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, 2001

|_|      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 7, 2001
----------------------------                      --------------------------
Common Stock, $.01 par value                            2,548,761 shares

Transitional Small Business Disclosure Format (Check one):

         YES                        NO    X
             -------                   ------


<PAGE>


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


<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS:
<S>                                                                                                              <C>
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
  AS OF MARCH 31, 2001, AND DECEMBER 31, 2000.....................................................................2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME  FOR THE THREE
  MONTHS ENDED MARCH 31, 2001 AND 2000............................................................................3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY FOR THE THREE
  MONTHS ENDED MARCH 31, 2001 AND 2000 ...........................................................................4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE
  THREE MONTHS ENDED MARCH 31, 2001 AND 2000......................................................................5

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

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
              OF OPERATION........................................................................................8

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........................................................................11

SIGNATURES.......................................................................................................12
</TABLE>


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

                             FIRSTFED BANCORP, INC.
       UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                   As of March 31, 2001 and December 31, 2000
                          (Dollar amounts in thousands)

<TABLE>
<CAPTION>
                                                                                    March 31,     December 31,
ASSETS                                                                                2001            2000
                                                                                   -----------    ------------
Cash and Cash Equivalents:
<S>                                                                                <C>            <C>
         Cash on hand and in banks                                                 $     4,099    $     3,173
         Interest-bearing deposits in other banks                                        9,472          1,520
         Federal funds sold                                                             12,989             43
                                                                                   -----------    -----------
                                                                                        26,560          4,736
                                                                                   -----------    -----------
Securities available-for-sale, at fair value                                             5,376          9,090
Loans held for sale                                                                      1,423            351
Securities held-to-maturity, at amortized cost, fair
         value of $23,656 and $15,903, respectively                                     23,418         15,833
Loans receivable, net                                                                  119,093        118,536
Land, buildings and equipment, net                                                       3,237          3,256
Goodwill                                                                                 1,065          1,092
Real estate owned                                                                        1,823          1,916
Accrued interest receivable                                                              1,770          1,807
Other assets                                                                               280            587
                                                                                   -----------    -----------
                                                                                   $   184,045    $   157,204
                                                                                   ===========    ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
         Deposits                                                                  $   146,049    $   136,417
         Other borrowings                                                               17,000           --
         Accrued interest payable                                                          190             85
         Dividends payable                                                                 178            178
         Other liabilities                                                                 420            364
                                                                                   -----------    -----------
                                                                                       163,837        137,044
Stockholders' Equity:
         Preferred stock, $.01 par value, 1,000,000 shares
                  authorized, none outstanding                                            --             --
         Common stock, $.01 par value, 10,000,000 shares
                  authorized, 3,125,998 shares issued 2,546,096 shares
                  outstanding at March 31, 2001 and 3,118,273 shares issued and
                  2,538,371 shares outstanding at
                  December 31, 2000                                                         31             31
         Paid-in capital                                                                 8,002          7,954
         Retained earnings                                                              16,721         16,823
         Deferred compensation obligation                                                1,613          1,580
         Deferred compensation treasury stock (183,183
                  shares at March 31, 2001 and 180,663 shares at
                  December 31, 2000)                                                    (1,678)        (1,654)
         Treasury stock, at cost (579,902 shares at March 31, 2001
                  and December 31, 2000)                                                (3,752)        (3,752)
         Unearned compensation                                                            (766)          (811)
         Accumulated other comprehensive income (loss)                                      37            (11)
                                                                                   -----------    -----------
                                                                                        20,208         20,160
                                                                                   -----------    -----------
                                                                                   $   184,045    $   157,204
                                                                                   ===========    ===========
</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, 2001 and 2000
             (Dollar amounts in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                   Three Months Ended
                                                       March 31,
                                              --------------------------
                                                  2001           2000
                                              -----------    -----------
INTEREST INCOME:
<S>                                           <C>            <C>
         Interest and fees on loans           $     2,819    $     2,574
         Interest and dividends on
           securities                                 517            458
         Other interest income                        167            178
                                              -----------    -----------
           Total interest income                    3,503          3,210
                                              -----------    -----------

INTEREST EXPENSE:
         Interest on deposits                       1,592          1,518
         Interest on other borrowings                 192           --
                                              -----------    -----------
            Total interest expense                  1,784          1,518
                                              -----------    -----------

  Net interest income                               1,719          1,692
         (Credit) provision for loan losses           (61)            29
                                              -----------    -----------
  Net interest income after
    provision for loan losses                       1,780          1,663
                                              -----------    -----------

NONINTEREST INCOME:
         Fees and other noninterest income            269            216
                                              -----------    -----------
           Total noninterest income                   269            216
                                              -----------    -----------

NONINTEREST EXPENSE:
         Salaries and employee benefits               857            737
         Office building and equipment
           expenses                                   150            149
         Amortization of goodwill                      27             27
         Other operating expenses                     487            360
                                              -----------    -----------
           Total noninterest expenses               1,521          1,273
                                              -----------    -----------
  Income before income taxes                          528            606

         Provision for income taxes                   197            221
                                              -----------    -----------
  NET INCOME                                  $       331    $       385
                                              ===========    ===========

AVERAGE NUMBER OF SHARES
         OUTSTANDING - BASIC                    2,480,582      2,437,021
                                              ===========    ===========
BASIC EARNINGS PER SHARE                      $       .13    $       .16
                                              ===========    ===========
AVERAGE NUMBER OF SHARES
         OUTSTANDING - DILUTED                  2,533,265      2,518,683
                                              ===========    ===========
DILUTED EARNINGS PER SHARE                    $       .13    $       .15
                                              ===========    ===========
DIVIDENDS DECLARED PER SHARE                  $       .17    $       .14
                                              ===========    ===========
</TABLE>


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, 2001 and 2000
             (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, 1999         $    31  $ 7,773   $ 16,155  $    1,307  $ (1,433)  $ (3,752) $    (934) $     (167)

     Net income                          -        -        385           -         -          -          -           -    $    385
     Change in unrealized gain
         (loss) on securities
         available for sale, net
         of tax of $31                   -        -          -           -         -          -          -          87          87
                                                                                                                          ---------
     Comprehensive income                -        -          -           -         -          -          -           -    $    472
                                                                                                                          ========
     Amortization of unearned
         compensation                    -        -          -           -         -          -         37           -
     Dividends declared ($.14
         per share)                      -        -       (351)          -         -          -          -           -
     Amortization of Deferred
         Compensation                    -        -          -          13         -          -          -           -
     Purchase of Deferred
         Compensation Treasury           -        -          -          33       (33)         -          -           -
     Stock issued under Dividend
         Reinvestment Plan               -       47          -           -         -          -          -           -
                                   -------- -------   --------  ----------  ---------- --------  ---------- -----------
BALANCE, March 31, 2000            $    31  $ 7,820   $ 16,189  $    1,353  $ (1,466)  $ (3,752)  $   (897) $      (80)
                                   ======== =======   ========  ==========  ========== ========  ========== ===========

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
                                   ======== =======   ========  ==========  ========== ========  ========== ===========
</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, 2001 and 2000
                          (Dollar amounts in thousands)
                               Three Months Ended

<TABLE>
<CAPTION>
                                                                                                 March 31,
                                                                                        ---------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:                                                      2001              2000
                                                                                        ----------        ---------
<S>                                                                                      <C>               <C>
  Net income                                                                             $    331          $    385
  Adjustments to reconcile net income
      to net cash provided by (used in) operating activities:
     Depreciation, amortization and accretion                                                  85               131
     Loan fees (cost) deferred, net                                                            52                 7
     (Credit) provision for loan losses                                                       (61)               29
     Provision for real estate owned losses                                                   100              --
     Loss (gain) on sale of real estate, net                                                   12                36
     Origination of loans held for sale                                                    (2,939)           (1,324)
     Proceeds from loans held for sale                                                      1,867             1,473
     Amortization of goodwill                                                                  27                27
     Provision for deferred compensation                                                       24                33
     Decrease (increase) in assets:
         Accrued interest receivable                                                           37               108
         Other assets                                                                         278               118
     Increase (decrease) in liabilities:
         Accrued interest payable                                                             105                19
         Other liabilities                                                                     56                15
                                                                                         --------          --------
           Net cash provided by (used in) operating activities                                (26)            1,057
                                                                                         --------          --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from maturities of securities available-for-sale                                 3,500               200
  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             8,978               457
  Purchases of securities held-to-maturity                                                (16,576)             --
  Proceeds from sale of real estate and repossessed assets                                     42               100
  Net loan repayments (originations)                                                         (569)              188
  Capital expenditures                                                                        (44)              (13)
                                                                                         --------          --------
         Net cash provided by (used in) investing activities                               (4,373)              932
                                                                                         --------          --------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase (decrease) in deposits, net                                                      9,632             1,886
  Proceeds from Federal Home Loan Bank advances                                            17,000              --
  Proceeds from exercise of stock options                                                       4              --
  Dividends paid                                                                             (433)             (351)
  Proceeds from dividend reinvestment                                                          44                47
  Purchase of treasury stock for Deferred Compensation Plan                                   (24)              (33)
                                                                                         --------          --------
         Net cash provided by (used in) financing activities                               26,223             1,549
                                                                                         --------          --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                       21,824             3,538
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                            4,736            17,837
                                                                                         --------          --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                               $ 26,560          $ 21,375
                                                                                         ========          ========

SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid during the period for -
     Income taxes                                                                        $    149          $    100
     Interest                                                                               1,679             1,499
  Non-cash transactions -
     Transfer of loans receivable to real estate owned                                         59               304
</TABLE>


See accompanying notes to 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  Federal  Savings Bank ("First  Federal")  and First State
Corporation  ("FSC"),  which in turn is the sole shareholder of First State Bank
of Bibb County  ("First  State").  First Federal and First State are referred to
herein collectively as the "Banks".

The accompanying  unaudited condensed  consolidated  financial  statements as of
March 31, 2001,  and December 31, 2000, and for the three months ended March 31,
2001  and  2000,  include  the  accounts  of the  Company  and  the  Banks.  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, 2001,  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, 2000.
The accounting  policies followed by the Company are set forth in the Summary of
Significant Accounting Policies in the Company's December 31, 2000, Consolidated
Financial Statements.

2.   EARNINGS AND DIVIDENDS PER SHARE:
     ---------------------------------

Earnings  per share  ("EPS") for the three months ended March 31, 2001 and 2000,
respectively, were as follows:

<TABLE>
<CAPTION>
                                                   Three Months                                  Three Months
                                               Ended March 31, 2001                           Ended March 31, 2000
                                    -------------------------------------------     ------------------------------------------
                                                     Dilutive                                        Dilutive
                                                     Effect of                                       Effect of
                                                      Options                                        Options
                                       Basic          Issued         Diluted          Basic           Issued          Diluted
                                    ----------      -----------     ----------      ----------      ----------      ----------
<S>                                 <C>             <C>             <C>             <C>             <C>             <C>
Net income                          $  330,668            --        $  330,668      $  385,000            --        $  385,000

Shares available to
   common shareholders               2,480,582          52,683       2,533,265       2,437,021          81,662       2,518,683
                                    ----------      ----------      ----------      ----------      ----------      ----------

Earnings per share                  $     0.13            --        $     0.13      $     0.16            --        $     0.15
                                    ==========      ==========      ==========      ==========      ==========      ==========
</TABLE>

Options to purchase  39,590 and 12,958 shares of common stock at prices  ranging
from $8.88 to $12.50 and $11.00 to $12.50  were  outstanding  during the quarter
ended  March  31,  2001 and 2000,  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.

                                        6

<PAGE>


There were 61,503 and 70,289  shares of common stock held by the Employee  Stock
Ownership Plan and unallocated at March 31, 2001 and 2000,  respectively.  These
shares are  outstanding  but not  included in the  computation  of earnings  per
share.

Dividends declared for the quarter ended March 31, 2001, consisted of a $.10 per
share special dividend and $.07 per share quarterly dividend.

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, 2001 and 2000.

<TABLE>
<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
                                           =========       ===========       ==========       ==========

<CAPTION>

                                                                March 31, 2000
                                           ---------------------------------------------------------------
                                            Banking          Holding                              Total
                                           Operations        Company        Eliminations         Company
                                           ----------      -----------      ------------       -----------
                                                                  (In thousands)
<S>                                        <C>             <C>               <C>                <C>
Net interest income                        $    1,672      $        20       $        -         $    1,692
Provision for loan losses                          29                -                -                 29
Noninterest income                                216                -                -                216
Noninterest expense                             1,137              136                -              1,273
                                           ----------      ------------     ------------       -----------
     Income before income taxes                   722             (116)               -               606
Income tax expense                                260              (39)               -               221
                                           ----------      -----------      ------------       -----------
     Net income                            $      462      $       (77)     $         -        $      385
                                           ==========      ===========      ============       ===========

     Total assets                          $  173,236      $    19,487      $   (19,338)       $   173,385
                                           ==========      ===========      ============       ===========
</TABLE>



                                        7

<PAGE>

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 March 31, 2001, and December 31, 2000
-----------------------------------------------------------------------------

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 $20,898, or 1,337.04%, to
$22,461  at March 31,  2001.  The  increase  is  substantially  the result of an
increase in  deposits  and the  reduction  of  callable  investments  during the
quarter ended March 31, 2001.

Securities  available  for sale and held to maturity  increased in the aggregate
$3,871,  or 15.5%, to $28,794 at March 31, 2001.  During the quarter ended March
31,  2001,  $14,000 in corporate  bonds were  purchased  in  connection  with an
arbitrage   transaction  discussed  below.  An  additional  $4,000  in  treasury
investments  were also purchased.  Investments  totaling $11,600 were called and
$1,800 were sold during the quarter ended March 31, 2001.

Loans receivable, net, at March 31, 2001, were $119,093, an increase of $557, or
0.5%, from $118,536 at December 31, 2000. The increase in loans receivable, net,
was primarily due to a slight increase in the consumer and commercial  portfolio
loans.

The Company's  consolidated allowance for loan losses decreased to $843 at March
31, 2001,  from $966 at December 31, 2000.  This  decrease was  partially due to
charge-offs  over  recoveries  of $62,  plus a credit to the  allowance for loan
losses of $61.  Nonperforming  loans at March 31, 2001,  decreased to $1,371, or
1.15% of loans  receivable,  from  $2,693,  or  2.27%  of loans  receivable,  at
December 31, 2000. At March  31,2001,  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.

Real estate owned was $1,823 at March 31, 2001, a decrease of $93 from  December
31,  2000.  The  Company  established  a specific  reserve of $100 to state real
estate owned at realizable values.

Deposits increased $9,632, or 7.1%, to $146,049 at March 31, 2001, from $136,417
at December  31, 2000.  The  increase is primarily  the result of an increase in
certificate of deposit  accounts.  As markets  adjusted  during the three months
ended March 31, 2001, new funds were acquired in certificates of deposit.


                                        8

<PAGE>


Borrowings of $17 million were recorded during the quarter ended March 31, 2001,
which  represent  advances  from the  Federal  Home  Loan Bank of  Atlanta.  The
borrowings  were used to purchase $14 million in corporate  bonds and $3 million
was used for lending.  This arbitrage  transaction is expected to yield a return
on assets of over 1% after income taxes.

The  Company  had  stockholders'  equity of  $20,208  as of March 31,  2001,  an
increase of $48, or 0.2%, from $20,160 as of December 31, 2000. The increase was
primarily  attributable to net income for the three months ended March 31, 2001,
of $331,  less  dividends of $.17 per share.  Included in such  dividends  was a
special dividend of $.10 per share, which was declared during the first quarter.

Liquidity and Capital Resources

Traditionally,  the  Banks'  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,  First
Federal has borrowing  ability from the Federal Home Loan Bank of Atlanta if the
need for additional  funds arises.  At March 31, 2001, the Banks had commitments
to originate and fund loans of $14.3  million.  The Banks  anticipate  that they
will have sufficient funds available to meet their current commitments.

First  Federal is required by regulation  to maintain  minimum  levels of liquid
assets. The liquidity ratio of First Federal at March 31,2001,  was 13.9%, which
exceeded the applicable regulatory requirement.

Under  applicable  regulations,  First Federal,  First State 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,
2001.

<TABLE>
<CAPTION>
                                               First Federal              First State                The Company
                                             -----------------          ----------------         ------------------
RISK-BASED CAPITAL RATIOS
<S>                                         <C>         <C>             <C>      <C>            <C>         <C>
Tier 1 Capital
Stockholders' Equity less goodwill           $ 13,146   13.72%           $ 4,425  13.93%         $  19,106   14.64%
Minimum Required                                3,832    4.00%             1,271   4.00%              5,221   4.00%
                                             --------   -----            -------  -----          ----------  -----
Excess                                       $  9,314    9.72%           $ 3,154   9.93%         $  13,885   10.64%
                                             ========   =====            =======  =====          =========   =====
Total Capital
Tier 1 Capital plus allowances
  for loan losses                            $ 13,712   14.31%           $ 4,738  14.92%         $  19,985   15.31%
Minimum Required                                7,664    8.00%             2,541   8.00%            10,443    8.00%
                                             --------   -----            -------  -----          ---------   -----
Excess                                       $  6,048    6.31%           $ 2,197   6.92%         $   9,542    7.31%
                                             ========   =====            =======  =====          =========   =====

LEVERAGE RATIOS
Tier 1 Capital                               $ 13,146    9.29%           $ 4,425  10.18%         $  19,106   10.42%
Minimum Leverage Requirement                    5,662    4.00%             1,739   4.00%              7,335   4.00%
                                             --------   -----            -------  -----          ----------  -----
Excess                                       $  7,484    5.29%           $ 2,686   6.18%         $  11,771    6.42%
                                             ========   =====            =======  =====          =========   =====

TANGIBLE CAPITAL RATIO
Tangible Capital                             $ 13,146    9.29%                     N/A                        N/A
Tangible Capital Requirement                    2,123    1.50%
                                             --------   -----
Excess                                       $ 11,023    7.79%
                                             ========   =====
</TABLE>


As of March  31,  2001,  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 Banks' liquidity, capital resources or operations.


                                        9


<PAGE>

Results of  Operations - Comparison of the Three Months Ended March 31, 2001 and
2000

Net income for the three months  ended March 31,  2001,  was $331, a decrease of
$54,  or 14.0%,  from net income of $385 for the three  months  ended  March 31,
2000.  The  decrease  was  primarily  attributable  to a decrease  in the Banks'
interest rate spread and increases in operating costs.

Interest Income

Total interest  income  increased  $293, or 9.1%, to $3,503 for the three months
ended March 31,  2001.  This  increase was  primarily  due to an increase in the
average yield on  interest-earning  assets to 8.4% from 8.2%.  This increase was
also  attributable  to an increase in the average  balance of  interest-earnings
assets.

Interest Expense

Interest  expense for the quarter ended March 31, 2001, was $1,784,  an increase
of $266,  or 17.5%,  from  $1,518 for the  quarter  ended  March 31,  2000.  The
increase  was  primarily  the result of an increase in the average  rate paid on
interest-bearing  liabilities to 4.6% for the three months ended March 31, 2001,
compared to 4.0% for the corresponding quarter of the previous year, in addition
to an increase in the average balance.  The increase in the average rate paid on
interest-bearing  liabilities  is  primarily  the  result of the $17  million in
borrowings obtained during the quarter ended March 31, 2001.

Net Interest Income

Net  interest  income for the quarter  ended March 31, 2001,  increased  $27, or
1.6%,  to $1,719 from the quarter  ended March 31,  2000,  level of $1,692.  The
increase  was  partially  the result of an increase  in the  average  balance of
interest-earning  assets  and  interest-bearing  liabilities  during  the  first
quarter of fiscal 2001,  compared to the same period a year ago.  This  increase
was net of a decrease in the average net  interest  spread to 3.8% for the first
quarter of fiscal 2001  compared to 4.1% for the same period a year ago. The net
interest margin decreased to 4.1% in the first quarter of fiscal 2001.

(Credit) Provision for Loan Losses

Management  decreased the Company's  total allowance for loan losses by a credit
of $61 during the quarter ended March 31, 2001.  The Banks'  allowances for loan
losses were based on  management's  evaluation  of  possible  losses in the loan
portfolio  and  consider,  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 during the quarter ended March 31, 2001,  increased  $53, to
$269, from the March 31, 2000, level of $216. The increase in noninterest income
is primarily the result of an increase in secondary market fees for loans sold.

Noninterest Expenses

Noninterest expenses during the quarter ended March 31, 2001, increased $248, or
19.5%, to $1,521,  from the March 31, 2000,  quarter of $1,273. The increase was
attributable to increases in employee costs and



                                       10

<PAGE>

other operating expenses which included a provision of $100 for estimated losses
on real estate owned.

Income Taxes

The provision for income taxes  decreased $24, or 10.9%, to $197 for the quarter
ended March 31, 2001, as compared to the  corresponding  quarter in the previous
year. The decreased tax expense was due primarily to a decrease in pretax income
from the same period a year ago.

                            PART II-OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

From time to time, the Banks are parties to routine legal proceedings  occurring
in the  ordinary  course of  business.  At March 31,  2001,  there were no legal
proceedings  to which the  Company or the Banks 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.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a) Exhibits.

             None.

         (b) Reports on Form 8-K.

             None.



                                       11

<PAGE>


                                   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 11, 2001                         \s\ B. K. Goodwin , III
      ------------                      --------------------------------
                                             B. K. Goodwin, III,
                                            Chairman of the Board,
                                           Chief Executive Officer,
                                               and President



Date: May 11, 2001                          \s\ Lynn J. Joyce
      ------------                      --------------------------------
                                                Lynn J. Joyce
                                            Chief Financial Officer,
                                            Executive Vice President,
                                             Secretary and Treasurer



                                       12