January 27, 1997



Securities and Exchange Commission
Washington, D.C.  20549


Ladies and Gentlemen:

We were previously principal accountants for First Federal
Bancorporation and, under the date of October 25, 1996, we
reported on the consolidated financial statements of First
Federal Bancorporation and subsidiaries as of September 30, 1996
and 1995 and for each of the years in the three-year period ended
September 30, 1996.  Our report refers to the changes in First
Federal Bancorporation's method of accounting for securities and
its method of accounting for income taxes during the year ended
September 30, 1994.  On January 21, 1997, our appointment as
principal accountants was terminated.  We have read First Federal
Bancorporation's statements included under Item 4 of its Form 8-K
dated January 21, 1997, and we agree with such statements, except
that we are not in the position to agree or disagree with First
Federal Bancorporation's stated reason for changing principal
accountants, we are not in a position to agree or disagree with
First Federal Bancorporation's statement that McGladrey & Pullen
LLP was not engaged regarding the application of accounting
principles to a specified transaction or the type of audit
opinion that might be rendered on First Federal Bancorporation's
consolidated financial statements, and we are not in a position
to agree or disagree with First Federal Bancorporation's
statement that the change was approved by the board of directors.

Very truly yours

/s/ KPMG Peat Marwick LLP