Moving Ahead

December 31, 2010

We have experienced tremendous challenges, changes and opportunities over the past decades and especially in the past several years. We have worked diligently to improve First Federal Bank, to invest in our infrastructure and technologies, to support our growing company, customers and employees. These investments and improvements have been time-consuming and expensive but critical to our future success.

Building a great company is an ongoing process. I am proud to report in the 2009-10 fiscal year, positive earnings and profitability. We reported stable asset quality measures, augmented our capital position, maintained healthy reserves, and acquired Flagship National Bank of Sarasota, Florida and the Bank of Bonifay, Bonifay, Florida. We were designated an SBA Preferred Lender. We understand making credit available to consumers and businesses is vital to our country’s financial health. Our superior rankings in the financial industry and the teams we are assembling are truly extraordinary.

Our success is driven by talented employees who are committed to providing exceptional service and products and fulfill our customer’s financial needs. We now have more convenient delivery channels than ever and have expanded our network, customers and the communities we serve. Our customers look to us for consistency, integrity and predictability. We operate within conservative philosophies and believe in building customer relationships. Building relationships requires trust, understanding and discipline for all involved.

We thank you for your confidence in First Federal and for your continued support.

Keith C. Leibfried
President, CEO & Chairman of the Board