First Federal Bancorp Announces Improved Second Quarter Results

First Federal Bancorp Announces Improved Second Quarter Results



ZANESVILLE, Ohio, April 21  /PRNewswire-FirstCall/ -- J. William Plummer,
President and Chief Executive Officer, First Federal Bancorp, Inc.  today
reported net income increased approximately 7% to $523,000, or $0.16 per
diluted share, for the three months ended March 31, 2004 from $490,000, or
$0.15 per diluted share, the prior year.  This improvement was due to increases
in non-interest income and net interest income that were partially offset by
higher non-interest expense and provision for loan losses compared to the same
period last year.

J. William Plummer, President and Chief Executive Officer, stated "Our results
for the second quarter benefited from solid growth in assets and non- interest
income.  The Bank's total assets increased approximately 7% during the quarter
compared to a year ago, led by higher yielding small business commercial loans,
as well as earning assets including variable rate residential loans and
consumer loans.  As a result of this growth, the Bank's provision for loan
losses was increased consistent with our credit policy. The 31% increase in
non-interest income for the second quarter compared to last year benefited from
mortgage servicing rights, and, to a lesser extent, growth in service fees.  We
are actively pursuing efforts to reduce the Bank's non-interest expenses
without sacrificing customer service."

Second Quarter Results

Net interest income increased approximately 3% to $2.2 million for the quarter
ended March 31, 2004 from $2.1 million last year.  Net interest margin declined
0.20% to 3.56% for the second quarter 2004 versus a year ago principally due to
deposit mix.  Jumbo deposits, which are $100,000 or more per account, from
national sources rose $9.3 million to $22.5 million and replaced Federal Home
Loan Bank borrowings.  This enabled the Bank to realize further benefits from
current interest rates.

Non-interest income rose to $0.5 million for second quarter 2004 versus $0.4
million for the same period in 2003.  Continuation of low interest rates
contributed to a $136,000 reversal of previously impaired mortgage servicing
rights versus a charge of $42,000 for the same period last year.  Other service
fee and miscellaneous income increased 5% and 8%, respectively, for the second
quarter 2004 compared to the prior year.

Non-interest expense was $1.8 million for the second quarter 2004 or 2% above
the same period a year ago.  This difference was primarily due to salaries and
benefits as well as increased advertising.

Six-Month Results

Net income was $0.9 million, or $0.27 per diluted share, for the six months
ended March 31, 2004 and 2003.

Net interest margin declined 0.23% to 3.50% for the first half of fiscal 2004
from 3.73% a year ago.  The provision for loan losses for the six months ended
March 31, 2004 was $0.2 million above last year as a result of solid growth in
the total loan portfolio since fiscal year-end 2003 and planned changes in loan
mix of the Bank's portfolio.

Non-interest income increased to $1.0 million for the first six months of
fiscal year 2004 from $0.7 million the prior year.  For the six months ended
March 31, 2004 a total of $236,000 of previously impaired mortgage servicing
rights were recognized as income compared to a charge of $130,000 for the same
period last year.

Non-interest expense was $3.5 million for the first half of fiscal year 2004
compared to $3.4 million for the same period last year.  Factors that
contributed to this increase included higher salaries and advertising as well
as expenses for the remodeling of one of the Bank's branch offices.

Balance Sheet

Loans receivable increased $14.5 million to $220.0 million at March 31, 2004
compared to year-end fiscal 2003 and were $21.6 million above the same date a
year ago.  Solid increases have been achieved in small business commercial,
home equity and variable rate residential mortgage loans during the past year.

First Federal's non-performing asset ratio was 0.31% of total assets at March
31, 2004 compared to 0.24% the prior year.  Net charge-offs declined to 0.08%
of loans receivable for the first half of this year compared with 0.11% a year
ago.  The allowance for loan losses was 0.74% at March 31, 2004 versus 0.77% on
the same date last year.

Shareholders' equity was $22.7 million at March 31, 2004, an increase of $0.6
million from September 30, 2003 and $21.5 million a year ago.  Book value per
diluted share was $6.74 at March 31, 2004 compared to $6.59 and $6.41 per
share, respectively, at year-end fiscal 2003 and March 31, 2003.

Cash Dividend and Stock Buyback

The Board of Directors declared a $0.06 cash dividend for the quarter ended
March 31, 2004 that represents a 9% increase over the same period a year ago.

In June 2002, the Board of Directors authorized the repurchase of up to 5% of
First Federal Bancorp's common shares outstanding from time to time in public
market and private transactions for a two-year period.  As of March 31, 2004,
First Federal Bancorp, Inc. had repurchased 74,700 of its common shares at an
average price of $7.55 per share.

First Federal Bancorp, Inc. is the parent company of First Federal Savings Bank
of Eastern Ohio, whose primary markets include Coshocton, Guernsey, Licking,
Morgan, Muskingum, Perry, and Tuscarawas counties.  Additional information is
available by contacting Connie Ayres LaPlante, Treasurer, First Federal
Bancorp, Inc., at [phone].

Statements made in this press release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995.  Such forward-looking statements are subject to risks and
uncertainties, which could cause actual results to differ materially from
estimated results.  Such risks and uncertainties are detailed in the Company's
filings with the Securities and Exchange Commission.  All forward-looking
statements made in this press release are based on information presently
available to management.  The Company assumes no obligation to update any
forward-looking statements.

                       FIRST FEDERAL BANCORP, INC.

                           FINANCIAL HIGHLIGHTS
                 (In thousands, except per share amounts)

                                              At March 31,  At September 30,
                                                  2004            2003
  Selected Financial Condition Data:
  Assets                                        $250,500        $234,528
  Loans, net                                    $220,006        $205,478
  Mortgage-backed securities                        $249            $303
  Investment securities                           $7,642          $8,168
  FHLB stock                                      $4,880          $4,783
  Deposits                                      $179,303        $164,447
  Total equity                                   $22,695         $22,078
  Total equity per share                           $6.74           $6.59


                            Three Months Ended         Six Months Ended
                                 March 31,                 March 31,
                             2004         2003         2004         2003

  Selected Operations Data:
  Total interest income     $3,410       $3,501       $6,711       $7,105
  Total interest expense     1,226        1,373        2,476        2,905

  Net interest income       $2,184       $2,128       $4,235       $4,200
  Provision for loan
   losses                       70          (6)          293           69

  Net interest income
   after provision for
   loan losses              $2,114       $2,134       $3,942       $4,131
  Noninterest income           463          353          977          660
  Noninterest expense        1,779        1,739        3,544        3,390

  Income before income tax    $798         $748       $1,375       $1,401
  Provision for income tax     275          258          475          483

  Net income                  $523         $490         $900         $918

  Earnings per share:
    Basic                     $.16         $.15         $.28         $.28
    Diluted                   $.16         $.15         $.27         $.27

  Weighted average common
   and common equivalent
   shares:
    Basic                3,267,126    3,234,782    3,263,978    3,246,284
    Diluted              3,370,893    3,349,369    3,368,845    3,365,043


                       FIRST FEDERAL BANCORP, INC.

                           FINANCIAL HIGHLIGHTS

                                At or for the             At or for the
                                 Three Months               Six Months
                                ended March 31,           ended March 31,

                               2004         2003         2004         2003
  Selected Financial
   Ratios And Other Data:

  Performance Ratios (Annualized):
    Return on average assets   0.85%        0.87%        0.74%        0.81%
    Return on average equity   9.35%        9.13%        8.06%        8.58%
    Interest rate spread:
      Average during period    3.62%        3.83%        3.55%        3.79%
    Net interest margin        3.56%        3.76%        3.50%        3.73%
    Noninterest expense to
     average assets            2.90%        3.07%        2.93%        3.01%

  Quality Ratios:
    Nonperforming assets to
     total assets at end of
     period                    0.31%        0.24%        0.31%        0.24%
    Efficiency ratio          62.85%       64.64%       63.74%       64.40%
    Loan loss allowance to
     net loans at end of
     period                    0.74%        0.77%        0.74%        0.77%

  Capital Ratios:
    Total equity to total
     assets at end of
     period                    9.06%        9.37%        9.06%        9.37%
    Average interest-earning
     assets to average
     interest-bearing
     Liabilities             106.98%      106.47%      107.26%      106.51%


DATASOURCE: First Federal Bancorp, Inc.



CONTACT:  Connie Ayres LaPlante, Treasurer of First Federal Bancorp,

Inc., [phone]

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