##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-QSB
  þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
 For the quarterly period ended March 31, 2007
 OR
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
 For the transition period from  to
 Commission file number: 0-51153
 FEDFIRST FINANCIAL CORPORATION
 
  United States
    
    25-1828028(State or other jurisdiction of incorporation or organization)
    
    (IRS Employer Identification No.)
 Donner at Sixth Street, Monessen, Pennsylvania
    
    15062(Address of principal executive offices)
    
    (Zip Code)
 
 þ o
 o þ
  o þ




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##### 



(FEDFIRST FINANCIAL LOGO)
    
    FEDFIRSTFINANCIAL CORPORATION AND SUBSIDIARIES
  FORM 10-QSB
 INDEX
 PagePART I. FINANCIAL INFORMATIONItem 1. Financial Statements.
    
    
    1Consolidated Statements of Financial Condition at March 31, 2007 (Unaudited)
and December 31, 2006
    
    
    1Consolidated Statements of (Loss) Income for the Three Months Ended March
31, 2007 and 2006 (Unaudited)
    
    
    2Consolidated Statements of Changes in Stockholders Equity and Comprehensive
(Loss) Income for the Three Months Ended March 31, 2007 and 2006
(Unaudited)
    
    
    3Consolidated Statements of Cash Flows for the Three Months Ended March 31,
2007 and 2006 (Unaudited)
    
    
    4Notes to the Unaudited Consolidated Financial Statements
    
    
    5Item 2. Managements Discussion and Analysis or Plan of Operation
    
    
    10Item 3. Controls and Procedures
    
    
    17PART II. OTHER INFORMATIONItem 1. Legal Proceedings.
    
    
    17Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
    
    
    18Item 3. Defaults Upon Senior Securities.
    
    
    18Item 4. Submission of Matters to a Vote of Security Holders.
    
    
    18Item 5. Other Information.
    
    
    18Item 6. Exhibits
    
    
    18Signatures
    
    
    19EX-31.1EX-31.2EX-32.1EX-32.2




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##### Table of Contents



(FEDFIRST FINANCIAL LOGO)
    
    FEDFIRSTFINANCIAL CORPORATION AND SUBSIDIARIES
 
 PART I  FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 March 31,
    
    December 31,2007
    
    2006(Dollars in thousands)
    
    (UNAUDITED)AssetsCash and cash equivalents:Cash and due from banks
    
    $
    1,882
    
    
    $
    1,561Interest-earning deposits
    
    
    6,469
    
    
    
    2,871Total cash and cash equivalents
    
    
    8,351
    
    
    
    4,432Securities:Securities held for trading
    
    
    41,122
    
    
    
    Securities available-for-sale
    
    
    38,724
    
    
    
    83,045Total securities
    
    
    79,846
    
    
    
    83,045Loans, net
    
    
    176,082
    
    
    
    174,718Federal Home Loan Bank (FHLB) stock, at cost
    
    
    4,841
    
    
    
    4,901Accrued interest receivable  loans
    
    
    997
    
    
    
    1,033Accrued interest receivable  securities
    
    
    544
    
    
    
    559Premises and equipment, net
    
    
    2,268
    
    
    
    2,162Bank-owned life insurance
    
    
    7,329
    
    
    
    7,259Goodwill
    
    
    1,080
    
    
    
    1,080Real estate owned
    
    
    569
    
    
    
    569Other assets
    
    
    715
    
    
    
    1,232Deferred tax assets and tax credit carryforwards
    
    
    2,519
    
    
    
    2,527Total assets
    
    $
    285,141
    
    
    $
    283,517Liabilities and Stockholders EquityDeposits:Noninterest-bearing
    
    
    7,005
    
    
    
    5,409Interest-bearing
    
    
    140,716
    
    
    
    138,086Total deposits
    
    
    147,721
    
    
    
    143,495Borrowings
    
    
    87,135
    
    
    
    89,323Advance payments by borrowers for taxes and insurance
    
    
    421
    
    
    
    254Accrued interest payable  deposits
    
    
    833
    
    
    
    1,180Accrued interest payable  borrowings
    
    
    315
    
    
    
    319Other liabilities
    
    
    2,388
    
    
    
    2,521Total liabilities
    
    
    238,813
    
    
    
    237,092Minority interest in subsidiary
    
    
    59
    
    
    
    79Stockholders equity:Preferred stock $0.01 par value; 10,000,000 shares authorized; none issued
    
    
    
    
    
    
    Common stock $0.01 par value; 20,000,000 shares authorized;
6,707,500 shares issued
    
    
    67
    
    
    
    67Additional paid-in-capital
    
    
    28,869
    
    
    
    28,787Retained earnings  substantially restricted
    
    
    19,506
    
    
    
    20,475Accumulated other comprehensive gain (loss), net
of deferred taxes of $20 and $(475)
    
    
    30
    
    
    
    (737
    )Unearned Employee Stock Ownership Plan (ESOP)
    
    
    (2,203
    )
    
    
    (2,246
    )Total stockholders equity
    
    
    46,269
    
    
    
    46,346Total liabilities and stockholders equity
    
    $
    285,141
    
    
    $
    283,517
  1




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##### Table of Contents



(FEDFIRST FINANCIAL LOGO)
    
    FEDFIRSTFINANCIAL CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED)
 For the Three MonthsEnded March 31,(Dollars in thousands, except per share data)
    
    2007
    
    
    2006Interest income:Loans
    
    $
    2,494
    
    
    $
    2,438Securities
    
    
    1,025
    
    
    
    810Other interest-earning assets
    
    
    119
    
    
    
    74Total interest income
    
    
    3,638
    
    
    
    3,322Interest expense:Deposits
    
    
    1,168
    
    
    
    834Borrowings
    
    
    956
    
    
    
    949Total interest expense
    
    
    2,124
    
    
    
    1,783Net interest income
    
    
    1,514
    
    
    
    1,539Provision for loan losses
    
    
    45
    
    
    
    20Net interest income after provision for loan losses
    
    
    1,469
    
    
    
    1,519Noninterest income:Fees and service charges
    
    
    95
    
    
    
    88Insurance commissions
    
    
    591
    
    
    
    554Income from bank-owned life insurance
    
    
    70
    
    
    
    67Net loss on securities held for trading
    
    
    (1,409
    )
    
    
    Net gain on sales of real estate owned
    
    
    
    
    
    
    11Other
    
    
    3
    
    
    
    5Total noninterest income
    
    
    (650
    )
    
    
    725Noninterest expense:Compensation and employee benefits
    
    
    1,427
    
    
    
    1,149Occupancy
    
    
    253
    
    
    
    197FDIC insurance premiums
    
    
    6
    
    
    
    16Data processing
    
    
    90
    
    
    
    75Other
    
    
    438
    
    
    
    395Total noninterest expense
    
    
    2,214
    
    
    
    1,832Minority interest in net income of consolidated subsidiary
    
    
    31
    
    
    
    31(Loss) income before income tax (benefit) expense
    
    
    (1,426
    )
    
    
    381Income tax (benefit) expense
    
    
    (457
    )
    
    
    143Net (loss) income
    
    $
    (969
    )
    
    $
    238Earnings per share:Basic and diluted
    
    $
    (0.15
    )
    
    $
    0.04Weighted-average shares outstanding:Basic
    
    
    6,390,012
    
    
    
    6,372,731Diluted
    
    
    6,393,516
    
    
    
    6,372,731
  2




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##### Table of Contents



(FEDFIRST FINANCIAL LOGO)
    
    FEDFIRSTFINANCIAL CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY AND
COMPREHENSIVE (LOSS) INCOME (UNAUDITED)
 AccumulatedAdditional
    
    
    
    
    
    
    Other
    
    
    Unearned
    
    
    TotalCommon
    
    
    Paid-in-
    
    
    Retained
    
    
    Comprehensive
    
    
    ESOP
    
    
    Stockholders
    
    
    Comprehensive(Dollars in thousands)
    
    Stock
    
    
    Capital
    
    
    Earnings
    
    
    Income (Loss)
    
    
    Shares
    
    
    Equity
    
    
    Income (Loss)Balance at January 1, 2006
    
    $
    66
    
    
    $
    28,648
    
    
    $
    20,131
    
    
    $
    (1,026
    )
    
    $
    (2,419
    )
    
    $
    45,400Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    238
    
    
    
    
    
    
    
    
    
    
    
    238
    
    
    $
    238Unrealized loss on securities
available-for-sale
net of tax of $(123)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (191
    )
    
    
    
    
    
    
    (191
    )
    
    
    (191
    )ESOP shares committed
to be released
    
    
    
    
    
    
    (3
    )
    
    
    
    
    
    
    
    
    
    
    43
    
    
    
    40Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    47Balance at March 31, 2006
    
    $
    66
    
    
    $
    28,645
    
    
    $
    20,369
    
    
    $
    (1,217
    )
    
    $
    (2,376
    )
    
    $
    45,487
 AccumulatedAdditional
    
    
    
    
    
    
    Other
    
    
    Unearned
    
    
    TotalCommon
    
    
    Paid-in-
    
    
    Retained
    
    
    Comprehensive
    
    
    ESOP
    
    
    Stockholders
    
    
    ComprehensiveStock
    
    
    Capital
    
    
    Earnings
    
    
    Income (Loss)
    
    
    Shares
    
    
    Equity
    
    
    (Loss) IncomeBalance at January 1, 2007
    
    $
    67
    
    
    $
    28,787
    
    
    $
    20,475
    
    
    $
    (737
    )
    
    $
    (2,246
    )
    
    $
    46,346Comprehensive income:Net loss
    
    
    
    
    
    
    
    
    
    
    (969
    )
    
    
    
    
    
    
    
    
    
    
    (969
    )
    
    $
    (969
    )Transfer of securities
held for trading
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    857
    
    
    
    
    
    
    
    857
    
    
    
    857Unrealized loss on securities
available-for-sale
net of tax of $(57)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (90
    )
    
    
    
    
    
    
    (90
    )
    
    
    (90
    )ESOP shares
committed to be released
    
    
    
    
    
    
    (3
    )
    
    
    
    
    
    
    
    
    
    
    43
    
    
    
    40Stock-based compensation
expense
    
    
    
    
    
    
    85
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    85Total comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (202
    )Balance at March 31, 2007
    
    $
    67
    
    
    $
    28,869
    
    
    $
    19,506
    
    
    $
    30
    
    
    $
    (2,203
    )
    
    $
    46,269
  3




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##### Table of Contents



(FEDFIRST FINANCIAL LOGO)
    
    FEDFIRSTFINANCIAL CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 For the Three MonthsEnded March 31,(Dollars in thousands)
    
    2007
    
    2006Cash flows from operating activitiesNet (loss) income
    
    $
    (969
    )
    
    $
    238Adjustments to reconcile net (loss) income to net cash provided
by operating activitiesMinority interest in net income of consolidated subsidiary
    
    
    31
    
    
    
    31Provision for loan losses
    
    
    45
    
    
    
    20Depreciation
    
    
    85
    
    
    
    65Net loss on securities held for trading
    
    
    1,409
    
    
    
    Net accretion (amortization) of security premiums and loan costs
    
    
    51
    
    
    
    (1
    )Non cash expense for ESOP
    
    
    40
    
    
    
    40Non cash expense for stock-based compensation
    
    
    85
    
    
    
    Increase in bank-owned life insurance
    
    
    (70
    )
    
    
    (67
    )Decrease (increase) in other assets
    
    
    38
    
    
    
    (71
    )Decrease in other liabilities
    
    
    (492
    )
    
    
    (168
    )Net cash provided by operating activities
    
    
    253
    
    
    
    87Cash flows from investing activitiesNet loan originations
    
    
    (1,437
    )
    
    
    (625
    )Proceeds from maturities of and principal repayments of
securities available-for-sale
    
    
    7,468
    
    
    
    4,249Purchases of securities available-for-sale
    
    
    (4,439
    )
    
    
    Purchases of premises and equipment
    
    
    (191
    )
    
    
    (16
    )Decrease in FHLB stock, at cost
    
    
    60
    
    
    
    151Net cash provided by investing activities
    
    
    1,461
    
    
    
    3,759Cash flows from financing activities:Net decrease in borrowings
    
    
    (2,188
    )
    
    
    (7,920
    )Net increase in deposits
    
    
    4,226
    
    
    
    3,628Increase in advance payments by borrowers for taxes and insurance
    
    
    167
    
    
    
    182Net cash provided by (used in) financing activities
    
    
    2,205
    
    
    
    (4,110
    )Net increase (decrease) in cash and cash equivalents
    
    
    3,919
    
    
    
    (264
    )Cash and cash equivalents, beginning of period
    
    
    4,432
    
    
    
    6,332Cash and cash equivalents, end of period
    
    $
    8,351
    
    
    $
    6,068Supplemental cash flow information:Cash paid for:Interest on deposits and borrowings
    
    $
    1,958
    
    
    $
    1,762Income tax expense
    
    $
    12
    
    
    $
    Supplemental cash flow information:Transfer of securities from available-for-sale to trading
    
    $
    42,531
    
    
    $
    
  4




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##### Table of Contents



(FEDFIRST FINANCIAL LOGO)
    
    FEDFIRSTFINANCIAL CORPORATION AND SUBSIDIARIES
 
 Notes to the Unaudited Consolidated Financial Statements
 Note 1. Basis of Presentation/Nature of Operations
     Note 2. Recent Accounting Pronouncements
 The Fair Value Option for Financial Assets and Financial Liabilities: The Fair Value Option for Financial Assets and Financial Liabilities
 5




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##### Table of Contents



(FEDFIRST FINANCIAL LOGO)
    
    FEDFIRSTFINANCIAL CORPORATION AND SUBSIDIARIES
 Fair Value Measurements: Fair Value Measurements.
 Note 3. Securities
  Securities available-for-sale
    
    March 31, 2007
    
    December 31, 2006Amortized
    
    Fair
    
    Amortized
    
    Fair(Dollars in thousands)
    
    Cost
    
    Value
    
    Cost
    
    ValueGovernment-Sponsored Enterprises
    
    $
    12,801
    
    
    $
    12,817
    
    
    $
    30,475
    
    
    $
    30,036Mortgage-backed
    
    
    11,875
    
    
    
    11,966
    
    
    
    14,892
    
    
    
    14,885REMICs
    
    
    9,943
    
    
    
    9,931
    
    
    
    34,831
    
    
    
    34,121Corporate debt
    
    
    4,006
    
    
    
    3,961
    
    
    
    4,010
    
    
    
    3,954Equities
    
    
    49
    
    
    
    49
    
    
    
    49
    
    
    
    49Total securities available-for-sale
    
    $
    38,674
    
    
    $
    38,724
    
    
    $
    84,257
    
    
    $
    83,045
  6




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##### Table of Contents



(FEDFIRST FINANCIAL LOGO)
    
    FEDFIRSTFINANCIAL CORPORATION AND SUBSIDIARIES
 Note 4. Loans
  March 31, 2007
    
    
    December 31, 2006(Dollars in thousands)
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentReal estate-mortgageOne-to-four family residential
    
    $
    132,800
    
    
    
    74.4
    %
    
    $
    133,821
    
    
    
    75.2
    %Multi-family
    
    
    16,411
    
    
    
    9.2
    
    
    
    18,410
    
    
    
    10.3Commercial
    
    
    8,039
    
    
    
    4.5
    
    
    
    5,437
    
    
    
    3.1Total real estate-mortgage loans
    
    
    157,250
    
    
    
    88.1
    
    
    
    157,668
    
    
    
    88.6Real estate-constructionResidential
    
    
    4,422
    
    
    
    2.5
    
    
    
    5,021
    
    
    
    2.8Commercial
    
    
    1,750
    
    
    
    1.0
    
    
    
    1,750
    
    
    
    1.0Total real estate-construction
    
    
    6,172
    
    
    
    3.5
    
    
    
    6,771
    
    
    
    3.8ConsumerHome equity
    
    
    11,162
    
    
    
    6.3
    
    
    
    9,470
    
    
    
    5.3Loans on savings accounts
    
    
    374
    
    
    
    0.2
    
    
    
    493
    
    
    
    0.3Home improvement
    
    
    378
    
    
    
    0.2
    
    
    
    381
    
    
    
    0.2Other
    
    
    579
    
    
    
    0.3
    
    
    
    531
    
    
    
    0.3Total consumer loans
    
    
    12,493
    
    
    
    7.0
    
    
    
    10,875
    
    
    
    6.1Commercial business
    
    
    2,566
    
    
    
    1.4
    
    
    
    2,616
    
    
    
    1.5Total loans
    
    $
    178,481
    
    
    
    100.0
    %
    
    $
    177,930
    
    
    
    100.0
    %Premium on loans purchased
    
    
    433
    
    
    
    
    
    
    
    465Net deferred loan costs
    
    
    426
    
    
    
    
    
    
    
    432Discount on loans purchased
    
    
    (128
    )
    
    
    
    
    
    
    (139
    )Loans in process
    
    
    (2,219
    )
    
    
    
    
    
    
    (3,104
    )Allowance for loan losses
    
    
    (911
    )
    
    
    
    
    
    
    (866
    )Loans, net
    
    $
    176,082
    
    
    
    
    
    
    $
    174,718
 7




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##### Table of Contents



(FEDFIRST FINANCIAL LOGO)
    
    FEDFIRSTFINANCIAL CORPORATION AND SUBSIDIARIES
 NonPerforming Assets.
 March 31,
    
    December 31,(Dollars in thousands)
    
    2007
    
    2006Nonaccrual loans:Real estate  mortgage
    
    $
    538
    
    
    $
    592Real estate  construction
    
    
    
    
    
    
    Consumer
    
    
    174
    
    
    
    175Commercial business
    
    
    
    
    
    
    Total
    
    
    712
    
    
    
    767Accruing loans past due 90 day or moreReal estate  mortgage
    
    
    
    
    
    
    Real estate  construction
    
    
    
    
    
    
    Consumer
    
    
    
    
    
    
    Commercial business
    
    
    
    
    
    
    Total
    
    
    
    
    
    
    Total of nonaccrual and 90 days or
more past due loans
    
    
    712
    
    
    
    767Real estate owned
    
    
    569
    
    
    
    569Total nonperforming assets
    
    $
    1,281
    
    
    $
    1,336Troubled debt restructurings
    
    
    
    
    
    
    Troubled debt restructurings and total
nonperforming assets
    
    $
    1,281
    
    
    $
    1,336Total nonperforming loans to total loans
    
    
    0.40
    %
    
    
    0.43
    %Total nonperforming loans to total assets
    
    
    0.25
    
    
    
    0.27Total nonperforming assets to total assets
    
    
    0.45
    
    
    
    0.47
 Allowance for loan losses.
 Three Months
    
    Year
    
    Three MonthsEnded
    
    Ended
    
    EndedMarch 31,
    
    December 31,
    
    March 31,(Dollars in thousands)
    
    2007
    
    2006
    
    2006Allowance at beginning of period
    
    $
    866
    
    
    $
    800
    
    
    $
    800Provision for loan losses
    
    
    45
    
    
    
    84
    
    
    
    20Charge-offs
    
    
    
    
    
    
    (18
    )
    
    
    Recoveries
    
    
    
    
    
    
    
    
    
    
    Net charge-offs
    
    
    
    
    
    
    (18
    )
    
    
    Allowance at end of period
    
    $
    911
    
    
    $
    866
    
    
    $
    820
 8




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##### Table of Contents



(FINANCIAL CORPORATION AND SUBSIDIARIES LOGO)
    
    FedFirstFINANCIAL CORPORATION AND SUBSIDIARIES
 Note 5. Deposits
  March 31, 2007
    
    December 31, 2006
    
    March 31, 2006(Dollars in thousands)
    
    Amount
    
    Percent
    
    Amount
    
    Percent
    
    Amount
    
    PercentNoninterest-bearing demand deposits
    
    $
    7,005
    
    
    
    4.8
    %
    
    $
    5,409
    
    
    
    3.8
    %
    
    $
    3,987
    
    
    
    3.1
    %Interest-bearing demand deposits
    
    
    13,469
    
    
    
    9.1
    
    
    
    12,530
    
    
    
    8.7
    
    
    
    13,336
    
    
    
    10.4Savings accounts
    
    
    25,907
    
    
    
    17.5
    
    
    
    26,525
    
    
    
    18.5
    
    
    
    30,015
    
    
    
    23.4Money market accounts
    
    
    9,858
    
    
    
    6.7
    
    
    
    7,663
    
    
    
    5.3
    
    
    
    5,436
    
    
    
    4.2Certificates of deposit
    
    
    91,482
    
    
    
    61.9
    
    
    
    91,368
    
    
    
    63.7
    
    
    
    75,751
    
    
    
    58.9Total deposits
    
    $
    147,721
    
    
    
    100.0
    %
    
    $
    143,495
    
    
    
    100.0
    %
    
    $
    128,525
    
    
    
    100.0
    %
 Note 6. Borrowings
  Three
    
    
    
    
    
    ThreeMonths
    
    Year
    
    MonthsEnded
    
    Ended
    
    EndedMarch 31,
    
    December 31,
    
    March 31,(Dollars in thousands)
    
    2007
    
    2006
    
    2006Maximum amount outstanding at any month end
during the period
    
    $
    89,663
    
    
    $
    98,766
    
    
    $
    98,766Average amounts outstanding during the period
    
    
    88,867
    
    
    
    90,308
    
    
    
    97,582Weighted average rate during the period
    
    
    4.30
    %
    
    
    4.04
    %
    
    
    3.89
    %Balance outstanding at end of period
    
    $
    87,135
    
    
    $
    89,323
    
    
    $
    94,484Weighted average rate at end of period
    
    
    4.24
    %
    
    
    4.22
    %
    
    
    3.93
    %
 Note 7. Earnings Per Share
  9




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(FINANCIAL CORPORATION AND SUBSIDIARIES LOGO)
    
    FedFirstFINANCIAL CORPORATION AND SUBSIDIARIES
 Three Months EndedMarch 31,(Dollars in thousands, except per share amounts)
    
    2007
    
    2006Net (loss) income
    
    $
    (969
    )
    
    $
    238Weighted-average shares outstanding:Basic
    
    
    6,390,012
    
    
    
    6,372,231Effect of dilutive stock options and
restrictive stock awards
    
    
    3,504
    
    
    
    Diluted
    
    
    6,393,516
    
    
    
    6,372,231Earnings per share:Basic
    
    $
    (0.15
    )
    
    $
    0.04Diluted
    
    $
    (0.15
    )
    
    $
    0.04
 
 Item 2. Managements Discussion and Analysis or Plan of Operation
  Forward-Looking Statements
   General
  10




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##### Table of Contents



(FINANCIAL CORPORATION AND SUBSIDIARIES LOGO)
    
    FedFirstFINANCIAL CORPORATION AND SUBSIDIARIES
     Balance Sheet Analysis
 Assets.
   Liabilities.
   11




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##### Table of Contents



(FINANCIAL CORPORATION AND SUBSIDIARIES LOGO)
    
    FedFirstFINANCIAL CORPORATION AND SUBSIDIARIES
 Stockholders Equity.
 Results of Operations for the Three Months Ended March 31, 2007 and 2006
 Overview.
 Three Months EndedMarch 31,(Dollars in thousands)
    
    2007
    
    2006Net (loss) income
    
    $
    (969
    )
    
    $
    238Return on average assets
    
    
    (1.36
    )%
    
    
    0.35
    %Return on average equity
    
    
    (8.35
    )
    
    
    2.09Average equity to average assets
    
    
    16.29
    
    
    
    16.67
 Net Interest Income.
   12




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##### Table of Contents



(FINANCIAL CORPORATION AND SUBSIDIARIES LOGO)
    
    FedFirstFINANCIAL CORPORATION AND SUBSIDIARIES
  Three Months EndedMarch 31,(Dollars in thousands)
    
    2007
    
    
    2006
    
    
    % ChangeInterest income:Loans
    
    $
    2,494
    
    
    $
    2,438
    
    
    
    2.3
    %Securities
    
    
    1,025
    
    
    
    810
    
    
    
    26.5Other interest-earning assets
    
    
    119
    
    
    
    74
    
    
    
    60.8Total interest income
    
    
    3,638
    
    
    
    3,322
    
    
    
    9.5Interest expense:Interest-bearing demand deposits
    
    
    15
    
    
    
    16
    
    
    
    (6.3
    )Savings accounts
    
    
    65
    
    
    
    74
    
    
    
    (12.2
    )Money market accounts
    
    
    75
    
    
    
    16
    
    
    
    368.8Certificates of deposit
    
    
    1,013
    
    
    
    728
    
    
    
    39.1Total interest-bearing deposits
    
    
    1,168
    
    
    
    834
    
    
    
    40.0Borrowings
    
    
    956
    
    
    
    949
    
    
    
    0.7Total interest expense
    
    
    2,124
    
    
    
    1,783
    
    
    
    19.1Net interest income
    
    $
    1,514
    
    
    $
    1,539
    
    
    
    (1.6)
    %
 Average Balances and Yields .
 13




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##### Table of Contents



(FINANCIAL CORPORATION AND SUBSIDIARIES LOGO)
    
    FedFirstFINANCIAL CORPORATION AND SUBSIDIARIES
 Three Months Ended March 31,2007
    
    
    2006Interest
    
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    
    and
    
    
    Yield/
    
    
    Average
    
    
    and
    
    
    Yield/Balance
    
    
    Dividends
    
    
    Cost
    
    
    Balance
    
    
    Dividends
    
    
    CostAssets:Interest-earning assets:Loans, net (1)(2)
    
    $
    175,531
    
    
    $
    2,494
    
    
    
    5.68
    %
    
    $
    171,321
    
    
    $
    2,438
    
    
    
    5.69
    %Securities (3)
    
    
    84,227
    
    
    
    1,025
    
    
    
    4.87
    
    
    
    77,702
    
    
    
    810
    
    
    
    4.17Other interest-earning assets
    
    
    8,352
    
    
    
    119
    
    
    
    5.70
    
    
    
    9,362
    
    
    
    74
    
    
    
    3.16Total interest-earning
assets
    
    
    268,110
    
    
    $
    3,638
    
    
    
    5.43
    
    
    
    258,385
    
    
    $
    3,322
    
    
    
    5.14Noninterest-earning assets
    
    
    16,685
    
    
    
    
    
    
    
    
    
    
    
    15,068Total assets
    
    $
    284,795
    
    
    
    
    
    
    
    
    
    
    $
    273,453Liabilities and
Stockholders equity:Interest-bearing liablities:Interest-bearing
demand deposits
    
    $
    12,996
    
    
    $
    15
    
    
    
    0.46
    %
    
    $
    13,368
    
    
    $
    16
    
    
    
    0.48
    %Savings accounts
    
    
    26,245
    
    
    
    65
    
    
    
    0.99
    
    
    
    30,241
    
    
    
    74
    
    
    
    0.98Money market accounts
    
    
    8,529
    
    
    
    75
    
    
    
    3.52
    
    
    
    5,062
    
    
    
    16
    
    
    
    1.26Certificates of deposit
    
    
    91,510
    
    
    
    1,013
    
    
    
    4.43
    
    
    
    74,850
    
    
    
    728
    
    
    
    3.89Total interest-bearing
deposits
    
    
    139,280
    
    
    
    1,168
    
    
    
    3.35
    
    
    
    123,521
    
    
    
    834
    
    
    
    2.70Borrowings
    
    
    88,867
    
    
    
    956
    
    
    
    4.30
    
    
    
    97,582
    
    
    
    949
    
    
    
    3.89Total interest-bearing
liabilities
    
    
    228,147
    
    
    
    2,124
    
    
    
    3.72
    
    
    
    221,103
    
    
    
    1,783
    
    
    
    3.23Noninterest-bearing liabilities
    
    
    10,242
    
    
    
    
    
    
    
    
    
    
    
    6,763Total liabilities
    
    
    238,389
    
    
    
    
    
    
    
    
    
    
    
    227,866Stockholders equity:
    
    
    46,406
    
    
    
    
    
    
    
    
    
    
    
    45,587Total liabilities and
stockholders equity
    
    $
    284,795
    
    
    
    
    
    
    
    
    
    
    $
    273,453Net interest income
    
    
    
    
    
    $
    1,514
    
    
    
    
    
    
    
    
    
    
    $
    1,539Interest rate spread (4)
    
    
    
    
    
    
    
    
    
    
    1.71
    %
    
    
    
    
    
    
    
    
    
    
    1.91
    %Net interest margin (5)
    
    
    
    
    
    
    
    
    
    
    2.26
    
    
    
    
    
    
    
    
    
    
    
    2.38Avergage interest-earning
assets to average
interest-bearing liablities
    
    
    
    
    
    
    
    
    
    
    117.52
    %
    
    
    
    
    
    
    
    
    
    
    116.86
    %
 
 (1)
    
    Amount is net of deferred loan costs, loans in process and estimated allowance for loan
losses.(2)
    
    Amount includes nonaccrual loans in average balances only.(3)
    
    Amount does not include effect of unrealized (loss) gain on securities available-for-sale.(4)
    
    Interest rate spread represents the difference between the yield on interest-earning assets
and the cost of interest-bearing liabilities.(5)
    
    Net interest margin represents net interest income divided by average interest-earning
assets. 14




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(FINANCIAL CORPORATION AND SUBSIDIARIES LOGO)
    
    FedFirstFINANCIAL CORPORATION AND SUBSIDIARIES
 Rate/Volume Analysis .
 Three Months Ended March 31, 2007Compared ToThree Months Ended March 31, 2006Increase (decrease) due to(Dollars in thousands)
    
    Volume
    
    Rate
    
    TotalInterest and dividend income:Loans, net
    
    $
    60
    
    
    $
    (4
    )
    
    $
    56Securities
    
    
    72
    
    
    
    143
    
    
    
    215Other interest-earning assets
    
    
    (9
    )
    
    
    54
    
    
    
    45Total interest-earning assets
    
    
    123
    
    
    
    193
    
    
    
    316Interest expense:Deposits
    
    
    116
    
    
    
    218
    
    
    
    334Borrowings
    
    
    (88
    )
    
    
    95
    
    
    
    7Total interest-bearing liablities
    
    
    28
    
    
    
    313
    
    
    
    341Change in net interest income
    
    $
    95
    
    
    $
    (120
    )
    
    $
    (25
    )
 Provision for Loan Losses.
 Noninterest Income .
 Three Months EndedMarch 31,(Dollars in thousands)
    
    2007
    
    
    2006
    
    
    % ChangeFees and service charges
    
    $
    95
    
    
    $
    88
    
    
    
    8.0
    %Insurance commissions
    
    
    591
    
    
    
    554
    
    
    
    6.7Income from bank-owned life insurance
    
    
    70
    
    
    
    67
    
    
    
    4.5Net loss on securities held for trading
    
    
    (1,409
    )
    
    
    
    
    
    
    100.0Net gain on sale of real estate owned
    
    
    
    
    
    
    11
    
    
    
    (100.0
    )Other
    
    
    3
    
    
    
    5
    
    
    
    (40.0
    )Total noninterest income
    
    $
    (650
    )
    
    $
    725
    
    
    
    (189.7)
    %
  15




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##### Table of Contents



(FINANCIAL CORPORATION AND SUBSIDIARIES LOGO)
    
    FedFirstFINANCIAL CORPORATION AND SUBSIDIARIES
  Noninterest Expense.
 Three Months EndedMarch 31,(Dollars in thousands)
    
    2007
    
    
    2006
    
    
    % ChangeCompensation and employee benefits
    
    $
    1,427
    
    
    $
    1,149
    
    
    
    24.2
    %Occupancy
    
    
    253
    
    
    
    197
    
    
    
    28.4FDIC insurance premiums
    
    
    6
    
    
    
    16
    
    
    
    (62.5
    )Data processing
    
    
    90
    
    
    
    75
    
    
    
    20.0Advertising
    
    
    29
    
    
    
    39
    
    
    
    (25.6
    )Professional services
    
    
    138
    
    
    
    119
    
    
    
    16.0Stationary, printing and supplies
    
    
    31
    
    
    
    34
    
    
    
    (8.8
    )Telephone
    
    
    13
    
    
    
    13
    
    
    
    Postage
    
    
    31
    
    
    
    24
    
    
    
    29.2Correspondent bank fees
    
    
    31
    
    
    
    21
    
    
    
    47.6All other
    
    
    165
    
    
    
    145
    
    
    
    13.8Total noninterest expense
    
    $
    2,214
    
    
    $
    1,832
    
    
    
    20.9
    %
  Income Tax (Benefit) Expense.
 Liquidity and Capital Management
 Liquidity Management .
   16




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##### Table of Contents



(FINANCIAL CORPORATION AND SUBSIDIARIES LOGO)
    
    FedFirstFINANCIAL CORPORATION AND SUBSIDIARIES
  Capital Management.
 Off-Balance Sheet Arrangements.
  
 Item 3. Controls and Procedures
  
 PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings.
  17




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##### Table of Contents



(FINANCIAL CORPORATION AND SUBSIDIARIES LOGO)
    
    FedFirstFINANCIAL CORPORATION AND SUBSIDIARIES
 
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
   
 Item 3. Defaults Upon Senior Securities.
  
 Item 4. Submission of Matters to a Vote of Security Holders.
  
 Item 5. Other Information.
  
 Item 6. Exhibits
 3.1
    
    Amended and Restated Charter of FedFirst Financial Corporation (1)3.2
    
    Amended and Restated Bylaws of FedFirst Financial Corporation (2)4.0
    
    Specimen Stock Certificate of FedFirst Financial Corporation (1)31.1
    
    Rule 13a-14 (a) / 15d-14 (a) Certification (President and Chief Executive Officer)31.2
    
    Rule 13a-14 (a) / 15d-14 (a) Certification (Chief Financial Officer)32.1
    
    Certification of John G. Robinson pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 200232.2
    
    Certification of Robert C. Barry Jr. pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 
 (1)
    
    Incorporated herein by reference to the Exhibits to the Registration Statement on Form
SB-2, and amendments thereto, initially filed on December 17, 2004, Registration No. 333-121405.(2)
    
    Incorporated herein by reference to the Exhibits to FedFirst Financial Corporations Form
10-QSB filed on November 9, 2006. 18




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(FINANCIAL CORPORATION AND SUBSIDIARIES LOGO)
    
    FedFirstFINANCIAL CORPORATION AND SUBSIDIARIES
 
 SIGNATURES
  FEDFIRST FINANCIAL CORPORATION(Registrant)Date:   May 11, 2007
    
    /s/ John G. RobinsonJohn G. RobinsonPresident and Chief Executive OfficerDate:   May 11, 2007
    
    /s/ Robert C. Barry Jr.Robert C. Barry Jr.Chief Financial Officer and Senior Vice President(Principal Financial Officer and Chief Accounting
Officer)
 19