FORM 10-QSB

                    U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   (Mark One)

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 1997


[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT

      For the transition period from  ____________ to  ____________

      Commission File No.  0-20380
                          ---------


                          FIRST FEDERAL BANCORP, INC.
-------------------------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)

                  Ohio                                  31-1341110
---------------------------------------    ------------------------------------
    (State or other jurisdiction of                  (I.R.S. Employer
     incorporation or organization)               Identification Number)

           505 Market Street
           Zanesville, Ohio                               43701
---------------------------------------    ------------------------------------
(Address of principal executive office)                 (Zip Code)


Registrant's telephone number, including area code: (614) 453-0606

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

                           Yes  [X]     No  [ ]

As of July 31, 1997, the latest practicable date, 1,571,716 shares of the
registrant's common stock, no par value, were issued and outstanding.

                              Page 1 of 13 Pages


<PAGE>  1


                          FIRST FEDERAL BANCORP, INC.


                                     INDEX

                                                                           PAGE
                                                                           ----

PART I  FINANCIAL INFORMATION

         Consolidated Statements of Financial Condition                      3

         Consolidated Statements of Income                                   4

         Consolidated Statements of Cash Flows                               5

         Notes to Consolidated Financial Statements                          6

         Management's Discussion and Analysis of Financial Condition
          and Results of Operations                                          8


PART II  OTHER INFORMATION                                                  12

         SIGNATURES                                                         13


<PAGE>  2


                                     PART I
                                     ------

                             FINANCIAL INFORMATION
                             ---------------------

                          First Federal Bancorp, Inc.

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


<TABLE>
<CAPTION>
                                                                           At June 30       At September 30
                                                                              1997               1996
                                                                          -------------     ---------------

<S>                                                                       <C>                <C>
ASSETS
Cash and amounts due from depository institutions                         $   7,469,955      $   4,986,988
Overnight deposits                                                            2,675,000          3,175,000
                                                                          --------------------------------
      Cash and cash equivalents                                           $  10,144,955      $   8,161,988
Investment securities held to maturity (Fair value - $6,501,000 in 
 6/97 and $4,546,000 in 9/96)                                                 6,499,809          4,548,069
Mortgage-backed  securities held to maturity (Fair value - $1,522,000
 in 6/97 and $1,658,000 in 9/96)                                              1,508,303          1,661,018
Loans receivable, net                                                       171,242,115        160,297,702
Premises and equipment, net                                                   7,387,393          6,553,874
Accrued interest receivable and other assets                                  4,479,194          3,244,605
                                                                          --------------------------------
      Total Assets                                                        $ 201,261,769      $ 184,467,256
                                                                          ================================


LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
  Deposits                                                                $ 129,073,617      $ 130,071,616
  Borrowed funds                                                             55,445,000         37,970,000
  Advances from borrowers for taxes and insurance                               213,306            540,734
  Accrued expenses and other liabilities                                      1,337,669          1,887,057
                                                                          --------------------------------
      Total Liabilities                                                   $ 186,069,592      $ 170,469,407
                                                                          --------------------------------

Stockholders' Equity
  Preferred stock, $100 par value, 1,000,000 shares authorized, no 
   shares issued and outstanding
  Common stock, no par value, 4,000,000 shares authorized, 1,650,100 
   shares issued                                                          $   3,656,323      $   3,656,323
  Retained earnings                                                          12,050,249         10,876,921
  Treasury shares, 78,384 shares                                               (514,395)          (535,395)
                                                                          --------------------------------
      Total Stockholders' Equity                                          $  15,192,177      $  13,997,849
                                                                          --------------------------------

Total Liabilities and Stockholders' Equity                                $ 201,261,769      $ 184,467,256
                                                                          ================================
</TABLE>


See Notes to the Consolidated Financial Statements.


<PAGE>  3


                          First Federal Bancorp, Inc.

                       CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                                  Three Months Ended             Nine Months Ended
                                                                        June 30                       June 30
                                                               -------------------------    ---------------------------
                                                                  1997          1996            1997           1996
                                                               -----------   -----------    ------------   ------------

<S>                                                            <C>           <C>            <C>            <C>
INTEREST INCOME
  Interest and fees on loans                                   $ 3,674,303   $ 3,300,185    $ 10,550,492   $  9,741,523
  Interest on mortgage-backed securities                            27,067         8,063          86,039         73,649
  Interest on investment securities                                 67,906        58,698         188,576        192,121
  Interest on other interest earning investments                    45,180        23,499         130,300         87,659
                                                               --------------------------------------------------------
      Total Interest Income                                      3,814,456     3,390,445      10,955,407     10,094,952
                                                               --------------------------------------------------------
INTEREST EXPENSE
  Interest on deposits                                           1,283,796     1,355,745       3,825,759      4,083,331
  Interest on borrowed money                                       762,019       383,333       2,045,193      1,205,561
                                                               --------------------------------------------------------
      Total Interest Expense                                     2,045,815     1,739,078       5,870,952      5,288,892
                                                               --------------------------------------------------------
      Net Interest Income                                        1,768,641     1,651,367       5,084,455      4,806,060
                                                               --------------------------------------------------------
      Provision for Loan Losses                                      2,206       (17,305)        162,296         28,716

      Net Interest Income After Provision for Loan Losses        1,766,435     1,668,672       4,922,159      4,777,344
                                                               --------------------------------------------------------
NONINTEREST INCOME
  Service charges on deposit accounts                               78,495        81,494         229,129        236,397
  Gain on sale of loans                                             14,481        13,883          39,392         39,304
  Dividends on FHLB stock                                           46,480        29,507         125,778         87,302
  Other operating income                                           217,917       115,113         421,652        303,789
                                                               --------------------------------------------------------
      Total Noninterest Income                                     357,373       239,997         815,951        666,792
                                                               --------------------------------------------------------
NONINTEREST EXPENSE
  Salaries and employee benefits                                   496,177       436,779       1,506,802      1,430,525
  Occupancy and equipment expense                                  200,330       135,335         548,876        376,002
  Deposit insurance expense                                         34,144        87,855         139,999        259,331
  Data processing expense                                           78,223        75,065         245,831        221,681
  Advertising                                                       86,303        52,953         210,587        139,700
  Ohio franchise taxes                                              49,505        46,116         143,652        133,818
  Other operating expenses                                         275,015       206,717         750,175        608,402
                                                               --------------------------------------------------------
      Total Noninterest Expenses                                 1,219,697     1,040,820       3,545,922      3,169,459
                                                               --------------------------------------------------------
      Income Before Income Taxes                                   904,111       867,849       2,192,188      2,274,677
                                                               --------------------------------------------------------
      Provision for Income Taxes                                   295,905       287,925         724,253        755,972
                                                               --------------------------------------------------------
      Net Income                                               $   608,206   $   579,924    $  1,467,935   $  1,518,705
                                                               ========================================================
EARNINGS PER COMMON & COMMON EQUIVALENT SHARES
      Primary                                                  $       .35   $       .34    $        .85   $        .90
                                                               --------------------------------------------------------
      Fully diluted                                            $       .35   $       .34    $        .85   $        .89
                                                               --------------------------------------------------------

WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES
      Primary                                                    1,725,561     1,704,200       1,718,024      1,693,516
                                                               --------------------------------------------------------
      Fully diluted                                              1,726,382     1,703,124       1,724,909      1,702,980
                                                               --------------------------------------------------------
DIVIDENDS DECLARED PER SHARE                                   $       .06   $      .055    $        .18   $       .155
                                                               --------------------------------------------------------
</TABLE>

<PAGE>  4


                          First Federal Bancorp, Inc.

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)


<TABLE>
<CAPTION>
                                                                             Nine Months Ended
                                                                                  June 30
                                                                       ------------------------------
                                                                           1997             1996
                                                                       -------------    -------------

<S>                                                                    <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                                           $   1,467,936    $   1,518,705
  Adjustments to reconcile net income to net cash provided by 
   operating activities:
    Provision for loan losses                                                162,296           28,715
    Depreciation                                                             339,584          183,379
    Federal Home Loan Bank stock dividends                                  (125,600)         (87,100)
    Amortization of net premiums (discounts) on investment 
     securities                                                              (57,914)          15,597
    Mortgage loans originated for sale                                    (3,511,434)      (5,575,692)
    Proceeds from sale of mortgage loans                                   3,537,985        5,205,877
    Change in other assets and other liabilities                            (895,378)        (176,330)
                                                                       ------------------------------
      Net Cash Provided by Operating Activities                              917,475        1,113,151
                                                                       ------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from maturities of investment securities                        4,760,188        3,014,249
  Purchases of investment securities/FHLB stock                           (7,417,014)      (2,724,048)
  Loans originated, net of principal repayments                          (11,251,905)      (3,872,138)
  Principal collected on mortgage-backed securities                          152,715          174,018
  Purchases of premises and equipment                                     (1,173,103)      (2,230,543)
  Proceeds from sales of real estate and other chattel owned                 110,701           57,975
                                                                       ------------------------------
      Net Cash Used for Investing Activities                             (14,818,418)      (5,580,487)
                                                                       ------------------------------ 

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net change in deposit accounts                                            (997,999)       1,159,538
  Net change in advance payments by borrowers for taxes and
   insurance                                                                (327,428)         (24,224)
  Net change in borrowed funds                                            17,475,000        3,940,000
  Dividends paid                                                            (274,963)        (243,213)
  Proceeds from exercise of options                                            9,300            1,300
                                                                       ------------------------------

      Net Cash Provided by Financing Activities                           15,883,910        4,833,401
                                                                       ------------------------------ 

NET CHANGE IN CASH AND CASH EQUIVALENTS                                    1,982,967          366,065

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                           8,161,988        6,335,583
                                                                       ------------------------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                             $  10,144,955    $   6,701,648
                                                                       ==============================
</TABLE>


<PAGE>  5


                          FIRST FEDERAL BANCORP, INC.
                   Notes to Consolidated Financial Statements


1.    Basis of Presentation
      ---------------------

The accompanying unaudited Consolidated Financial Statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and the instructions to Form 10-QSB. The Form 10-QSB does
not include all the information and footnotes required by generally accepted
accounting principles for complete financial statements. Only material changes
in financial condition and results of operations are discussed in Management's
Discussion and Analysis of Financial Condition and Results of Operations.

In the opinion of management, the condensed Consolidated Financial Statements
contain all adjustments necessary to present fairly the financial condition of
First Federal Bancorp, Inc. ("Bancorp"), as of June 30, 1997, and September 30,
1996, and the results of its operations for the three and nine months ended
June 30, 1997, and 1996, and its cash flow for the nine months ended June, 1997
and 1996. The results of operations for the interim periods reported herein are
not necessarily indicative of results of operations to be expected for the
entire year.

2.    Commitments
      -----------

Outstanding commitments to originate mortgage loans and to sell mortgage loans
were $1,432,555 and $180,296 respectively, at June 30, 1997.

3.    Earnings and Dividends Per Common Share
      ---------------------------------------

Earnings per share (EPS) is based upon the weighted average number of shares of
common stock and common stock equivalents outstanding during the period. The
common stock equivalents that result from the outstanding stock options granted
are based on the average market price of the Company's stock for primary EPS
and on the ending market price for the fully diluted EPS. On November 6, 1996,
and on October 26, 1994, the Board of Directors declared two-for-one stock
splits in the form of 100% stock dividends. All earnings and dividends per
share disclosures have been restated to reflect these stock splits.

4.    Allowance for Losses on Loans
      -----------------------------

Because some loans may not be repaid in full, an allowance for loan losses is
recorded. Increases to the allowance are recorded by a provision for loan
losses charged to expense. Estimating the risk of loss and the amount of loss
on any loan is necessarily subjective. Accordingly, the allowance is maintained
by management at a level considered adequate to cover possible losses that are
currently anticipated based on past loss experience, general economic
conditions, information about specific borrower situations, including their
financial position and collateral values, and other factors and estimates which
are subject to change over time. While management may periodically allocate
portions of the allowance for specific problem loan situations, the whole
allowance is available for any loan charge-offs that occur. A loan is
charged-off by management as a loss when deemed uncollectible, although
collection efforts continue and future recoveries may occur.

Statement of Financial Accounting Standards ("SFAS") No. 114, "Accounting by
Creditors for Impairment of a Loan," as amended by SFAS No. 118, became
effective October 1, 1995, and requires recognition of loan impairment. Loans
are considered impaired if full principal or interest payments are not
anticipated. Impaired loans are carried at the present value of expected cash
flows discounted at the loan's effective interest rate or at the fair value of
the collateral if the loan is collateral dependent. A portion of the allowance
for loan losses is allocated to impaired loans.

Smaller-balance, homogeneous loans are evaluated for impairment in total. Such
loans include residential first mortgage loans secured by one- to four-family
residences, residential construction loans, and automobile, home equity and
second mortgage loans. Mortgage loans secured by other properties are evaluated
individually for impairment. When analysis of borrower operating results and
financial condition indicates that underlying cash flows of the borrower's
business are not adequate to meet its debt service requirements, the loan is
evaluated for impairment. Loans are generally moved to nonaccrual status when
90 days or more past due. These loans are often also considered impaired.
Impaired loans, or portions thereof, are charged off when deemed uncollectible.
The nature of disclosures for impaired loans is considered generally comparable
to prior nonaccrual and renegotiated loans and nonperforming and past-due asset
disclosures. The Savings Bank had no loans meeting the definition of impaired
during the quarter ended June 30, 1997.


<PAGE>  6


5.    Interest Income on Loans
      ------------------------

Interest on loans is accrued over the term of the loans based upon the
principal outstanding. Management reviews loans delinquent 90 days or more to
determine if the interest accrual should be discontinued. The carrying value of
impaired loans reflects cash payments, revised estimates of future cash flows,
and increases in the present value of expected cash flows due to the passage of
time. Cash payments representing interest income are reported as such and other
cash payments are reported as reductions in carrying value. Increases or
decreases in carrying value due to changes in estimates of future payments or
the passage of time are reported as reductions or increases in bad debt
expense.


<PAGE>  7


                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General
-------

First Federal Bancorp, Inc. ("Bancorp"), is a savings and loan holding company
that wholly owns First Federal Savings Bank of Eastern Ohio (the "Savings
Bank"). The Savings Bank is engaged in the savings and loan business primarily
in Central and Eastern Ohio. The Savings Bank is a member of the Federal Home
Loan Bank ("FHLB") of Cincinnati, and the accounts in the Savings Bank are
insured up to the applicable limits by the Federal Deposit Insurance
Corporation in the Savings Association Insurance Fund ("SAIF").


Note Regarding Forward-Looking Statements
-----------------------------------------

In addition to historical information contained herein, the following
discussion contains forward-looking statements that involve risks and
uncertainties. Economic circumstances, First Federal's operations and First
Federal's actual results could differ significantly from those discussed in the
forward-looking statements. Some of the factors that could cause or contribute
to such differences are discussed herein but also include changes in the
economy and interest rates in the nation and First Federal's market area
generally. See Exhibit 99.2 hereto, which is incorporated herein by reference.

Some of the forward-looking statements included herein are the statements
regarding the following:


1.    Management's determination of the amount of loan loss allowance;

2.    Management's belief that deposits will grow slightly during fiscal year
      1997; and

3.    Legislative changes with respect to the federal thrift charter.


Changes in Financial Condition from September 30, 1996, to June 30, 1997
------------------------------------------------------------------------

Total consolidated assets of Bancorp increased by $16.8 million, or 9.10%, from
$184.5 million at September 30, 1996, to $201.3 million at June 30, 1997. The
increase is due to a $10.9 million increase in loans receivable, a $2.0 million
increase in cash and cash equivalents, a $1.9 million increase in investment
securities, an $834,000 increase in premises and equipment, and a $1.2 million
increase in accrued interest receivable. The increase in premises and equipment
is due to the $4.0 million renovation and construction project at the Main
Office, which was completed in November 1996. The increase in accrued interest
receivable is due primarily to the increase in FHLB stock of $889,000.

Total liquidity (consisting of cash and amounts due from depository
institutions, interest-bearing deposits in other banks, and investment
securities) was $16.6 million at June 30, 1997, which is an increase of $3.9
million from September 30, 1996. The regulatory liquidity of the Savings Bank
was 7.55% at June 30, 1997, which was in excess of the minimum regulatory
requirement of 5%. Funds are available through FHLB advances to meet the
Savings Bank's liquidity requirement if necessary.

The loans receivable balance increased $10.9 million for the nine-month period
as the anticipated steady mortgage and consumer loan volume in the Savings
Bank's market area continued.

As of June 30, 1997, the Savings Bank had borrowed funds from the FHLB in the
amount of $55.4 million at a weighted average rate of 6.43%. FHLB advances
increased $17.5 million, or 46%, from $38 million at September 30, 1996.
Deposits decreased by $1 million, or .76%, from $130.1 million at September 30,
1996, to $129.1 million at June 30, 1997. Management believes that the Savings
Bank will experience a slight increase in deposits during the current fiscal
year in spite of the decrease during the nine months. As the result of the
decrease in the SAIF premium cost, the Savings Bank can afford to pay
depositors a slightly higher rate while managing the cost of funds. FHLB
advances have increased in cost compared to deposits of a similar term. The
Savings Bank therefore plans to become more aggressive in promoting deposit
products. No assurance can be provided, however, that deposits will grow.
Deposit levels are affected by national, as well as local, interest rates and
other national and local economic circumstances.

The Savings Bank is subject to regulatory capital requirements established by
the Office of Thrift Supervision ("OTS"). The Savings Bank's capital ratios
were as follows at June 30, 1997.


<PAGE>  8

<TABLE>
<CAPTION>
                                                    Amount        Percent of
                                                (In Thousands)      Assets
                                                --------------    ----------

         <S>                                       <C>              <C>
         Actual Tangible Capital                   $ 13,508          6.74%
         Required Tangible Capital                    3,007          1.50%
                                                   -----------------------
         Excess Tangible Capital                   $ 10,501          5.24%

         Actual Core Capital                       $ 13,508          6.74%
         Required Core Capital                        6,015          3.00%
                                                   -----------------------
         Excess Core Capital                       $  7,493          3.74%

         Actual Risk Based Capital                 $ 14,801         11.44%
         Required Risk Based Capital                 10,350          8.00%
                                                   -----------------------
         Excess Risk Based Capital                 $  4,451          3.44%
</TABLE>

Management is not aware of any proposed regulations or recommendations by the
OTS that, if implemented, would have a material effect upon the Savings Bank's
capital.

The deposits of First Federal and other savings associations are insured by the
FDIC in the SAIF. The deposit accounts of commercial banks are insured by the
FDIC in the Bank Insurance Fund (the "BIF"), except to the extent such banks
have acquired SAIF deposits.

Legislation to recapitalize the SAIF and to eliminate the significant premium
disparity between the BIF and the SAIF became effective September 30, 1996.
Pursuant to the recapitalization plan, First Federal paid, on November 27,
1996, an additional pre-tax assessment of $800,100. Such payment was recorded
as an expense and accounted for by First Federal as of September 30, 1996.
Earnings and capital were, therefore, negatively affected for the quarter ended
September 30, 1996, by an after-tax amount of approximately $528,000.

The recapitalization plan also provides that the cost of prior thrift failures
will be shared by both the SAIF and the BIF, which has increased BIF
assessments for healthy banks to $.013 per $100 of deposits in 1997. SAIF
assessments for healthy savings associations in 1997 are $.064 per $100 in
deposits and may never be reduced below the level set for healthy BIF
institutions.

The recapitalization plan also provides for the merger of the SAIF and the BIF
effective January 1, 1999, assuming there are no savings associations under
federal law. Under separate proposed legislation, Congress is considering the
elimination of the federal thrift charter and the separate federal regulation
of thrifts. As a result, First Federal would have to convert to a different
financial institution charter and would be regulated under federal law as a
bank, including being subject to the more restrictive activity limitations
imposed on national banks.

In addition, Bancorp might become subject to more restrictive holding company
requirements, including activity limits and capital requirements similar to
those imposed on First Federal. Bancorp cannot predict the impact of the
conversion of First Federal to, or regulation of First Federal as, a bank until
the legislation requiring such change is enacted.

In August 1996, Congress passed legislation repealing the reserve method of
accounting used by many thrifts to calculate their bad debt reserve for federal
income tax purposes and requiring any bad debt reserves taken after 1987, using
the percentage of taxable income method, be included in future taxable income
of the association over a six-year period. A two-year delay is permitted for
institutions meeting a residential mortgage loan origination test. At September
30, 1996, First Federal had approximately $1.1 million in bad debt reserves
subject to recapture for federal income tax purposes. The deferred tax
liability related to the recapture was established in prior years, so First
Federal's net income will not be negatively affected by this legislation.


Comparison of Operating Results for the Three- and Nine-Month Periods Ended
 June 30, 1997, and 1996
---------------------------------------------------------------------------

Net interest income before provision for loan losses increased $117,000 for the
three-month period and $278,000 for the nine-month period. The net increase is
a result of the increases in total interest income exceeding increases in total
interest expense. Total interest income increased by $424,000 for the
three-month period and $860,000 for the nine-month period ended June 30, 1997,
compared to the same period in 1996. The increases are primarily due to an
increase in the interest rate earned on mortgage loans and an increase in loans
receivable as the result of the stable loan market. The majority of the loans
in the Savings Bank's portfolio are adjustable-rate mortgage loans whose
interest rates fluctuate with market interest rates.


<PAGE>  9


Interest expense increased by $307,000 for the three-month period and $582,000
for the nine-month period ended June 30, 1997, as the result of the increases
in borrowings at the Federal Home Loan Bank due to a decline in savings
deposits and the increased rate paid for funds. The weighted average rate on
the FHLB borrowings is 6.43%, which is higher than the weighted average rate of
4.05% that was paid on savings deposits.


Nonperforming and Delinquent Loans and Allowance for Loan Losses
----------------------------------------------------------------

Total nonaccrual loans and accruing loans that are 90 days past due were
$562,000 at June 30, 1997, which represents .33% of total loans. This was an
increase of $107,000 from June 30, 1996.

There were no loans that are not currently classified as nonaccrual, 90 days
past due or restructured but which may be so classified in the near future
because management has concerns as to the ability of the borrowers to comply
with repayment terms.

The Savings Bank maintains an allowance for losses on loans and on real estate
owned. The allowance for losses on loans and on real estate owned was
$1,739,000 at June 30, 1997, compared to $1,550,000 at June 30, 1996. During
the nine-month period ended June 30, 1997, the Savings Bank recorded
charge-offs of $73,000 and net recoveries of $39,000, compared to zero
charge-offs and net recoveries of $22,000 during the same period of 1996. The
provisions for loan losses during the nine-month periods ended June 30, 1997,
and 1996, were $162,000 and $29,000 respectively.

The Savings Bank classified no loans meeting the definition of impaired during
the quarter ended June 30, 1997.

The Savings Bank reviews on a monthly basis the allowance for loan losses. The
review of loans to determine the appropriate loan loss provision includes
consideration of relevant factors, including, but not limited to, trends in the
level of nonperforming assets and classified loans, current and anticipated
economic conditions in the primary lending area, past loss experience and
possible losses arising from specific problem assets. To a lesser extent,
management also considers loan concentrations to single borrowers and changes
in the composition of the loan portfolio. While management believes that it
uses the best information available to determine the appropriate allowance for
loan losses, unforeseen market conditions could result in adjustments, and net
earnings could be significantly affected if circumstances differ substantially
from the assumptions used in making the final determination.


Noninterest Income and Expense
------------------------------

The federal income tax provision increased $8,000 for the three-month period
due to increased net income and decreased $32,000 for the nine-month period
ended June 30, 1997, due to lower net income for the period.

Total noninterest income increased $117,000 for the comparative three-month
periods and $149,000 for the comparative nine-month periods ended June 30,
1997, and 1996. The increase for the comparative three- and nine-month periods
was due to an increase in dividends on FHLB stock of $17,000 for the
comparative three-month periods and $38,000 for the comparative nine-month
periods, due to the increase in FHLB stock held, and an increase in other
income of $103,000 for the comparative three-month periods and $118,000 for the
comparative nine-month periods ended June 30, 1997, and 1996, due to the sale
of land for $115,000 that was held in the subsidiary, Firstfedco Agency, Inc,
at a zero balance. The land had been written off in 1992.

Total noninterest expenses increased $179,000 for the comparative three-month
periods and $376,000 for the comparative nine-month periods ended June 30,
1997, and 1996. Salaries and benefits increased $59,000 for the three-month
comparative periods and $76,000 for the comparative nine-month periods. The
salaries and benefits increase is due to the increase in staff for the
comparative three- and nine-month periods ended June 30, 1997. The data
processing expense increased $3,200 and $24,000 for the three- and nine-month
periods due to increased use of the service bureau products. Occupancy expenses
increased $65,000 for the comparative three-month periods and $173,000 for the
comparative nine-month periods ended June 30, 1997, and 1996, due to increased
depreciation of $62,000 for the three-month comparative period and $154,000 for
the comparative nine-month period as a result of the completion of the Main
Office construction project. FDIC insurance premiums decreased $54,000 for the
comparative three-month periods and $119,000 for the comparative nine-month
periods ended June 30, 1997, due to the reduction in the SAIF premium and a
reduction in the total deposit balances. Other operating expenses increased
$68,000 and $142,000 for the three- and nine-month periods due to $20,000 in
start-up costs for the Debit Card Program and $12,000 for an increase in
auditing and consulting fees related to the addition of Money Concepts, our
third-party provider of investments and financial planning.

Advertising increased $33,000 for the comparative three-month periods and
$71,000 for the comparative nine-month periods ended June 30, 1997, and 1996,
due to the promotion of the new Main Office construction.


<PAGE> 10


Impact of New Accounting Standards
----------------------------------

In May 1995, the FASB issued its SFAS No. 122, "Accounting for Mortgage
Servicing Rights," which requires companies that engage in mortgage banking
activities to recognize as separate assets rights to service mortgage loans for
others. This Statement was adopted by First Federal on October 1, 1996, and
will be applied prospectively to rights arising from loans sold by First
Federal after adoption of the Statement. The adoption of SFAS No. 122 did not
have a significant impact on First Federal's financial statements.

On October 1, 1996, First Federal adopted SFAS No. 123, "Accounting for
Stock-Based Compensation." SFAS No. 123 encourages but does not require
entities to use a fair value based method to account for stock-based
compensation plans such as the First Federal stock option plans. If the fair
value accounting encouraged by SFAS No. 123 is not adopted, entities must
disclose the pro forma effect on net income and earnings per share had the
accounting been adopted. Fair value of a stock option is to be estimated using
an option-pricing model that considers exercise price, expected life of the
option, current price of the stock, expected price volatility, expected
dividends on the stock, and the risk-free interest rate. First Federal will
disclose the pro forma impact of this pronouncement in 1997.

On March 3, 1997, FASB issued SFAS No. 128, "Earnings Per Share," which is
effective for financial statements issued after December 15, 1997. SFAS No. 128
simplifies the calculation of earnings per share by replacing primary EPS with
basis EPS. First Federal expects SFAS No. 128 to have little impact on its
earnings per share calculations in future years. The Statement will not apply
to First Federal until the first quarter of fiscal year 1998.


<PAGE> 11


                                    PART II

                               OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS
         -----------------

         Not applicable

ITEM 2.  CHANGES IN SECURITIES
         ---------------------

         Not applicable

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
         -------------------------------

         Not applicable

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

         Not applicable

ITEM 5.  OTHER INFORMATION
         -----------------

         Not applicable

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

         Exhibit  3.1   Articles of Incorporation of First Federal Bancorp,
                        Inc. (The Articles of Incorporation of First Federal
                        Bancorp, Inc. ("Bancorp"), filed as Exhibit 3.1 to
                        Bancorp's Registration Statement on Form S-1 ("S-1")
                        filed with the Securities and Exchange Commission
                        ("SEC") on March 16, 1992, are incorporated herein by
                        reference.)

         Exhibit  3.2   Amendment to the Articles of Incorporation of First
                        Federal Bancorp, Inc. (The Amendment to the Articles of
                        Incorporation of Bancorp filed as Exhibit 3.2 to
                        Bancorp's 10-K for the fiscal year ended September 30,
                        1992, filed with the SEC on December 29, 1992 (the
                        "1992 10-K") is incorporated herein by reference.)

         Exhibit  3.3   Code of Regulations of First Federal Bancorp, Inc. (The
                        Code of Regulations of Bancorp filed as Exhibit 3.2 to
                        Bancorp's S-1 filed with the SEC on March 16, 1992, is
                        incorporated herein by reference.)

         Exhibit  3.4   Amendment to the Code of Regulations of First Federal
                        Bancorp, Inc. (The Amendment to the code of Regulations
                        of Bancorp filed as Exhibit 3.4 to the 1992 10-K is
                        incorporated herein by reference.)

         Exhibit 10.9   First Federal Bancorp, Inc., 1997 Performance Stock
                        Option Plan for Senior Executive Officers and Outside
                        Directors (Incorporated by reference to Proxy Statement
                        for 1997 Annual Meeting filed on January 10, 1997.)

         Exhibit 27     Financial Data Schedule

         Exhibit 99.2   Safe Harbor Under the Private Securities Litigation
                        Reform Act of 1995

         No reports on Form 8-K were filed during the quarter for which this
         report is filed.


<PAGE> 12


                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.





Date:  August 13, 1997                 By: /s/ J. William Plummer
                                           ---------------------------------
                                           J. William Plummer
                                           President


Date:  August 13, 1997                 By: /s/ Connie Ayres LaPlante
                                           ---------------------------------
                                           Connie Ayres LaPlante
                                           Chief Financial Officer

<PAGE> 13