##### 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, 2006
 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
  
  þ o
 o þ
  o þ




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##### 



FEDFIRST FINANCIAL CORPORATION
 FORM 10-QSB
 INDEX
 PagePART I.
    
    FINANCIAL INFORMATIONItem 1.
    
    Financial StatementsConsolidated Statements of Condition at March 31, 2006 (Unaudited)
and December 31, 2005
    
    
    3Consolidated Statements of Income for the Three Months Ended
March 31, 2006 and 2005 (Unaudited)
    
    
    4Consolidated Statements of Changes in Stockholders Equity and Comprehensive
Income for the Three Months Ended March 31, 2006 and 2005 (Unaudited)
    
    
    5Consolidated Statements of Cash Flows for the Three Months Ended
March 31, 2006 and 2005 (Unaudited)
    
    
    6Notes to the Unaudited Consolidated Financial Statements
    
    
    7Item 2.
    
    Managements Discussion and Analysis or Plan of Operation
    
    
    9Item 3.
    
    Controls and Procedures
    
    
    20PART II.
    
    OTHER INFORMATIONItem 1.
    
    Legal Proceedings
    
    
    20Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    20Item 3.
    
    Defaults Upon Senior Securities
    
    
    20Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    20Item 5.
    
    Other Information
    
    
    20Item 6.
    
    Exhibits
    
    
    21Signatures




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##### Table of Contents



PART I  FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 FEDFIRST FINANCIAL CORPORATION
AND SUBSIDIARIES
 
  MARCH 31,
    
    
    DECEMBER 31,2006
    
    
    2005(Dollars in thousands)
    
    (UNAUDITED)ASSETSCash and cash equivalents:Cash and due from banks
    
    $
    1,931
    
    
    $
    1,437Interest-earning deposits
    
    
    4,137
    
    
    
    4,895Total cash and cash equivalents
    
    
    6,068
    
    
    
    6,332Securities available-for-sale
    
    
    73,376
    
    
    
    77,947Loans receivable, net
    
    
    171,776
    
    
    
    171,162Federal Home Loan Bank stock, at cost
    
    
    4,996
    
    
    
    5,147Accrued interest receivable  loans
    
    
    999
    
    
    
    1,028Accrued interest receivable  securities
    
    
    418
    
    
    
    357Premises and equipment, net
    
    
    2,021
    
    
    
    2,070Bank-owned life insurance
    
    
    7,051
    
    
    
    6,984Goodwill
    
    
    1,080
    
    
    
    1,080Other assets
    
    
    1,215
    
    
    
    1,109Deferred tax assets and tax credit carryforwards
    
    
    2,868
    
    
    
    2,855Total assets
    
    $
    271,868
    
    
    $
    276,071LIABILITIES AND STOCKHOLDERS EQUITYDeposits:Noninterest-bearing
    
    $
    3,987
    
    
    $
    3,181Interest-bearing
    
    
    124,538
    
    
    
    121,716Total deposits
    
    
    128,525
    
    
    
    124,897Federal Home Loan Bank advances
    
    
    94,484
    
    
    
    102,404Advance payments by borrowers for taxes and insurance
    
    
    473
    
    
    
    291Accrued interest payable  deposits
    
    
    671
    
    
    
    636Accrued interest payable  borrowings
    
    
    311
    
    
    
    325Other liabilities
    
    
    1,925
    
    
    
    2,157Total liabilities
    
    
    226,389
    
    
    
    230,710Minority interest in subsidiary
    
    
    97
    
    
    
    66Stockholders 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;
6,612,500 shares issued
    
    
    66
    
    
    
    66Additional paid-in capital
    
    
    28,645
    
    
    
    28,648Retained earnings  substantially restricted
    
    
    20,264
    
    
    
    20,026Accumulated other comprehensive loss, net
of deferred taxes of $(784) and $(661)
    
    
    (1,217
    )
    
    
    (1,026
    )Unearned Employee Stock Ownership Plan shares (ESOP)
    
    
    (2,376
    )
    
    
    (2,419
    )Total stockholders equity
    
    
    45,382
    
    
    
    45,295Total liabilities and stockholders equity
    
    $
    271,868
    
    
    $
    276,071
  3




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##### Table of Contents



FEDFIRST FINANCIAL CORPORATION
AND SUBSIDIARIES
 
  For the Three MonthsEnded March 31,(Dollars in thousands, except per share data)
    
    2006
    
    
    2005Interest income:Loans
    
    $
    2,438
    
    
    $
    2,263Securities
    
    
    810
    
    
    
    787Other interest-earning assets
    
    
    74
    
    
    
    118Total interest income
    
    
    3,322
    
    
    
    3,168Interest expense:Deposits
    
    
    834
    
    
    
    786Federal Home Loan Bank advances
    
    
    949
    
    
    
    975Total interest expense
    
    
    1,783
    
    
    
    1,761Net interest income
    
    
    1,539
    
    
    
    1,407Provision for loan losses
    
    
    20
    
    
    
    Net interest income after provision for loan losses
    
    
    1,519
    
    
    
    1,407Noninterest income:Fees and service charges
    
    
    88
    
    
    
    94Insurance commissions
    
    
    554
    
    
    
    494Income from bank-owned life insurance
    
    
    67
    
    
    
    62Net gain on sale of real estate owned
    
    
    11
    
    
    
    Other
    
    
    5
    
    
    
    10Total noninterest income
    
    
    725
    
    
    
    660Noninterest expense:Compensation and employee benefits
    
    
    1,149
    
    
    
    1,127Occupancy
    
    
    197
    
    
    
    204Insurance premiums
    
    
    16
    
    
    
    17Data processing
    
    
    75
    
    
    
    74Other
    
    
    395
    
    
    
    313Total noninterest expense
    
    
    1,832
    
    
    
    1,735Minority interest in net income of consolidated subsidiary
    
    
    31
    
    
    
    28Income before income taxes
    
    
    381
    
    
    
    304Income tax expense
    
    
    143
    
    
    
    78Net income
    
    $
    238
    
    
    $
    226Earnings per share:Basic and diluted
    
    $
    0.04
    
    
    
    N/AWeighted-average shares outstanding:Basic and diluted
    
    
    6,372,731
    
    
    
    N/A
  4




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FEDFIRST FINANCIAL CORPORATION
AND SUBSIDIARIES
 
    AccumulatedAdditional
    
    
    
    
    
    
    Other
    
    
    Unearned
    
    
    TotalCommon
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    ESOP
    
    
    Stockholders
    
    
    ComprehensiveStock
    
    
    Capital
    
    
    Earnings
    
    
    Income (Loss)
    
    
    Shares
    
    
    Equity
    
    
    Income (Loss)Balance at January 1, 2005
    
    $
    
    
    
    $
    
    
    
    $
    20,186
    
    
    $
    (217
    )
    
    $
    
    
    
    $
    19,969Comprehensive incomeNet income
    
    
    
    
    
    
    
    
    
    
    226
    
    
    
    
    
    
    
    
    
    
    
    226
    
    
    $
    226Unrealized loss on
securities available-
for-sale, net of tax
of $(274)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (425
    )
    
    
    
    
    
    
    (425
    )
    
    
    (425
    )Total comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (199
    )Balance at March 31, 2005
    
    $
    
    
    
    $
    
    
    
    $
    20,412
    
    
    $
    (642
    )
    
    $
    
    
    
    $
    19,770
 AccumulatedAdditional
    
    
    
    
    
    
    Other
    
    
    Unearned
    
    
    TotalCommon
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    ESOP
    
    
    Stockholders
    
    
    ComprehensiveStock
    
    
    Capital
    
    
    Earnings
    
    
    Income (Loss)
    
    
    Shares
    
    
    Equity
    
    
    Income (Loss)Balance at January 1, 2006
    
    $
    66
    
    
    $
    28,648
    
    
    $
    20,026
    
    
    $
    (1,026
    )
    
    $
    (2,419
    )
    
    $
    45,295Comprehensive incomeNet 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
    
    
    $
    20,264
    
    
    $
    (1,217
    )
    
    $
    (2,376
    )
    
    $
    45,382
  5




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FEDFIRST FINANCIAL CORPORATION
AND SUBSIDIARIES
 
  For the Three Months EndedMarch 31,(Dollars in thousands)
    
    2006
    
    
    2005Cash flows from operating activitiesNet income
    
    $
    238
    
    
    $
    226Adjustments to reconcile net income to net cash provided by operating activities:Minority interest in net income of consolidated subsidiary
    
    
    31
    
    
    
    28Provision for loan losses
    
    
    20
    
    
    
    Depreciation
    
    
    65
    
    
    
    77Net (amortization) accretion of security premiums and loan costs
    
    
    (1
    )
    
    
    60Amortization of investments in affordable housing projects
    
    
    
    
    
    
    50Non cash expense for Employee Stock Ownership Plan (ESOP)
    
    
    40
    
    
    
    Increase in accrued interest receivable
    
    
    (32
    )
    
    
    (142
    )Increase in bank-owned life insurance
    
    
    (67
    )
    
    
    (62
    )Increase in other assets
    
    
    (39
    )
    
    
    (806
    )(Decrease) increase in other liabilities
    
    
    (168
    )
    
    
    47,845Net cash provided by operating activities
    
    
    87
    
    
    
    47,276Cash flows from investing activitiesNet loan (originations) repayments
    
    
    (625
    )
    
    
    841Purchases of mortgage loans
    
    
    
    
    
    
    (8,622
    )Proceeds from maturities of and principal repayments of securities available-for-sale
    
    
    4,249
    
    
    
    6,015Purchases of securities available-for-sale
    
    
    
    
    
    
    (3,303
    )Purchases of premises and equipment
    
    
    (16
    )
    
    
    (32
    )Decrease in Federal Home Loan Bank stock
    
    
    151
    
    
    
    361Net cash provided by (used in) investing activities
    
    
    3,759
    
    
    
    (4,740
    )Cash flows from financing activitiesNet decrease in FHLB advances
    
    
    (7,920
    )
    
    
    (2,853
    )Net increase (decrease) in deposits
    
    
    3,628
    
    
    
    (4,016
    )Increase (decrease) in advance payments by borrowers for taxes and insurance
    
    
    182
    
    
    
    (304
    )Net cash used in financing activities
    
    
    (4,110
    )
    
    
    (7,173
    )Net (decrease) increase in cash and cash equivalents
    
    
    (264
    )
    
    
    35,363Cash and cash equivalents, beginning of period
    
    
    6,332
    
    
    
    6,715Cash and cash equivalents, end of period
    
    $
    6,068
    
    
    $
    42,078Supplemental cash flow information:Cash paid for:Interest on deposits, advances, and other borrowings
    
    $
    1,762
    
    
    $
    1,883Income taxes
    
    $
    
    
    
    $
    15
  6




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Notes to the Unaudited Consolidated Financial Statements
 Note 1. Basis of Presentation/Nature of Operations
      Note 2. Recent Accounting Pronouncements
  7




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##### Table of Contents



Note 3. Earnings Per Share
  Three MonthsEndedMarch 31,(Dollars in thousands, except per share data)
    
    2006Net income
    
    $
    238Weighted-average shares outstanding:Basic
    
    
    6,372,731Effect of dilutive stock options and restrictive stock awards
    
    
    Diluted
    
    
    6,372,731Earnings per share:Basic
    
    $
    0.04Diluted
    
    $
    0.04
  8




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##### Table of Contents



Item 2. Managements Discussion and Analysis or Plan of Operation
  Forward-Looking Statements
   General
    9




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##### Table of Contents



Balance Sheet Analysis
 Overview.
 Loans .
  March 31, 2006
    
    
    December 31, 2005(Dollars in thousands)
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentReal estate-mortgage:One- to four-family residential
    
    $
    132,534
    
    
    
    75.4
    %
    
    $
    133,189
    
    
    
    76.3
    %Multi-family
    
    
    20,897
    
    
    
    11.9
    
    
    
    21,552
    
    
    
    12.3Commercial
    
    
    4,354
    
    
    
    2.5
    
    
    
    4,121
    
    
    
    2.4Total real estate  mortgage loans
    
    
    157,785
    
    
    
    89.8
    
    
    
    158,862
    
    
    
    91.0Real estate  construction:Residential
    
    
    5,755
    
    
    
    3.3
    
    
    
    4,366
    
    
    
    2.5Commercial
    
    
    1,000
    
    
    
    0.6
    
    
    
    1,000
    
    
    
    0.6Total real estate  construction loans
    
    
    6,755
    
    
    
    3.9
    
    
    
    5,366
    
    
    
    3.1Consumer:Education and consumer
    
    
    1,976
    
    
    
    1.1
    
    
    
    1,955
    
    
    
    1.1Home equity
    
    
    6,933
    
    
    
    3.9
    
    
    
    6,264
    
    
    
    3.6Loans on savings accounts
    
    
    490
    
    
    
    0.3
    
    
    
    416
    
    
    
    0.2Home improvement and other
    
    
    429
    
    
    
    0.2
    
    
    
    470
    
    
    
    0.3Total consumer loans
    
    
    9,828
    
    
    
    5.5
    
    
    
    9,105
    
    
    
    5.2Commercial business
    
    
    1,455
    
    
    
    0.8
    
    
    
    1,271
    
    
    
    0.7Total loans
    
    
    175,823
    
    
    
    100.0
    %
    
    
    174,604
    
    
    
    100.0
    %Premium on loan purchases
    
    
    518
    
    
    
    
    
    
    
    524Net deferred loan costs
    
    
    398
    
    
    
    
    
    
    
    385Discount on loans purchased
    
    
    (163
    )
    
    
    
    
    
    
    (166
    )Loans in process
    
    
    (3,980
    )
    
    
    
    
    
    
    (3,385
    )Allowance for loan losses
    
    
    (820
    )
    
    
    
    
    
    
    (800
    )Loans, net
    
    $
    171,776
    
    
    
    
    
    
    $
    171,162
  10




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Non-Performing Assets.
 March 31,
    
    
    December 31,(Dollars in thousands)
    

2006
    
    
    2005Nonaccrual loans:Real estate  mortgage
    
    $
    172
    
    
    $
    212Real estate  construction
    
    
    
    
    
    
    Consumer
    
    
    172
    
    
    
    43Commercial business
    
    
    
    
    
    
    Total
    
    
    344
    
    
    
    255Accruing loans past due 90 days or more:Real estate  mortgage
    
    
    
    
    
    
    12Real estate  construction
    
    
    
    
    
    
    Consumer
    
    
    66
    
    
    
    4Commercial business
    
    
    
    
    
    
    Total
    
    
    66
    
    
    
    16Total of nonaccrual and 90 days or
more past due loans
    
    
    410
    
    
    
    271Real estate owned
    
    
    48
    
    
    
    21Total nonperforming assets
    
    
    458
    
    
    
    292Troubled debt restructurings
    
    
    
    
    
    
    Troubled debt restructurings and total
nonperforming assets
    
    $
    458
    
    
    $
    292Total nonperforming loans to total loans
    
    
    0.23
    %
    
    
    0.16
    %Total nonperforming loans to total assets
    
    
    0.15
    
    
    
    0.10Total nonperforming assets to total assets
    
    
    0.17
    
    
    
    0.11
  11




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##### Table of Contents



Securities.
  March 31, 2006
    
    
    December 31, 2005Amortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair(Dollars in thousands)
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    ValueU.S. Government and agency securities
    
    $
    15,425
    
    
    $
    14,841
    
    
    $
    15,425
    
    
    $
    14,896Mortgage-backed securities
    
    
    20,756
    
    
    
    20,670
    
    
    
    23,373
    
    
    
    23,326Guaranteed REMICs
    
    
    35,111
    
    
    
    33,866
    
    
    
    36,737
    
    
    
    35,702Corporate debt securities
    
    
    4,021
    
    
    
    3,935
    
    
    
    4,024
    
    
    
    3,948Other debt securities
    
    
    15
    
    
    
    15
    
    
    
    26
    
    
    
    26Equity securities
    
    
    49
    
    
    
    49
    
    
    
    49
    
    
    
    49Total securities available-for-sale
    
    $
    75,377
    
    
    $
    73,376
    
    
    $
    79,634
    
    
    $
    77,947
  Deposits.
  March 31, 2006
    
    
    December 31, 2005(Dollars in thousands)
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %Noninterest-bearing demand deposits
    
    $
    3,987
    
    
    
    3.1
    %
    
    $
    3,181
    
    
    
    2.5
    %Interest-bearing demand deposits
    
    
    13,336
    
    
    
    10.4
    
    
    
    13,225
    
    
    
    10.6Savings accounts
    
    
    30,015
    
    
    
    23.4
    
    
    
    30,797
    
    
    
    24.7Money market accounts
    
    
    5,436
    
    
    
    4.2
    
    
    
    5,319
    
    
    
    4.3Certificates of deposit
    
    
    75,751
    
    
    
    58.9
    
    
    
    72,375
    
    
    
    57.9Total deposits
    
    $
    128,525
    
    
    
    100.0
    %
    
    $
    124,897
    
    
    
    100.0
    %
  12




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##### Table of Contents



Borrowings .
 Three Months Ended
    
    Year EndedMarch 31,
    
    December 31,(Dollars in thousands)
    
    2006
    
    2005FHLB AdvancesMaximum amount outstanding at any month end
during the period
    
    $
    98,766
    
    
    $
    109,800Average amount outstanding during the period
    
    
    97,582
    
    
    
    105,275Weighted average interest rate during the period
    
    
    3.89
    %
    
    
    3.72
    %Balance outstanding at end of period
    
    $
    94,484
    
    
    $
    102,404Weighted average interest rate at end of period
    
    
    3.93
    %
    
    
    3.87
    %
  13




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##### Table of Contents



Results of Operations for the Three Months Ended March 31, 2006 and 2005
 Overview.
 Three Months EndedMarch 31,(Dollars in thousands)
    
    2006
    
    2005
    
    % ChangeNet income
    
    $
    238
    
    
    $
    226
    
    
    
    5.3
    %Return on average assets
    
    
    0.35
    %
    
    
    0.33
    %
    
    
    6.1Return on average equity
    
    
    2.09
    
    
    
    4.53
    
    
    
    (54.5
    )Average equity to average assets
    
    
    16.66
    
    
    
    7.27
    
    
    
    129.2
 Net Interest Income.
   14




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##### Table of Contents



Three Months EndedMarch 31,(Dollars in thousands)
    
    2006
    
    
    2005
    
    
    % ChangeInterest income:Loans
    
    $
    2,438
    
    
    $
    2,263
    
    
    
    7.7
    %Securities
    
    
    810
    
    
    
    787
    
    
    
    2.9Other interest-earning assets
    
    
    74
    
    
    
    118
    
    
    
    (37.3
    )Total interest income
    
    
    3,322
    
    
    
    3,168
    
    
    
    4.9Interest expense:Interest-bearing demand deposits (1)
    
    
    16
    
    
    
    36
    
    
    
    (55.6
    )Savings accounts
    
    
    74
    
    
    
    85
    
    
    
    (12.9
    )Money market accounts
    
    
    16
    
    
    
    22
    
    
    
    (27.3
    )Certificates of deposit
    
    
    728
    
    
    
    643
    
    
    
    13.2Total interest-bearing deposits
    
    
    834
    
    
    
    786
    
    
    
    6.1FHLB advances
    
    
    949
    
    
    
    975
    
    
    
    (2.7
    )Total interest expense
    
    
    1,783
    
    
    
    1,761
    
    
    
    1.2Net interest income
    
    $
    1,539
    
    
    $
    1,407
    
    
    
    9.4
    %
 
 (1)
    
    The interest for the three months ended March 31, 2005 includes approximately $20,000 of
interest on funds received for stock subscriptions related to the Companys initial public
offering. 15




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##### Table of Contents



(Dollars in thousands)
    
    Three Months Ended March 31,2006
    
    
    2005Interest
    
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    
    and
    
    
    Yield/
    
    
    Average
    
    
    and
    
    
    Yield/Balance
    
    
    Dividends
    
    
    Cost
    
    
    Balance
    
    
    Dividends
    
    
    CostAssets:Interest-earning assets:Loans, net(1)(2)
    
    $
    171,321
    
    
    $
    2,438
    
    
    
    5.69
    %
    
    $
    157,278
    
    
    $
    2,263
    
    
    
    5.76
    %Investment securities(3)
    
    
    77,702
    
    
    
    810
    
    
    
    4.17
    
    
    
    84,426
    
    
    
    787
    
    
    
    3.73Other interest-earning assets
    
    
    9,362
    
    
    
    74
    
    
    
    3.16
    
    
    
    17,419
    
    
    
    118
    
    
    
    2.71Total interest-earning assets
    
    
    258,385
    
    
    
    3,322
    
    
    
    5.14
    
    
    
    259,123
    
    
    
    3,168
    
    
    
    4.89Noninterest-earning assets
    
    
    15,311
    
    
    
    
    
    
    
    
    
    
    
    15,370Total assets
    
    $
    273,696
    
    
    
    
    
    
    
    
    
    
    $
    274,493Liabilities and stockholders equity:Interest-bearing liabilities:Interest-bearing demand deposits(4)
    
    
    13,368
    
    
    
    16
    
    
    
    0.48
    
    
    
    13,938
    
    
    
    36
    
    
    
    1.03Savings accounts
    
    
    30,241
    
    
    
    74
    
    
    
    0.98
    
    
    
    35,250
    
    
    
    85
    
    
    
    0.96Money market accounts
    
    
    5,062
    
    
    
    16
    
    
    
    1.26
    
    
    
    6,412
    
    
    
    22
    
    
    
    1.37Certificates of deposit
    
    
    74,850
    
    
    
    728
    
    
    
    3.89
    
    
    
    75,900
    
    
    
    643
    
    
    
    3.39Total interest-bearing deposits
    
    
    123,521
    
    
    
    834
    
    
    
    2.70
    
    
    
    131,500
    
    
    
    786
    
    
    
    2.39FHLB advances
    
    
    97,582
    
    
    
    949
    
    
    
    3.89
    
    
    
    109,379
    
    
    
    975
    
    
    
    3.57Total interest-bearing liabilities
    
    
    221,103
    
    
    
    1,783
    
    
    
    3.23
    
    
    
    240,879
    
    
    
    1,761
    
    
    
    2.92Noninterest-bearing liabilities
    
    
    7,006
    
    
    
    
    
    
    
    
    
    
    
    13,668Total liabilities
    
    
    228,109
    
    
    
    
    
    
    
    
    
    
    
    254,547Stockholders equity
    
    
    45,587
    
    
    
    
    
    
    
    
    
    
    
    19,946Total liabilities
and stockholders
equity
    
    $
    273,696
    
    
    
    
    
    
    
    
    
    
    $
    274,493Net interest income
    
    
    
    
    
    $
    1,539
    
    
    
    
    
    
    
    
    
    
    $
    1,407Interest rate spread(5)
    
    
    
    
    
    
    
    
    
    
    1.91
    %
    
    
    
    
    
    
    
    
    
    
    1.97
    %Net interest margin(6)
    
    
    
    
    
    
    
    
    
    
    2.38
    
    
    
    
    
    
    
    
    
    
    
    2.17Average interest-earning assets to
average interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    116.86
    %
    
    
    
    
    
    
    
    
    
    
    107.57
    %
 
 (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)
    
    The interest for the three months ended March 31, 2005 includes approximately $20,000 of
interest on funds received for stock subscriptions related to the Companys initial public
offering and therefore does not impact the average balance of interest-bearing demand
deposits.(5)
    
    Interest rate spread represents the difference between the yield on interest-earning assets
and the cost of interest-bearing liabilities.(6)
    
    Net interest margin represents net interest income divided by average interest-earning assets. 16




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##### Table of Contents



Rate/Volume Analysis
 Three Months Ended March 31, 2006Compared to(Dollars in thousands)
    
    Three Months Ended March 31, 2005Increase (Decrease) Due toVolume
    
    
    Rate
    
    
    TotalInterest and dividend income:Loans
    
    $
    203
    
    
    $
    (28
    )
    
    $
    175Securities
    
    
    (66
    )
    
    
    89
    
    
    
    23Other interest-earning assets
    
    
    (62
    )
    
    
    18
    
    
    
    (44
    )Total interest-earning assets
    
    
    75
    
    
    
    79
    
    
    
    154Interest expense:Deposits
    
    
    (50
    )
    
    
    98
    
    
    
    48FHLB advances
    
    
    (110
    )
    
    
    84
    
    
    
    (26
    )Total interest-bearing liabilities
    
    
    (160
    )
    
    
    182
    
    
    
    22Change in net interest income
    
    $
    235
    
    
    $
    (103
    )
    
    $
    132
 Provision for Loan Losses.
  Three Months Ended(Dollars in thousands)
    
    March 31,2006
    
    
    2005Allowance at the beginning of the period
    
    $
    800
    
    
    $
    725Provision for loan losses
    
    
    20
    
    
    
    Charge-offs
    
    
    
    
    
    
    Recoveries
    
    
    
    
    
    
    Net charge-offs
    
    
    
    
    
    
    Allowance at the end of period
    
    $
    820
    
    
    $
    725
  17




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##### Table of Contents



Noninterest Income .
 Three Months Ended(Dollars in thousands)
    
    March 31,2006
    
    
    2005
    
    
    % ChangeFees and service charges
    
    $
    88
    
    
    $
    94
    
    
    
    (6.4
    )%Insurance commissions
    
    
    554
    
    
    
    494
    
    
    
    12.1Income from bank-owned life insurance
    
    
    67
    
    
    
    62
    
    
    
    8.1Net gain on sale of real estate owned
    
    
    11
    
    
    
    
    
    
    
    100.0Other
    
    
    5
    
    
    
    10
    
    
    
    (50.0
    )Total noninterest income
    
    $
    725
    
    
    $
    660
    
    
    
    9.8
    %
  Noninterest Expense.
 Three Months Ended(Dollars in thousands)
    
    March 31,2006
    
    
    2005
    
    
    % ChangeCompensation and employee benefits
    
    $
    1,149
    
    
    $
    1,127
    
    
    
    2.0
    %Occupancy
    
    
    197
    
    
    
    204
    
    
    
    (3.4
    )Federal insurance premiums
    
    
    16
    
    
    
    17
    
    
    
    (5.9
    )Data processing
    
    
    75
    
    
    
    74
    
    
    
    1.4Advertising
    
    
    39
    
    
    
    21
    
    
    
    85.7Professional services
    
    
    119
    
    
    
    30
    
    
    
    296.7Stationary, printing and supplies
    
    
    34
    
    
    
    24
    
    
    
    41.7Telephone
    
    
    13
    
    
    
    20
    
    
    
    (35.0
    )Postage
    
    
    24
    
    
    
    24
    
    
    
    Correspondent bank fees
    
    
    21
    
    
    
    23
    
    
    
    (8.7
    )All other
    
    
    145
    
    
    
    171
    
    
    
    (15.2
    )Total noninterest expense
    
    $
    1,832
    
    
    $
    1,735
    
    
    
    5.6
    %
  Income Taxes.
 18




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##### Table of Contents



Liquidity and Capital Management
 Liquidity Management .
    Capital Management.
  Off-Balance Sheet Arrangements .
 19




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##### Table of Contents



Item 3. Controls and Procedures
  
 PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings.
  
 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.
 .
 20




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##### Table of Contents



Item 6. Exhibits
 3.1
    
    
    Amended and Restated Charter of FedFirst Financial Corporation(1)3.2
    
    
    Amended and Restated Bylaws of FedFirst Financial Corporation4.0
    
    
    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. 21




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##### Table of Contents



SIGNATURES
  FEDFIRST FINANCIAL CORPORATION(Registrant)Date
    
    May 12, 2006
    
    /s/ John G RobinsonJohn G. RobinsonPresident and Chief Executive OfficerDate
    
    May 12, 2006
    
    /s/ Robert C. Barry Jr.Robert C. Barry Jr.Chief Financial Officer and Senior Vice President(Principal Financial Officer and Chief Accounting
Officer)
 22