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 JUNE 30, 2003

|_|   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 August 8, 2003
Common Stock, $.01 par value                              2,353,714 shares

Transitional Small Business Disclosure Format
(Check one):
         YES |_|     NO |X]

<PAGE>


                             FIRSTFED BANCORP, INC.

                                                                            Page
PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS:

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
AS OF JUNE 30, 2003, AND DECEMBER 31, 2002 ................................    2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE
AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002 ...............................    3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002 ...........................    4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE
SIX MONTHS ENDED JUNE 30, 2003 AND 2002 ...................................    5

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

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
OF OPERATION ..............................................................   10

ITEM 3. CONTROLS AND PROCEDURES ...........................................   14

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS .................................................   14

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS .........................   14

ITEM 3. DEFAULTS UPON SENIOR SECURITIES ...................................   14

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS ...............   15

ITEM 5. OTHER INFORMATION .................................................   15

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K ..................................   15

SIGNATURES ................................................................   16


      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.


                                       i.

<PAGE>

                         PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

                             FIRSTFED BANCORP, INC.
       UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                    As of June 30, 2003 and December 31, 2002
                          (Dollar amounts in thousands)
<TABLE>
<CAPTION>
                                                                                         June 30,          December 31,
ASSETS                                                                                     2003                2002
                                                                                        ---------           ---------
<S>                                                                                     <C>                 <C>
Cash and Cash Equivalents:
         Cash on hand and in banks                                                      $   2,967           $   2,919
         Interest-bearing deposits in other banks                                          16,320              21,739
         Federal funds sold                                                                 4,268                 774
                                                                                        ---------           ---------
                                                                                           23,555              25,432
Securities available-for-sale, at fair value                                               28,329              30,632
Loans held for sale                                                                         2,066               2,229
Loans receivable, net                                                                     120,959             104,310
Land, buildings and equipment, net                                                          4,169               4,265
Bank owned life insurance                                                                   5,826               5,641
Goodwill                                                                                      983                 983
Real estate owned                                                                           1,021               1,898
Accrued interest receivable                                                                 1,210               1,342
Other assets                                                                                1,180                 838
                                                                                        ---------           ---------
                                                                                        $ 189,298           $ 177,570
                                                                                        =========           =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
         Deposits                                                                       $ 151,455           $ 139,931
         Borrowings                                                                        17,680              18,005
         Accrued interest payable                                                             223                 232
         Dividends payable                                                                    164                 163
         Other liabilities                                                                    809                 431
                                                                                        ---------           ---------
                                                                                          170,331             158,762
                                                                                        ---------           ---------
Stockholders' Equity:
         Preferred stock, $.01 par value, 1,000,000 shares
                  authorized, none outstanding                                                 --                  --
         Common stock, $.01 par value, 10,000,000 shares
                  authorized, 3,180,305 shares issued and 2,350,357 shares
                  outstanding at June 30, 2003 and 3,159,140 shares issued and
                  2,329,192 shares outstanding at December 31, 2002                            32                  32
         Paid-in capital                                                                    8,269               8,159
         Retained earnings                                                                 16,337              16,467
         Deferred compensation obligation                                                   1,903               1,876
         Deferred compensation treasury stock (213,341 shares
                  at June 30, 2003 and 209,812 December 31, 2002)                          (1,903)             (1,876)
         Treasury stock, at cost (829,948 shares at June 30, 2003
                  and December 31, 2002)                                                   (6,088)             (6,088)
         Unearned compensation                                                               (441)               (518)
         Accumulated other comprehensive income, net                                          858                 756
                                                                                        ---------           ---------
                                                                                           18,967              18,808
                                                                                        ---------           ---------
                                                                                        $ 189,298           $ 177,570
                                                                                        =========           =========
</TABLE>

See accompanying notes to unaudited condensed consolidated financial statements.


                                        2

<PAGE>

                             FIRSTFED BANCORP, INC.
              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
            For the Three and Six Months Ended June 30, 2003 and 2002
             (Dollar amounts in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                  Three Months Ended            Six Months Ended
                                                        June 30,                     June 30,
                                               -------------------------    -------------------------
                                                   2003          2002           2003          2002
                                               -----------   -----------    -----------   -----------
<S>                                            <C>           <C>            <C>           <C>
INTEREST INCOME:
         Interest and fees on loans            $     1,896   $     2,195    $     3,674   $     4,444
         Interest and dividends on
           securities                                  353           493            741           993
         Other interest income                          48            71            111           151
                                               -----------   -----------    -----------   -----------
           Total interest income                     2,297         2,759          4,526         5,588
                                               -----------   -----------    -----------   -----------

INTEREST EXPENSE:
         Interest on deposits                          786         1,030          1,602         2,165
         Interest on other borrowings                  228           223            446           444
                                               -----------   -----------    -----------   -----------
           Total interest expense                    1,014         1,253          2,048         2,609
                                               -----------   -----------    -----------   -----------

  Net interest income                                1,283         1,506          2,478         2,979
         Provision for loan losses                     315           285            426           681
                                               -----------   -----------    -----------   -----------
  Net interest income after
    provision for loan losses                          968         1,221          2,052         2,298
                                               -----------   -----------    -----------   -----------

NONINTEREST INCOME:
         Fees and other noninterest
           income                                      395           403            783           704
         Gain on sale of investments                   299            --            299            --
         Bank owned life insurance                      94            81            186           162
                                               -----------   -----------    -----------   -----------
           Total noninterest income                    788           484          1,268           866
                                               -----------   -----------    -----------   -----------

NONINTEREST EXPENSE:
         Salaries and employee benefits                765           733          1,565         1,531
         Unusual pension expense                        --           238             --           238
         Office building and equipment
           expenses                                    208           180            401           317
         Other operating expenses                      480           540            899           963
                                               -----------   -----------    -----------   -----------
           Total noninterest expense                 1,453         1,691          2,865         3,049
                                               -----------   -----------    -----------   -----------
  Income before income taxes                           303            14            455           115
         Provision (credit) for income taxes            74           (24)            93           (21)
                                               -----------   -----------    -----------   -----------
  NET INCOME                                   $       229   $        38    $       362   $       136
                                               ===========   ===========    ===========   ===========
AVERAGE NUMBER OF SHARES
         OUTSTANDING - BASIC                     2,299,275     2,269,076      2,295,417     2,265,932
                                               ===========   ===========    ===========   ===========
BASIC EARNINGS PER SHARE                       $       .10   $       .02    $       .16   $       .06
                                               ===========   ===========    ===========   ===========
AVERAGE NUMBER OF SHARES
         OUTSTANDING - DILUTED                   2,324,073     2,299,083      2,318,229     2,279,199
                                               ===========   ===========    ===========   ===========
DILUTED EARNINGS PER SHARE                     $       .10   $       .02    $       .16   $       .06
                                               ===========   ===========    ===========   ===========
DIVIDENDS DECLARED PER SHARE                   $       .07   $       .07    $       .21   $       .21
                                               ===========   ===========    ===========   ===========
</TABLE>

See accompanying notes to unaudited condensed consolidated financial statements.


                                        3

<PAGE>

                             FIRSTFED BANCORP, INC.
       UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                 For the Six Months Ended June 30, 2003 and 2002
             (Dollar amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>

                                                                              Deferred                         Accumulated
                                                                   Deferred    Compen-                            Other     Compre-
                                                                    Compen-    sation                Unearned    Compre-    hensive
                                   Common   Paid-In    Retained     sation    Treasury   Treasury     Compen-    hensive     Income
                                    Stock   Capital    Earnings   Obligation    Stock      Stock      sation      Income    (Note 1)
                                   ------   -------    --------    --------    -------    -------    --------    --------   --------

<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                        --        --         136          --         --         --          --          --   $   136
     Change in unrealized gain
         (loss) on securities
         available for sale, net
         of tax of $24                 --        --          --          --         --         --          --          66        66
                                                                                                                            -------
     Comprehensive income              --        --          --          --         --         --          --          --   $   202
                                                                                                                            =======
     Amortization of unearned
         compensation                  --        --          --          --         --         --          75          --
     Dividends declared ($.24
         per share)                    --        --        (488)         --         --         --          --          --
     Amortization of Deferred
         Compensation                  --        --          --          26         --         --          --          --
     Distribution of Deferred
         Compensation Treasury,
         net of purchases              --        --          --         (12)        12         --          --          --
     Stock issued under Dividend
         Reinvestment Plan             --        67          --          --         --         --          --          --
     Change in stock value of
         Employee Stock
         Ownership Plan                --       (18)         --          --         --         --          --          --
                                   ------   -------    --------    --------    --------   --------   --------    --------

BALANCE, June 30, 2002             $   31   $ 8,130    $ 16,727    $  1,780    $(1,780)   $(6,088)   $   (591)   $    121
                                   ======   =======    ========    ========    =======    =======    ========    ========


BALANCE, December 31, 2002         $   32   $ 8,159    $ 16,467    $  1,876    $(1,876)   $(6,088)   $   (518)   $    756

     Net income                        --        --         362          --         --         --          --          --   $   362
     Change in unrealized gain
         (loss) on securities
         available for sale, net
         of tax of $57                 --        --          --          --         --         --          --         102       102
                                                                                                                            -------
     Comprehensive income              --        --          --          --         --         --          --          --   $   464
                                                                                                                            =======
     Amortization of unearned
         compensation                  --        --          --          --         --         --          77          --
     Dividends declared ($.21
         per share)                    --        --        (492)         --         --         --          --          --
     Exercise of stock options         --        67          --          --         --         --          --          --
     Distribution of Deferred
         Compensation Treasury,
         net of purchases              --        --          --          27        (27)        --          --          --
     Stock issued under Dividend
         Reinvestment Plan             --        60          --          --         --         --          --          --
     Change in stock value of
         Employee Stock
         Ownership Plan                --       (17)         --          --         --         --          --          --
                                   ------   -------    --------    --------    --------   --------   --------    --------

BALANCE, June 30, 2003             $   32   $ 8,269    $ 16,337    $  1,903    $(1,903)   $(6,088)   $   (441)   $    858
                                   ======   =======    ========    ========    =======    =======    ========    ========
</TABLE>

See accompanying notes to unaudited condensed consolidated financial statements.


                                        4

<PAGE>

                             FIRSTFED BANCORP, INC.
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 For the Six Months Ended June 30, 2003 and 2002
                          (Dollar amounts in thousands)
<TABLE>
<CAPTION>
                                                                                      Six Months Ended
                                                                                           June 30,
                                                                                    --------------------
CASH FLOWS FROM OPERATING ACTIVITIES:                                                 2003        2002
                                                                                    --------    --------
<S>                                                                                 <C>         <C>
  Net income                                                                        $    362    $    136
  Adjustments to reconcile net income
    to net cash provided by (used in) operating activities:
     Depreciation, amortization and accretion                                            299         121
     Loan fees deferred, net                                                             176           1
     Provision for loan losses                                                           426         681
     Gain on sale of investments                                                        (299)         --
     Loss on sale of real estate, net                                                     11          15
     Origination of loans held for sale                                              (11,431)     (5,745)
     Proceeds from loans held for sale                                                11,594       7,655
     Provision for deferred compensation                                                  27          18
     Gain on sale of fixed assets                                                         --         (91)
     Increase in cash surrender value of Bank Owned Life Insurance                      (186)       (162)
     Decrease (increase) in assets:
         Accrued interest receivable                                                     132         120
         Other assets                                                                   (399)       (503)
     Increase (decrease) in liabilities:
         Accrued interest payable                                                         (9)        (47)
         Other liabilities                                                               378         326
                                                                                    --------    --------
         Net cash provided by (used in) operating activities                           1,081       2,525
                                                                                    --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from maturities, calls and repayments on securities available-for-sale      4,770       2,250
  Proceeds from the sale of securities available-for-sale                              6,048       1,472
  Purchase of securities available-for-sale                                           (8,120)     (1,500)
  Proceeds from maturities, calls and repayments received on securities
    held-to-maturity                                                                      --       3,753
  Purchase of securities held-to-maturity                                                 --      (4,000)
  Purchase of Bank Owned Life Insurance                                                   --        (750)
  Proceeds from sale of real estate and repossessed assets                             1,256       1,448
  Net loan repayments (originations)                                                 (17,659)     (4,681)
  Proceeds from sale of fixed assets                                                      --         116
  Capital expenditures                                                                   (60)       (868)
                                                                                    --------    --------
         Net cash provided by (used in) investing activities                         (13,765)     (2,760)
                                                                                    --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase (decrease) in deposits, net                                                11,524        (156)
  Repayment of borrowings                                                               (750)         --
  Proceeds from borrowings                                                               425         605
  Proceeds from exercise of stock options                                                 67          --
  Dividends paid                                                                        (492)       (488)
  Proceeds from dividend reinvestment                                                     60          67
  Purchase of treasury stock for Deferred Compensation Plan                              (27)        (18)
                                                                                    --------    --------
         Net cash provided by (used in) financing activities                          10,807          10
                                                                                    --------    --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                  (1,877)       (225)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                      25,432      22,605
                                                                                    --------    --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                          $ 23,555    $ 22,380
                                                                                    ========    ========
SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid during the period for -
     Income taxes                                                                   $     88    $    122
     Interest                                                                          2,057       2,656
  Non-cash transactions -
     Transfer of loans receivable to real estate owned                                   548
                                                                                                   1,212
     Reclass of securities from held-to-maturity to available-for-sale                    --      11,018
</TABLE>

See accompanying notes to unaudited condensed consolidated financial statements.


                                        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
June 30, 2003, and December 31, 2002, and for the three and six months ended
June 30, 2003 and 2002, include the accounts of the Company, FSC 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 six
months ended June 30, 2003, 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, 2002.
The accounting policies followed by the Company are set forth in the Summary of
Significant Accounting Policies in the Company's December 31, 2002, Consolidated
Financial Statements.

2. SIGNIFICANT ACCOUNTING POLICIES

Securities

The Company classifies securities as either available-for-sale or
held-to-maturity based on management's intent at the time of purchase and the
Company's ability to hold such securities to maturity.

Securities designated as available-for-sale are carried at fair value. The
unrealized difference between amortized cost and fair value of securities
available-for-sale is excluded from earnings and is reported net of deferred
taxes as a component of stockholders' equity in accumulated other comprehensive
income. This caption includes securities that management intends to use as part
of its asset/liability management strategy or that may be sold in response to
changes in interest rates, changes in prepayment risk, liquidity needs, or for
other purposes. Gains and losses on the sale of available-for-sale securities
are determined using the specific identification method.

Premiums and discounts are recognized in interest income using a method that
approximates the effective interest method.

Loans Held for Sale

Loans held for sale are recorded at the lower of amortized cost or fair value,
as such loans are not intended to be held to maturity. As of June 30, 2003, and
December 31, 2002, loans held for sale consisted of mortgage loans that have
been committed for sale to third-party investors.

Loans Receivable

Loans receivable are stated at unpaid principal balances, net of the allowance
for loan losses and deferred loan origination fees and costs. Interest is
credited to income based upon the recorded investment.

The accrual of interest on loans is discontinued and an allowance established
when a loan becomes 90 days past due and, in the opinion of managements, there
is an indication that the borrower may be unable to meet payments as they become
due. Upon such discontinuance, all unpaid accrued interest is reversed against
current


                                        6

<PAGE>

income unless the collateral for the loan is sufficient to cover the accrued
interest. Interest received on nonaccrual loans generally is either applied
against principal or reported as interest income, according to management's
judgment as to the collectibility of principal. Generally, loans are restored to
accrual status when the obligation is brought current and the ultimate
collectibility of the total contractural principal and interest is no longer in
doubt.

Allowance for Loan Losses

The allowance for loan losses is maintained at levels which management considers
adequate to absorb losses currently in the loan portfolio at each reporting
date. Management's estimation of this amount includes a review of all loans for
which full collectibility is not reasonably assured and considers, among other
factors, prior years' loss experience, economic conditions, distribution of
portfolio loans by risk class, the estimated value of underlying collateral, and
the balance of any impaired loans (generally considered to be nonperforming
loans, excluding residential mortgages and other homogeneous loans). Though
management believes the allowance for loan losses to be adequate, ultimate
losses may vary from estimations; however, the allowance is reviewed
periodically and as adjustments become necessary they are reported in earnings
in the periods in which they become known. Specific allowances for impaired
loans are based on comparisons of the carrying values of the loans to the
present value of the loans' estimated cash flows at each loan's original
effective interest rate, the fair value of the collateral, or the loans'
observable market prices.

3. EARNINGS AND DIVIDENDS PER SHARE:

Earnings per share ("EPS") for the three and six months ended June 30, 2003 and
2002, respectively, were as follows:

<TABLE>
<CAPTION>
                                       Three Months                           Three Months
                                   Ended June 30, 2003                    Ended June 30, 2002
                           ------------------------------------   ------------------------------------
                                         Dilutive                               Dilutive
                                        Effect of                              Effect of
                                         Options                                Options
                              Basic       Issued      Diluted        Basic       Issued       Diluted
                           ----------   ----------   ----------   ----------   ----------   ----------
<S>                        <C>          <C>          <C>          <C>          <C>          <C>
Net income                 $  229,000           --   $  229,000   $   38,000           --   $   38,000

Shares available to
     common shareholders    2,299,275       24,798    2,324,073    2,269,076       30,007    2,299,083
                           ----------   ----------   ----------   ----------   ----------   ----------

Earnings per share         $     0.10           --   $     0.10   $     0.02           --   $     0.02
                           ==========   ==========   ==========   ==========   ==========   ==========
<CAPTION>

                                        Six Months                             Six Months
                                   Ended June 30, 2003                    Ended June 30, 2002
                           ------------------------------------   ------------------------------------
                                         Dilutive                               Dilutive
                                        Effect of                              Effect of
                                         Options                                Options
                              Basic       Issued      Diluted        Basic       Issued       Diluted
                           ----------   ----------   ----------   ----------   ----------   ----------
<S>                        <C>          <C>          <C>          <C>          <C>          <C>
Net income                 $  362,000           --   $  362,000   $  136,000           --   $  136,000

Shares available to
     common shareholders    2,295,417       22,812    2,318,229    2,265,932       13,266    2,279,198
                           ----------   ----------   ----------   ----------   ----------   ----------

Earnings per share         $     0.16           --   $     0.16   $     0.06           --   $     0.06
                           ==========   ==========   ==========   ==========   ==========   ==========
</TABLE>

Options to purchase 59,304 and 66,574 shares of common stock at prices ranging
from $7.00 to $12.50 and $7.75 to $12.50 were outstanding during the quarters
ended June 30, 2003 and 2002, respectively, and options to purchase 61,304 and
66,574 shares of common stock at prices ranging from $7.00 to $12.50 and $7.75
to $12.50 were outstanding during the six month ended June 30, 2003 and 2002,
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.


                                        7

<PAGE>

There were 43,931 and 52,717 shares of common stock held by the Employee Stock
Ownership Plan and unallocated at June 30, 2003 and 2002, respectively. These
shares are outstanding but not included in the computation of earnings per
share.

Dividends declared for the quarter ended June 30, 2003, consisted of a $.07 per
share quarterly dividend.

4. 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 June 30, 2003 and 2002.

                                         Three Months Ended June 30, 2003
                              -------------------------------------------------
                                Banking     Holding                     Total
                              Operations    Company    Eliminations    Company
                              ----------  ----------   ------------  ----------
                                              (In thousands)
Net interest income           $    1,277  $        6   $         --  $    1,283
Provision for loan losses            315          --             --         315
Noninterest income                   762          26             --         788
Noninterest expense                1,299         154             --       1,453
                              ----------  ----------   ------------  ----------
     Income before income
         taxes                       425        (122)            --         303
Income tax expense (benefit)         127         (53)            --          74
                              ----------  ----------   ------------  ----------
     Net income               $      298  $      (69)  $         --  $      229
                              ==========  ==========   ============  ==========
     Total assets             $  187,256  $   19,936   $    (17,894) $  189,298
                              ==========  ==========   ============  ==========
     Capital Expenditures     $       46  $       --   $         --  $       46
                              ==========  ==========   ============  ==========


                                        Three Months Ended June 30, 2002
                              -------------------------------------------------
                                Banking     Holding                     Total
                              Operations    Company    Eliminations    Company
                              ----------  ----------   ------------  ----------
                                              (In thousands)
Net interest income           $    1,497  $        9   $         --  $    1,506
Provision for loan losses            285          --             --         285
Noninterest income                   459          25             --         484
Noninterest expense                1,593          98             --       1,691
                              ----------  ----------   ------------  ----------
     Income before income
         taxes                        78         (64)            --          14
Income tax expense (benefit)           8         (32)            --         (24)
                              ----------  ----------   ------------  ----------
     Net income               $       70  $      (32)  $         --  $       38
                              ==========  ==========   ============  ==========
     Total assets             $  181,468  $   19,327   $    (17,976) $  182,819
                              ==========  ==========   ============  ==========
     Capital Expenditures     $      330  $       --   $         --  $      330
                              ==========  ==========   ============  ==========


                                        Six Months Ended June 30, 2003
                              -------------------------------------------------
                                Banking     Holding                     Total
                              Operations    Company    Eliminations    Company
                              ----------  ----------   ------------  ----------
                                              (In thousands)
Net interest income           $    2,465  $       13   $         --  $    2,478
Provision for loan losses            426          --             --         426
Noninterest income                 1,217          51             --       1,268
Noninterest expense                2,592         273             --       2,865
                              ----------  ----------   ------------  ----------
     Income before income
         taxes                       664        (209)            --         455
Income tax expense (benefit)         187         (94)            --          93
                              ----------  ----------   ------------  ----------
     Net income               $      477  $     (115)  $         --  $      362
                              ==========  ==========   ============  ==========
     Total assets             $  187,256  $   19,936   $    (17,894) $  189,298
                              ==========  ==========   ============  ==========
     Capital Expenditures     $       60  $       --   $         --  $       60
                              ==========  ==========   ============  ==========


                                        8

<PAGE>

                                         Six Months Ended June 30, 2002
                              -------------------------------------------------
                                Banking     Holding                     Total
                              Operations    Company    Eliminations    Company
                              ----------  ----------   ------------  ----------
                                              (In thousands)
Net interest income           $    2,962  $       17   $         --  $    2,979
Provision for loan losses            681          --             --         681
Noninterest income                   816          50             --         866
Noninterest expense                2,821         228             --       3,049
                              ----------  ----------   ------------  ----------
     Income before income
         taxes                       276        (161)            --         115
Income tax expense (benefit)          55         (76)            --         (21)
                              ----------  ----------   ------------  ----------
     Net income               $      221  $      (85)  $         --  $      136
                              ==========  ==========   ============  ==========

     Total assets             $  181,468  $   19,327   $    (17,976) $  182,819
                              ==========  ==========   ============  ==========
     Capital Expenditures     $      868  $       --   $         --  $      868
                              ==========  ==========   ============  ==========


5.   STOCK-BASED COMPENSATION

In accordance with provisions of Statement of Financial Accounting Standard
("SFAS") 123, the Company has elected to continue to apply, APB Opinion 25 and
related Interpretations. In December 2002, SFAS 148, Accounting for Stock-Based
Compensation - Transition and Disclosure, was issued which provides alternative
methods of transition for a voluntary change to the fair value based method of
accounting for stock-based compensation. This Statement amends the disclosure
requirements of SFAS 123 to require prominent disclosures in both annual and
interim financial statements about the method of accounting for stock-based
employee compensation and the effect of the method used on reported results.
Under the Company's stock option plan, all options granted are exercisable.
During the quarter and six months ended June 30, 2002, the Company did not issue
any stock options. Therefore, no pro forma disclosure is required for the
quarter and six months ended June 30, 2002, related to stock-based compensation.

If the Company had elected to recognize compensation cost for options granted
during the quarter and six months ended June 30, 2003, based on the fair value
of the options as required by SFAS 123, net income and earnings per share would
have been reduced to the pro forma amounts indicate below:

                                      Three Months         Six Months
                                          Ended               Ended
                                      June 30, 2003       June 30, 2003
                                      -------------       -------------
                                   (In thousands, except per share amounts)

Net income - as reported                 $   229             $   362
Stock-based compensation expense               7                   7
                                         -------             -------
Net income - proforma                        222                 355
                                         =======             =======

Earnings per share - as reported
     Basic                               $   .10             $   .16
     Diluted                             $   .10             $   .16

Earnings per share - pro forma
     Basic                               $   .10             $   .15
     Diluted                             $   .10             $   .15

The fair value of each option grant is estimated on the date of grant using the
Black-Scholes option pricing model using the following assumptions:

                Expected dividend yield                   5.26%
                Expected stock price volatility             38%
                Risk-free interest rate                   2.27%
                Expected life of options                 5 Years


                                        9

<PAGE>

6.   RECENT ACCOUNTING PRONOUNCEMENTS:

In April 2003, the Financial Accounting Standards Board ("FASB") issued SFAS No.
149, Amendment of Statement 133 on Derivative Instruments and Hedging
Activities. ("SFAS No. 149") amends and clarifies accounting for derivative
instruments, including certain derivative instruments embedded in other
contracts, and for hedging activities under SFAS No. 133. The new guidance
amends SFAS No. 133 for decisions made as part of the Derivatives Implementation
Group process that effectively required amendments to SFAS No. 133, and
decisions made in connection with other FASB projects dealing with financial
instruments and in connection with implementation issues raised in relation to
the application of the definition of a derivative and characteristics of a
derivative that contains financing components. In addition, it clarifies when a
derivative contains a financing component that warrants special reporting in the
statement of cash flows. SFAS No. 149 is effective for contracts entered into or
modified after June 30, 2003 and for hedging relationships designated after June
30, 2003. The Company is currently assessing the impact of SFAS No. 149 on the
consolidated financial position and results of operations.

In May 2003, the FASB issued SFAS No. 150, Accounting for Certain Financial
Instruments with Characteristics of both Liability and Equity, which establishes
standards for classification and measurement of financial instruments with
characteristics of both liabilities and equity. Many of these instruments were
previously classified as equity. The Company does not anticipate that the
statement will have a material impact on the Condensed Consolidated Financial
Statements.

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.

Comparison of Financial Condition as of June 30, 2003, and December 31, 2002

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

Interest-bearing deposits and federal funds sold decreased $1,925, or 8.5%, to
$20,588 at June 30, 2003. The decrease is substantially the result of the funds
being invested in new loan originations.

Securities available-for-sale decreased $2,303, or 7.5%, to $28,329 at June 30,
2003. During the six months ended June 30, 2003, investments totaling $4,770
were called or matured, $8,120 were purchased and $5,749 were sold.

Loans receivable, net, at June 30, 2003, were $120,959, an increase of $16,649
or 16.0%, from $104,310 at December 31, 2002. The increase was primarily the
result of increased portfolio originations in connection with a new treasury
based adjustable rate commercial mortgage program.

The Company's consolidated allowance for loan losses increased to $1,154 at June
30, 2003, from $1,059 at December 31, 2002. This increase was partially due to a
provision to the allowance for loan losses of $426, net of charge-offs over
recoveries of $331. Nonperforming loans at June 30, 2003, increased to $1,711,
or 1.4% of loans receivable, from $655, or 0.63% of loans receivable, at
December 31, 2002. Nonperforming loans included one large loan in excess of $600
which was paid off in July 2003. At June 30, 2003, there were no material loans
not included in nonperforming loans which represented material credits about
which management


                                       10

<PAGE>

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, decreased $96, or 2.3%, to $4,169 at June
30, 2003. The decrease was substantially the result of increases in accumulated
depreciation.

Real estate owned was $1,021 at June 30, 2003, a decrease of $877 from December
31, 2002. The decrease is substantially the result of the disposition of fifteen
properties, net of seven foreclosures, during the six months ended June 30,
2002.

Deposits increased $11,524, or 8.2%, to $151,455 at June 30, 2003, from $139,931
at December 31, 2002. The increase was primarily the result of increases in
commercial checking accounts.

Borrowings decreased by $325, or 1.8%, to $17,680 at June 30, 2003, as a result
of a $750 repayment net of a $425 draw on a line of credit by the Company.

The Company had stockholders' equity of $18,967 as of June 30, 2003, an increase
of $159, or 0.8%, from $18,808 as of December 31, 2002. Net income for the six
months ended June 30, 2003, was $362. Equity was decreased by dividends of $.21
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 June 30, 2003, the Bank had commitments to originate
and fund loans of $14.1 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 June 30, 2003, was 15.0%,
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 June 30, 2003.

                                        First Financial          The Company
                                       -----------------      -----------------
Tier 1 Risk-Based Capital
Stockholders' Equity less goodwill     $15,458     11.10%     $17,037     12.11%
Minimum Required                         5,566      4.00%       5,628      4.00%
                                       -------     -----      -------     -----
Excess                                 $ 9,892      7.10%     $11,409      8.11%
                                       =======     =====      =======     =====
Total Risk-Based Capital
Tier 1 Capital plus allowances
  for loan losses                      $16,612     11.93%     $18,191     12.93%
Minimum Required                        11,133      8.00%      11,256      8.00%
                                       -------     -----      -------     -----
Excess                                 $ 5,479      3.93%     $ 6,935      4.93%
                                       =======     =====      =======     =====
Tier 1 Leverage                        $15,458      8.55%     $17,037      9.31%
Minimum Leverage Requirement             7,236      4.00%       7,316      4.00%
                                       -------     -----      -------     -----
Excess                                 $ 8,222      4.55%     $ 9,721      5.31%
                                       =======     =====      =======     =====

As of June 30, 2003, 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.


                                       11


<PAGE>


Results of Operations - Comparison of the Three Months Ended June 30,
2003 and 2002

Net income for the three months ended June 30, 2003, was $229, an increase of
$191, or 502.6%, from net income of $38 for the three months ended June 30,
2002. The increase was primarily attributable to a $299 gain recorded on the
sale of investments and a decrease in noninterest expense offset by a decrease
in net interest income.

Interest Income

Total interest income decreased $462, or 16.7%, to $2,297 for the six months
ended June 30, 2003. This decrease was primarily due to a decrease in the
average yield on interest-earning assets to 5.4% for the three months ended June
30, 2003, from 6.7% for the same quarter a year ago.

Interest Expense

Interest expense for the quarter ended June 30, 2003, was $1,014, a decrease of
$239, or 19.1%, from $1,253 for the quarter ended June 30, 2002. The decrease
was substantially the result of a decrease in the average rate paid on
interest-bearing liabilities to 2.5% for the three months ended June 30, 2003,
compared to 3.1% for the corresponding quarter of the previous year.

Net Interest Income

Net interest income for the quarter ended June 30, 2003, decreased $223, or
14.8%, to $1,283 from the quarter ended June 30, 2002, level of $1,506. The
decrease was primarily the result of a decrease in the average net interest
spread to 3.0% for the quarter ended June 30, 2003 compared to 3.6% for the same
period a year ago. The net interest margin decreased to 3.0% in the quarter
ended June 30, 2003 compared to 3.7% for the same quarter a year ago.

Provision for Loan Losses

Management increased the Company's total allowance for loan losses by a charge
to the provision of $315 during the quarter ended June 30, 2003. The allowance
for loan losses is based on management's evaluation of losses inherent 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. Although management believes that
it uses the best information available to make such determinations, future
adjustments to allowances may be necessary, and net earnings could be
significantly affected if circumstances differ substantially from the
assumptions used in making the initial determination.

Noninterest Income

Noninterest income during the quarter ended June 30, 2003, increased $304, to
$788, from the June 30, 2003, level of $484. The increase in noninterest income
is primarily the result of a gain on the sale of investments totaling $299.

Noninterest Expenses

Noninterest expenses during the quarter ended June 30, 2003, decreased $238, or
14.1%, to $1,453, from the June 30, 2002, quarter of $1,691. The decrease was
primarily attributable to an unusual pension expense of $238 recorded in the
prior year. The decrease in other operating expense is attributable to a $30
reduction in data processing cost as a result of the merger of the subsidiary
banks in March of the prior year and merger related expenses of $45 recorded in
the prior year.

Income Taxes

The provision for income taxes increased $98, to $74 for the quarter ended June
30, 2003, as compared to the corresponding quarter in the previous year. The
increased tax expense was due primarily to an increase in pretax income.


                                       12

<PAGE>

Results of Operations - Comparison of the Six Months Ended June 30,
2003 and 2002

Net income for the six months ended June 30, 2003, was $362, an increase of
$226, or 166.2%, from net income of $136 for the six months ended June 30, 2002.
The increase was the result of reduced provisions for loan losses, a $299 gain
on the sale of investments and decreased noninterest expense, somewhat offset by
a decline in net interest income.

Interest Income

Total interest income decreased $1,062, or 19.0%, to $4,526 for the six months
ended June 30, 2003. This decrease was substantially the result of a decrease in
the average yield on the interest-earning assets to 5.5% during the six months
ended June 30, 2003, from 6.7% during the six months ended June 30, 2002.

Interest Expense

Interest expense for the six months ended June 30, 2003, decreased $561, or
21.5%, to $2,048, from $2,609 during the six months ended June 30, 2002. This
decrease was primarily attributable to a decrease in the average rate paid on
interest-bearing liabilities to 2.5% for the six month period ended June 30,
2003, compared to 3.1% for the same period a year ago.

Net Interest Income

Net interest income for the six months ended June 30, 2003, decreased $501, or
16.8%, to $2,478, from $2,979 for the six months ended June 30, 2002. This
decrease was due primarily to a decrease in the average net interest spread to
3.0% for the six months ended June 30, 2003, from 3.6% for the six months ended
June 30, 2002. The net interest margin decreased to 3.0% in the six months ended
June 30, 2003, from 3.6% in the six months ended June 30, 2002.

Provision for Loan Losses

Management increased the Company's total allowance for loan losses by a charge
to the provision of $426 during the quarter ended June 30, 2003. The allowance
for loan losses is based on management's evaluation of losses inherent 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.

Noninterest Income

Noninterest income for the six months ended June 30, 2003, totaled $1,268 as
compared to $866 for the six months ended June 30, 2002. The increase in
noninterest income was substantially the result of a $299 gain on the sale of
investments.

Noninterest Expenses

Noninterest expenses during the six months ended June 30, 2003, decreased $184
to $2,865 from the 2002 level of $3,049. The decrease in noninterest expense
from a year ago is primarily attributable to an unusual pension expense of $238
recorded in the prior year. The decrease in other operating expense is
attributable to a $30 reduction in data processing cost as a result of the
merger of the subsidiary banks in the prior year and merger related expense of
$45 recorded in the prior year.

Income Taxes

The provision (credit) for income taxes increased $114, to $93 for the six
months ended June 30, 2003, as compared to a credit of $21 for the corresponding
period of the prior year. The increased tax expense was due to the increase in
pretax income and an increase in tax-exempt income when compared to the same
period a year ago.


                                       13

<PAGE>

Recent Events

The Bank signed an agreement to purchase certain assets and assume the deposits
of the Centreville, Alabama branch of First Federal of the South. Total
deposits, which approximate $8.0 million, will be added to the Bank's current
Centreville location. A deposit premium of 3% will be paid.

Proposed Tax Plan

On September 9, 2003, Alabama voters will vote on a proposed amendment to the
state constitution which, if approved, is expected to increase significantly
state income taxes paid by the Company and the Bank.

ITEM 3.  CONTROLS AND PROCEDURES

The Company carried out an evaluation under the supervision and with the
participation of the Company's management, including the Company's Chief
Executive Officer and the Company's Chief Financial Officer, of the
effectiveness of the design and operation of the Company's disclosure controls
and procedures as of June 30, 2003, pursuant to Exchange Act Rule 13a-15(b).
Based upon that evaluation, the Company's Chief Executive Officer and the
Company's Chief Financial Officer concluded that the Company's disclosure
controls and procedures, as designed and implemented, are effective in alerting
them in a timely manner to material information relating to the Company
(including its consolidated subsidiaries) required to be included in the
Company's periodic SEC filings.

In addition, the Company reviewed its internal controls. There have been no
significant changes in the Company's internal controls or in other factors that
could significantly affect these controls subsequent to the date the Company
conducted its evaluation.

Disclosure controls and procedures are designed to ensure that information
required to be disclosed in reports filed by the Company under the Exchange Act
is recorded, processed, summarized and reported within the time periods
specified in the SEC's rules and forms. Disclosure controls are also designed
with the objective of ensuring that such information is accumulated and
communicated to the Company's management, including the Chief Executive Officer
and the Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosures. Disclosure controls include internal controls
that are designed to provide reasonable assurance that transactions are properly
authorized, assets are safeguarded against unauthorized or improper use and
transactions are properly recorded and reported.

Any control system, no matter how well conceived and operated, can provide only
reasonable assurance that its objectives are achieved. The design of a control
system inherently has limitations, including the controls' cost relative to
their benefits. Additionally, controls can be circumvented. No cost-effective
control system can provide absolute assurance that all control issues and
instances of fraud, will be detected.

                            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 June 30, 2003, 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.


                                       14

<PAGE>

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

On April 22, 2003, the Company held the 2003 Annual Meeting of Stockholders. The
election of Fred T. Blair and G. Larry Russell as directors, each for a
three-year term, was submitted to a vote of the stockholders. The following is
the result of the vote:

                                           For       Withheld
                                        ---------    --------
                   Fred T. Blair        1,969,346     12,600
                   G. Larry Russell     1,981,946         --

There were no abstentions or broker non-votes.

Also, the stockholders voted on the ratification of the appointment of KPMG LLP
as independent auditors for the Company for the fiscal year ending December 31,
2003. The following is the result of the vote.

                        For            Against         Abstain
                     ---------        ---------       ---------
                     1,979,642            --            2,304

There were no broker non-votes.

ITEM 5.  OTHER INFORMATION

None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits.

      Exhibit 31.1 - Certification of Chief Executive Officer pursuant to
      Section 302 of the Sarbanes-Oxley Act of 2002.

      Exhibit 31.2 - Certification of Chief Financial Officer pursuant to
      Section 302 of the Sarbanes-Oxley Act of 2002.

      Exhibit 32.1 - Certification Pursuant to Section 906 of the Sarbanes-Oxley
      Act of 2002

(b)   Reports on Form 8-K.

      A Current Report on Form 8-K dated April 30, 2003, furnishing under Item 9
      (pursuant to Item 12) announcement of the Company's results of operations
      for the quarter ended June 30, 2003.



                                       15

<PAGE>

                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                      FIRSTFED BANCORP, INC.

Date: August 13, 2003                               \s\ B. K. Goodwin , III
      ---------------                               ---------------------------
                                                       B. K. Goodwin, III,
                                                       Chairman of the Board,
                                                       Chief Executive Officer,
                                                       and President



Date: August 13, 2003                               \s\ Lynn J. Joyce
      ---------------                               ---------------------------
                                                       Lynn J. Joyce
                                                       Chief Financial Officer,
                                                       Executive Vice President,
                                                       Secretary and Treasurer



                                       16