EXHIBIT 99.1











<PAGE>

PRESS RELEASE
April 25, 2006
For Immediate Release


For Further Information Contact:           Michael W. Dosland
                                           President and Chief Executive Officer
                                           First Federal Bankshares, Inc.
                                           329 Pierce Street, P.O. Box 897
                                           Sioux City, IA  51102
                                           712.277.0222

              FIRST FEDERAL BANKSHARES, INC. ANNOUNCES EARNINGS AND
                               DECLARES DIVIDEND

Sioux City,  Iowa.  First  Federal  Bankshares,  Inc.  (the  "Company")  (Nasdaq
National  Market - "FFSX")  reported  net  earnings  of  $766,000,  or basic and
diluted  earnings per share of $0.23 each,  for the three months ended March 31,
2006  compared to net  earnings of $898,000,  or basic and diluted  earnings per
share of $0.25,  for the three months ended March 31, 2005.  For the nine months
ended March 31, 2006 net  earnings  totaled $2.6  million,  or basic and diluted
earnings  per share of $0.76 and  $0.75,  respectively.  This  compares  to $4.0
million,   or  basic  and  diluted  earnings  per  share  of  $1.13  and  $1.11,
respectively,  for the same period last year. During the nine months ended March
31,  2005 a gain of $1.4  million,  net of tax  effect,  or  basic  and  diluted
earnings per share of $0.38,  from the sale of two bank branch offices favorably
impacted the  Company's  net  earnings.  Excluding the branch office sale in the
prior-year  period,  net earnings for the nine months ended March 31, 2005 would
have been $2.7  million,  or basic and diluted  earnings  per share of $0.75 and
$0.73, respectively.

    Discussion of Operating Results for the Three Months ended March 31, 2006
    -------------------------------------------------------------------------

Net interest  income before  provision for loan losses  totaled $4.4 million for
each of the three months ended March 31, 2006 and 2005.  The average  balance of
interest-earning  assets  increased  by $16.1  million,  or 3.1%,  for the three
months  ended March 31, 2006 as  compared  to the three  months  ended March 31,
2005.  The  increase in the average  balance of  interest-earning  assets in the
current-year  period was  primarily  due to an increase of $28.2  million in the
average balance of loans that was partially  offset by a $16.7 million  decrease
in the  average  balance  of  investment  securities.  The  average  balance  of
interest-bearing  liabilities increased by $14.7 million, or 3.2%, for the three
months  ended  March 31,  2006 as compared to the same period of the prior year.
The  increase  in the average  balance of  interest-bearing  liabilities  in the
current-year  period was due to an  increase  of $23.7  million  in the  average
balance of deposits that was partially  offset by a $9.0 million decrease in the
average balance of borrowings. The yield on interest-earning assets increased by
52 basis  points to 6.27% for the three  months  ended March 31, 2006 from 5.75%
for the three  months  ended March 31, 2005 as  continued  rate  increases  were
implemented  by  the  Federal  Reserve  Board.  The  cost  of   interest-bearing
liabilities  increased more rapidly than yields on earning  assets.  The cost of
interest-bearing liabilities increased by 74 basis points to 3.31% for the three
months  ended  March 31,  2006 from 2.57% for the three  months  ended March 31,
2005.  As a result,  the  interest  rate spread  decreased by 22 basis points to
2.96% for the three  months ended March 31, 2006 from 3.18% for the three months
ended March 31, 2005.

<PAGE>

Provision for loan loss expense increased to $320,000 for the three months ended
March 31,  2006  from  $130,000  for the  three  months  ended  March 31,  2005.
Non-performing  loans  increased to $4.6  million,  or 0.99% of total loans,  at
March 31,  2006 from $2.8  million,  or 0.63% of total  loans at March 31,  2005
primarily  due to the loans of two  commercial  borrowers  that  were  placed on
nonaccrual status subsequent to March 31, 2005.

Noninterest  income  decreased  by $173,000,  or 10.9%,  to $1.4 million for the
three  months  ended March 31, 2006 from $1.6 million for the three months ended
March 31, 2005.  Service charges on deposit  accounts  decreased by $96,000,  or
12.1%,  and gain on sale of loans deceased by $31,000,  or 25.0%,  for the three
months  ended March 31, 2006 as  compared  to the three  months  ended March 31,
2005. The decrease in service charges on deposit accounts was primarily due to a
decrease in transaction  accounts  subject to such service charges that resulted
partly from the bank branch  office  sales in  September  2004 as discussed in a
subsequent  paragraph.  The decrease in gain on sale of loans resulted primarily
from  lower  origination  volumes  in the  current-year  period as loans sold to
investors decreased by $848,000 to $6.2 million for the three months ended March
31, 2006 from $7.1 million for the three months ended March 31, 2005.

Noninterest  expense  decreased  by $116,000,  or 2.5%,  to $4.5 million for the
three  months  ended March 31, 2006 from $4.6 million for the three months ended
March 31, 2005. Compensation and benefits expense decreased by $83,000, or 3.1%,
as the number of  full-time-equivalent  employees  decreased to 188 at March 31,
2006 from 207 at March 31, 2005. In addition,  advertising  expense decreased by
$40,000,  or 29.6%,  to $95,000 for the three  months  ended March 31, 2006 from
$136,000 for the three months ended March 31, 2005.

Income before income taxes decreased by $275,000,  or 21.2%, to $1.0 million for
the three  months  ended March 31, 2006 from $1.3  million for the three  months
ended March 31, 2005. Income tax expense totaled  $255,000,  or an effective tax
rate of 25.0%,  and $397,000,  or an effective tax rate of 30.7%,  for the three
months  ended  March 31, 2006 and 2005,  respectively.  The  effective  tax rate
decreased  for the  current-year  period  primarily  because  tax-exempt  income
comprised a larger percentage of pre-tax income for the three months ended March
31,  2006 than for the three  months  ended  March 31,  2005.  The  increase  in
tax-exempt  income was due to an increase in the balance of tax-exempt loans and
the resulting  increase in tax-exempt  interest  income during the  current-year
period.

    Discussion of Operating Results for the Nine Months ended March 31, 2006
    ------------------------------------------------------------------------

Net interest income before provision for loan losses  decreased by $135,000,  or
1.0%,  to $12.9  million  for the nine  months  ended  March 31, 2006 from $13.0
million for the nine months ended March 31,  2005.  The decrease in net interest
income was  primarily  due to a decrease in the interest rate spread as the cost
of  interest-bearing  liabilities  increased  more  rapidly  than  the  yield on
interest-earning  assets. The cost of interest-bearing  deposits increased by 86
basis  points to 2.75% for the nine  months  ended March 31, 2006 from 1.89% for
the nine months  ended  March 31,  2005  primarily  due to  increases  in market
interest rates as the Federal  Reserve  continued its string of rate  increases.
The yield on  interest-earning  assets increased by 51 basis points to 6.04% for
the nine months  ended March 31, 2006 from 5.53% for the nine months ended March
31, 2005.  Increases in the average balance of interest earning assets partially
offset the decrease in net  interest  income due to interest  rate  spread.  The
average balance of  interest-earning  assets increased by $4.2 million, or 0.1%,
for the nine months  ended  March 31, 2006 as compared to the nine months  ended
March 31, 2005. The increase in the average balance of  interest-earning  assets
in the current-year  period was primarily due to an increase of $24.3 million in
the average balance of loans that was largely offset by a $23.4 million decrease
in the  average  balance of  investment  securities.  This  change in the mix of
interest-earning   assets   contributed   to  the   increase  in  the  yield  on
interest-

                                                                               2
<PAGE>

earning  assets  since loans  generally  carry  higher  yields  than  investment
securities.  The average balance of  interest-bearing  liabilities  decreased by
$1.8  million for the nine  months  ended March 31, 2006 as compared to the same
period  of  the  prior  year.   The   decrease   in  the   average   balance  of
interest-bearing liabilities in the current-year period was due to a decrease of
$6.5 million in the average  balance of borrowings  that was largely offset by a
$4.7 million increase in the average balance of deposits.

Provision for loan loss expense  increased by $75,000,  or 7.5%, to $1.1 million
for the nine months  ended March 31, 2006 from $1.0  million for the nine months
ended March 31, 2005.  Non-performing  loans increased to $4.6 million, or 0.99%
of total loans, at March 31, 2006 from $2.8 million,  or 0.63% of total loans at
March 31, 2005 primarily due to the loans of two commercial  borrowers that were
placed on nonaccrual status subsequent to March 31, 2005.

Noninterest income decreased by $2.8 million,  or 36.8%, to $4.7 million for the
nine months  ended March 31,  2006 from $7.5  million for the nine months  ended
March 31,  2005.  The  decrease in  noninterest  income was  primarily  due to a
prior-year pre-tax gain of $2.2 million on the sale of two northwest Iowa branch
offices  that was  completed  in  September  2004.  Service  charges  on deposit
accounts  decreased by $406,000,  or 14.9%,  for the nine months ended March 31,
2006 as compared  to the nine  months  ended March 31, 2005 due to a decrease in
transaction  accounts  subject to such service charges that resulted partly from
the branch office sale in 2004.

Noninterest  expense  decreased by $516,000,  or 3.8%,  to $13.0 million for the
nine months  ended March 31, 2006 from $13.5  million for the nine months  ended
March 31, 2005.  Compensation  and benefits  expense  decreased by $301,000,  or
3.8%,  for the nine  months  ended March 31, 2006 as compared to the nine months
ended March 31, 2005 due to the  decrease in the number of  full-time-equivalent
employees as mentioned in the three-month discussion.  Other noninterest expense
for the prior-year  period ended March 31, 2005 was higher due to a loss on real
estate  owned  totaling  $94,000  and a charge  of  $68,000  for a  credit  life
insurance  settlement.  In addition,  fees to a  third-party  vendor for support
services related to retail deposit account  programs  decreased by approximately
$70,000 for the nine months  ended  March 31,  2006 as the  contract  expired in
November 2004 and was not renewed.

Income before income taxes decreased by $2.5 million,  or 40.8%, to $3.6 million
for the nine months  ended March 31, 2006 from $6.0  million for the nine months
ended March 31, 2005 primarily due to the decrease in noninterest income between
the two periods as a result of the bank branch office sales previously mentioned
in the discussion of noninterest income. Income tax expense totaled $966,000, or
an effective tax rate of 27.2%,  and $2.0  million,  or an effective tax rate of
32.7%,  for the nine months  ended March 31,  2006 and 2005,  respectively.  The
effective  tax rate  decreased for the  current-year  period  primarily  because
tax-exempt  income comprised a larger  percentage of pre-tax income for the nine
months ended March 31, 2006 than for the nine months  ended March 31, 2005.  The
increase  in  tax-exempt  income  was  due  to an  increase  in the  balance  of
tax-exempt loans and the resulting increase in tax-exempt interest income during
the current year period.

                                    Dividend
                                    --------

On April 20,  2006,  the  Company's  Board of  Directors  declared  a  quarterly
dividend of $0.10 per share,  the same as that  distributed  last  quarter.  The
dividend is payable on May 31, 2006 to stockholders of record on May 17, 2006.

                                                                               3
<PAGE>

                                Other Information
                                -----------------

Assets  totaled $600.7 million and $578.6  million,  respectively,  at March 31,
2006 and 2005.  Book value per share  increased to $20.12 at March 31, 2006 from
$19.80 at March 31,  2005.  Stockholders'  equity to total assets was 11.31% and
12.40%,  respectively,  at March 31, 2006 and 2005.  The  Company had  3,375,609
shares outstanding at March 31, 2006.

The  Company's  common stock is traded on the NASDAQ  National  Market under the
symbol FFSX. The Company is headquartered in Sioux City, Iowa. The Bank operates
eight offices in northwest  Iowa, an office in South Sioux City,  Nebraska,  and
six offices in central Iowa.

Except for the  historical  information  contained  in this press  release,  the
matters  discussed may be deemed to be  forward-looking  statements,  within the
meaning of the Private  Securities  Litigation  Reform Act of 1995, that involve
risks  and  uncertainties,  including  changes  in  economic  conditions  in the
Company's market area, changes in policies by regulatory agencies,  fluctuations
in interest rates,  demand for loans in the Company's market area,  competition,
and other risks detailed from time to time in the Company's SEC reports.  Actual
strategies  and  results  in future  periods  may differ  materially  from those
currently expected.  These  forward-looking  statements  represent the Company's
judgment as of the date of this release.  The Company  disclaims,  however,  any
intent or obligation to update these forward-looking statements.



                                                                               4
<PAGE>

                 FIRST FEDERAL BANKSHARES, INC. and SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

<TABLE>
<CAPTION>
                                                        March 31,    June 30,     March 31,
                                                          2006         2005         2005
                                                        ---------    ---------    ---------
<S>                                                     <C>          <C>          <C>
ASSETS                                                         (Dollars in thousands)
------
Cash and cash equivalents                               $  29,688    $  31,336    $  13,860
Securities available-for-sale                              39,514       49,978       52,477
Securities held-to-maturity                                14,408       18,197       18,528
Loans receivable, net                                     462,932      433,634      432,996
Office property and equipment, net                         12,566       13,109       13,155
Federal Home Loan Bank stock, at cost                       5,384        5,762        5,762
Accrued interest receivable                                 2,723        2,293        2,459
Goodwill                                                   18,417       18,417       18,417
Other assets                                               15,096       14,087       20,983
                                                        ---------    ---------    ---------
   Total assets                                         $ 600,728    $ 586,813    $ 578,637
                                                        =========    =========    =========

LIABILITIES
-----------
Deposits                                                $ 431,009    $ 407,563    $ 398,638
Advances from FHLB and other borrowings                    97,361      104,564      104,095
Advance payments by borrowers for taxes and insurance         402          953          295
Accrued interest payable                                    1,902        1,312        1,269
Accrued expenses and other liabilities                      2,129        2,126        2,585
                                                        ---------    ---------    ---------
   Total liabilities                                      532,803      516,518      506,882

STOCKHOLDERS' EQUITY
--------------------
Common stock, $.01 par value                                   50           50           50
Additional paid-in capital                                 38,195       37,761       37,720
Retained earnings, substantially restricted                56,600       55,029       55,209
Treasury stock, at cost - 1,632,266, 1,428,826 and
  1,352,826 shares, respectively, at March 31, 2006,
  June 30, 2005 and March 31, 2005                        (25,921)     (21,748)     (20,165)
Accumulated other comprehensive income                       (177)         159          (19)
Unearned ESOP                                                (818)        (914)        (947)
Unearned RRP                                                   (4)         (42)         (93)
                                                        ---------    ---------    ---------
   Total stockholders' equity                              67,925       70,295       71,755
                                                        ---------    ---------    ---------
   Total liabilities and stockholders' equity           $ 600,728    $ 586,813    $ 578,637
                                                        =========    =========    =========
</TABLE>

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

                                           Three months ende   Nine months ended
                                               March 31,           March 31,
                                           -------------------------------------
                                             2006     2005       2006      2005
                                           -------   -------   -------   -------
                                                    (Dollars in thousands)
                                           -------------------------------------
Total interest income                      $ 8,264   $ 7,331   $23,858   $21,638
Total interest expense                       3,892     2,931    10,956     8,601
                                           -------   -------   -------   -------
  Net interest income                        4,372     4,400    12,902    13,037
Less: provision for loan losses                320       130     1,070       995
                                           -------   -------   -------   -------
  Net interest income after provision        4,052     4,270    11,832    12,042
Noninterest income                           1,423     1,595     4,733     7,489
Noninterest expense                          4,454     4,570    13,010    13,526
                                           -------   -------   -------   -------
  Income before income taxes                 1,021     1,295     3,555     6,005
Taxes on income                                255       397       966     1,964
                                           -------   -------   -------   -------
    Net income                             $   766   $   898   $ 2,589   $ 4,041
                                           =======   =======   =======   =======

                                                                               5
<PAGE>

                 FIRST FEDERAL BANKSHARES, INC and SUBSIDIARIES
                        FINANCIAL HIGHLIGHTS (unaudited)

<TABLE>
<CAPTION>
                                           At or for the three months    At or for the nine months
                                                    March 31,                 ended March 31,
                                           --------------------------    --------------------------
Financial condition data:                     2006           2005           2006            2005
-------------------------                  -----------    -----------    -----------    -----------
<S>                                        <C>            <C>            <C>            <C>
                                                (Dollars in thousands, except per share amounts)

Average interest-earning assets            $   537,889    $   521,778    $   530,480    $   526,261
Average interest-bearing liabilities       $   476,433    $   461,750    $   467,141    $   468,941
Average interest-earning assets to
  average interest-bearing liabilities          112.90%        113.00%        113.56%        112.22%
Non-performing loans                       $     4,618    $     2,777    $     4,618    $     2,777
Non-performing loans to total loans               0.99%          0.63%          0.99%          0.63%
Non-performing assets                      $     4,859    $     2,997    $     4,859    $     2,997
Non-performing assets to total assets             0.81%          0.52%          0.81%          0.52%
Allowance for loan losses                  $     5,530    $     4,927    $     5,530    $     4,927
Allowance for loan losses to total loans          1.18%          1.13%          1.18%          1.13%
Shareholders' equity to assets                   11.31%         12.40%         11.31%         12.40%


Selected operating data: (1)
Return on average assets                          0.53%          0.64%          0.59%          0.92%
Return on average equity (2)                      4.51%          5.12%          4.89%          7.49%
Net interest rate spread                          2.96%          3.18%          2.92%          3.09%
Net yield on average interest-earning
  assets (3)                                      3.29%          3.42%          3.29%          3.35%
Efficiency ratio (4)                             76.89%         76.39%         74.76%         73.18%

<CAPTION>

-----------------------------------------------
      (1)   Annualized except for efficiency ratio.
      (2)   Net income  divided  by average  equity  capital  excluding  average
            unrealized gains on available-for-sale securities.
      (3)   Net   interest    income,    tax-effected,    divided   by   average
            interest-earning assets.
      (4)   Noninterest  expense,  excluding minority  interest,  divided by net
            interest  income before  provision for loan losses plus  noninterest
            income,  less gain (loss) on sale of other real estate  owned,  less
            gain  (loss) on sale of  investments,  less  gain  (loss) on sale of
            fixed assets.

<S>                                           <C>           <C>           <C>           <C>
Per share data:
Earnings per share:
  Basic                                       $      0.23   $      0.25   $      0.76   $      1.13
  Diluted                                     $      0.23   $      0.25   $      0.75   $      1.11
Book value per share                          $     20.12   $     19.80   $     20.12   $     19.80
Market price per share:
  High for the period                         $     22.90   $     23.69   $     22.90   $     24.00
  Low for the period                          $     19.11   $     21.40   $     17.30   $     20.00
  Close at end of period                      $     22.60   $     21.83   $     22.60   $     21.83
Cash dividends declared per share             $      0.10   $      0.10   $      0.30   $      0.30
Weighted-average common shares outstanding:
  Basic                                         3,311,516     3,526,364     3,389,694     3,567,590
  Diluted                                       3,359,715     3,589,999     3,440,973     3,641,615

</TABLE>

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