| ý | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended September 30, 2009 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

| o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|------------------------------------------------------------------------------------------|

| Delaware                                     | 42-1485449             |
|----------------------------------------------|------------------------|
| (State or other jurisdiction of              | (I.R.S. employer       |
| incorporation or organization)               | identification number) |
|                                         |                   |
| 423 Sixth Street, Suite 400 Sioux City, Iowa | 51101                  |
| (Address of principal executive offices)     | Zip code               |

----

----

| FIRST FEDERAL BANKSHARES, INC. and SUBSIDIARIES                              |   |          |        |   |     |   |
|------------------------------------------------------------------------------|--------|---------------|-------------|--------|----------|--------|
| Consolidated Statements of Financial Condition                               |   |          |        |   |     |   |
| September 30, 2009  and June 30, 2009 (Unaudited)                  |   |          |        |   |     |   |
|                                                                         |   |          |        |   |     |   |
|                                                                         |   |          |        |   |     |   |
|                                                                         |   | September 30, |        |   | June 30, |   |
|                                                                         |   | 2009          |        |   | 2009     |   |
|                                                                         |   |          |        |   |     |   |
| Assets                                                                       |   |          |        |   |     |   |
| Cash and cash equivalents                                                    |   | $             | 609,075     |   |     | $      | 856,787 |   |
| Other assets                                                                 |   |          | 156,656     |   |     |   | 15,000 |   |
| Assets of discontinued operations                                            |   |          | -           |   |     |   | 491,490,840 |   |
| Total assets                                                                 |   | $             | 765,731     |   |     | $      | 492,362,627 |   |
|                                                                         |   |          |        |   |     |   |   |   |
| Liabilities                                                                  |   |          |        |   |     |   |   |   |
| Accrued expenses and other liabilities                                       |   | $             | 28,505      |   |     | $      | 81,899 |   |
| Liabilities of discontinued operations                                       |   |          | -           |   |     |   | 501,653,388 |   |
| Total liabilities                                                            |   |          | 28,505      |   |     |   | 501,735,287 |   |
|                                                                         |   |          |        |   |     |   |   |   |
| Stockholders' equity (deficit)                                               |   |          |        |   |     |   |   |   |
| Preferred stock, $.01 par value, 1,000,000 shares                            |   |          |        |   |     |   |   |   |
|      authorized; none issued                        |   |          | -           |   |     |   | - |   |
| Common stock, $.01 par value, 12,000,000 shares                              |   |          |        |   |     |   |   |   |
|      authorized;  5,068,726 shares issued |   |          | 50,651      |   |     |   | 50,651 |   |
| Additional paid-in-capital                                                   |   |          | 39,121,483  |   |     |   | 39,121,483 |   |
| Retained earnings (deficit)                                                  |   |          | (9,899,245  | )      |     |   | (20,009,131 | ) |
| Treasury stock, at cost, 1,764,255 shares                                    |   |          | (28,535,663 | )      |     |   | (28,535,663 | ) |
| Total stockholders' equity (deficit)                                         |   |          | 737,226     |   |     |   | (9,372,660 | ) |
|                                                                         |   |          |        |   |     |   |   |   |
| Total liabilities and stockholders' equity (deficit)                         |   | $             | 765,731     |   |     | $      | 492,362,627 |   |
|                                                                         |   |          |        |   |     |   |   |   |
| See Notes to Consolidated Financial Statements.                              |   |          |        |   |     |   |   |   |

----

| FIRST FEDERAL BANKSHARES, INC. and SUBSIDIARIES                                                                                             |   |               |       |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|--------|--------|
| Consolidated Statements of Operations                                                                                                       |   |               |       |   |   |   |
| Three-Months Ended September 30, 2009 and 2008 (Unaudited)                                                                                  |   |               |       |   |   |   |
|                                                                                                                                        |   |               |       |   |   |   |
|                                                                                                                                        |   | Three-Months Ended |       |
|                                                                                                                                        |   | September 30,      |       |
|                                                                                                                                        |   | 2009               |       |   | 2008   |   |
|                                                                                                                                        |   |               |       |   |   |   |
| Interest income:                                                                                                                            |   |               |       |   |   |   |
| Loan receivable                                                                                                                             |   | $                  | -          |   |   | $      | 12,231 |   |
| Other interest-earning assets                                                                                                               |   |               | 1,590      |   |   |   | 4,217 |   |
| Total interest income                                                                                                                       |   |               | 1,590      |   |   |   | 16,448 |   |
| Noninterest expense:                                                                                                                        |   |               |       |   |   |   |   |   |
| Professional, insurance and regulatory expense                                                                                              |   |               | 47,170     |   |   |   | 6,720 |   |
| Other expense                                                                                                                               |   |               | 7,082      |   |   |   | 27,308 |   |
| Total noninterest expense                                                                                                                   |   |               | 54,252     |   |   |   | 34,028 |   |
| Loss from continuing operations before income                                                                                               |   |               |       |   |   |   |   |   |
|     taxes and discontinued operations                                                                                   |   |               | (52,662    | )      |   |   | (17,580 | ) |
| Income tax benefit                                                                                                                          |   |               | -          |   |   |   | 6,000 |   |
| Loss from continuing operations                                                                                                             |   |               | (52,662    | )      |   |   | (11,580 | ) |
|                                                                                                                                        |   |               |       |   |   |   |   |   |
| Discontinued operations:                                                                                                                    |   |               |       |   |   |   |   |   |
|     Loss from operations of Vantus Bank                                                                                 |   |               | (52,589    | )      |   |   | (1,375,743 | ) |
|     Gain on disposal                                                                                                    |   |               | 10,215,137 |   |   |   | - |   |
|                 Discontinued operations                     |   |               | 10,162,548 |   |   |   | (1,375,743 | ) |
|     Income tax benefit                                                                                                  |   |               | -          |   |   |   | 589,000 |   |
|                 Income (loss) from discontinued opertations |   |               | 10,162,548 |   |   |   | (786,743 | ) |
|      Net income (loss)                                                                                             |   | $                  | 10,109,886 |   |   | $      | (798,323 | ) |
|                                                                                                                                        |   |               |       |   |   |   |   |   |
| Per share information                                                                                                                       |   |               |       |   |   |   |   |   |
| Basic earnings (loss) per share from:                                                                                                       |   |               |       |   |   |   |   |   |
|   Continuing operations                                                                                                           |   | $                  | (0.02      | )      |   | $      | 0.00 |   |
|   Discontinued operations                                                                                                         |   |               | 3.08       |   |   |   | (0.24 | ) |
|       Earnings (loss)  per share                                                                    |   | $                  | 3.06       |   |   | $      | (0.24 | ) |
| Diluted earnings (loss) per share from:                                                                                                     |   |               |       |   |   |   |   |   |
|   Continuing operations                                                                                                           |   | $                  | (0.02      | )      |   | $      | 0.00 |   |
|   Discontinued operations                                                                                                         |   |               | 3.08       |   |   |   | (0.24 | ) |
|       Earnings (loss)  per share                                                                    |   | $                  | 3.06       |   |   | $      | (0.24 | ) |
|                                                                                                                                        |   |               |       |   |   |   |   |   |
| Dividends per share                                                                                                                         |   | $                  | 0.00       |   |   | $      | 0.00 |   |
|                                                                                                                                        |   |               |       |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                                                                                             |   |               |       |   |   |   |   |   |

----

| First Federal Bankshares, Inc. and Subsidiaries                                                                                                     |   |               |        |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|--------|--------|--------|
| Consolidated Statements of Cash Flows                                                                                                               |   |               |        |   |   |   |
| Three-Months Ended September 30, 2009 and 2008 (Unaudited)                                                                                          |   |               |        |   |
|                                                                                                                                                |   |               |        |   |   |   |
|                                                                                                                                                |   | Three-Months Ended |        |
|                                                                                                                                                |   | September 30,      |        |
|                                                                                                                                                |   | 2009               |        |   | 2008   |   |
|                                                                                                                                                |   |               |        |   |   |   |
| Cash flows from continuing operating activities:                                                                                                    |   |               |        |   |   |   |
| Net income (loss)                                                                                                                                   |   | $                  | 10,109,886  |   |   | $      | (798,323 | ) |
| (Income) loss from discontinued operations, net of tax                                                                                              |   |               | (10,162,548 | )      |   |   | 786,743 |   |
| Adjustments to reconcile net income (loss)  from                                                                                          |   |               |        |   |   |   |   |   |
|        continuing operations to net cash provided by                                                             |   |               |        |   |   |   |   |   |
|        continuing operating activities:                                                                               |   |               |        |   |   |   |   |   |
| Decrease (increase) in other assets                                                                                                                 |   |               | (141,656    | )      |   |   | 47,201 |   |
| Increase (decrease) in accrued expenses and other liabilities                                                                                       |   |               | (53,394     | )      |   |   | 68,358 |   |
| Increase (decrease) in accrued taxes payable                                                                                                        |   |               | -           |   |   |   | 66,037 |   |
| Net cash provided by (used in) continuing operating activities                                                                                      |   |               | (247,712    | )      |   |   | 170,016 |   |
|         Net cash provided by (used in) discontinued operating activities                                    |   |               | -           |   |   |   | 2,803,248 |   |
|                 Net cash provided by (used in) operating activities |   |               | (247,712    | )      |   |   | 2,973,264 |   |
|                                                                                                                                                |   |               |        |   |   |   |   |   |
| Cash flows from continuing investing activities:                                                                                                    |   |               |        |   |   |   |   |   |
|         Net cash provided by (used in) discontinued investing activities                                    |   |               | -           |   |   |   | 9,383,399 |   |
|     Net cash provided by (used in) investing activities                                                                         |   |               | -           |   |   |   | 9,383,399 |   |
|                                                                                                                                                |   |               |        |   |   |   |   |   |
| Cash flows from continuing financing activities:                                                                                                    |   |               |        |   |   |   |   |   |
|         Net cash provided by (used in) discontinued financing activities                                    |   |               | -           |   |   |   | (12,354,767 | ) |
|     Net cash provided by (used in) financing activities                                                                         |   |               | -           |   |   |   | (12,354,767 | ) |
|                                                                                                                                                |   |               |        |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                |   |               | (247,712    | )      |   |   | 1,896 |   |
|                                                                                                                                                |   |               |        |   |   |   |   |   |
| Cash and cash equivalents:                                                                                                                          |   |               |        |   |   |   |   |   |
| Beginning of period                                                                                                                                 |   |               | 856,787     |   |   |   | 833,315 |   |
| End of period                                                                                                                                       |   | $                  | 609,075     |   |   | $      | 835,211 |   |
|                                                                                                                                                |   |               |        |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                                                                                                     |   |               |        |   |   |   |   |   |
|                                                                                                                                                |   |               |        |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                                                                                                   |   |               |        |   |   |
|     Cash paid during the year for :                                                                                             |   |               |        |   |   |   |   |   |
|         Continuing operations - Interest                                                                    |   | $                  | 0           |   |   | $      | 0 |   |
|         Continuing operations - Income taxes                                                                |   |               | -           |   |   |   | - |   |
|     Discontinued operations - Interest                                                                                          |   |               | *           |   |   |   | 3,042,053 |   |
|     Discontinued operations - Income taxes                                                                                      |   |               | *           |   |   |   | - |   |
|                                                                                                                                                |   |               |        |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING                                                                                                       |   |               |        |   |   |   |   |   |
|     AND FINANCING ACTIVITIES                                                                                                    |   |               |        |   |   |   |   |   |
|         Continuing operations - Charge off of ESOP loan                                                     |   |               | -           |   |   |   | - |   |
|         Continuing operations - Charge-off of building lot held for sale                                    |   |               | -           |   |   |   | - |   |
|     Discontinued operations - Property acquired in settlement of loans                                                          |   |               | *           |   |   |   | 10,095,425 |   |
|                                                                                                                                                |   |               |        |   |   |   |   |   |
| *  Information is not available due to closure of Vantus Bank.                                                                            |   |               |        |   |   |   |   |   |

----

| Other assets:  Other assets consist primarily of prepaid professional fees. |
|---------------------------------------------------------------------------------------|

----

|                                                                     |   | Three-Months Ended |       |
|--------------------------------------------------------------------------|--------|--------------------|------------|
|                                                                     |   | September 30,      |       |
|                                                                     |   | 2009               |       |   | 2008 |   |
|                                                                     |   | (Unaudited)        |       |
|                                                                     |   |               |       |   |   |   |
| Loss from continuing operations                                          |   | $                  | (52,662    | ) |   | $ | (11,580 | ) |
| Income (loss) from discontinued operations,                              |   |               |       |   |
|    net of tax                                             |   |               | 10,162,548 |   |   |   | (786,743 | ) |
|                                                                     |   |               |       |   |   |   |   |   |
| Net income (loss)                                                        |   | $                  | 10,109,886 |   |   | $ | (798,323 | ) |
|                                                                     |   |               |       |   |   |   |   |   |
| Per share information                                                    |   |               |       |   |   |   |   |   |
| Basic earnings (loss) per share from:                                    |   |               |       |   |   |
|     Continuing operations                                 |   | $                  | (0.02      | ) |   | $ | 0.00 |   |
|     Discontinued operations                               |   |               | 3.08       |   |   |   | (0.24 | ) |
|       Earnings (loss)  per share |   | $                  | 3.06       |   |   | $ | (0.24 | ) |
| Diluted earnings (loss) per share from:                                  |   |               |       |   |   |
|     Continuing operations                                 |   | $                  | (0.02      | ) |   | $ | 0.00 |   |
|     Discontinued operations                               |   |               | 3.08       |   |   |   | (0.24 | ) |
|       Earnings (loss)  per share |   | $                  | 3.06       |   |   | $ | (0.24 | ) |
| Weighted average common shares outstanding:                              |   |
|     Basic                                                 |   |               | 3,301,401  |   |   |   | 3,304,471 |   |
|  Incremental option and RRP shares using                            |   |               |       |   |   |
|       treasury stock method                |   |               | -          |   |   |   | - |   |
|     Diluted shares outstanding                            |   |               | 3,301,401  |   |   |   | 3,304,471 |   |
| Anti-dilutive options not included in                                    |   |               |       |   |   |
|      diluted shares outstanding                 |   |               | 164,297    |   |   |   | 164,297 |   |

----

|   | · | the voluntary dissolution of the Company and the winding up of its business and affairs in accordance with Delaware law; and  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

----

| VANTUS BANK                                                                |   |     |        |
|----------------------------------------------------------------------------|--------|----------|-------------|
| ASSETS AND LIABILITIES OF                                                  |   |     |        |
| DISCONTINUED OPERATIONS                                                    |   | June 30, |        |
|                                                                       |   | 2009     |        |
|                                                                       |   |     |        |
|                                                                       |   |     |        |
| Assets:                                                                    |   |     |        |
|   Cash and cash equivalents                                      |   | $        | 55,510,269  |   |
|   Securities and mortgage-backed securities                      |   |     | 53,586,216  |   |
|   Loans receivable                                               |   |     | 335,095,430 |   |
|   Office properties and equipment                                |   |     | 16,081,936  |   |
|   Other assets                                                   |   |     | 31,216,989  |   |
|       Assets of discontinued operations      |   | $        | 491,490,840 |   |
|                                                                       |   |     |        |   |
| Liabilities:                                                               |   |     |        |   |
|   Deposits                                                       |   | $        | 393,802,114 |   |
| Advances from FHLB and other borrowings                                    |   |
|   Other liabilities                                              |   |     | 5,959,348   |   |
|       Liabilities of discontinued operations |   | $        | 501,653,388 |   |
|                                                                       |   |     |        |   |

----

| VANTUS BANK                                                           |   |          |       |
|-----------------------------------------------------------------------|--------|---------------|------------|
| DISCONTINUED OPERATIONS                                               |   |          |       |
|                                                                  |   | Three-Months  |       |
|                                                                  |   | Ended         |       |
|                                                                  |   | September 30, |       |
|                                                                  |   | 2008          |       |
|                                                                  |   | (Unaudited)   |       |
|                                                                  |   |          |       |
| Net interest income                                                   |   | $             | 4,488,067  |   |
| Provision for loan losses                                             |   |          | (712,857   | ) |
|    Net interest income after provision for loan losses |   |          | 3,775,210  |   |
| Noninterest income                                                    |   |          | 1,525,185  |   |
| Noninterest expense                                                   |   |          | (4,876,419 | ) |
| Other discontinued operations                                         |   |          | -          |   |
| Impairment on securities recognized in operations                     |   |          | (1,799,719 | ) |
| Income (loss) from discontinued operations before                     |   |          |       |   |
|     income tax benefit (expense)                  |   | $             | (1,375,743 | ) |

----

| ITEM 2 | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS |
|--------|--------------------------------------------------------------------------------------------|

----

| ITEM 3 | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|--------|------------------------------------------------------------|

----

| ITEM 4T | CONTROLS AND PROCEDURES |
|---------|-------------------------|

| ITEM 1 | LEGAL PROCEEDINGS |
|--------|-------------------|

| ITEM 1A | RISK FACTORS |
|---------|--------------|

| ITEM 2 | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|--------|-------------------------------------------------------------|

| ITEM 3 | DEFAULTS UPON SENIOR SECURITIES |
|--------|---------------------------------|

| ITEM 4 | SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS |
|--------|----------------------------------------------------|

| ITEM 5 | OTHER INFORMATION |
|--------|-------------------|

----

|   | · | the voluntary dissolution of the Company and the winding up of its business and affairs in accordance with Delaware law; and  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the distribution to the Company’s stockholders of the Company’s remaining assets.  |
|--------|--------|-----------------------------------------------------------------------------------------------------|

----

| ITEM 6 | EXHIBITS |
|--------|----------|

| Regulation S-K |                                                                                                 |
|----------------|------------------------------------------------------------------------------------------------------|
| Exhibit Number | Document                                                                                             |
|           |                                                                                                 |
| 3(i)           | Articles of Incorporation (1)                                                                        |
|           |                                                                                                 |
| 3(ii)          | Bylaws (2)                                                                                           |
|           |                                                                                                 |
| 10.1           | Plan of Dissolution and Liquidation (3)                                                              |
|           |                                                                                                 |
| 10.2           | First Federal Bankshares, Inc. 2006 Stock Incentive Plan (4)                                         |
|           |                                                                                                 |
| 10.3           | 2005 Deferred Compensation Plan for Directors (5)                                                    |
|           |                                                                                                 |
| 31             | Certification of Chief Executive Officer and Interim Chief Financial Officer Pursuant to Section 302 |
|           |                                                                                                 |
| 32             | Certification Pursuant to Section 906                                                                |

| (1) | Filed as an exhibit to the Company’s Registration Statement on Form S-1, and any amendments thereto, with the Securities and Exchange Commission on December 18, 1998.  (Registration No. 333-69245). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Filed as an exhibit to Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on November 13, 2008.  (File No. 000-25509). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Filed as an exhibit to the Company’s Proxy Statement on Form DEF14A Stockholders filed with the Securities and Exchange Commission on November 17, 2009.  (File No. 000-25509). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Filed as an exhibit to the Company’s Proxy Statement for the 2006 Annual Meeting of Shareholders filed with the Securities and Exchange Commission on September 21, 2006.  (File No. 000-025509). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Filed as an exhibit to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 20, 2004.  (File No. 000-025509). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                 | FIRST FEDERAL BANKSHARES, INC. |
|------------------------------------------------------|--------------------------------|
|                                                 |                           |   |
|                                                 |                           |   |
| Date:     December 10, 2009 | By:                            | /s/ Barry E. Backhaus |
|                                                 |                           | Barry E. BackhausPresident, Chief Executive Officer,Interim Chief Financial Officerand Chairman of the Board |

| By:    | /s/ Barry E. Backhaus                                                                                        |   | By:    | /s/ Jon G. Cleghorn                                   |
|--------|--------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------|
|   | Barry E. BackhausPresident, Chief Executive Officer,Interim Chief Financial Officerand Chairman of the Board |   |   | Jon G. CleghornVice President, Secretary and Director |
|   |                                                                                                         |   |   |                                                  |
| Date:  | December 10, 2009                                                                                            |   | Date:  | December 10, 2009                                     |
|   |                                                                                                         |   |   |                                                  |
| By:    | /s/ Arlene T. Curry                                                                                          |   | By:    | /s/ Charles D. Terlouw                                |
|   | Arlene T. CurryDirector                                                                                      |   |   | Charles D. TerlouwDirector                            |
|   |                                                                                                         |   |   |                                                  |
| Date:  | December 10, 2009                                                                                            |   | Date:  | December 10, 2009                                     |
|   |                                                                                                         |   |   |                                                  |
| By:    | /s/ Gary L. Evans                                                                                            |   | By:    | /s/ Allen J. Johnson                                  |
|   | Gary L. EvansDirector                                                                                        |   |   | Allen J. JohnsonDirector                              |
|   |                                                                                                         |   |   |                                                  |
| Date:  | December 10, 2009                                                                                            |   | Date:  | December 10, 2009                                     |
|   |                                                                                                         |   |   |                                                  |
| By:    | /s/ David Roederer                                                                                           |   | By:    | /s/ Ronald A. Jorgensen                               |
|   | David RoedererDirector                                                                                       |   |   | Ronald A. JorgensenDirector                           |
|   |                                                                                                         |   |   |                                                  |
| Date:  | December 10, 2009                                                                                            |   | Date:  | December 10, 2009                                     |
|   |                                                                                                         |   |   |                                                  |