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, 2004

|_|   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 11, 2004
      -----------------                         ---------------------------
Common Stock, $.01 par value                        2,386,279 shares

Transitional Small Business Disclosure Format
(Check one):

      YES |_| NO |X|

<PAGE>

                             FIRSTFED BANCORP, INC.

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

ITEM 1.  FINANCIAL STATEMENTS:

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
  AS OF MARCH 31, 2004 AND DECEMBER 31, 2003........................................2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME  FOR THE THREE
 MONTHS ENDED MARCH 31, 2004 AND 2003...............................................3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR
  THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003 ...................................4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE
  THREE MONTHS ENDED MARCH 31, 2004 AND 2003........................................5

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

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
  OF OPERATION..................................................................... 9

ITEM 3.  CONTROLS AND PROCEDURES...................................................12

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.........................................................13

ITEM 2.  CHANGES IN SECURITIES AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY
  SECURITIES.......................................................................13

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES...........................................13

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.......................13

ITEM 5.  OTHER INFORMATION.........................................................13

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K..........................................13

SIGNATURES.........................................................................14
</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.


                                       i.
<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                             FIRSTFED BANCORP, INC.
                 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
                               FINANCIAL CONDITION
                   As of March 31, 2004 and December 31, 2003
                          (Dollar amounts in thousands)

<TABLE>
<CAPTION>
                                                                                     March 31,      December 31,
ASSETS                                                                                  2004            2003
                                                                                     ---------       ---------
<S>                                                                                  <C>             <C>
Cash and Cash Equivalents:
         Cash on hand and in banks                                                   $   2,804       $   2,952
         Interest-bearing deposits in other banks                                        5,557           4,440
         Federal funds sold                                                                267             229
                                                                                     ---------       ---------
                                                                                         8,628           7,621
Securities available-for-sale, at fair value                                            26,453          30,740
Loans held for sale                                                                      1,037           1,033
Loans receivable, net                                                                  145,466         136,099
Land, buildings and equipment, net                                                       5,380           4,908
Bank owned life insurance                                                                6,100           6,009
Real estate owned                                                                        1,463           4,216
Accrued interest receivable                                                              1,144           1,095
Goodwill and other intangibles                                                           1,204           1,216
Other assets                                                                             4,311           1,274
                                                                                     ---------       ---------
                                                                                     $ 201,186       $ 194,211
                                                                                     =========       =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
         Deposits                                                                    $ 154,693       $ 151,109
         Borrowings                                                                     27,125          23,780
         Accrued interest payable                                                          221             217
         Dividends payable                                                                 167             166
         Other liabilities                                                                 455             387
                                                                                     ---------       ---------
                                                                                       182,661         175,659
                                                                                     ---------       ---------
Stockholders' Equity:
         Preferred stock, $.01 par value, 1,000,000 shares
                  authorized, none outstanding                                              --              --
         Common stock, $.01 par value, 10,000,000 shares
                  authorized, 3,213,092 shares issued and 2,383,144
                  shares outstanding at March 31, 2004 and 3,205,485
                  shares issued and 2,329,192 shares outstanding at
                  December 31, 2003                                                         32              32
         Paid-in capital                                                                 8,482           8,426
         Retained earnings                                                              15,826          16,047
         Deferred compensation obligation                                                1,976           1,969
         Deferred compensation treasury stock (222,042
                  shares at March 31, 2004 and 221,283 shares
                  at December 31, 2003)                                                 (1,976)         (1,969)
         Treasury stock, at cost (829,948 shares at March 31, 2004
                  and December 31, 2003)                                                (6,088)         (6,088)
         Unearned compensation                                                            (387)           (416)
         Accumulated other comprehensive income                                            660             551
                                                                                     ---------       ---------
                                                                                        18,525          18,552
                                                                                     ---------       ---------
                                                                                     $ 201,186       $ 194,211
                                                                                     =========       =========
</TABLE>

See accompanying notes to unaudited condensed consolidated financial statements.


                                        2
<PAGE>

                             FIRSTFED BANCORP, INC.
              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
               For the Three Months Ended March 31, 2004 and 2003
            (Dollar amounts in thousands, except per share amounts)

                                                    Three Months Ended
                                                        March 31,
                                                --------------------------
                                                   2004            2003
                                                ----------      ----------

INTEREST INCOME:
         Interest and fees on loans             $    2,025      $    1,778
         Interest and dividends on
           securities                                  306             388
         Other interest income                           3              63
                                                ----------      ----------
           Total interest income                     2,334           2,229
                                                ----------      ----------

INTEREST EXPENSE:
         Interest on deposits                          720             816
         Interest on borrowings                        258             218
                                                ----------      ----------
            Total interest expense                     978           1,034
                                                ----------      ----------

  Net interest income                                1,356           1,195
         Provision for loan losses                     220             111
                                                ----------      ----------
  Net interest income after
    provision for loan losses                        1,136           1,084
                                                ----------      ----------

NONINTEREST INCOME:
         Fees and other noninterest income             580             388
         Gain on sale of investments                     7              --
         Bank owned life insurance                      91              92
                                                ----------      ----------
           Total noninterest income                    678             480
                                                ----------      ----------

NONINTEREST EXPENSE:
         Salaries and employee benefits                783             800
         Office building and equipment
           expenses                                    239             193
         Other operating expenses                      667             419
                                                ----------      ----------
           Total noninterest expenses                1,689           1,412
                                                ----------      ----------
  Income before income taxes                           125             152

         Provision for income taxes                     13              19
                                                ----------      ----------
  NET INCOME                                    $      112      $      133
                                                ==========      ==========

AVERAGE NUMBER OF SHARES
         OUTSTANDING - BASIC                     2,344,794       2,291,473
                                                ==========      ==========
BASIC EARNINGS PER SHARE                        $      .05      $      .06
                                                ==========      ==========
AVERAGE NUMBER OF SHARES
         OUTSTANDING - DILUTED                   2,403,367       2,312,298
                                                ==========      ==========
DILUTED EARNINGS PER SHARE                      $      .05      $      .06
                                                ==========      ==========
DIVIDENDS DECLARED PER SHARE                    $      .14      $      .14
                                                ==========      ==========

See accompanying notes to unaudited condensed consolidated financial statements.


                                        3
<PAGE>

                             FIRSTFED BANCORP, INC.
     UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND
                              COMPREHENSIVE INCOME
               For the Three Months Ended March 31, 2003 and 2004
            (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, 2002           $32     $ 8,159    $ 16,467      $1,876     $(1,876)   $(6,088)    $(518)     $ 756

     Net income                       --          --         133          --          --         --        --         --     $  133
     Change in unrealized gain
         (loss) on securities
         available for sale, net
         of tax of $16                --          --          --          --          --         --        --        (27)       (27)
                                                                                                                             ------
     Comprehensive income             --          --          --          --          --         --        --         --     $  106
                                                                                                                             ======
     Amortization of unearned
         compensation                 --          --          --          --          --         --        38         --
     Dividends declared ($.14
         per share)                   --          --        (328)         --          --         --        --         --
     Exercise of stock options        --          25          --          --          --         --        --         --
     Stock issued under Dividend
         Reinvestment Plan            --          40          --          --          --         --        --         --
     Change in stock value of
         Employee Stock
         Ownership Plan               --          (9)         --          --          --         --        --         --
                                     ---     -------    --------      ------     -------    -------     -----      -----

BALANCE, March 31, 2003              $32     $ 8,215    $ 16,272      $1,876     $(1,876)   $(6,088)    $(480)     $ 729
                                     ===     =======    ========      ======     =======    =======     =====      =====

BALANCE, December 31, 2003           $32     $ 8,426    $ 16,047      $1,969     $(1,969)   $(6,088)    $(416)     $ 551

     Net income                       --          --         112          --          --         --        --         --     $  112
     Change in unrealized gain
         (loss) on securities
         available for sale, net
         of tax of $63                --          --          --          --          --         --        --        109        109
                                                                                                                             ------
     Comprehensive income             --          --          --          --          --         --        --         --     $  221
                                                                                                                             ======
     Amortization of unearned
         compensation                 --          --          --          --          --         --        29         --
     Dividends declared ($.14
         per share)                   --          --        (333)         --          --         --        --         --
     Exercise of stock options        --          10          --          --          --         --        --         --
     Stock issued under Dividend
         Reinvestment Plan            --          50          --          --          --         --        --         --
     Purchase of deferred comp
         treasury shares              --          --          --           7          (7)        --        --         --
     Change in stock value of
         Employee Stock
         Ownership Plan               --          (4)         --          --          --         --        --         --
                                     ---     -------    --------      ------     -------    -------     -----      -----

BALANCE, March 31, 2004              $32     $ 8,482    $ 15,826      $1,976     $(1,976)   $(6,088)    $(387)     $ 660
                                     ===     =======    ========      ======     =======    =======     =====      =====
</TABLE>

See accompanying notes to unaudited condensed consolidated financial statements.


                                        4
<PAGE>

                             FIRSTFED BANCORP, INC.
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
               For the Three Months Ended March 31, 2004 and 2003
                          (Dollar amounts in thousands)

<TABLE>
<CAPTION>
                                                                                         Three Months Ended
                                                                                              March 31,
                                                                                       -----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:                                                    2004           2003
                                                                                       --------       --------
<S>                                                                                    <C>            <C>
  Net income                                                                           $    112       $    133
  Adjustments to reconcile net income
     to net cash provided by (used in) operating activities:
       Depreciation, amortization and accretion                                             130            125
       Loan fees (cost) deferred, net                                                        76             64
       Provision for loan losses                                                            220            111
       Gain on sale of investments                                                           (7)            --
       Gain on sale of fixed assets                                                          (9)            --
       Loss (gain) on sale of real estate, net                                               99              5
       Origination of loans held for sale                                                (3,018)        (5,535)
       Proceeds from loans held for sale                                                  3,015          6,504
       Provision for deferred compensation                                                    7             --
       Increase in surrender value of Bank Owned Life Insurance                             (91)           (92)
  Decrease (increase) in assets:
       Accrued interest receivable                                                          (49)            74
       Other assets                                                                         272            151
  Increase (decrease) in liabilities:
         Accrued interest payable                                                             4             (7)
       Other liabilities                                                                     68            294
                                                                                       --------       --------
         Net cash provided by (used in) operating activities                                829          1,827
                                                                                       --------       --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from maturities, calls and repayments of securities available-for-sale         6,097          4,445
  Proceeds from sale of securities available-for-sale                                     3,000             --
  Purchase of securities available-for-sale                                              (4,788)            --
  Proceeds from sales of real estate and repossessed assets                                 315            752
  Net loan originations                                                                  (9,806)        (7,486)
  Capital expenditures                                                                   (1,289)           (14)
                                                                                       --------       --------
         Net cash provided by (used in) investing activities                             (6,471)        (2,303)
                                                                                       --------       --------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase (decrease) in deposits, net                                                    3,584          7,475
  Proceeds from borrowings                                                               22,600             50
  Repayment of borrowings                                                               (19,255)          (750)
  Proceeds from exercise of stock options                                                    10             25
  Dividends paid                                                                           (333)          (327)
  Proceeds from dividend reinvestment                                                        50             40
  Purchase of treasury stock for Deferred Compensation Plan                                  (7)            --
                                                                                       --------       --------
         Net cash provided by (used in) financing activities                              6,649          6,513
                                                                                       --------       --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                      1,007          6,037
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                          7,621         25,432
                                                                                       --------       --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                             $  8,628       $ 31,469
                                                                                       ========       ========

SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid during the period for -
       Income taxes                                                                    $     19       $     16
       Interest                                                                             962          1,041
  Non-cash transactions -
       Transfer of loans receivable to real estate owned                                    228            502
       Transfer of leased real estate owned to other assets                               3,246             --
</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
March 31, 2004, and December 31, 2003, and for the three months ended March 31,
2004 and 2003, 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 three
months ended March 31, 2004, 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, 2003.
The accounting policies followed by the Company are set forth in the Summary of
Significant Accounting Policies in the Company's December 31, 2003, Consolidated
Financial Statements.

2. SIGNIFICANT ACCOUNTING POLICIES:

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 March 31, 2004, and
December 31, 2003, 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/or, in the opinion of management, 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 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


                                        6
<PAGE>

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 months ended March 31, 2004 and 2003,
were as follows:

<TABLE>
<CAPTION>
                                         Three Months                               Three Months
                                     Ended March 31, 2004                       Ended March 31, 2003
                            --------------------------------------      --------------------------------------
                                           Dilutive                                    Dilutive
                                           Effect of                                   Effect of
                                            Options                                     Options
                              Basic         Issued        Diluted          Basic        Issued        Diluted
                            ----------     ---------    ----------      ----------     ---------    ----------
<S>                         <C>             <C>         <C>             <C>             <C>         <C>
Net income                  $  112,000          --      $  112,000      $  133,000          --      $  133,000

Shares available to
   common shareholders       2,344,794      58,573       2,403,367       2,291,473      20,825       2,312,298
                            ----------      ------      ----------      ----------      ------      ----------

Earnings per share          $     0.05          --      $     0.05      $     0.06          --      $     0.06
                            ==========      ======      ==========      ==========      ======      ==========
</TABLE>

Options to purchase 11,384 and 65,600 shares of common stock at prices in excess
of the average market price were outstanding at March 31, 2004 and 2003,
respectively, but not included in the computation of diluted earnings per share.

There were 35,145 and 43,931 shares of common stock held by the Employee Stock
Ownership Plan and unallocated at March 31, 2004 and 2003, respectively. These
shares are outstanding but not included in the computation of earnings per
share.

Dividends declared for the quarter ended March 31, 2004, consisted of a $.07 per
share quarterly dividend and a $.07 per share special 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 March 31, 2004 and 2003.

<TABLE>
<CAPTION>
                                                           Three Months Ended March 31, 2004
                                  -----------------------------------------------------------------------------------
                                       Banking              Holding                                       Total
                                     Operations             Company              Eliminations            Company
                                  ----------------      ----------------       ----------------      ----------------
                                                                    (In thousands)
<S>                               <C>                   <C>                    <C>                   <C>
Net interest income               $          1,363      $             (7)      $             --      $          1,356
Provision for loan losses                      220                    --                     --                   220
Noninterest income                             653                    25                     --                   678
Noninterest expense                          1,617                    72                     --                 1,689
                                  ----------------      ----------------       ----------------      ----------------
     Income before income
         taxes                                 179                   (54)                    --                   125
Income tax expense (benefit)                    42                   (29)                    --                    13
                                  ----------------      ----------------       ----------------      ----------------
     Net income (loss)            $            137      $            (25)      $             --      $            112
                                  ================      ================       ================      ================
     Total assets                 $        198,844      $         20,387       $        (18,045)     $        201,186
                                  ================      ================       ================      ================
     Capital Expenditures         $          1,289      $             --       $             --      $          1,289
                                  ================      ================       ================      ================
</TABLE>


                                        7
<PAGE>

<TABLE>
<CAPTION>
                                                           Three Months Ended March 31, 2003
                                  -----------------------------------------------------------------------------------
                                       Banking              Holding                                       Total
                                     Operations             Company              Eliminations            Company
                                  ----------------      ----------------       ----------------      ----------------
                                                                     (In thousands)
<S>                               <C>                   <C>                    <C>                   <C>
Net interest income               $          1,188      $              7       $             --      $          1,195
Provision for loan losses                      111                    --                     --                   111
Noninterest income                             455                    25                     --                   480
Noninterest expense                          1,293                   119                     --                 1,412
                                  ----------------      ----------------       ----------------      ----------------
     Income before income
         taxes                                 239                   (87)                    --                   152
Income tax expense (benefit)                    60                   (41)                    --                    19
                                  ----------------      ----------------       ----------------      ----------------
     Net income (loss)            $            179      $            (46)      $             --      $            133
                                  ================      ================       ================      ================
     Total assets                 $        182,738      $         19,468       $        (17,701)     $        184,505
                                  ================      ================       ================      ================
     Capital Expenditures         $             14      $             --       $             --      $             14
                                  ================      ================       ================      ================
</TABLE>

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.

There were no options granted during the quarters ended March 31, 2004 and 2003.

6. PENSION DISCLOSURES

The Financial Accounting Standards Board ("FASB") issued SFAS 132 (revised 2003)
in December of 2003. The Statement revises employers' disclosures about pension
plans and other postretirement benefits by requiring additional disclosures to
those in the original SFAS 132 about the assets, obligations, cash flows,
investment strategy, and net periodic benefit cost of defined benefit pension
plans and other defined benefit postretirement plans. The Company does not have
any postretirement benefits. The effect of the required interim information is
reflected in the following table:

                                                   Defined Benefit Pension Plan
                                                       Three Months Ended
                                                       ------------------
                                                      2004            2003
                                                      ----            ----
(In thousands)
Service cost                                          $ 44            $ 39
Interest cost                                           31              30
Expected return on plan assets                         (25)            (20)
Amortization of transitional asset                      (1)             (1)
Recognized actuarial loss                                6               4
                                                      ----            ----
Net periodic benefit cost                             $ 55            $ 52
                                                      ====            ====

The Company previously disclosed in its financial statements for the year ended
December 31, 2003 that it generally contributes to the Defined Benefit Pension
Plan the maximum amount deductible based on current income tax laws. The Company
expects to contribute $294,537 in 2004, although no contributions were made in
the first quarter of 2004.


                                        8
<PAGE>

7. PENDING ACCOUNTING PRONOUNCEMENTS:

In October 2003, the American Institute of Certified Public Accountants
("AICPA") issued SOP 03-3, which addresses accounting for differences between
contractual cash flows expected to be collected from an investor's initial
investment in loans or debt securities (loans) acquired in a transfer if those
differences are attributable, at least in part, to credit quality. It includes
such loans acquired in purchase business combinations and applies to all
nongovernmental entities, including not-for-profit organizations. This SOP does
not apply to loans originated by the entity. This SOP limits the yield that may
be accreted (accretable yield) to the excess of the investor's estimate of
undiscounted expected principal, interest, and other cash flows (cash flows
expected at acquisition to be collected) over the investor's initial investment
in the loan. This SOP requires that the excess of contractual cash flows over
cash flows expected to be collected (nonaccretable difference) not be recognized
as an adjustment of yield, loss accrual, or valuation allowance. This SOP
prohibits investors from displaying accretable yield and nonacretable difference
in the balance sheet. Subsequent increases in cash flows expected to be
collected generally would be recognized prospectively through adjustment of the
loan's yield over its remaining life. Decreases in cash flows expected to be
collected would be recognized as impairment. This SOP prohibits "carrying over"
or creation of valuation allowances in the initial accounting of all loans
acquired in a transfer that are within the scope of this SOP. The prohibition of
the valuation allowance carryover applies to the purchase of an individual loan,
a pool of loans, a group of loans, and loans acquired in a purchase business
combination. This SOP is effective for loans acquired in fiscal years beginning
after December 15, 2004. There is no impact to the Consolidated Financial
Statements until a business combination is completed.

In March 2004, the Securities and Exchange Commission ("SEC") issued, Staff
Accounting Bulletin ("SAB") 105, which summarizes the views of the staff
regarding the application of generally accepted accounting principles to loan
commitments accounted for as derivative instruments. The SAB requires that the
fair value measurement of a loan commitment that is accounted for as a
derivative includes only differences between the guaranteed interest rate in the
loan commitment and a market interest rate, excluding any expected future cash
flows related to the customer relationship or loan servicing. This SAB is
effective for loan commitments entered into after March 31, 2004. The Company
adopted SAB 105 on April 1, 2004, and the effect was not material.

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, 2004, and December 31, 2003

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 increased $1,155, or 24.7%, to
$5,824 at March 31, 2004. The increase is substantially the result of the timing
of deposits

Securities available-for-sale decreased $4,287, or 13.9%, to $26,453 at March
31, 2004. During the three months ended March 31, 2004, investments totaling
$6,097 were called or matured, $4,788 were purchased and $3,000 were sold.


                                        9
<PAGE>

Loans receivable, net, at March 31, 2004, were $145,466, an increase of $9,367,
or 6.9%, from $136,099 at December 31, 2003. The increase was primarily the
result of increased portfolio originations in connection with treasury based
adjustable rate commercial mortgage program.

The Company's consolidated allowance for loan losses increased to $1,471 at
March 31, 2004, from $1,397 at December 31, 2003. This increase was partially
due to a provision to the allowance for loan losses of $220 for the three months
ended March 31, 2004, net of charge-offs over recoveries of $146. Nonperforming
loans at March 31, 2004, increased to $961, or 0.66% of loans receivable, from
$289, or 0.20% of loans receivable, at December 31, 2003. At March, 31, 2004,
there were no material loans not included in nonperforming loans which
represented material credits about which management was aware of any information
which caused management to have serious doubts as to the ability of such
borrowers to comply with the loan repayment terms.

Land, buildings and equipment, net, increased $472, or 9.6%, to $5,380 at March
31, 2004. The increase was substantially the result of a new branch facility
under construction in Pelham, Alabama. The existing facility is under lease and
a larger facility is needed because of growth. The branch is scheduled to open
in May, 2004.

Real estate owned was $1,463 at March 31, 2004, a decrease of $2,753 from $4,216
at December 31, 2003. The decrease is substantially the result of three
commercial properties totaling $3,246 acquired by foreclosure prior to December
31, 2003, which are now under lease with one year purchase options and recorded
as other assets.

Other assets increased $3,037, or 238.4%, to $4,311 as of March 31, 2004,
primarily because of the addition of $3,246 of property under lease as discussed
above.

Deposits increased $3,584, or 2.4%, to $154,693 at March 31, 2004, from $151,109
at December 31, 2003. The increase was substantially the result of increases in
commercial checking accounts.

Borrowings increased by $3,345, or 14.1%, to $27,125 at March 31, 2004,
substantially as a result of an increase in overnight borrowings to fund loan
demand.

The Company had stockholders' equity of $18,525 as of March 31, 2004, a decrease
of $27, or 0.1%, from $18,552 as of December 31, 2003. Net income for the three
months ended March 31, 2004, was $112. Equity was decreased by dividends of $.14
per share, or $333. Included in such dividends was a special dividend of $.07
per share, which was declared during the first quarter.

Liquidity and Capital Resources

Liquidity refers to the ability of the Company to meet its cash flow
requirements in the normal course of business, including loan commitments,
deposit withdrawals, liability maturities and ensuring that the Company is in a
position to take advantage of investment opportunities in a timely and
cost-efficient manner. Management monitors the Company's liquidity position and
reports to the Board of Directors monthly. The Company may achieve its desired
liquidity objectives through management of assets and liabilities and through
funds provided by operations. Funds invested in short-term marketable
instruments, the continuous maturing of other interest-earning assets, the
possible sale of available-for-sale securities and the ability to securitize
certain types of loans provide sources of liquidity from an asset perspective.
The liability base provides sources of liquidity through deposits. In addition,
the Bank has borrowing ability from the Federal Home Loan Bank of Atlanta and
correspondent banks if the need for additional funds arises. At March 31, 2004,
the Bank had commitments to originate and fund loans of $16.4 million. The Bank
anticipates that it will have sufficient funds available to meet its current
commitments.


                                       10
<PAGE>

Under applicable regulations, First Financial and the Company are each required
to maintain minimum capital ratios. Set forth below are actual capital ratios
and the minimum regulatory capital requirements as of March 31, 2004.

<TABLE>
<CAPTION>
                                                             March 31, 2004
                                --------------------------------------------------------------------------
                                                      (Dollar amounts in thousands)
                                                                                          To Be Well
                                                                                       Capitalized Under
                                                               For Capital             Prompt Corrective
                                       Actual               Adequacy Purposes          Action Provisions
                                -------------------        -------------------       ---------------------
                                Amount         Rate        Amount         Rate       Amount           Rate
                                ------         ----        ------         ----       ------           ----
<S>                             <C>            <C>        <C>              <C>       <C>             <C>
Tier 1 Risk-Based Capital
     Consolidated              $16,593         10.2%          N/A          N/A           N/A          N/A
     First Financial Bank       15,687          9.7%      $ 6,457          4.0%      $ 9,686          6.0%

Total Risk-Based Capital
     Consolidated              $18,125         11.1%          N/A          N/A           N/A          N/A
     First Financial Bank       17,219         10.7%      $12,915          8.0%      $16,143         10.0%

Tier 1 Leverage
     Consolidated              $16,593          8.3%          N/A          N/A           N/A          N/A
     First Financial Bank       15,687          8.1%      $ 7,721          4.0%      $ 9,652          5.0%
</TABLE>

As of March 31, 2004, management was not aware of any trends, events or
uncertainties that will have or are reasonably likely to have a material effect
on the Company's or the Bank's liquidity, capital resources or operations.

Results of Operations - Comparison of the Three Months Ended March 31, 2004 and
2003

Net income for the three months ended March 31, 2004, was $112, a decrease of
$21, or 15.8%, from net income of $133 for the three months ended March 31,
2003. The decrease is primarily the result of increased loan provisions and real
estate owned expense, net of increase in net interest income and noninterest
income.

Interest Income

Total interest income increased $105, or 4.7%, to $2,334 for the three months
ended March 31, 2004. This increase was substantially due to an increase in the
average balance on interest-earning assets for the three months ended March 31,
2004, compared to the same quarter a year ago offset slightly by a decrease in
the average yield on interest-earning assets to 5.2% for the three months ended
March 31, 2004, compared to 5.5% for the same quarter a year ago.

Interest Expense

Interest expense for the quarter ended March 31, 2004, was $978, a decrease of
$56, or 5.4%, from $1,034 for the quarter ended March 31, 2003. The decrease was
the result of a decrease in the average rate pid on interest-bearing liabilities
to 2.2% for the three months ended March 31, 2004, compared to 2.6% for the
corresponding quarter of the previous year somewhat offset by an increase in the
average balance of interest- bearing liabilities compared to the same quarter a
year ago.

Net Interest Income

Net interest income for the quarter ended March 31, 2004, increased $161, or
13.5%, to $1,356 from the quarter ended March 31, 2003, level of $1,195. The
increase was primarily the result of an increase in the average net interest
spread to 3.0% for the quarter ended March 31, 2004 compared to 2.9% for the
same period a year ago. The net interest margin increased to 3.0% in the quarter
ended March 31, 2004 compared to 2.9% for the same quarter a year ago.


                                       11
<PAGE>

Provision for Loan Losses

Management increased the Company's total allowance for loan losses by a charge
to the provision of $220 during the quarter ended March 31, 2004, compared to
$111 for the quarter ended March 31, 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. The Bank segregates its loan portfolio into
problem and non-problem loans. The Bank then determines the allowance for loan
losses based on specific review of all problem loans by internal loan review
committees. This detailed analysis primarily determines the allowance on problem
loans by specific evaluation of collateral fair value. The allowance for
non-problem loans considers historical losses and other relevant factors. The
allowances are reviewed throughout the year to consider changes in the loan
portfolio and classification of loans which results in a self-correcting
mechanism.

Noninterest Income

Noninterest income during the quarter ended March 31, 2004, increased $198, to
$678, from the March 31, 2003, level of $480. The increase in noninterest income
during the quarter ended March 31, 2004, is primarily the result of increased
non-sufficient funds fees associated with an overdraft privilege program
implemented in December 2003.

Noninterest Expenses

Noninterest expenses during the quarter ended March 31, 2004, increased $277, or
19.6%, to $1,689, from the March 31, 2003, quarter of $1,412. The increase in
other operating expense is primarily attributable to an increase in expenses and
losses in connection with real estate owned.

Income Taxes

The provision for income taxes decreased $6, to $13 for the quarter ended March
31, 2004, as compared to $19 for the corresponding quarter in the previous year.
The decreased tax expense was due primarily to a decrease in pretax income.

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 March 31, 2004, 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 has been no
change in the Company's internal control over financial reporting during the
last fiscal quarter that has materially affected, or is reasonably likely to
materially affect the Company's internal control over financial reporting.

Disclosure controls and procedures are designed to ensure that information
required to be disclosed in reports filed by the Company under the Securities
Exchange Act of 1934 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.


                                       12
<PAGE>

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 March 31, 2004, 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 SMALL BUSINESS ISSUER PURCHASES OF EQUITY
SECURITIES

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.

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

      Exhibit 31.2 - Certifications 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 January 30, 2004, furnishing under Item
      12 ("Results of Operations and Financial Condition") announcement of the
      Company's results of operations for the quarter and year ended December
      31, 2003.


                                       13
<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: May 14, 2004                       \s\ B. K. Goodwin , III
                                         ------------------------------------

                                         B. K. Goodwin, III,
                                         Chairman of the Board,
                                         Chief Executive Officer,
                                         and President


Date: May 14, 2004                       \s\ Lynn J. Joyce
                                         ------------------------------------
                                         Lynn J. Joyce
                                         Chief Financial Officer,
                                         Executive Vice President,
                                         Secretary and Treasurer


                                       14