EXHIBIT 99.1
                                                                   PRESS RELEASE
                         FIRST FEDERAL BANCORPORATION
                      ANNOUNCES STOCK REPURCHASE PROGRAM

        Bemidji, Minnesota, August 6, 1996; First Federal Bancorporation 
announced today that it is commencing a stock repurchase program to acquire up 
to 77,840 shares of the Corporation's common stock, which represents 
approximately 10% of the outstanding common stock. The program will be dependent
upon market conditions and there is no guarantee as to the exact number of 
shares to be repurchased by the Corporation.

        William R. Belford, President of the Corporation, stated that the Board 
of Directors has authorized the repurchase program, which is expected to be 
completed within the next twelve months. mr. Belford explained that the Board of
Directors considers the Corporation's common stock to be an attractive 
investment. It is expected that a reduction in the amount of the Corporation's 
outstanding stock would have the effect of increasing the Corporation's per 
share earnings and book value.

        According to Mr. Belford, the repurchases generally would be effected 
through open market purchases, although he did not rule out the possibility of 
unsolicited negotiated transactions or other types of repurchases.