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, 2003

|_|   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO __________

                         Commission File Number: 0-19609

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

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

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

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

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.

           YES |X|        NO |_|

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

            Class                                    Outstanding at May 9, 2003
            -----                                    --------------------------
Common Stock, $.01 par value                                2,343,187 shares

Transitional Small Business Disclosure Format
(Check one):

           YES |_|        NO |X|

<PAGE>

                             FIRSTFED BANCORP, INC.

                                                                            Page
                                                                            ----

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS:

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

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME  FOR THE THREE
  MONTHS ENDED MARCH 31, 2003 AND 2002.......................................3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR
  THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002 ............................4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE
  THREE MONTHS ENDED MARCH 31, 2003 AND 2002.................................5

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

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

ITEM 3.  CONTROL AND PROCEDURES.............................................12

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS..................................................12

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

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, 2003 and December 31, 2002
                          (Dollar amounts in thousands)

<TABLE>
<CAPTION>
                                                                                   March 31,    December 31,
ASSETS                                                                                2003          2002
                                                                                   ---------    ------------
<S>                                                                                <C>            <C>
Cash and Cash Equivalents:
           Cash on hand and in banks                                               $   2,589      $   2,919
           Interest-bearing deposits in other banks                                   23,189         21,739
           Federal funds sold                                                          5,691            774
                                                                                   ---------      ---------
                                                                                      31,469         25,432
Securities available-for-sale, at fair value                                          26,123         30,632
Loans held for sale                                                                    1,260          2,229
Loans receivable, net                                                                111,195        104,310
Land, buildings and equipment, net                                                     4,201          4,265
Bank owned life insurance                                                              5,733          5,641
Goodwill                                                                                 983            983
Real estate owned                                                                      1,570          1,898
Accrued interest receivable                                                            1,268          1,342
Other assets                                                                             703            838
                                                                                   ---------      ---------
                                                                                   $ 184,505      $ 177,570
                                                                                   =========      =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
           Deposits                                                                $ 147,406      $ 139,931
           Borrowings                                                                 17,305         18,005
           Accrued interest payable                                                      225            232
           Dividends payable                                                             164            163
           Other liabilities                                                             725            431
                                                                                   ---------      ---------
                                                                                     165,825        158,762
                                                                                   ---------      ---------
Stockholders' Equity:
           Preferred stock, $.01 par value, 1,000,000 shares
                     authorized, none outstanding                                         --             --
           Common stock, $.01 par value, 10,000,000 shares
                     authorized, 3,170,029 shares issued and 2,340,081 shares
                     outstanding at March 31, 2003 and 3,159,140 shares issued
                     and 2,329,192 shares outstanding at
                     December 31, 2002                                                    32             32
           Paid-in capital                                                             8,215          8,159
           Retained earnings                                                          16,272         16,467
           Deferred compensation obligation                                            1,876          1,876
           Deferred compensation treasury stock (209,812
                     shares at March 31, 2003 and December 31, 2002)                  (1,876)        (1,876)
           Treasury stock, at cost (829,948 shares at March 31, 2003
                     and December 31, 2002)                                           (6,088)        (6,088)
           Unearned compensation                                                        (480)          (518)
           Accumulated other comprehensive income                                        729            756
                                                                                   ---------      ---------
                                                                                      18,680         18,808
                                                                                   ---------      ---------
                                                                                   $ 184,505      $ 177,570
                                                                                   =========      =========
</TABLE>

See accompanying notes to unaudited conndensed consolidated financial
statements.


                                       2
<PAGE>

                             FIRSTFED BANCORP, INC.
              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
               For the Three Months Ended March 31, 2003 and 2002
            (Dollar amounts in thousands, except per share amounts)

                                                          Three Months Ended
                                                               March 31,
                                                      --------------------------
                                                         2003            2002
                                                      ----------      ----------

INTEREST INCOME:
           Interest and fees on loans                 $    1,778      $    2,249
           Interest and dividends on
             securities                                      388             500
           Other interest income                              63              80
                                                      ----------      ----------
             Total interest income                         2,229           2,829
                                                      ----------      ----------

INTEREST EXPENSE:
           Interest on deposits                              816           1,135
           Interest on FHLB advances                         218             221
                                                      ----------      ----------
              Total interest expense                       1,034           1,356
                                                      ----------      ----------

  Net interest income                                      1,195           1,473
           Provision for loan losses                         111             396
                                                      ----------      ----------
  Net interest income after
    provision for loan losses                              1,084           1,077
                                                      ----------      ----------

NONINTEREST INCOME:
           Fees and other noninterest income                 388             301
           Bank owned life insurance                          92              81
                                                      ----------      ----------
             Total noninterest income                        480             382
                                                      ----------      ----------

NONINTEREST EXPENSE:
           Salaries and employee benefits                    800             798
           Office building and equipment
             expenses                                        193             137
           Other operating expenses                          419             423
                                                      ----------      ----------
             Total noninterest expenses                    1,412           1,358
                                                      ----------      ----------
  Income before income taxes                                 152             101

           Provision for income taxes                         19               3
                                                      ----------      ----------
  NET INCOME                                          $      133      $       98
                                                      ==========      ==========

AVERAGE NUMBER OF SHARES
           OUTSTANDING - BASIC                         2,291,473       2,262,863
                                                      ==========      ==========
BASIC EARNINGS PER SHARE                              $      .06      $      .04
                                                      ==========      ==========
AVERAGE NUMBER OF SHARES
           OUTSTANDING - DILUTED                       2,312,298       2,285,781
                                                      ==========      ==========
DILUTED EARNINGS PER SHARE                            $      .06      $      .04
                                                      ==========      ==========
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
               For the Three Months Ended March 31, 2003 and 2002
             (Dollar amounts in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                                             Deferred                         Accumulated
                                                                 Deferred     Compen-                             Other     Compre-
                                                                  Compen-     sation                Unearned     Compre-    hensive
                                Common    Paid-In   Retained      sation     Treasury   Treasury     Compen-     hensive     Income
                                Stock     Capital   Earnings    Obligation    Stock       Stock      sation      Income     (Note 1)
                                -----     -------   --------    ----------   --------   --------   ---------  -----------   --------
<S>                             <C>       <C>        <C>         <C>         <C>        <C>          <C>         <C>          <C>
BALANCE, December 31, 2001      $  31     $ 8,081    $ 17,079    $ 1,766     $(1,792)   $(6,088)     $(666)      $  55

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

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

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
                                =====     =======    ========    =======     =======    =======      =====       =====
</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, 2003 and 2002
                          (Dollar amounts in thousands)

<TABLE>
<CAPTION>
                                                                                        Three Months Ended
                                                                                             March 31,
                                                                                      ----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:                                                   2003          2002
                                                                                      --------      --------
<S>                                                                                   <C>           <C>
  Net income                                                                          $    133      $     98
  Adjustments to reconcile net income
      to net cash provided by (used in) operating activities:
        Depreciation, amortization and accretion                                           125           104
        Loan fees (cost) deferred, net                                                      64           (32)
        Provision for loan losses                                                          111           396
        Loss (gain) on sale of real estate, net                                              5             6
        Origination of loans held for sale                                              (5,535)       (3,284)
        Proceeds from loans held for sale                                                6,504         4,436
        Provision for deferred compensation                                                 --            18
        Increase in surrender value of Bank Owned Life Insurance                           (92)          (81)
  Decrease (increase) in assets:
        Accrued interest receivable                                                         74           219
        Other assets                                                                       151          (437)
  Increase (decrease) in liabilities:
        Accrued interest payable                                                            (7)          (50)
        Other liabilities                                                                  294           231
                                                                                      --------      --------
           Net cash provided by (used in) operating activities                           1,827         1,624
                                                                                      --------      --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from maturities, calls and repayments of securities available-for-sale        4,445         1,750
  Proceeds from maturities and payments received on securities held-to-maturity             --         3,375
  Purchases of securities held-to-maturity                                                  --        (4,000)
  Proceeds from sales of real estate and repossessed assets                                752           624
  Net loan originations                                                                 (7,486)         (698)
  Capital expenditures                                                                     (14)         (556)
                                                                                      --------      --------
           Net cash provided by (used in) investing activities                          (2,303)          495
                                                                                      --------      --------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase (decrease) in deposits, net                                                   7,475           (71)
  Proceeds from borrowings                                                                  50            --
  Repayment of borrowings                                                                 (750)           --
  Proceeds from exercise of stock options                                                   25            --
  Dividends paid                                                                          (327)         (325)
  Proceeds from dividend reinvestment                                                       40            43
  Purchase of treasury stock for Deferred Compensation Plan                                 --           (18)
                                                                                      --------      --------
           Net cash provided by (used in) financing activities                           6,513          (371)
                                                                                      --------      --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                     6,037         1,748
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                        25,432        22,605
                                                                                      --------      --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                            $ 31,469      $ 24,353
                                                                                      ========      ========

SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid during the period for -
        Income taxes                                                                  $     16      $     68
        Interest                                                                         1,041         1,406
  Non-cash transactions -
        Transfer of loans receivable to real estate owned                                  502         1,039
        Distribution of deferred compensation treasury stock                                --            30
</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, 2003, and December 31, 2002, and for the three months ended March 31,
2003 and 2002, include the accounts of the Company and the Bank. All significant
intercompany transactions and accounts have been eliminated in consolidation.

In the opinion of management, all adjustments (none of which are other than
normal recurring accruals) necessary for a fair presentation of the results of
such interim periods have been included. The results of operations for the three
months ended March 31, 2003, are not necessarily indicative of the results of
operations which may be expected for the entire year.

These unaudited condensed financial statements should be read in conjunction
with the Consolidated Financial Statements and the notes thereto incorporated in
the Company's Annual Report on Form 10-KSB for the year ended December 31, 2002.
The accounting policies followed by the Company are set forth in the Summary of
Significant Accounting Policies in the Company's December 31, 2002, Consolidated
Financial Statements.D

2. SIGNIFICANT ACCOUNTING POLICIES

Securities

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

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

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

Loans Held for Sale

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

Loans Receivable

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

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


                                       6
<PAGE>

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

Allowance for Loan Losses

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

3. EARNINGS AND DIVIDENDS PER SHARE:

Earnings per share ("EPS") for the three months ended March 31, 2003 and 2002,
respectively, were as follows:

<TABLE>
<CAPTION>
                                      Three Months                               Three Months
                                  Ended March 31, 2003                      Ended March 31, 2002
                           ------------------------------------     ------------------------------------
                                         Dilutive                                 Dilutive
                                        Effect of                                Effect of
                                         Options                                  Options
                             Basic       Issued        Diluted         Basic       Issued       Diluted
                           ----------   ---------    ----------     ----------     ------     ----------
<S>                        <C>            <C>        <C>            <C>            <C>        <C>
Net income                 $  133,000         --     $  133,000     $   98,000         --     $   98,000

Shares available to
   common shareholders      2,291,473     20,825      2,312,298      2,262,863     22,919      2,285,782
                           ----------     ------     ----------     ----------     ------     ----------

Earnings per share         $     0.06         --     $     0.06     $     0.04         --     $     0.04
                           ==========     ======     ==========     ==========     ======     ==========
</TABLE>

Options to purchase 65,600 and 66,574 shares of common stock at prices ranging
from $7.00 to $12.50 and $7.75 to $12.50 were outstanding during the quarters
ended March 31, 2003 and 2002, respectively, but were not included in the
computation of diluted EPS because the options' exercise price was greater than
the average market price of the common stock. The options will expire at various
times over the next nine years.

There were 43,931 and 52,717 shares of common stock held by the Employee Stock
Ownership Plan and unallocated at March 31, 2003 and 2002, respectively. These
shares are outstanding but not included in the computation of earnings per
share.

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

4. SEGMENT DISCLOSURE:

The holding company is considered a separate reportable segment from the banking
operations since it does not offer products or services or interact with
customers, but does meet the quantitative threshold as outlined in the
accounting standards. The Company's segment disclosure is as follows for the
three months ended March 31, 2003 and 2002.


                                       7
<PAGE>

<TABLE>
                                                                                       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                                             $    179          $    (46)          $         --          $    133
                                                             ========          ========           ============          ========

      Total assets                                           $182,738          $ 19,468           $    (17,701)         $184,505
                                                             ========          ========           ============          ========
      Capital Expenditures                                   $     14          $     --           $         --          $     14
                                                             ========          ========           ============          ========

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

      Total assets                                           $180,729          $ 18,851           $    (17,421)         $182,159
                                                             ========          ========           ============          ========
      Capital Expenditures                                   $    556          $     --           $         --          $    556
                                                             ========          ========           ============          ========
</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.
During the quarters ended March 31, 2003 and 2002, the Company did not issue any
stock options. Therefore, no pro forma disclosure is required for the quarter
ended March 31, 2003, related to stock-based compensation.

6. RECENT ACCOUNTING PRONOUNCEMENTS:

In April 2002, the FASB issued SFAS 145, Rescission of FASB Statements No. 4,
44, 64, Amendment of FASB Statement No. 13, and Technical Corrections, which
rescinds SFAS 4, Reporting Gains and Losses from Extinguishment of Debt, SFAS
44, Accounting for Intangible Assets of Motor Carriers, and SFAS 64,
Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements. These
rescissions eliminate the requirement to report gains and losses from the
extinguishment of debt as an extraordinary item, net of related income tax
effect. This Statement also amends SFAS 13, Accounting for Leases, and requires
that capital leases that are modified so that the resulting lease agreement is
classified as an operating lease be accounted for as a sale-leaseback. This
amendment is effective for transactions occurring after May 15, 2002. Finally,


                                       8
<PAGE>

this Statement amends several pronouncements to make technical corrections to
existing authoritative pronouncements. The Company adopted this Standard on
January 1, 2003, and it did not have a material impact on the Condensed
Consolidated Financial Statements.

In July 2002, the FASB issued Statement No. 146, Accounting for Costs Associated
with Exit or Disposal Activities. The standard requires companies to recognize
costs associated with exit or disposal activities when they are incurred rather
than at the date of a commitment to an exit or disposal plan. Examples of costs
covered by the standard include lease termination costs and certain employee
severance costs that are associated with a restructuring, discontinued
operation, plant closing, or other exit or disposal activity. This statement is
to be applied prospectively to exit or disposal activities initiated after
December 31, 2002. The Company adopted this Standard on January 1, 2003, and it
did not have a material impact on the Condensed Consolidated Financial
Statements.

In November 2002, the FASB issued Interpretation 45, Guarantor's Accounting and
Disclosure Requirements for Guarantees of Indebtedness of Others: an
interpretation of FASB Statements 5, 57, and 107 and rescission of FASB
Interpretation 34. Guarantors will have to meet new disclosure and
liability-recognition requirements for guarantees of debt. The initial
recognition is effective after December 31, 2002. The Company adopted this
Interpretation on January 1, 2003, and it did not have a material impact on the
Consolidated Financial Statements.

In January 2003, the FASB issued FIN 46, Consolidated of Variable Interest
Entities, which clarifies the application of Accounting Research Bulletin (ARB)
51, Consolidated Financial Statements, to certain entities (called variable
interest entities) in which equity investors do not have the characteristics of
a controlling financial interest or do not have sufficient equity at risk for
the entity to finance its activities without additional subordinated financial
support from other parties. The disclosure requirements of this Interpretation
are effective for all financial statements issued after January 31, 2003. The
consolidation requirements apply to all variable interest entities created after
January 31, 2003. The Company adopted this Standard on January 1, 2003, and it
did not have a material impact on the condensed consolidated financial
statements.

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

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, 2003, and December 31, 2002

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


                                       9
<PAGE>

Interest-bearing deposits and fed funds sold increased $6,367, or 28.3%, to
$28,880 at March 31, 2003. The increase is substantially the result of
additional funds from the increase in deposits and funds becoming available due
to a reduction in other types of investments somewhat offset by an increase in
loans during the quarter ended March 31, 2003.

Securities available-for-sale decreased $4,509, or 14.7%, to $26,123 at March
31, 2003. During the quarter ended March 31, 2003, investments totaling $4,290
were called or matured.

Loans receivable, net, at March 31, 2003, were $111,195, an increase of $6,885
or 6.6%, from $104,310 at December 31, 2002. The increase was primarily the
result of increased portfolio originations in connection with a new treasury
based adjustable rate commercial mortgage and 1-4 family mortgage programs.

The Company's consolidated allowance for loan losses increased to $1,068 at
March 31, 2003, from $1,059 At December 31, 2002. This increase was partially
due to a provision to the allowance for loan losses of $111, net of charge-offs
over recoveries of $102. Nonperforming loans at March 31, 2003, increased to
$1,872, or 1.7% of loans receivable, from $655, or 0.63% of loans receivable, at
December 31, 2002. At March 31, 2003, 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, decreased $64, or 1.5%, to $4,201 at March
31, 2003. The decrease was substantially the result of increases in accumulated
depreciation.

Real estate owned was $1,570 at March 31, 2003, a decrease of $328 from December
31, 2002. The decrease is substantially the result of the disposition of seven
foreclosures, net of five foreclosures, during the quarter ended March 31, 2002.

Deposits increased $7,475, or 5.3%, to $147,406 at March 31, 2003, from $139,931
at December 31, 2002. The increase was primarily the result of increases in
commercial checking accounts.

Borrowings decreased by $700, or 3.9%, to $17,305 at March 31, 2003, as a result
of a $750 repayment and $50 draw on a line of credit by the Company.

The Company had stockholders' equity of $18,680 as of March 31, 2003, a decrease
of $128, or 0.7%, from $18,808 as of December 31, 2002. Net income for the three
months ended March 31, 2003, was $133. The decrease was primarily attributable
to dividends of $.14 per share. Included in such dividends was a special
dividend of $.07 per share, which was declared during the first quarter.

Liquidity and Capital Resources

Traditionally, the Bank's principal sources of funds have been deposits,
principal and interest payments on loans and mortgage-backed securities, and
proceeds from interest on and maturities of investments. In addition, the Bank
has borrowing ability from the Federal Home Loan Bank of Atlanta if the need for
additional funds arises. At March 31, 2003, the Bank had commitments to
originate and fund loans of $15.2 million. The Bank anticipates that it will
have sufficient funds available to meet its current commitments.

First Financial is required by regulation to maintain minimum levels of liquid
assets. The liquidity ratio of First Financial at March 31, 2003, was 18.4%,
which exceeded the applicable regulatory requirement.

Under applicable regulations, First Financial and the Company are each required
to maintain minimum capital ratios. Set forth below are actual capital ratios
and the minimum regulatory capital requirements as of March 31, 2003.


                                       10
<PAGE>

<TABLE>
<CAPTION>
                                                     First Financial               The Company
                                                   -------------------         ------------------
<S>                                                <C>           <C>           <C>          <C>
Tier 1 Risk-Based Capital
Stockholders' Equity less goodwill                 $15,137       11.73%        $16,872      12.95%
Minimum Required                                     5,160        4.00%          5,213       4.00%
                                                   -------       -----         -------      -----
Excess                                             $ 9,977        7.73%        $11,659       8.95%
                                                   =======       =====         =======      =====

Total Risk-Based Capital
Tier 1 Capital plus allowances
  for loan losses                                  $16,205       12.56%        $17,940      13.76%
Minimum Required                                    10,319        8.00%         10,426       8.00%
                                                   -------       -----         -------      -----
Excess                                             $ 5,886        4.56%        $ 7,514       5.76%
                                                   =======       =====         =======      =====

Tier 1 Leverage                                    $15,137        8.57%        $16,872       9.17%
Minimum Leverage Requirement                         7,067        4.00%          7,362       4.00%
                                                   -------       -----         -------      -----
Excess                                             $ 8,070        4.57%        $ 9,510       5.17%
                                                   =======       =====         =======      =====
</TABLE>

As of March 31, 2003, management was not aware of any trends, events or
uncertainties that will have or are reasonably likely to have a material effect
on the Company's or the Bank's liquidity, capital resources or operations.

Results of Operations - Comparison of the Three Months Ended March 31, 2003 and
2002

Net income for the three months ended March 31, 2003, was $133, an increase of
$35, or 35.7%, from net income of $98 for the three months ended March 31, 2002.
The increase was primarily attributable to a decrease in the Bank's provision
for loan losses, net of a decrease in interest rate spread.

Interest Income

Total interest income decreased $600, or 21.2%, to $2,229 for the three months
ended March 31, 2003. This decrease was primarily due to a decrease in the
average yield on interest-earning assets to 5.4% for the three months ended
March 31, 2003, from 6.9% for the same quarter a year ago.

Interest Expense

Interest expense for the quarter ended March 31, 2003, was $1,034, a decrease of
$322, or 23.7%, from $1,356 for the quarter ended March 31, 2002. The decrease
was primarily the result of a decrease in the average rate paid on
interest-bearing liabilities to 2.6% for the three months ended March 31, 2003,
compared to 3.3% for the corresponding quarter of the previous year.

Net Interest Income

Net interest income for the quarter ended March 31, 2003, decreased $278, or
18.9%, to $1,195 from the quarter ended March 31, 2002, level of $1,473. The
decrease was primarily the result of a decrease in the average net interest
spread to 2.8% for the first quarter of fiscal 2003 compared to 3.6% for the
same period a year ago. The net interest margin decreased to 2.9% in the first
quarter of fiscal 2003 compared to 3.7% for the same quarter a year ago.

Provision for Loan Losses

Management increased the Company's total allowance for loan losses by a charge
to the provision of $111 during 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.


                                       11
<PAGE>

Noninterest Income

Noninterest income during the quarter ended March 31, 2003, increased $98, to
$480, from the March 31, 2002, level of $382. The increase in noninterest income
is primarily the result of increases in the cash surrender value of Bank Owned
Life Insurance purchased during the second quarter of 2002 plus an increase in
secondary market fees earned on loans sold and other fee income.

Noninterest Expenses

Noninterest expenses during the quarter ended March 31, 2003, increased $54, or
4.0%, to $1,412, from the March 31, 2002, quarter of $1,358. The increase was
primarily attributable to increased office building and equipment expense
related to the new Hueytown office opened in March 2002.

Income Taxes

The provision for income taxes increased $16, to $19 for the quarter ended March
31, 2003, as compared to the corresponding quarter in the previous year. The
increased tax expense was due primarily to an increase in pretax income.

ITEM 3. CONTROLS AND PROCEDURES

Within 90 days prior to the date of the report, 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 pursuant to Exchange Act Rule
13a-14 and Rule 13a-15. 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 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. There have been no significant changes in the Company's internal
controls or in other factors that could significantly affect these controls
subsequent to the date the Company conducted its evaluation.

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

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

                            PART II-OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, the Company and Bank are parties to routine legal proceedings
occurring in the ordinary course of business. At March 31, 2003, there were no
legal proceedings to which the Company and/or the Bank were a party or parties,
or to which any of their property was subject, which were expected by management
to result in a material loss.


                                       12
<PAGE>

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.

      Exhibit 99.1 - Certification Pursuant to Section 906 of the Sarbanes-Oxley
                     Act of 2002

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


                                       13
<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 15, 2003                              \s\ B. K. Goodwin , III
      ----------------                          --------------------------------
                                                B. K. Goodwin, III,
                                                Chairman of the Board,
                                                Chief Executive Officer,
                                                and President


Date: May 15, 2003                              \s\ Lynn J. Joyce
      ----------------                          --------------------------------
                                                Lynn J. Joyce
                                                Chief Financial Officer,
                                                Executive Vice President,
                                                Secretary and Treasurer


                                       14
<PAGE>

                                 CERTIFICATIONS

I, B. K. Goodwin, III, certify that:

      1. I have reviewed this quarterly report on Form 10-QSB of FirstFed
Bancorp, Inc.

      2. Based on may knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report.

      3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

      4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

            a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

            b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and

            c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;

      5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):

            a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

            b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and

      6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and internal weaknesses.


Date: May 15, 2003              By: \s\ B. K. Goodwin, III
      -----------------         ------------------------------------------------
                                Chairman of the Board, Chief Executive President
                                                 and President

<PAGE>

                                 CERTIFICATIONS

I, Lynn J. Joyce, certify that:

      1. I have reviewed this quarterly report on Form 10-QSB of FirstFed
Bancorp, Inc.

      2. Based on may knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report.

      3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

      4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

            a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

            b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and

            c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;

      5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):

            a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

            b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and

      6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and internal weaknesses.


Date: May 15, 2003            By: \s\ Lynn  J. Joyce
      -----------------       --------------------------------------------------
                              Chief Financial Officer, Executive Vice President,
                                             Secretary and Treasurer