Registrant's telephone number, including area code: (740) 453-0606

As of July 31, 2000, the latest practicable date, 3,152,771 shares of the registrant's common stock, no par value, were issued and outstanding.

First Federal Bancorp, Inc.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

See Notes to the Consolidated Financial Statements.

First Federal Bancorp, Inc.

CONSOLIDATED STATEMENTS OF INCOME

See Notes to the Consolidated Financial Statements

First Federal Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

See Notes to the Consolidated Financial Statements.

FIRST FEDERAL BANCORP, INC.
Notes to Consolidated Financial Statements

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, 2000, and September 30, 1999, and the results of its operations for the three and nine months ended June 30, 2000, and 1999, and its cash flow for the nine months ended June 30, 2000 and 1999. 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.

Outstanding commitments to originate mortgage loans and to sell mortgage loans were $945,350 and $200,000 respectively, at June 30, 2000, and $3,327,100 and $0 respectively at September 30, 1999.

Basic earnings per share is based on net income divided by the weighted average number of shares outstanding during the period. Diluted earnings per share shows the dilutive effect of additional common shares issuable under stock options.

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 probable 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.

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, 2000, and the year ended September 30, 1999.

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.

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 deposit 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").

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:

Total liquidity (consisting of cash and amounts due from depository institutions, interest-bearing deposits in other banks, and investment securities) was $15.3 million at June 30, 2000, which is a decrease of $2.3 million from September 30, 1999. The regulatory liquidity of the Savings Bank was 4.41% at June 30, 2000 and 6.49% at September 30, 1999, which was in excess of the minimum regulatory requirement of 4%. Funds are available through FHLB advances to meet the Savings Bank's liquidity requirement if necessary.

The loans receivable balance increased $25.6 million for the nine-month period. As rates increased, consumer demand for adjustable-rate mortgages has increased. The Savings Bank has retained these adjustable-rate mortgages in its portfolio as they meet the requirement of its Strategic Plan. Consumer loans increased $17.0 million, and mortgages increased $4.9 million from September 30, 1999. Management anticipates that loan demand will remain stable but that the mortgage loan portfolio will increase as higher interest rates make adjustable mortgages more attractive. No assurance can be provided, however, that the loan portfolio will increase or that loan demand will remain stable.

As of June 30, 2000, the Savings Bank had borrowed funds from the FHLB in the amount of $62.7 million at a weighted average rate of 6.67%. FHLB advances increased $17.2 million from $45.6 million at September 30, 1999. The Savings Bank has obtained a line of credit at the discount window of the Federal Reserve System for $18.6 million secured by consumer auto loans. The balance on the line of credit was $0 as of June 30, 2000. Deposits increased by $5.6 million, or 3.89%, from $145.1 million at September 30, 1999, to $150.8 million at June 30, 2000. The net increase in savings was due to an increase in certificates of deposit of $7.7 million and a decrease in passbook accounts of $2.0 million. The Savings Bank utilizes a subscription service to attract funds throughout the United States. This program has generated $17.4 million in deposits since September 30, 1999, at a weighted average rate of 6.59%. Management believes that deposits will increase slightly during fiscal year 2000 and that it will be necessary to fund the anticipated steady loan demand with further advances from the FHLB, whose rates are now in line with current market savings rates and their SAIF premiums. No assurance can be provided, however, that deposits will increase slightly and that the loan portfolio will increase or that loan demand will remain stable. Deposit levels and loan demand are affected by national, as well as local, interest rates, the attractiveness of alternative investments 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, 2000.

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.

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, 1999, First Federal had approximately $1.6 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.

Net interest income before provision for loan losses increased $106,000 for the three-month comparative periods and increased $192,000 for the comparative nine-month periods. Total interest expense increased $204,000 for the three-month period and $102,000 for the nine-month period ended June 30, 2000, compared to the same periods in 1999. Total interest income increased primarily due to an increase in the interest earned on loans receivable offset by a reduction in interest earned on other interest earning investments.

The majority of the loans in the Savings Bank's portfolio are adjustable-rate mortgage loans whose interest rates fluctuate with market interest rates. If interest rates remain relatively stable during fiscal year 2000, the adjustable-rate mortgage loan portfolio will reprice at slightly higher rates, as most loans originated during fiscal year 1999 were not initially priced at the fully indexed interest rate. These loans will be repricing upward at their first adjustment in fiscal year 2000 while the balance of the adjustable-rate mortgage loan portfolio will not reprice substantially lower during fiscal year 2000. No assurance can be provided, however, that interest rates will remain stable. Interest rates are affected by general, local and national economic conditions, the policies of various regulatory authorities and other factors beyond the control of First Federal.

Total nonaccrual loans and accruing loans that are 90 days past due were $138,000 at June 30, 2000, which represents .06% of total loans. This was a decrease of $83,000 from June 30, 1999.

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. The allowance for losses on loans was $1,813,038 at June 30, 2000, compared to $1,808,000 at June 30, 1999. During the nine-month periods ended June 30, 2000, and June 30, 1999, the Savings Bank recorded recoveries of $31,901 and $0 and charge-offs of $155,821 and $310,000 respectively. Charge-offs decreased $171,000 due to the decline in delinquencies. A percentage of the outstanding loan balances is added or deducted from the provision for loan losses as the loan portfolio increases and decreases. During the nine-month period ended June 30, 2000, the loan portfolio increased $25.6 million, which caused the provision for loan losses for the period to increase. The provisions for loan losses during the nine-month periods ended June 30, 2000, and 1999, were $115,959 and $75,873 respectively.

The federal income tax provision increased $55,000 for the three-month period and $96,000 for the nine-month period ended June 30, 2000, compared to the same period in 1999 due to an increase in pre-tax net income for the period.

Total noninterest income increased $40,000 for the three-month period and $84,000 for the nine-month period ended June 30, 2000, compared to the same period in 1999. Dividends on FHLB stock increased $8,000 for the three-month period and $18,000 for the nine-month period ended June 30, 2000 due to an increase in FHLB stock held. Other income increased $20,000 for the comparative three-month periods and $64,000 for the comparative nine-month periods. Fee income increased $16,000 for the comparative three-month periods and $47,000 for the comparative nine-month periods due to an increase on fees collected on savings products, ATM, ACH and miscellaneous fees. These increases are a result of implementing recommendations from the independent study completed in the second quarter of fiscal 1999. These increases were offset by a decrease in a gain on the sale of loans due to keeping more of the loan production in portfolio.

Total noninterest expenses increased $89,000 for the three-month period and increased $117,000 for the nine-month period ended June 30, 2000, compared to the same period in 1999. Salaries and benefits increased $68,000 for the three-month period and $61,000 for the nine-month period ended June 1999. Occupancy expense increased $26,000 for the nine-month period ended June 30, 2000; $10,000 of the increase was due to increased depreciation on furniture and fixtures, and $13,500 of the increase was due to increased costs for ATM upgrades and maintenance agreements on equipment. Advertising increased $55,000 due to increased marketing and increased marketing costs.

The financial statements and related data presented herein have been prepared in accordance with generally accepted accounting principles ("GAAP"), which require the measurement of financial position and results of operations in terms of historical dollars without considering changes in relative purchasing power of money over time because of inflation.

Unlike most industrial companies, virtually all of the assets and liabilities of First Federal are monetary in nature. As a result, interest rates have a more significant impact on First Federal's performance than the effects of general levels of inflation. Interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services.

In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities." SFAS No. 133 standardizes the accounting for derivative instruments, including certain derivative instruments embedded in other contracts. Under the standard, entities are required to carry all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value (i.e. gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for holding it. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge of exposures to changes in fair value, cash flows, or foreign currencies. If the hedged exposure is a fair value exposure, the gain or loss on the derivative instrument is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. If the hedged exposure is a cash flow exposure, the effective portion of the gain or loss on the derivative instrument is reported initially as a component of other comprehensive income (outside earnings) and subsequently reclassified into earnings when the forecasted transaction affects earnings. Any amounts excluded from the assessment of hedge effectiveness as well as the ineffective portion of the gain or loss are reported in earnings immediately. Accounting for foreign currency hedges is similar to accounting for fair value and cash flow hedges. If the derivative instrument is not designated as a hedge, the gain or loss is recognized in earnings in the period of change. SFAS No. 133, as amended, is effective for fiscal years beginning after June 15, 2000. This Statement will not have a material effect on the Company.

PART II