As a result, the company is now selling the majority of its new fixed rate mortgage production, both servicing retained and servicing released, through various secondary market channels, and greater emphasis will be placed on higher yielding/shorter term loans such as commercial real estate lending, small business, commercial/industrial and consumer lending.

The change in strategy also comes with a change in management: Robert A. Tucker was promoted to executive vice president and chief credit officer; Marshall J. Alexander to executive vice president, chief financial officer and investor relations; Craig Moore to senior vice president, in-house counsel, corporate secretary and senior internal auditor, and; James Essany to senior vice president of marketing and advertising.

To enhance sales, service and branch office staff development, the new position of Branch Administrator was created and filled by senior vice president Isabel Castellanos The company will also hire a Commercial Banking Administrator to build its commercial lending presence throughout its service area.

Klamath First Bancorp Inc. is the holding company for Klamath First Federal Savings and Loan Association, which operates 36 offices in 22 counties throughout Oregon. A new full-service branch in Redmond, OR is scheduled to open in May and the company has received regulatory approval to establish full-service in-store branches at Wal-Mart's scheduled to open in June in Pendleton and Ontario, OR.

In late January, Klamath First reported a fiscal first quarter profit $1.7 million, or $0.25 per share basic earnings per share, a decline of $300,000 and $0.05 cents a share from the previous year's first quarter. In morning trading Tuesday, share of Klamath First were trading for $13 apiece, a price unchanged from Monday's close. The stock's 52-week high is $14.12 and it's 52-week low is $9.75.