the average  outstanding  balances  of the  Company's  investment  securities
portfolio and the weighted average yields earned on the securities.

--------------------------------------------------------------------------------
                                                                              13

<PAGE>

                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
--------------------------------------------------------------------------------
Interest Expense
Interest  expense for the three months ended September 30, 2000 was $3.7 million
compared to $2.8  million  for the three  months  ended  September  30,1999,  an
increase of $933,000.  Interest expense on deposits increased by $530,000 due to
increases in outstanding deposit balances and the rates paid on those balances.

Interest expense on Federal Home Loan Bank advances increased by $403,000 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  September 30, 2000 and
1999 was $61,000.

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 judgements 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  September  30, 2000 was $143,000
compared to $223,000 for the three months ended September  30,1999.  The $80,000
decrease  in  non-interest  income was due to a $15,000  net loss in the sale of
securities and a $65,000 decrease in other income.  The decrease in other income
is due to  decreases  in safety  deposit and ATM fee income due to  decreases in
usage.

Noninterest Expense
Noninterest  expense  for the three  months  ended  September  30, 2000 was $1.5
million and remained  fairly  consistent  with the three months ended  September
30,1999. Compensation and benefits expense increased by $60,000 partially due to
the hiring of additional bank personnel as a result of the continuing  growth of
the bank  and due to  standard  annual  salary  adjustments  for  existing  bank
personnel.  Data  processing  expense  decreased  by  $13,000  primarily  due to
non-recurring  costs associated with Y2K testing and revisions which occurred in
1999. Federal deposit insurance premiums decreased by $17,000 due to the reduced
FDIC  assessment  which was  effective  as of January  1,2000.  Other  operating
expense  increased by $40,000  primarily due to increased service charges by our
correspondent banks.

--------------------------------------------------------------------------------
                                                                              14
<PAGE>


                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
--------------------------------------------------------------------------------
Income Taxes
Income  taxes were  $709,000  for the three  months  ended  September  30,  2000
compared to $795,000 for the three months ended September 30,1999.  The decrease
in the provision for income taxes was due to a decrease 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 September 30,
2000, First Security's liquidity ratio for regulatory purposes was 10.87%.

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 $6.1 million and $4.9 million
for the nine months ended  September  30, 2000 and September  30,1999.  Net cash
from  investing   activities  consisted  primarily  of  disbursements  for  loan
originations  and the purchase of  securities  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  of  increases in net deposits and Federal Home
Loan Bank  advances  partially  offset by  purchases  of treasury  stock and the
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 September 30, 2000, cash and
short-term  investments  totaled $2.4 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.

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

                                                                              15

<PAGE>


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

At September  30, 2000,  the Company had  outstanding  commitments  to originate
loans of $5.5 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  September 30, 2000 totaled  $122.0  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  September  30, 2000,  First  Security  was in  compliance  with all
applicable  capital  requirements.   See  Note  4  of  the  Notes  to  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.

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.

                                                                              16
<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 September 30, 2000, $101.0 million or 40.51%
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,
are 5 year balloon loans, or carry adjustable  interest rates. In addition,  the
Company has instituted a construction  lending program with the rates charged on
construction  loans  based on the prime  rate.  Since the rates may be  adjusted
monthly the Company  believes that  construction  loans are a beneficial tool in
its interest rate risk management  program.  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  September  30,  2000,  $7.6
million or 54.68% 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 $19.9 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 June 30, 2000,  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.

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

                                                                              17

<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>
          + 300              $52,118          $(26,908)             (34)%
          + 200               60,845           (18,181)             (23)
          + 100               69,998            (9,028)             (11)
           ----               79,026              ----              ----
          - 100               86,543             7,517               10
          - 200               91,249            12,223               15
          - 300               97,274            18,248               23
</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.

--------------------------------------------------------------------------------
                                                                              18

<PAGE>



                        FIRST SECURITYFED FINANCIAL, INC.
                                CHICAGO, ILLINOIS
--------------------------------------------------------------------------------
ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K.

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


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

                                                                              19
<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
                                  November 14, 2000


                                  By: /s/Harry Kucewicz
                                  -----------------------------------
                                  Harry Kucewicz
                                  Chief Financial and Accounting Officer
                                  November 14, 2000

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

                                                                              20
<PAGE>