FIRSTFED AMERICA BANCORP, INC. Announces Record $0.43 EPS for Fourth Quarter and $1.56 EPS for Fiscal Year 2001

Apr 19, 2001, 01:00 ET from FIRSTFED AMERICA BANCORP, INC.

    SWANSEA, Mass., April 19 /PRNewswire/ -- FIRSTFED AMERICA BANCORP, INC.
 (Amex:   FAB) (the "Company"), today announced diluted earnings per share
 ("EPS") of $0.43 for the fourth quarter of fiscal year ended March 31, 2001,
 an increase of 10% from $0.39 per share for the comparable quarter of fiscal
 year 2000. Diluted EPS for fiscal year 2001 increased 19% to $1.56 from $1.31
 for fiscal year 2000. The Company also announced that its Board of Directors
 declared a quarterly dividend of $0.10 per share, payable on May 18, 2001, to
 all shareholders of record as of May 4, 2001.
     The Company's Chairman, President and CEO, Robert F. Stoico stated, "We
 are extremely pleased to report all-time record EPS for the fourth quarter,
 and for fiscal year 2001. EPS growth of 19% in fiscal year 2001, following
 increases of 20% in fiscal year 2000 and 30% in fiscal year 1999, validates
 our strategy of steady growth in the core banking business, supplemented by
 prudent investment in non-interest business lines such as trust and
 insurance."
     Net income was $2.5 million for the fourth quarter of fiscal year 2001, an
 increase of $104,000, or 4.4%, from $2.4 million for the fourth quarter of
 fiscal year 2000. For the fiscal years 2001 and 2000, net income was $9.2
 million and $8.2 million, respectively, an increase of $978,000, or 11.9%.
 Earnings for both the fourth quarter and fiscal year ended 2001 were record
 amounts for the Company.
     Net interest income before provision for loan losses increased $373,000,
 or 4.4%, to $8.8 million for the fourth quarter of fiscal year 2001 from $8.4
 million for the fourth quarter of fiscal year 2000. The net interest rate
 spread and net interest margin were 1.82% and 2.27% for the fourth quarter of
 fiscal year 2001, compared to 2.03% and 2.35%, respectively, for the fourth
 quarter of fiscal year 2000.  Net interest income before provision for loan
 losses increased $2.6 million, or 8.2%, to $34.7 million for fiscal year 2001
 from $32.1 million for fiscal year 2000. The net interest rate spread and net
 interest margin were 1.93% and 2.25% for fiscal year 2001, compared to 2.06%
 and 2.36%, respectively, for fiscal year 2000.  During the fourth quarter of
 fiscal year 2001, the net interest rate spread decreased six basis points from
 1.88% for the third quarter of fiscal year 2001, while the net interest margin
 increased 12 basis points from 2.15%.  The increases in net interest income
 were due primarily to portfolio loan driven balance sheet growth.  The rising
 interest rate environment earlier in the year, however, contributed to a
 narrowing of the net interest rate spread during the fiscal year 2001 periods.
     The Company's provision for loan losses remained unchanged at $300,000 for
 the fourth quarters of fiscal years 2001 and 2000, and $1.2 million for fiscal
 years 2001 and 2000. The allowance for loan losses was $13.2 million, or 1.34%
 of loans receivable at March 31, 2001, compared to $12.3 million, or 1.36% of
 loans receivable at March 31, 2000.  Non-performing loans were $1.3 million,
 or 0.13% of loans receivable, at March 31, 2001, compared to $1.3 million, or
 0.15% of loans receivable, at March 31, 2000.
     Non-interest income increased $430,000, or 21.7%, to $2.4 million for the
 fourth quarter of fiscal year 2001 from $2.0 million for the fourth quarter of
 fiscal year 2000.  For fiscal years 2001 and 2000, non-interest income
 increased $2.4 million, or 37.1%, to $8.9 million from $6.5 million,
 respectively.  These increases were due primarily to improvement in gain
 (loss) on sale of mortgage loans, net, and increases in trust fee income,
 insurance commission income and service charges on deposit accounts, partially
 offset by decreases in loan servicing income and other non-interest income.
 The improvement in gain (loss) on sale of mortgage loans reflected more
 favorable secondary market conditions, partially offset by a decrease in the
 origination of saleable fixed rate mortgages, during fiscal year 2001 as
 compared to fiscal year 2000.  The increases in trust fee income were due to
 the first full year of operations of FIRSTFED TRUST COMPANY, N.A., which
 opened in February 2000. The increases in insurance commission income were due
 primarily to additional business resulting from the purchase of two insurance
 agencies by FIRSTFED INSURANCE AGENCY, LLC in March 2000.  The decrease in
 loan servicing income was due primarily to a decline in the Company's loans
 serviced for others during fiscal year 2001, and a $237,000 reduction in the
 valuation reserve for mortgage servicing rights during fiscal year 2000.  The
 decreases in other non-interest income were due primarily to reductions in the
 fair value of investments in certain employee benefit plans.
     Non-interest expense increased $591,000, or 8.9%, to $7.3 million in the
 fourth quarter of fiscal year 2001 from $6.7 million in the fourth quarter of
 fiscal year 2000.  For fiscal years 2001 and 2000, non-interest expense
 increased $3.5 million, or 13.9%, to $29.1 million from $25.5 million,
 respectively. The higher level of expenses reflected costs associated with the
 Company's new retail banking and business banking offices in downtown
 Providence, Rhode Island, both of which opened in early fiscal year 2001, the
 expansion of insurance agency operations, the first full year of trust company
 operations, and the net impact of increases in the cost of certain employee
 benefit plans.
     Income tax expense increased $108,000, or 10.1%, to $1.2 million for the
 fourth quarter of fiscal year 2001 from $1.1 million for the fourth quarter of
 fiscal year 2000. For the fiscal years ended 2001 and 2000, income tax expense
 increased $532,000, or 14.4%, to $4.2 million from $3.7 million, respectively.
 These increases were due primarily to the increases in income before income
 tax expense.  The Company's effective tax rate increased slightly to 31.5% for
 fiscal year 2001 from 31.1% for fiscal year 2000.
     Total assets increased $91.1 million, or 5.8%, to $1.671 billion at March
 31, 2001 from $1.580 billion at March 31, 2000. This growth was primarily
 attributable to an $88.4 million increase in loans receivable, net and a $35.7
 million increase in mortgage loans held for sale, partially offset by a
 decrease of $42.4 million in mortgage-backed securities available for sale.
 Balance sheet growth was primarily funded by increases of $42.7 million in
 deposit balances and $35.1 million in FHLB advances and other borrowings
 during fiscal year 2001.
     Mr. Stoico noted, "We are pleased with the growth in all of the Company's
 primary business lines in fiscal year 2001. Mortgage loans, commercial loans,
 consumer loans, and deposits all grew impressively.  Trust and insurance
 revenues also showed significant growth.  The trends in the balance sheet and
 other revenue sources, as well as the operating environment, are positive as
 we enter fiscal year 2002."
     For fiscal year 2001, mortgage originations totaled approximately $368
 million. Approximately $120 million of mortgage loans were sold in the
 secondary market during this time. Total loans serviced for others decreased
 $63.4 million, or 4.0%, to $1.531 billion at March 31, 2001 from $1.595
 billion at March 31, 2000.
     Total stockholders' equity increased $9.9 million, or 9.7%, to $111.6
 million at March 31, 2001, from $101.7 million at March 31, 2000. The increase
 is due primarily to $9.2 million in net income, a $7.0 million increase in the
 fair market value of available for sale securities, net of tax, and $1.4
 million in earned Stock-based Incentive Plan awards, partially offset by $6.3
 million in treasury stock purchases and $2.4 million in dividends paid to
 stockholders. Stockholders' equity to assets was 6.68% at March 31, 2001, up
 from 6.44% at March 31, 2000.
     Book value per share increased 15.9% to $19.57 at March 31, 2001 from
 $16.88 at March 31, 2000, due to the 9.7% increase in stockholders' equity and
 a 5.4% decrease in shares outstanding.  Market price per share increased
 $4.26, or 39.6%, to $15.01 at March 31, 2001 from $10.75 at March 31, 2000.
 The Company also announced that as of March 31, 2001 it had repurchased
 180,308 shares of Company stock, or 56% of the 320,028 shares authorized for
 repurchase under the Company's seventh stock repurchase program announced on
 September 29, 2000.  The Company has repurchased 2,486,903 shares since May
 15, 1998 through seven stock repurchase programs, reducing the legal number of
 shares outstanding to 6,220,249.
     At March 31, 2001, the Company's subsidiary, First Federal Savings Bank of
 America, continued to exceed all regulatory capital requirements. Regulatory
 capital, which is comprised of tangible capital, core capital, risk-based
 capital, and Tier I risk-based capital, amounted to approximately $103.9
 million, $103.9 million, $113.0 million, and $103.9 million, respectively. The
 tangible capital, core capital, risk-based capital, and Tier I risk-based
 capital ratios were 6.27%, 6.27%, 13.58%, and 12.33%, respectively, compared
 to the respective minimum ratios required to be deemed adequately capitalized
 of 2.0%, 4.0%, 8.0%, and 4.0%, respectively.
 
     FIRSTFED AMERICA BANCORP, INC. is a financial services company offering a
 wide range of financial products through its subsidiaries. First Federal
 Savings Bank of America operates fifteen banking offices throughout
 Southeastern Massachusetts and Rhode Island as well as five loan origination
 centers serving Massachusetts, Rhode Island, and Connecticut, and will open
 its sixteenth banking office in Middletown, Rhode Island later this year.
 Online banking is also available through FIRSTFEDonline at
 www.firstfedamerica.com. Through FIRSTFED INSURANCE AGENCY, LLC, which is
 licensed in Massachusetts, Rhode Island and Connecticut, the Company also
 sells insurance products at all of its locations and via
 www.firstfedinsurance.com.  FIRSTFED TRUST COMPANY, N.A. offers comprehensive
 trust, estate, and investment management products and services. Visit the
 FIRSTFED Web site at www.firstfedamerica.com for additional information on the
 Company including previous press releases and historical financial data.
 
     Statements contained in this news release, which are not historical facts,
 are forward-looking statements as that term is 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 those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by the
 Company with the Securities and Exchange Commission from time to time.  The
 Company does not undertake - and specifically disclaims any obligation -- to
 publicly release the result of any revisions which may be made to any forward-
 looking statements to reflect events or circumstances after the date of such
 statements or to reflect the occurrence of anticipated or unanticipated
 events.
 
     FIRSTFED AMERICA BANCORP, INC.
     Consolidated Balance Sheets
 
                                                   March 31,         March 31,
                                                     2001              2000
                                                      (Dollars in Thousands)
     Assets:
 
     Cash on hand and due from banks                $23,013           $20,720
     Short-term investments                             200               250
         Total cash and cash equivalents             23,213            20,970
     Mortgage loans held for sale                    39,103             3,417
     Investment in trading securities                   815               587
     Investment securities available for
      sale                                            7,837             5,643
     Mortgage-backed securities available
      for sale                                      501,230           543,627
     Mortgage-backed securities held to
      maturity                                        2,138             2,819
     Stock in FHLB of Boston                         40,369            30,928
     Loans receivable, net
         Mortgages                                  734,347           701,822
         Commercial                                 139,057           107,758
         Consumer                                   117,003            91,455
         Allowance for loan losses                  (13,233)          (12,275)
            Total loans receivable, net             977,174           888,760
     Accrued interest receivable                      7,928             7,018
     Office properties and equipment, net            24,038            25,187
     Mortgage servicing rights                        4,881             6,288
     Real estate owned, net                             175                 -
     Bank-Owned Life Insurance                       33,764            32,127
     Prepaid expenses and other assets                8,400            12,624
 
         Total assets                            $1,671,065        $1,579,995
 
     Liabilities and stockholders' equity:
 
     Deposits
         Demand                                    $196,735          $155,623
         Savings                                    102,884           102,167
         Time                                       407,797           406,892
            Total deposits                          707,416           664,682
     FHLB advances and other borrowings             814,764           779,662
     Advance payments by borrowers for
      taxes and insurance                             5,868             5,984
     Accrued interest payable                         5,997             4,620
     Other liabilities                               25,462            23,342
 
         Total liabilities                        1,559,507         1,478,290
 
     Common Stock                                        87                87
     Additional paid in capital                      85,585            85,449
     Retained earnings                               70,048            63,270
     Accumulated other comprehensive
      income (loss)                                   2,551            (4,470)
     Unallocated ESOP shares                         (3,098)           (3,872)
     Unearned Stock Incentive Plan shares            (2,998)           (4,438)
     Treasury stock                                 (40,617)          (34,321)
 
         Total stockholders' equity                 111,558           101,705
 
         Total liabilities and
          stockholders' equity                   $1,671,065        $1,579,995
 
 
 
     FIRSTFED AMERICA BANCORP, INC.
     Consolidated Statements of Operations
 
                                    For the Three Months
                                           Ended          For the Years Ended
                                         March 31,             March 31,
                                      2001       2000       2001       2000
                                  (Dollars in Thousands, except per share data)
 
     Interest and dividend income:
        Loans                         $19,700    $16,090    $77,116    $61,005
        Investment securities             368        180        719        803
        Mortgage-backed securities      8,072      8,648     33,507     30,041
        Federal Home Loan Bank
         stock                            715        521      2,733      1,972
          Total interest and
           dividend income             28,855     25,439    114,075     93,821
 
     Interest expense:
        Deposits                        6,792      6,051     26,252     24,812
        Borrowed funds                 13,274     10,972     53,143     36,959
          Total interest expense       20,066     17,023     79,395     61,771
 
          Net interest income
           before loan loss
           provision                    8,789      8,416     34,680     32,050
 
        Provision for loan losses         300        300      1,200      1,200
 
          Net interest income after
           loan loss provision          8,489      8,116     33,480     30,850
 
     Non-interest income:
        Loan servicing income             363        381      1,456      2,003
        Gain (loss) on sale of
         mortgage loans, net              235         59        583       (952)
        Service charges on deposit
         accounts                         415        305      1,622      1,344
        Insurance commission income       314        121      1,048        446
        Trust fee income                  327         16      1,028         16
        Earnings on Bank-Owned Life
         Insurance                        412        394      1,636      1,552
        Other income                      350        710      1,585      2,125
          Total non-interest income     2,416      1,986      8,958      6,534
 
     Non-interest expense:
        Compensation and employee
         benefits                       4,490      3,740     17,786     14,732
        Office occupancy and
         equipment                      1,181        887      4,447      3,905
        Data processing                   427        323      1,694      1,322
        Advertising and business
         promotion                        153        396      1,038      1,159
        Federal deposit insurance
         premiums                          34         37        138        334
        Other expense                     981      1,292      3,950      4,057
          Total non-interest
           expense                      7,266      6,675     29,053     25,509
 
          Income before income tax
           expense                      3,639      3,427     13,385     11,875
 
        Income tax expense              1,174      1,066      4,221      3,689
 
          Net income                   $2,465     $2,361     $9,164     $8,186
 
     Basic earnings per share           $0.43      $0.39      $1.57      $1.31
 
     Diluted earnings per share         $0.43      $0.39      $1.56      $1.31
 
     Basic shares outstanding       5,737,683  6,065,268  5,854,465  6,255,579
 
     Diluted shares outstanding     5,781,139  6,065,268  5,864,179  6,255,579
 
 
 
     FIRSTFED AMERICA BANCORP, INC.
     Selected Financial Highlights
 
                                            At or for the Three Months Ended
 
                                                  March 31,           March 31,
                                                   2001                2000
                                  (Dollars in thousands, except per share data)
 
     Operating and Performance Ratios
      (annualized):
 
         Basic earnings per share                    $0.43               $0.39
         Diluted earnings per share                  $0.43               $0.39
         Net income                                 $2,465              $2,361
         Return on average stockholders'
          equity                                     9.15%               9.19%
         Return on average assets                    0.60%               0.62%
         Stockholders' equity to total
          assets                                     6.68%               6.44%
         Net interest rate spread                    1.82%               2.03%
         Net interest margin                         2.27%               2.35%
         Effective tax rate                         32.26%              31.11%
         Regulatory Capital Ratios (Bank
          only):
            Tangible                                 6.27%               6.35%
            Core                                     6.27%               6.35%
            Risk-based                              13.58%              15.06%
            Tier 1 risk-based                       12.33%              13.82%
 
     Asset Quality:
 
         Non-performing loans                       $1,332              $1,310
         Non-performing assets                      $1,507              $1,310
         Allowance for loan losses                 $13,233             $12,275
         Non-performing loans as a percent
          of loans (1)                               0.13%               0.15%
         Non-performing assets as a
          percent of total assets                    0.09%               0.08%
         Allowance for loan losses as a
          percent of non-performing loans             993%                937%
         Allowance for loan losses as
          percent of loans receivable                1.34%               1.36%
 
     Share Related:
 
         Book value per common share
          outstanding (2)                           $19.57 (A)       $16.88 (B)
         Market price per share                     $15.01              $10.75
         Shares outstanding (2)                  5,700,867 (A)    6,024,278 (B)
         Average basic shares outstanding        5,737,683           6,065,268
         Average diluted shares
          outstanding                            5,781,139           6,065,268
 
     Mortgage Origination and Servicing:
 
         Mortgage originations                    $115,056            $103,636
         Loans serviced for others              $1,531,300          $1,594,696
 
     Trust Assets Under Administration:
 
         Number of accounts                            128                  40
         Market value of assets                   $455,800            $445,000
 
 
 
                                                   At or for the Year Ended
 
                                                  March 31,           March 31,
                                                     2001                2000
 
 
     Operating and Performance Ratios
      (annualized):
 
         Basic earnings per share                    $1.57               $1.31
         Diluted earnings per share                  $1.56               $1.31
         Net income                                 $9,164              $8,186
         Return on average stockholders'
          equity                                     8.71%               7.79%
         Return on average assets                    0.56%               0.56%
         Stockholders' equity to total
          assets                                     6.68%               6.44%
         Net interest rate spread                    1.93%               2.06%
         Net interest margin                         2.25%               2.36%
         Effective tax rate                         31.54%              31.07%
         Regulatory Capital Ratios (Bank
          only):
            Tangible                                 6.27%               6.35%
            Core                                     6.27%               6.35%
            Risk-based                              13.58%              15.06%
            Tier 1 risk-based                       12.33%              13.82%
 
     Asset Quality:
 
         Non-performing loans                       $1,332              $1,310
         Non-performing assets                      $1,507              $1,310
         Allowance for loan losses                 $13,233             $12,275
         Non-performing loans as a percent
          of loans (1)                               0.13%               0.15%
         Non-performing assets as a
          percent of total assets                    0.09%               0.08%
         Allowance for loan losses as a
          percent of non-performing loans             993%                937%
         Allowance for loan losses as
          percent of loans receivable                1.34%               1.36%
 
     Share Related:
 
         Book value per common share
          outstanding (2)                           $19.57 (A)       $16.88 (B)
         Market price per share                     $15.01              $10.75
         Shares outstanding (2)                  5,700,867 (A)    6,024,278 (B)
         Average basic shares outstanding        5,854,465           6,255,579
         Average diluted shares
          outstanding                            5,864,179           6,255,579
 
     Mortgage Origination and Servicing:
 
         Mortgage originations                    $368,497            $408,391
         Loans serviced for others              $1,531,300          $1,594,686
 
     Trust Assets Under Administration:
 
         Number of accounts                            128                  40
         Market value of assets                   $455,800            $445,000
 
 
     (1)  Loans include loans receivable, net, excluding allowance for loan
          losses.
     (2A) Based upon total shares issued at IPO (8,707,152), less unearned ESOP
          shares (290,686), unreleased 1997 Stock-based Incentive Plan
          shares (144,314), shares repurchased (2,486,903), and shares held in
          certain employee benefit plans (84,382).
     (2B) Based upon total shares issued at IPO (8,707,152), less unearned ESOP
          shares (368,395), unreleased 1997 Stock-based Incentive Plan
          shares (213,632), shares repurchased (2,043,924), and shares held in
          certain employee benefit plans (56,923).
 
 
 

SOURCE FIRSTFED AMERICA BANCORP, INC.
    SWANSEA, Mass., April 19 /PRNewswire/ -- FIRSTFED AMERICA BANCORP, INC.
 (Amex:   FAB) (the "Company"), today announced diluted earnings per share
 ("EPS") of $0.43 for the fourth quarter of fiscal year ended March 31, 2001,
 an increase of 10% from $0.39 per share for the comparable quarter of fiscal
 year 2000. Diluted EPS for fiscal year 2001 increased 19% to $1.56 from $1.31
 for fiscal year 2000. The Company also announced that its Board of Directors
 declared a quarterly dividend of $0.10 per share, payable on May 18, 2001, to
 all shareholders of record as of May 4, 2001.
     The Company's Chairman, President and CEO, Robert F. Stoico stated, "We
 are extremely pleased to report all-time record EPS for the fourth quarter,
 and for fiscal year 2001. EPS growth of 19% in fiscal year 2001, following
 increases of 20% in fiscal year 2000 and 30% in fiscal year 1999, validates
 our strategy of steady growth in the core banking business, supplemented by
 prudent investment in non-interest business lines such as trust and
 insurance."
     Net income was $2.5 million for the fourth quarter of fiscal year 2001, an
 increase of $104,000, or 4.4%, from $2.4 million for the fourth quarter of
 fiscal year 2000. For the fiscal years 2001 and 2000, net income was $9.2
 million and $8.2 million, respectively, an increase of $978,000, or 11.9%.
 Earnings for both the fourth quarter and fiscal year ended 2001 were record
 amounts for the Company.
     Net interest income before provision for loan losses increased $373,000,
 or 4.4%, to $8.8 million for the fourth quarter of fiscal year 2001 from $8.4
 million for the fourth quarter of fiscal year 2000. The net interest rate
 spread and net interest margin were 1.82% and 2.27% for the fourth quarter of
 fiscal year 2001, compared to 2.03% and 2.35%, respectively, for the fourth
 quarter of fiscal year 2000.  Net interest income before provision for loan
 losses increased $2.6 million, or 8.2%, to $34.7 million for fiscal year 2001
 from $32.1 million for fiscal year 2000. The net interest rate spread and net
 interest margin were 1.93% and 2.25% for fiscal year 2001, compared to 2.06%
 and 2.36%, respectively, for fiscal year 2000.  During the fourth quarter of
 fiscal year 2001, the net interest rate spread decreased six basis points from
 1.88% for the third quarter of fiscal year 2001, while the net interest margin
 increased 12 basis points from 2.15%.  The increases in net interest income
 were due primarily to portfolio loan driven balance sheet growth.  The rising
 interest rate environment earlier in the year, however, contributed to a
 narrowing of the net interest rate spread during the fiscal year 2001 periods.
     The Company's provision for loan losses remained unchanged at $300,000 for
 the fourth quarters of fiscal years 2001 and 2000, and $1.2 million for fiscal
 years 2001 and 2000. The allowance for loan losses was $13.2 million, or 1.34%
 of loans receivable at March 31, 2001, compared to $12.3 million, or 1.36% of
 loans receivable at March 31, 2000.  Non-performing loans were $1.3 million,
 or 0.13% of loans receivable, at March 31, 2001, compared to $1.3 million, or
 0.15% of loans receivable, at March 31, 2000.
     Non-interest income increased $430,000, or 21.7%, to $2.4 million for the
 fourth quarter of fiscal year 2001 from $2.0 million for the fourth quarter of
 fiscal year 2000.  For fiscal years 2001 and 2000, non-interest income
 increased $2.4 million, or 37.1%, to $8.9 million from $6.5 million,
 respectively.  These increases were due primarily to improvement in gain
 (loss) on sale of mortgage loans, net, and increases in trust fee income,
 insurance commission income and service charges on deposit accounts, partially
 offset by decreases in loan servicing income and other non-interest income.
 The improvement in gain (loss) on sale of mortgage loans reflected more
 favorable secondary market conditions, partially offset by a decrease in the
 origination of saleable fixed rate mortgages, during fiscal year 2001 as
 compared to fiscal year 2000.  The increases in trust fee income were due to
 the first full year of operations of FIRSTFED TRUST COMPANY, N.A., which
 opened in February 2000. The increases in insurance commission income were due
 primarily to additional business resulting from the purchase of two insurance
 agencies by FIRSTFED INSURANCE AGENCY, LLC in March 2000.  The decrease in
 loan servicing income was due primarily to a decline in the Company's loans
 serviced for others during fiscal year 2001, and a $237,000 reduction in the
 valuation reserve for mortgage servicing rights during fiscal year 2000.  The
 decreases in other non-interest income were due primarily to reductions in the
 fair value of investments in certain employee benefit plans.
     Non-interest expense increased $591,000, or 8.9%, to $7.3 million in the
 fourth quarter of fiscal year 2001 from $6.7 million in the fourth quarter of
 fiscal year 2000.  For fiscal years 2001 and 2000, non-interest expense
 increased $3.5 million, or 13.9%, to $29.1 million from $25.5 million,
 respectively. The higher level of expenses reflected costs associated with the
 Company's new retail banking and business banking offices in downtown
 Providence, Rhode Island, both of which opened in early fiscal year 2001, the
 expansion of insurance agency operations, the first full year of trust company
 operations, and the net impact of increases in the cost of certain employee
 benefit plans.
     Income tax expense increased $108,000, or 10.1%, to $1.2 million for the
 fourth quarter of fiscal year 2001 from $1.1 million for the fourth quarter of
 fiscal year 2000. For the fiscal years ended 2001 and 2000, income tax expense
 increased $532,000, or 14.4%, to $4.2 million from $3.7 million, respectively.
 These increases were due primarily to the increases in income before income
 tax expense.  The Company's effective tax rate increased slightly to 31.5% for
 fiscal year 2001 from 31.1% for fiscal year 2000.
     Total assets increased $91.1 million, or 5.8%, to $1.671 billion at March
 31, 2001 from $1.580 billion at March 31, 2000. This growth was primarily
 attributable to an $88.4 million increase in loans receivable, net and a $35.7
 million increase in mortgage loans held for sale, partially offset by a
 decrease of $42.4 million in mortgage-backed securities available for sale.
 Balance sheet growth was primarily funded by increases of $42.7 million in
 deposit balances and $35.1 million in FHLB advances and other borrowings
 during fiscal year 2001.
     Mr. Stoico noted, "We are pleased with the growth in all of the Company's
 primary business lines in fiscal year 2001. Mortgage loans, commercial loans,
 consumer loans, and deposits all grew impressively.  Trust and insurance
 revenues also showed significant growth.  The trends in the balance sheet and
 other revenue sources, as well as the operating environment, are positive as
 we enter fiscal year 2002."
     For fiscal year 2001, mortgage originations totaled approximately $368
 million. Approximately $120 million of mortgage loans were sold in the
 secondary market during this time. Total loans serviced for others decreased
 $63.4 million, or 4.0%, to $1.531 billion at March 31, 2001 from $1.595
 billion at March 31, 2000.
     Total stockholders' equity increased $9.9 million, or 9.7%, to $111.6
 million at March 31, 2001, from $101.7 million at March 31, 2000. The increase
 is due primarily to $9.2 million in net income, a $7.0 million increase in the
 fair market value of available for sale securities, net of tax, and $1.4
 million in earned Stock-based Incentive Plan awards, partially offset by $6.3
 million in treasury stock purchases and $2.4 million in dividends paid to
 stockholders. Stockholders' equity to assets was 6.68% at March 31, 2001, up
 from 6.44% at March 31, 2000.
     Book value per share increased 15.9% to $19.57 at March 31, 2001 from
 $16.88 at March 31, 2000, due to the 9.7% increase in stockholders' equity and
 a 5.4% decrease in shares outstanding.  Market price per share increased
 $4.26, or 39.6%, to $15.01 at March 31, 2001 from $10.75 at March 31, 2000.
 The Company also announced that as of March 31, 2001 it had repurchased
 180,308 shares of Company stock, or 56% of the 320,028 shares authorized for
 repurchase under the Company's seventh stock repurchase program announced on
 September 29, 2000.  The Company has repurchased 2,486,903 shares since May
 15, 1998 through seven stock repurchase programs, reducing the legal number of
 shares outstanding to 6,220,249.
     At March 31, 2001, the Company's subsidiary, First Federal Savings Bank of
 America, continued to exceed all regulatory capital requirements. Regulatory
 capital, which is comprised of tangible capital, core capital, risk-based
 capital, and Tier I risk-based capital, amounted to approximately $103.9
 million, $103.9 million, $113.0 million, and $103.9 million, respectively. The
 tangible capital, core capital, risk-based capital, and Tier I risk-based
 capital ratios were 6.27%, 6.27%, 13.58%, and 12.33%, respectively, compared
 to the respective minimum ratios required to be deemed adequately capitalized
 of 2.0%, 4.0%, 8.0%, and 4.0%, respectively.
 
     FIRSTFED AMERICA BANCORP, INC. is a financial services company offering a
 wide range of financial products through its subsidiaries. First Federal
 Savings Bank of America operates fifteen banking offices throughout
 Southeastern Massachusetts and Rhode Island as well as five loan origination
 centers serving Massachusetts, Rhode Island, and Connecticut, and will open
 its sixteenth banking office in Middletown, Rhode Island later this year.
 Online banking is also available through FIRSTFEDonline at
 www.firstfedamerica.com. Through FIRSTFED INSURANCE AGENCY, LLC, which is
 licensed in Massachusetts, Rhode Island and Connecticut, the Company also
 sells insurance products at all of its locations and via
 www.firstfedinsurance.com.  FIRSTFED TRUST COMPANY, N.A. offers comprehensive
 trust, estate, and investment management products and services. Visit the
 FIRSTFED Web site at www.firstfedamerica.com for additional information on the
 Company including previous press releases and historical financial data.
 
     Statements contained in this news release, which are not historical facts,
 are forward-looking statements as that term is 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 those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by the
 Company with the Securities and Exchange Commission from time to time.  The
 Company does not undertake - and specifically disclaims any obligation -- to
 publicly release the result of any revisions which may be made to any forward-
 looking statements to reflect events or circumstances after the date of such
 statements or to reflect the occurrence of anticipated or unanticipated
 events.
 
     FIRSTFED AMERICA BANCORP, INC.
     Consolidated Balance Sheets
 
                                                   March 31,         March 31,
                                                     2001              2000
                                                      (Dollars in Thousands)
     Assets:
 
     Cash on hand and due from banks                $23,013           $20,720
     Short-term investments                             200               250
         Total cash and cash equivalents             23,213            20,970
     Mortgage loans held for sale                    39,103             3,417
     Investment in trading securities                   815               587
     Investment securities available for
      sale                                            7,837             5,643
     Mortgage-backed securities available
      for sale                                      501,230           543,627
     Mortgage-backed securities held to
      maturity                                        2,138             2,819
     Stock in FHLB of Boston                         40,369            30,928
     Loans receivable, net
         Mortgages                                  734,347           701,822
         Commercial                                 139,057           107,758
         Consumer                                   117,003            91,455
         Allowance for loan losses                  (13,233)          (12,275)
            Total loans receivable, net             977,174           888,760
     Accrued interest receivable                      7,928             7,018
     Office properties and equipment, net            24,038            25,187
     Mortgage servicing rights                        4,881             6,288
     Real estate owned, net                             175                 -
     Bank-Owned Life Insurance                       33,764            32,127
     Prepaid expenses and other assets                8,400            12,624
 
         Total assets                            $1,671,065        $1,579,995
 
     Liabilities and stockholders' equity:
 
     Deposits
         Demand                                    $196,735          $155,623
         Savings                                    102,884           102,167
         Time                                       407,797           406,892
            Total deposits                          707,416           664,682
     FHLB advances and other borrowings             814,764           779,662
     Advance payments by borrowers for
      taxes and insurance                             5,868             5,984
     Accrued interest payable                         5,997             4,620
     Other liabilities                               25,462            23,342
 
         Total liabilities                        1,559,507         1,478,290
 
     Common Stock                                        87                87
     Additional paid in capital                      85,585            85,449
     Retained earnings                               70,048            63,270
     Accumulated other comprehensive
      income (loss)                                   2,551            (4,470)
     Unallocated ESOP shares                         (3,098)           (3,872)
     Unearned Stock Incentive Plan shares            (2,998)           (4,438)
     Treasury stock                                 (40,617)          (34,321)
 
         Total stockholders' equity                 111,558           101,705
 
         Total liabilities and
          stockholders' equity                   $1,671,065        $1,579,995
 
 
 
     FIRSTFED AMERICA BANCORP, INC.
     Consolidated Statements of Operations
 
                                    For the Three Months
                                           Ended          For the Years Ended
                                         March 31,             March 31,
                                      2001       2000       2001       2000
                                  (Dollars in Thousands, except per share data)
 
     Interest and dividend income:
        Loans                         $19,700    $16,090    $77,116    $61,005
        Investment securities             368        180        719        803
        Mortgage-backed securities      8,072      8,648     33,507     30,041
        Federal Home Loan Bank
         stock                            715        521      2,733      1,972
          Total interest and
           dividend income             28,855     25,439    114,075     93,821
 
     Interest expense:
        Deposits                        6,792      6,051     26,252     24,812
        Borrowed funds                 13,274     10,972     53,143     36,959
          Total interest expense       20,066     17,023     79,395     61,771
 
          Net interest income
           before loan loss
           provision                    8,789      8,416     34,680     32,050
 
        Provision for loan losses         300        300      1,200      1,200
 
          Net interest income after
           loan loss provision          8,489      8,116     33,480     30,850
 
     Non-interest income:
        Loan servicing income             363        381      1,456      2,003
        Gain (loss) on sale of
         mortgage loans, net              235         59        583       (952)
        Service charges on deposit
         accounts                         415        305      1,622      1,344
        Insurance commission income       314        121      1,048        446
        Trust fee income                  327         16      1,028         16
        Earnings on Bank-Owned Life
         Insurance                        412        394      1,636      1,552
        Other income                      350        710      1,585      2,125
          Total non-interest income     2,416      1,986      8,958      6,534
 
     Non-interest expense:
        Compensation and employee
         benefits                       4,490      3,740     17,786     14,732
        Office occupancy and
         equipment                      1,181        887      4,447      3,905
        Data processing                   427        323      1,694      1,322
        Advertising and business
         promotion                        153        396      1,038      1,159
        Federal deposit insurance
         premiums                          34         37        138        334
        Other expense                     981      1,292      3,950      4,057
          Total non-interest
           expense                      7,266      6,675     29,053     25,509
 
          Income before income tax
           expense                      3,639      3,427     13,385     11,875
 
        Income tax expense              1,174      1,066      4,221      3,689
 
          Net income                   $2,465     $2,361     $9,164     $8,186
 
     Basic earnings per share           $0.43      $0.39      $1.57      $1.31
 
     Diluted earnings per share         $0.43      $0.39      $1.56      $1.31
 
     Basic shares outstanding       5,737,683  6,065,268  5,854,465  6,255,579
 
     Diluted shares outstanding     5,781,139  6,065,268  5,864,179  6,255,579
 
 
 
     FIRSTFED AMERICA BANCORP, INC.
     Selected Financial Highlights
 
                                            At or for the Three Months Ended
 
                                                  March 31,           March 31,
                                                   2001                2000
                                  (Dollars in thousands, except per share data)
 
     Operating and Performance Ratios
      (annualized):
 
         Basic earnings per share                    $0.43               $0.39
         Diluted earnings per share                  $0.43               $0.39
         Net income                                 $2,465              $2,361
         Return on average stockholders'
          equity                                     9.15%               9.19%
         Return on average assets                    0.60%               0.62%
         Stockholders' equity to total
          assets                                     6.68%               6.44%
         Net interest rate spread                    1.82%               2.03%
         Net interest margin                         2.27%               2.35%
         Effective tax rate                         32.26%              31.11%
         Regulatory Capital Ratios (Bank
          only):
            Tangible                                 6.27%               6.35%
            Core                                     6.27%               6.35%
            Risk-based                              13.58%              15.06%
            Tier 1 risk-based                       12.33%              13.82%
 
     Asset Quality:
 
         Non-performing loans                       $1,332              $1,310
         Non-performing assets                      $1,507              $1,310
         Allowance for loan losses                 $13,233             $12,275
         Non-performing loans as a percent
          of loans (1)                               0.13%               0.15%
         Non-performing assets as a
          percent of total assets                    0.09%               0.08%
         Allowance for loan losses as a
          percent of non-performing loans             993%                937%
         Allowance for loan losses as
          percent of loans receivable                1.34%               1.36%
 
     Share Related:
 
         Book value per common share
          outstanding (2)                           $19.57 (A)       $16.88 (B)
         Market price per share                     $15.01              $10.75
         Shares outstanding (2)                  5,700,867 (A)    6,024,278 (B)
         Average basic shares outstanding        5,737,683           6,065,268
         Average diluted shares
          outstanding                            5,781,139           6,065,268
 
     Mortgage Origination and Servicing:
 
         Mortgage originations                    $115,056            $103,636
         Loans serviced for others              $1,531,300          $1,594,696
 
     Trust Assets Under Administration:
 
         Number of accounts                            128                  40
         Market value of assets                   $455,800            $445,000
 
 
 
                                                   At or for the Year Ended
 
                                                  March 31,           March 31,
                                                     2001                2000
 
 
     Operating and Performance Ratios
      (annualized):
 
         Basic earnings per share                    $1.57               $1.31
         Diluted earnings per share                  $1.56               $1.31
         Net income                                 $9,164              $8,186
         Return on average stockholders'
          equity                                     8.71%               7.79%
         Return on average assets                    0.56%               0.56%
         Stockholders' equity to total
          assets                                     6.68%               6.44%
         Net interest rate spread                    1.93%               2.06%
         Net interest margin                         2.25%               2.36%
         Effective tax rate                         31.54%              31.07%
         Regulatory Capital Ratios (Bank
          only):
            Tangible                                 6.27%               6.35%
            Core                                     6.27%               6.35%
            Risk-based                              13.58%              15.06%
            Tier 1 risk-based                       12.33%              13.82%
 
     Asset Quality:
 
         Non-performing loans                       $1,332              $1,310
         Non-performing assets                      $1,507              $1,310
         Allowance for loan losses                 $13,233             $12,275
         Non-performing loans as a percent
          of loans (1)                               0.13%               0.15%
         Non-performing assets as a
          percent of total assets                    0.09%               0.08%
         Allowance for loan losses as a
          percent of non-performing loans             993%                937%
         Allowance for loan losses as
          percent of loans receivable                1.34%               1.36%
 
     Share Related:
 
         Book value per common share
          outstanding (2)                           $19.57 (A)       $16.88 (B)
         Market price per share                     $15.01              $10.75
         Shares outstanding (2)                  5,700,867 (A)    6,024,278 (B)
         Average basic shares outstanding        5,854,465           6,255,579
         Average diluted shares
          outstanding                            5,864,179           6,255,579
 
     Mortgage Origination and Servicing:
 
         Mortgage originations                    $368,497            $408,391
         Loans serviced for others              $1,531,300          $1,594,686
 
     Trust Assets Under Administration:
 
         Number of accounts                            128                  40
         Market value of assets                   $455,800            $445,000
 
 
     (1)  Loans include loans receivable, net, excluding allowance for loan
          losses.
     (2A) Based upon total shares issued at IPO (8,707,152), less unearned ESOP
          shares (290,686), unreleased 1997 Stock-based Incentive Plan
          shares (144,314), shares repurchased (2,486,903), and shares held in
          certain employee benefit plans (84,382).
     (2B) Based upon total shares issued at IPO (8,707,152), less unearned ESOP
          shares (368,395), unreleased 1997 Stock-based Incentive Plan
          shares (213,632), shares repurchased (2,043,924), and shares held in
          certain employee benefit plans (56,923).
 
 
 SOURCE  FIRSTFED AMERICA BANCORP, INC.