First Federal Savings Bank reported net income of $464,000 or 40 cents per share for its second quarter ending Dec. 31, a 188 percent increase over the $161,000 or 14 cents per share reported for the same period last year.

Net income for the six month period was $967,000 or 84 cents per share compared to $269,000 or 23 cents per share for the same six months last year.Chairman Gerald R. Christensen said the gain in income was primarily due to continued improvement in net interest income, reported at $2.04 million for the quarter, up from $1.15 million last year. During the quarter the bank also sold mortgage-backed securities for a pretax gain of $295,000 and sold its entire portfolio of high yield corporate bond mutual funds for a pretax loss of $164,000.

Christensen said that other real estate owned (REO) totaled $411,000 at the end of the quarter compared to $628,000 at June 30, 1990. At the end of December, the bank's total delinquency (30 days or more) was 1.2 percent of total loans.

First Federal's capital exceeds all regulatory requirements. Shareholder equity is $15 million or $13.06 per share. Assets are $302 million.