First Federal Bancorp Reports Fourth Quarter Results

First Federal Bancorp Reports Fourth Quarter Results 


ZANESVILLE, Ohio, Nov. 20  /PRNewswire-FirstCall/ -- J. William Plummer,
President and Chief Executive Officer of First Federal Bancorp, Inc.  today
reported results for the three months and fiscal year ended September 30, 2003.

Net income for the fourth quarter 2003 improved to $0.5 million or $0.15 per
diluted share from $0.2 million or $0.05 per diluted share for the same period
last year.

The fourth quarter 2002 results included a non-cash charge related to SFAS 125,
"Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities", which represented $0.2 million or $0.04 per diluted share, and
a pre-tax charge of $0.2 million or $0.04 per diluted share related to
termination of First Federal's defined benefit plan.

J. William Plummer, President and Chief Executive Officer, commented, "During
the fourth quarter 2003 we increased loans outstanding, maintained strong credit
quality, and continued to benefit from a solid balance sheet. In this
environment of historically low interest rates we remained focused on asset
strength and our long-term objectives.  The growth in commercial and small
business loans combined with the increase in deposits during fiscal 2003 is
expected to contribute positively to First Federal's performance in future
periods.  Our outlook for fiscal 2004 is improved compared to last year, but
remains cautious pending further evidence of sustained improvement in the
economy."

Fourth Quarter Results

Net loans improved approximately $10.0 million to $205.5 million at September
30, 2003 versus the same date a year ago.  Commercial and small business loan
growth was solid, offsetting declines in automobile loans which resulted from
the continuation of aggressive financing programs by automobile manufacturers.

Net interest income was $2.0 million for the fourth quarters of 2003 versus $2.1
million for the same period last year.  For the three months ended September 30,
2003, asset yields declined at a faster rate than deposit yields compared to a
year ago.  This resulted in a net interest margin of 3.52% for the fourth
quarter 2003 versus 3.71% for the same period last year.

Non-interest income rose to $0.5 million for the fourth quarter 2003 compared
with $0.2 million for the same period last year. The principal reasons for the
quarter-over-quarter difference include lower mortgage servicing rights, higher
loan servicing fees due to the larger number of loans outstanding, and other
miscellaneous fees.  There was a non-cash charge of $0.2 million recorded in the
fourth quarter 2002 related to SFAS 125.

Non-interest expense declined to $1.8 million for the fourth quarter 2003 from
$1.9 million for the same period last year.  The prior year results included a
pre-tax charge of approximately $0.2 million related to termination of First
Federal's defined benefit plan.  Otherwise, non-interest expense increased
compared to last year due to higher consulting and professional fees,
miscellaneous expenses, and a new loan production office that opened during the
latter part of the fourth quarter 2003.

Fiscal Year 2003 Results

Net interest income was $8.4 million for the twelve months ended September 30,
2003 versus $8.8 million for the same period last year.  Net interest margin
declined to 3.74% from 3.87% a year ago.

Non-interest income was $1.8 million for fiscal year 2003 versus $1.4 million
the prior year.  The 2002 results included a pre-tax charge of approximately
$0.2 million related to SFAS 125.  Most of the year-over-year difference was due
to lower mortgage servicing rights in fiscal year 2003.

Non-interest expense was $7.1 million for fiscal year 2003 compared to $7.0
million for the same period last year.  This increase was principally due to
higher consulting and professional fees as well as other miscellaneous expenses.
 Net income was $1.8 million or $0.54 per diluted share for fiscal year 2003
compared to $1.9 million or $0.56 for fiscal year 2002.

Balance Sheet

Total assets were $234.5 million at September 30, 2003 compared to $226.5
million on the same date a year ago.  Net loans receivable increased 5.1% to
$205.5 million at September 30, 2003 versus $195.5 million on the same date in
2002.  This improvement was principally due to solid growth in commercial loans
as well as non-residential loans, and to a lesser extent, variable rate
mortgages and home equity loans.  These increases were partially offset by a
$5.1 million decline in automobile loans due to aggressive financing plans by
automobile manufacturers and increased competition.

Return on average assets was 0.89% for the fourth quarter 2003 versus 0.30% for
the same period last year.  For fiscal year 2003, return on average assets was
0.80% compared to 0.81% for fiscal year 2002.

Total deposits rose 4.2% to $164.4 million at September 30, 2003 compared with
$157.7 million on the same date last year.  Most of the increase occurred in low
cost transaction accounts which are generally a more stable source of funds.

Total shareholders' equity improved to $22.1 million at September 30, 2003 from
$21.3 million on the same date last year.  Shareholders' equity rose to $6.59
per diluted share at year-end 2003 compared to $6.30 on September 30, 2002.

The return on average equity was 9.44% and 8.44%, respectively, for the fourth
quarter and fiscal year 2003 versus 3.14% and 8.95% for the same periods a year
ago.

Asset Quality

Non-performing assets were 0.22% of total assets at September 30, 2003 compared
with 0.19% on the same date last year due to the increase in net loans
outstanding year-over-year.  The loan loss reserve represented 0.73% of net
loans outstanding at September 30, 2003 versus 0.86% on the same date a year
ago.  This decline was attributable to a reduction in repossessed loans during
fiscal 2003 and the lower amount of automobile loans outstanding compared to
fiscal year 2002.

Share Repurchase Program

As of September 30, 2003, First Federal had repurchased 74,400 common shares at
an average price of $7.55 per share pursuant to the stock repurchase program
which expires in June 2004.  The Board of Directors authorized the repurchase of
up to 164,622 of First Federal's outstanding common shares this program.  There
were 3,349,713 average weighted fully diluted common shares outstanding for
fiscal year 2003.

About First Federal Bancorp, Inc.

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)

                                 Three Months Ended    Twelve Months Ended
                                    September 30,         September 30,
                                   2003       2002       2003        2002
  Selected Operations Data:
  Total Interest Income           $3,347     $3,761    $13,915     $15,832
  Total Interest Expense           1,298      1,650      5,509       7,031

  Net Interest Income             $2,049     $2,111     $8,406      $8,801
  Provision For Loan Losses           15        136        270         357

  Net Interest Income After
   Provision for Loan Losses      $2,034     $1,975     $8,136      $8,444
  Noninterest Income                 515        191      1,793       1,398
  Noninterest Expense              1,759      1,899      7,146       6,957

  Income Before Income Tax          $790       $267     $2,783      $2,882
  Provision For Income Tax           273         99        960       1,015

  Net Income                        $517       $169     $1,823      $1,867

  Earnings Per Share:
      Basic                        $0.16      $0.05      $0.56       $0.58
      Diluted                      $0.15      $0.05      $0.54       $0.56

  Weighted Average Common and
  Common Equivalent Shares:
      Basic                    3,235,319  3,278,691  3,236,642   3,205,099
      Diluted                  3,337,336  3,382,695  3,349,713   3,357,180


                       FIRST FEDERAL BANCORP, INC.
                           FINANCIAL HIGHLIGHTS
                 (In Thousands, except per share amounts)

                                       At Sept. 30, 2003   At Sept. 30, 2002

  Selected Financial Condition Data:
  Assets                                       $234,528           $226,451
  Loans Receivable - Net                       $205,476           $195,526
  Mortgage-Backed Securities                       $303               $416
  Investment Securities                          $8,168             $9,694
  FHLB Stock                                     $4,783             $4,591
  Deposits                                     $164,447           $157,688
  Total Equity                                  $22,078            $21,294
  Total Equity Per Share                          $6.59              $6.30

                                           At or for the     At or for the
                                           Three Months      Twelve Months
                                          Ended Sept. 30,    Ended Sept. 30,

                                           2003     2002     2003     2002
  Selected Financial Ratios
   And Other Data:

  Performance Ratios (Annualized):
   Return on Average Assets                .89 %    .30 %    .80 %    .81 %
   Return on Average Equity               9.44 %   3.14 %   8.44 %   8.95 %
   Interest Rate Spread:
     Average During Period                3.57 %   3.78 %   3.68 %   3.83 %
     At End of Period                     3.74 %   3.97 %   3.92 %   4.10 %
   Net Interest Margin                    3.52 %   3.71 %   3.74 %   3.87 %
   Noninterest Expense to Average Assets  3.03 %   3.33 %   3.13 %   3.03 %

  Quality Ratios:

   Nonperforming Assets to Total
    Assets at End of Period                .22 %    .19 %    .22 %    .19 %
    Efficiency Ratio                     67.62 %  72.50 %  65.57 %  63.05 %
    Loan Loss Allowance to Net Loans
     at End of Period                     0.73 %   0.86 %   0.73 %   0.86 %

  Capital Ratios:

    Total Equity to Total Assets at
     End of Period                        9.41 %   9.40 %   9.41 %   9.40 %
    Average Interest-earning Assets
     to Average Interest-bearing
     Liabilities                        107.09 % 106.08 % 106.70 % 108.29 %


DATASOURCE: First Federal Bancorp, Inc.



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

[phone]

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