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

                                   FORM 10-QSB

(Mark One)
|X|  QUARTERLY REPORT UNDER SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT
     OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2002
| |  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934 FOR THE TRANSITION PERIOD FROM               TO
                                           ---------------  --------------------

                         Commission File Number: 0-19609

                             FirstFed Bancorp, Inc.
        -----------------------------------------------------------------
        (Exact name of Small Business Issuer as specified in its charter)

           Delaware                                               63-1048648
-------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

        1630 Fourth Avenue North
           Bessemer, Alabama                                             35020
----------------------------------------                              ----------
(Address of principal executive offices)                              (Zip Code)

Issuer's telephone number, including area code: (205) 428-8472
                                                --------------

Check  whether the issuer (1) 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    [ ]

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

            Class                                     Outstanding at May 8, 2002
----------------------------                          --------------------------
Common Stock, $.01 par value                               2,322,174 shares

Transitional Small Business Disclosure Format
(Check one):

         YES    [ ]           NO    [X]


                             FIRSTFED BANCORP, INC.
                             ----------------------

                                                                            Page
                                                                            ----
PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS:

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
  AS OF MARCH 31, 2002, AND DECEMBER 31, 2001................................2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME  FOR THE THREE
  MONTHS ENDED MARCH 31, 2002 AND 2001.......................................3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY FOR THE THREE
  MONTHS ENDED MARCH 31, 2002 AND 2001 ......................................4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE
  THREE MONTHS ENDED MARCH 31, 2002 AND 2001.................................5

UNAUDITED NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS ..................................................................6

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
           OF OPERATION......................................................7

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS...................................................11

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS...........................11

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.....................................11

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.................11

ITEM 5.  OTHER INFORMATION...................................................11

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K....................................12

SIGNATURES...................................................................13


THE CONDENSED  CONSOLIDATED FINANCIAL STATEMENTS FURNISHED HAVE NOT BEEN AUDITED
BY INDEPENDENT  CERTIFIED  PUBLIC  ACCOUNTANTS,  BUT REFLECT,  IN THE OPINION OF
MANAGEMENT,  ALL  ADJUSTMENTS  NECESSARY  FOR A FAIR  PRESENTATION  OF FINANCIAL
CONDITION AND THE RESULTS OF OPERATIONS FOR THE PERIODS PRESENTED.


                                       1


<PAGE>


                                          PART I - FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                             FIRSTFED BANCORP, INC.
                             ----------------------
       UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
       ------------------------------------------------------------------
                   As of March 31, 2002 and December 31, 2001
                          (Dollar amounts in thousands)
                                                                           March 31,     December 31,
ASSETS                                                                       2002            2001
------                                                                       ----            ----
<S>                                                                       <C>             <C>
Cash and Cash Equivalents:
         Cash on hand and in banks                                        $   2,296       $   3,358
         Interest-bearing deposits in other banks                            11,340          11,949
         Federal funds sold                                                  10,717           7,298
                                                                          ---------       ---------
                                                                             24,353          22,605
Securities available-for-sale, at fair value                                  4,773           6,577
Loans held for sale                                                           1,006           2,158
Securities held-to-maturity, at amortized cost, fair
         value of $29,848 and $29,433, respectively                          29,443          28,840
Loans receivable, net                                                       108,416         108,986
Land, buildings and equipment, net                                            4,087           3,566
Bank owned life insurance                                                     4,626           4,545
Goodwill                                                                        983             983
Real estate owned                                                             1,691           1,387
Accrued interest receivable                                                   1,621           1,840
Other assets                                                                  1,160             740
                                                                          ---------       ---------
                                                                          $ 182,159       $ 182,227
                                                                          =========       =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
         Deposits                                                         $ 145,998       $ 146,069
         FHLB advances                                                       17,000          17,000
         Accrued interest payable                                               253             303
         Dividends payable                                                      162             162
         Other liabilities                                                      458             227
                                                                          ---------       ---------
                                                                            163,871         163,761
                                                                          =========       =========
Stockholders' Equity:
         Preferred stock, $.01 par value, 1,000,000 shares
                  authorized, none outstanding                                   --              --
         Common stock, $.01 par value, 10,000,000 shares
                  authorized, 3,148,581 shares issued and 2,318,633
                  shares outstanding at March 31, 2002 and 3,141,780
                  shares issued and 2,311,832 shares outstanding at
                  December 31, 2001                                              31              31
         Paid-in capital                                                      8,115           8,081
         Retained earnings                                                   16,852          17,079
         Deferred compensation obligation                                     1,771           1,766
         Deferred compensation treasury stock (197,133
                  shares at March 31, 2001 and 197,602 shares at
                  December 31, 2001)                                         (1,780)         (1,792)
         Treasury stock, at cost (829,948 shares at March 31, 2002
                  and December 31, 2001)                                     (6,088)         (6,088)
         Unearned compensation                                                 (631)           (666)
         Accumulated other comprehensive income                                  18              55
                                                                          ---------       ---------
                                                                             18,288          18,466
                                                                          ---------       ---------
                                                                          $ 182,159       $ 182,227
                                                                          =========       =========

</TABLE>

See accompanying notes to condensed consolidated financial statements.


                                        2


<PAGE>


                             FIRSTFED BANCORP, INC.
                             ----------------------
              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              -----------------------------------------------------
               For the Three Months Ended March 31, 2002 and 2001
             (Dollar amounts in thousands, except per share amounts)

                                                       Three Months Ended
                                                             March 31,
                                                    -----------------------
                                                    2002               2001
                                                    ----               ----

INTEREST INCOME:
         Interest and fees on loans              $     2,249      $     2,819
         Interest and dividends on
           securities                                    500              517
         Other interest income                            80              167
                                                 -----------      -----------
           Total interest income                       2,829            3,503
                                                 -----------      -----------

INTEREST EXPENSE:
         Interest on deposits                          1,135            1,592
         Interest on FHLB advances                       221              192
                                                 -----------      -----------
            Total interest expense                     1,356            1,784
                                                 -----------      -----------

  Net interest income                                  1,473            1,719
         Provision (credit) for loan losses              396              (61)
                                                 -----------      -----------
  Net interest income after
    provision for loan losses                          1,077            1,780
                                                 -----------      -----------

NONINTEREST INCOME:
         Fees and other noninterest income               301              269
         Bank owned life insurance                        81               --
                                                 -----------      -----------
           Total noninterest income                      382              269
                                                 -----------      -----------

NONINTEREST EXPENSE:
         Salaries and employee benefits                  798              857
         Office building and equipment
           expenses                                      137              150
         Amortization of goodwill                         --               27
         Other operating expenses                        423              487
                                                 -----------      -----------
           Total noninterest expenses                  1,358            1,521
                                                 -----------      -----------
  Income before income taxes                             101              528

         Provision for income taxes                        3              197
                                                 -----------      -----------
  NET INCOME                                     $        98      $       331
                                                 ===========      ===========

AVERAGE NUMBER OF SHARES
         OUTSTANDING - BASIC                       2,262,863        2,480,582
                                                 ===========      ===========
BASIC EARNINGS PER SHARE                         $       .04      $       .13
                                                 ===========      ===========
AVERAGE NUMBER OF SHARES
         OUTSTANDING - DILUTED                     2,285,781        2,533,265
                                                 ===========      ===========
DILUTED EARNINGS PER SHARE                       $       .04      $       .13
                                                 ===========      ===========
DIVIDENDS DECLARED PER SHARE                     $       .14      $       .17
                                                 ===========      ===========

See accompanying notes to condensed consolidated financial statements.


                                        3


<PAGE>


                             FIRSTFED BANCORP, INC.
                             ----------------------
       UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
       -------------------------------------------------------------------
               For the Three Months Ended March 31, 2002 and 2001
             (Dollar amounts in thousands, except per share amounts)


<TABLE>
<CAPTION>
                                                                                Deferred                       Accumulated
                                                                     Deferred    Compen-                         Compre-    Compre-
                                                                      Compen-    sation               Unearned   hensive     hensive
                                    Common    Paid-In    Retained     sation    Treasury    Treasury   Compen-    Income     Income
                                     Stock    Capital    Earnings   Obligation   Stock        Stock    sation     (Loss)    (Note 1)
                                     -----    -------    --------   ----------   -----        -----    ------     ------    --------

<S>                                  <C>     <C>         <C>         <C>       <C>          <C>        <C>        <C>       <C>
BALANCE, December 31, 2000           $ 31    $7,954      $16,823     $1,580    $(1,654)     $(3,752)   $(811)     $(11)

  Net income                           --        --          331         --         --           --       --        --       $331
  Change in unrealized gain
      (loss) on securities
      available for sale, net
      of tax of $29                    --        --           --         --         --           --       --        48         48
                                                                                                                             ----
  Comprehensive income                 --        --           --         --         --           --       --        --       $379
                                                                                                                             ====
  Amortization of unearned
      compensation                     --        --           --         --         --           --       45        --
  Dividends declared ($.17
      per share)                       --        --         (433)        --         --           --       --        --
  Exercise of stock options            --         4           --         --         --           --       --        --
  Amortization of Deferred
      Compensation                     --        --           --          9         --           --       --        --
  Purchase of Deferred
      Compensation Treasury            --        --           --         24        (24)          --       --        --
  Stock issued under Dividend
      Reinvestment Plan                --        44           --         --         --           --       --        --

                                     ----    ------      -------     ------    -------      -------    -----       ---
BALANCE, March 31, 2001              $ 31    $8,002      $16,721     $1,613    $(1,678)     $(3,752)   $(766)      $37
                                     ====    ======      =======     ======    =======      =======    =====       ===

<CAPTION>


<S>                                  <C>     <C>         <C>         <C>       <C>          <C>        <C>        <C>       <C>
BALANCE, December 31, 2001           $ 31$    8,081      $17,079     $1,766    $(1,792)     $(6,088)   $(666)      $55

  Net income                           --        --           98         --         --           --       --        --       $ 98
  Change in unrealized gain (loss)
      on securities available for
      sale, net of tax of $22          --        --           --         --         --           --       --       (37)       (37)
                                                                                                                             ----
  Comprehensive income                 --        --           --         --         --           --       --        --       $ 61
                                                                                                                             ====
  Amortization of unearned
      compensation                     --        --           --         --         --           --       35        --
  Dividends declared ($.14
      per share)                       --        --         (325)        --         --           --       --        --
  Exercise of stock options            --        --           --         --         --           --       --        --
  Amortization of Deferred
      Compensation                     --        --           --         17         --           --       --        --
  Distribution of Deferred
      Compensation Treasury,
      net of purchases                 --        --           --        (12)        12           --       --        --
  Stock issued under Dividend
      Reinvestment Plan                --        43           --         --         --           --       --        --
  Change in stock value of
      Employee Stock
      Ownership Plan                   --        (9)          --         --         --           --       --        --

                                     ----    ------      -------     ------    -------      -------    -----       ---
BALANCE, March 31, 2002              $ 31    $8,115      $16,852     $1,771    $(1,780)     $(6,088)   $(631)      $18
                                     ====    ======      =======     ======    =======      =======    =====       ===

</TABLE>

See accompanying notes to condensed consolidated financial statements.


                                        4


<PAGE>


                             FIRSTFED BANCORP, INC.
                             ----------------------
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
            ---------------------------------------------------------
               For the Three Months Ended March 31, 2002 and 2001
                          (Dollar amounts in thousands)
<TABLE>
<CAPTION>
                                                                                       Three Months Ended
                                                                                            March 31,
                                                                                       ------------------
CASH FLOWS FROM OPERATING ACTIVITIES:                                                  2002          2001
                                                                                       ----          ----
<S>                                                                                  <C>            <C>
  Net income                                                                         $     98       $    331
  Adjustments to reconcile net income
         to net cash provided by (used in) operating activities:
       Depreciation, amortization and accretion                                           104             85
       Loan fees (cost) deferred, net                                                     (32)            52
       Provision (credit) for loan losses                                                 396            (61)
       Provision for real estate owned losses                                              --            100
       Loss (gain) on sale of real estate, net                                              6             12
       Origination of loans held for sale                                              (3,284)        (2,939)
       Proceeds from loans held for sale                                                4,436          1,867
       Amortization of goodwill                                                            --             27
       Provision for deferred compensation                                                 18             24
       Increase in surrender value of Bank Owned Life Insurance                           (81)            --
  Decrease (increase) in assets:
       Accrued interest receivable                                                        219             37
       Other assets                                                                      (437)           278
  Increase (decrease) in liabilities:
         Accrued interest payable                                                         (50)           105
       Other liabilities                                                                  231             56
                                                                                     --------       --------
         Net cash provided by (used in) operating activities                            1,624            (26)
                                                                                     --------       --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from maturities of securities available-for-sale                             1,750          3,500
  Proceeds from the sale of securities available-for-sale                                  --          1,800
  Purchases of securities available-for-sale                                               --         (1,504)
  Proceeds from maturities and payments received on securities held-to-maturity         3,375          8,978
  Purchases of securities held-to-maturity                                             (4,000)       (16,576)
  Proceeds from sale of real estate and repossessed assets                                624             42
  Net loan originations                                                                  (698)          (569)
  Capital expenditures                                                                   (556)           (44)
                                                                                     --------       --------
         Net cash provided by (used in) investing activities                              495         (4,373)
                                                                                     --------       --------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase (decrease) in deposits, net                                                    (71)         9,632
  Proceeds from Federal Home Loan Bank advances                                            --         17,000
  Proceeds from exercise of stock options                                                  --              4
  Dividends paid                                                                         (325)          (433)
  Proceeds from dividend reinvestment                                                      43             44
  Purchase of treasury stock for Deferred Compensation Plan                               (18)           (24)
                                                                                     --------       --------
         Net cash provided by (used in) financing activities                             (371)        26,223
                                                                                     --------       --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                    1,748         21,824
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                       22,605          4,736
                                                                                     --------       --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                           $ 24,353       $ 26,560
                                                                                     ========       ========

SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid during the period for -
       Income taxes                                                                  $     68       $    149
       Interest                                                                         1,406          1,679
  Non-cash transactions -
       Transfer of loans receivable to real estate owned                                1,039             59
       Distribution of deferred compensation treasury                                      30             --

See accompanying notes to condensed consolidated financial statements.


</TABLE>

                                        5


<PAGE>


                             FIRSTFED BANCORP, INC.
                             ----------------------
          UNAUDITED NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
          -------------------------------------------------------------
                                   STATEMENTS
                                   ----------

1.   BASIS OF PRESENTATION:
     ----------------------

FirstFed  Bancorp,  Inc.  (the  "Company")  is  the  holding  company  and  sole
shareholder of First State Corp. ("FSC"),  which in turn is the sole shareholder
of First Financial Bank ("First Financial" or "Bank").

The accompanying  unaudited condensed  consolidated  financial  statements as of
March 31, 2002,  and December 31, 2001, and for the three months ended March 31,
2002 and 2001, include the accounts of the Company and the Bank. All significant
intercompany transactions and accounts have been eliminated in consolidation.

In the  opinion of  management,  all  adjustments  (none of which are other than
normal recurring  accruals)  necessary for a fair presentation of the results of
such interim periods have been included. The results of operations for the three
months ended March 31, 2002,  are not  necessarily  indicative of the results of
operations which may be expected for the entire year.

These unaudited  condensed  financial  statements  should be read in conjunction
with the Consolidated Financial Statements and the notes thereto incorporated in
the Company's Annual Report on Form 10-KSB for the year ended December 31, 2001.
The accounting  policies followed by the Company are set forth in the Summary of
Significant Accounting Policies in the Company's December 31, 2001, Consolidated
Financial Statements.

2.   EARNINGS AND DIVIDENDS PER SHARE:
     ---------------------------------
Earnings  per share  ("EPS") for the three months ended March 31, 2002 and 2001,
respectively, were as follows:

<TABLE>
<CAPTION>
                                             Three Months                                   Three Months
                                          Ended March 31, 2002                           Ended March 31, 2001
                               -------------------------------------          --------------------------------------
                                                Dilutive                                       Dilutive
                                               Effect of                                      Effect of
                                                Options                                        Options
                               Basic            Issued       Diluted          Basic             Issued       Diluted
                               -----            ------       -------          -----             ------       -------
<S>                          <C>                <C>          <C>             <C>                <C>          <C>
Net income                  $   98,000              --      $   98,000      $  330,668              --      $  330,668
                             ---------          ------       ---------       ---------          ------       ---------

Shares available to
   common shareholders       2,262,863          22,919       2,285,781       2,480,582          52,683       2,533,265
                             ---------          ------       ---------       ---------          ------       ---------

Earnings per share          $     0.04              --      $     0.04      $     0.13              --      $     0.13
                            ==========          ======                                          ======      ==========

</TABLE>

Options to purchase  66,574 and 39,590 shares of common stock at prices  ranging
from $7.75 to $12.50 and $8.88 to $12.50 were  outstanding  during the  quarters
ended  March  31,  2002 and 2001,  respectively,  but were not  included  in the
computation of diluted EPS because the options'  exercise price was greater than
the average market price of the common stock. The options will expire at various
times over the next nine years.

There were 52,717 and 61,503  shares of common stock held by the Employee  Stock
Ownership Plan and unallocated at March 31, 2002 and 2001,  respectively.  These
shares are  outstanding  but not  included in the  computation  of earnings  per
share.

Dividends declared for the quarter ended March 31, 2002, consisted of a $.07 per
share special dividend and $.07 per share quarterly dividend.


                                        6


<PAGE>


3.   SEGMENT DISCLOSURE:
     -------------------

The holding company is considered a separate reportable segment from the banking
operations  since it does not  offer  products  or  services  or  interact  with
customers,  but  does  meet  the  quantitative  threshold  as  outlined  in  the
accounting  standards.  The Company's  segment  disclosure is as follows for the
three months ended March 31, 2002 and 2001.

<TABLE>
<CAPTION>
                                                             March 31, 2002
                                          --------------------------------------------------------
                                            Banking      Holding                            Total
                                          Operations     Company        Eliminations       Company
                                          ----------     -------        ------------       -------
                                                               (In thousands)
<S>                                       <C>           <C>            <C>               <C>
Net interest income                       $  1,465      $      8       $      --         $   1,473
Provision for loan losses                      396            --              --               396
Noninterest income                             357            25              --               382
Noninterest expense                          1,228           130              --             1,358
                                          --------      --------       ---------          --------
     Income before income
         taxes                                 198           (97)             --               101
Income tax expense                              47           (44)             --                 3
                                          --------      --------       ---------          --------
     Net income                           $    151      $    (53)      $      --$               98

     Total assets                         $180,729      $ 18,851       $ (17,421)         $182,159
                                          ========      ========       =========          ========

<CAPTION>
                                                             March 31, 2001
                                          --------------------------------------------------------
                                            Banking      Holding                            Total
                                          Operations     Company        Eliminations       Company
                                          ----------     -------        ------------       -------
                                                               (In thousands)
<S>                                     <C>             <C>            <C>                <C>
Net interest income                     $   1,700       $      19      $      --          $  1,719
(Credit) provision for loan losses            (61)             --             --              (61)
Noninterest income                            269              --             --               269
Noninterest expense                         1,331             190             --             1,521
                                         --------      --------       ---------          --------
Income before income
         taxes                                699            (171)            --               528
Income tax expense                            257             (60)            --               197
                                         --------      --------       ---------          --------
     Net income                         $     442       $    (111)     $      -- $             331

     Total assets                       $ 184,264       $  21,054      $ (21,273)         $184,045
                                        =========       =========      =========          ========

</TABLE>


ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Management's discussion and analysis includes certain forward-looking statements
addressing,  among other  things,  the Company's  prospects for earnings,  asset
growth and net interest margin.  Forward-looking  statements are accompanied by,
and  identified  with,  such  terms  as  "anticipates,"  "believes,"  "expects,"
"intends,"  and similar  phrases.  Management's  expectations  for the Company's
future necessarily  involve a number of assumptions and estimates.  Factors that
could cause actual results to differ from the expectations expressed herein are:
substantial  changes in  interest  rates,  changes in the general  economy,  and
changes in the Company's  strategies for credit-risk  management,  interest-rate
risk  management and investment  activities.  Accordingly,  any  forward-looking
statements  included herein do not purport to be predictions of future events or
circumstances and may not be realized.


                                        7


<PAGE>


Comparison of Financial Condition as of March 31, 2002, and December 31, 2001
-----------------------------------------------------------------------------

All dollar amounts, except per share amounts, included hereafter in Management's
Discussion and Analysis are in thousands.

Interest-bearing  deposits and fed funds sold  increased  $2,810,  or 14.6%,  to
$22,057 at March 31,  2002.  The increase is  substantially  the result of funds
becoming  available due to a reduction in other types of investments  during the
quarter ended March 31, 2002.

Securities available-for-sale and held-to-maturity decreased $1,201, or 3.4%, to
$34,216 at March 31, 2002. During the quarter ended March 31, 2002,  investments
totaling $5,125 were called or matured and $4,000 were purchased.

Loans receivable,  net, at March 31, 2002, were $108,416, a decrease of $570, or
0.5%,  from  $108,986  at  December  31,  2001.  The  small  decrease  in  loans
receivable,   net,  was  primarily  due  to   repayments   exceeding   portfolio
originations.  A  significant  portion  of  loans  originated  were  sold in the
secondary market.

The Company's  consolidated allowance for loan losses decreased to $587 at March
31, 2002,  from $775 at December 31, 2001.  This  decrease was  partially due to
charge-offs  over recoveries of $584, plus a provision to the allowance for loan
losses  of  $396.  See  discussion  of the  provision  for loan  losses  herein.
Nonperforming  loans at March 31, 2002,  decreased to $2,029,  or 1.87% of loans
receivable,  from $2,260, or 2.07% of loans receivable, at December 31, 2001. At
March 31, 2002, there were no material loans not included in nonperforming loans
which  represented  material  credits  about which  management  was aware of any
information  which caused management to have serious doubts as to the ability of
such borrowers to comply with the loan repayment terms.

Land, buildings and equipment, net, increased $521, or 14.6%, to $4,087 at March
31, 2002. The increase is primarily the result of the  constructing of a new and
expanded  Hueytown branch  location.  The new building was needed as a result of
growth by that  location.  Subsequent to March 31, 2002,  the previous  Hueytown
location was sold.

Real  estate  owned was  $1,691  at March 31,  2002,  an  increase  of $304 from
December 31, 2001.  The increase is primarily  the result of a relatively  large
foreclosure  during the quarter ended March 31, 2002,  which is currently  under
contract for sale.

Deposits  decreased $71, or 0.05%,  to $145,998 at March 31, 2002, from $146,069
at December 31, 2001. The deposit levels were relatively stable.

The Company had stockholders' equity of $18,288 as of March 31, 2002, a decrease
of $178, or 1.0%, from $18,466 as of December 31, 2001. Net income for the three
months  ended March 31, 2002,  of $98  provided an increase in the balance.  The
decrease was primarily  attributable to dividends of $.14 per share. Included in
such  dividends  was a special  dividend of $.07 per share,  which was  declared
during the first quarter.

Liquidity and Capital Resources
-------------------------------

Traditionally,  the  Bank's  principal  sources  of funds  have  been  deposits,
principal and interest  payments on loans and  mortgage-backed  securities,  and
proceeds from interest on and maturities of investments.  In addition,  the Bank
has borrowing ability from the Federal Home Loan Bank of Atlanta if the need for
additional  funds  arises.  At March  31,  2002,  the Bank  had  commitments  to
originate and fund loans of $9.9 million. The Bank anticipates that it will have
sufficient funds available to meet its current commitments.

First  Financial is required by regulation to maintain  minimum levels of liquid
assets.  The liquidity  ratio of First  Financial at March 31, 2002,  was 16.9%,
which exceeded the applicable regulatory requirement.

Under applicable regulations,  First Financial and the Company are each required
to maintain  minimum capital  ratios.  Set forth below are actual capital ratios
and the minimum regulatory capital requirements as of March 31, 2002.

                                       8

<PAGE>


<TABLE>
<CAPTION>
                                         First Financial              The Company
                                        -----------------        ----------------------
<S>                                     <C>         <C>          <C>             <C>
Tier 1 Risk-Based Capital
Stockholders' Equity less goodwill      $15,785     13.33%       $17,305         14.53%
Minimum Required                          4,737      4.00%         4,764          4.00%
                                        -------      ----        -------         -----
Excess                                  $11,048      9.33%       $12,541         10.53%
                                        =======      ====        =======         =====

Total Risk-Based Capital
Tier 1 Capital plus allowances
  for loan losses                       $16,372     13.83%       $17,892         15.02%
Minimum Required                          9,474      8.00%         9,528          8.00%
                                        -------      ----        -------         -----
Excess                                  $ 6,898      5.83%       $ 8,364          7.02%
                                        =======      ====        =======         =====

Tier 1 Leverage                         $15,785      8.64%       $17,305          9.47%
Minimum Leverage Requirement              7,307      4.00%         7,307          4.00%
                                        -------      ----        -------         -----
Excess                                  $ 8,478      4.64%       $ 9,998          5.47%
                                        =======      ====        =======         =====

</TABLE>


As of March  31,  2002,  management  was not  aware  of any  trends,  events  or
uncertainties  that will have or are reasonably likely to have a material effect
on the Company's or the Bank's liquidity, capital resources or operations.

Results of  Operations - Comparison of the Three Months Ended March 31, 2002 and
2001
--------------------------------------------------------------------------------

Net income for the three  months  ended March 31,  2002,  was $98, a decrease of
$233,  or 70.4%,  from net income of $331 for the three  months  ended March 31,
2001.  The  decrease  was  primarily  attributable  to a decrease  in the Bank's
interest rate spread and an increase in the  provision  for loan losses,  net of
increases in noninterest income and decreases in noninterest expense.

Interest Income
---------------

Total interest  income  decreased $674, or 19.2%, to $2,829 for the three months
ended March 31,  2002.  This  decrease  was  primarily  due to a decrease in the
average yield on interest-earning assets to 6.9% from 8.4% coupled with a slight
decrease in the average balance of interest-earnings assets.

Interest Expense
----------------

Interest expense for the quarter ended March 31, 2002, was $1,356, a decrease of
$428, or 24.0%,  from $1,784 for the quarter ended March 31, 2001.  The decrease
was   primarily   the  result  of  a  decrease  in  the  average  rate  paid  on
interest-bearing  liabilities to 3.3% for the three months ended March 31, 2002,
compared to 4.6% for the corresponding quarter of the previous year.

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

Net interest  income for the quarter  ended March 31, 2002,  decreased  $246, or
14.3%,  to $1,473 from the quarter  ended March 31, 2001,  level of $1,719.  The
decrease  was  primarily  the result of a decrease in the  average net  interest
spread to 3.6% for the first  quarter of fiscal  2002  compared  to 3.8% for the
same period a year ago. The net interest  margin  decreased to 3.7% in the first
quarter of fiscal 2002 compared to 4.1% for the same quarter a year ago.

Provision for Loan Losses
-------------------------

Management  increased the Company's  total allowance for loan losses by a change
to provision to $396 during the quarter ended March 31, 2002.  The allowance for
loan losses is generally based on management's  evaluation of possible losses in
the loan  portfolio  and  considers,  among  other  factors,  prior  years' loss
experience,  economic conditions,  distribution of portfolio loans by risk class
and the estimated value of the underlying collateral.


                                       9


<PAGE>


As discussed below, the Company's primary financial  institution  subsidiary,  a
federal  savings  bank,  was  merged  with and into an Alabama  commercial  bank
subsidiary.  The  corporate  title of the  resulting  Bank was  changed to First
Financial Bank. In connection with the merger, the State Superintendent required
that First Financial change certain methodologies previously used by the federal
savings bank to evaluate loan losses,  which resulted in an additional loan loss
provision of $200,000.  This  adjustment  is in addition to a provision for loan
losses of  approximately  $196,000  resulting  from the Company's  evaluation of
credit losses inherent in the loan portfolio.  The Company continually evaluates
its credit risk and makes  provisions  for loan losses as deemed  appropriate in
the period incurred.

Noninterest Income
------------------

Noninterest  income during the quarter ended March 31, 2002,  increased $113, to
$382, from the March 31, 2001, level of $269. The increase in noninterest income
is primarily the result of increases in the cash  surrender  value of Bank Owned
Life  Insurance  purchased  during the second quarter of 2001 and an increase in
secondary market fees earned on loans sold and other fee income.

Noninterest Expenses
--------------------

Noninterest expenses during the quarter ended March 31, 2002, decreased $163, or
10.7%, to $1,358,  from the March 31, 2001,  quarter of $1,521. The decrease was
attributable  to a provision of $100 for  estimated  losses on real estate owned
recorded in the prior year quarter ended March 31, 2001, which was not necessary
in 2002.  Additionally,  no  amortization  of goodwill was recorded in 2002 as a
result of the adoption of a new accounting standard.

Income Taxes
------------

The provision for income taxes  decreased  $194, or 98.5%, to $3 for the quarter
ended March 31, 2002, as compared to the  corresponding  quarter in the previous
year. The decreased tax expense was due primarily to a decrease in pretax income
plus an increase in  tax-exempt  income when  compared to the same period a year
ago.

Significant Events
------------------

On March 8, 2002,  First  Federal  Savings  Bank was merged  with and into First
State  Bank of Bibb  County.  The name of First  State  Bank of Bibb  County was
changed to First Financial Bank.

Pending Accounting Pronouncements
---------------------------------

In June 2001, the Financial  Accounting Standard Board ("FASB") issued Statement
of Financial  Accounting  Standards ("SFAS") No. 141,  "Business  Combinations".
SFAS  No.  141  addresses  financial   accounting  and  reporting  for  business
combinations and supersedes  Accounting Principles Board ("APB") Opinion No. 16,
"Business  Combinations",  and  SFAS  No.  38,  "Accounting  for  Preacquisition
Contingencies of Purchased  Enterprises".  This statement eliminates the pooling
of  interest  method for  accounting  for  business  combinations  and  requires
intangible  assets that meet  certain  criteria to be reported  separately  from
goodwill.  The provisions of this statement  apply to all business  combinations
initiated after June 30, 2001.

In June 2001,  the FASB  issued  SFAS No. 142,  "Goodwill  and Other  Intangible
Assets".  This  statement  addresses  financial  accounting  and  reporting  for
acquired goodwill and other intangible assets and supercedes APB Opinion No. 17,
"Intangible Assets". This statement requires that goodwill and intangible assets
with indefinite  useful lives no longer be amortized,  but instead be tested for
impairment at least  annually.  This  statement  also  requires that  intangible
assets with definite useful lives be amortized over their  respective  estimated
useful  lives to their  estimated  residual  values,  and also be  reviewed  for
impairment.  Impairment  losses  resulting from the initial  application of this
statement are to be reported as a change in accounting principle. This statement
is effective for fiscal years  beginning  after  December 15, 2001,  and must be
applied to all goodwill and other intangible  assets recognized in the financial
statements. The


                                       10


<PAGE>


Company adopted this statement effective January 1, 2002 and ceased amortization
of goodwill.  Amortization of goodwill that was discontinued amounted to $27 for
the three months ended March 31, 2001.  The adoption of this  statement  did not
have a  material  impact on the  Company's  financial  position  or  results  of
operations.

In August 2001, the FASB issued SFAS No. 144,  "Accounting for the Impairment or
Disposal  of  Long-Lived  Assets".  This  statement  supersedes  SFAS  No.  121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
be Disposed Of", and the accounting and reporting  provisions of APB Opinion No.
30,  "Reporting the Results of Operations - Reporting the Effects of Disposal of
a Segment of a Business,  and Extraordinary,  Unusual and Infrequently Occurring
Events and  Transactions",  for the  disposal of a segment of a  business.  This
statement  also  amends  Accounting  Research  Bulletin  No.  51,  "Consolidated
Financial  Statements".  SFAS No. 144 is effective  for fiscal  years  beginning
after  December 15, 2001, and interim  periods  within those fiscal years,  with
early  application  encouraged.  The  effects of this  statement  did not have a
material  impact on the  Company's  financial  position or results of operations
upon adoption on January 1, 2002.

In May 2002, the FASB issued SFAS No. 145, "Rescission of FASB Statements No. 4,
44, and 64, Amendment of FASB Statement No. 13 and Technical Corrections".  SFAS
No. 145 rescinds SFAS No. 4, "Reporting Gains and Losses from  Extinguishment of
Debt, " and an amendment of that  statement,  SFAS No. 64,  "Extinguishments  of
Debt Made to Satisfy Sinking-Fund Requirements". This statement also amends SFAS
No. 113,  "Accounting for Leases,  " to eliminate an  inconsistency  between the
required accounting for sale-leaseback  transactions and the required accounting
for certain lease  modifications  that have economic effects that are similar to
sale-leaseback   transactions.   This   statement  also  amends  other  existing
authoritative  pronouncements  to make various  technical  corrections,  clarify
meanings,  or  describe  their  applicability  under  changed  conditions.   The
provisions of this  statement  are  effective May 15, 2002.  The effects of this
statement  will  not  have  a  material  impact  on the  Company's  consolidated
financial position or results of operations.

                            PART II-OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

From time to time, the Company and Bank are parties to routine legal proceedings
occurring in the ordinary course of business.  At March 31, 2002,  there were no
legal  proceedings to which the Company and/or the Bank were a party or parties,
or to which any of their property was subject, which were expected by management
to result in a material loss.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

Not applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable.

ITEM 5.  OTHER INFORMATION

None.


                                       11


<PAGE>


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits.
         None.

(b)      Reports on Form 8-K.
         None.


                                       12

                                   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.

                                             FIRSTFED BANCORP, INC.


Date: May 13, 2002                           \s\ B. K. Goodwin , III
      ------------                           -----------------------------------
                                             B. K. Goodwin, III,
                                             Chairman of the Board,
                                             Chief Executive Officer,
                                             and President



Date: May 13, 2002                           \s\ Lynn J. Joyce
      ------------                           -----------------------------------
                                             Lynn J. Joyce
                                             Chief Financial Officer,
                                             Executive Vice President,
                                             Secretary and Treasurer


                                       13


                                   SIGNATURES
<PAGE>


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.

                                             FIRSTFED BANCORP, INC.


Date: May 13, 2002                           \s\ B. K. Goodwin, III
      ------------                           -----------------------------------
                                             B. K. Goodwin, III,
                                             Chairman of the Board,
                                             Chief Executive Officer,
                                             and President



Date: May 13, 2002                           \s\ Lynn J. Joyce
      ------------                           -----------------------------------
                                             Lynn J. Joyce
                                             Chief Financial Officer,
                                             Executive Vice President,
                                             Secretary and Treasurer


                                                        13