SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) January 25, 2002
FirstFed Financial Corp.
(Exact name of registrant as specified in its charter)
Delaware 1-9566 95-4087449
(State of Incorporation) (Commission File No.) (IRS Employer
Identification No.)
401 Wilshire Boulevard, Santa Monica, California, 90401-1490
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (310) 319-6000
Total number of pages is 9.
Index to Exhibit is on Page 3.
Item 5. Other Events.
On January 25, 2002, the registrant, FirstFed Financial Corp.,
issued two press releases. The press releases are attached and incorporated
herein as Exhibits.
Item 7. Financial Statements and Exhibits
a) Financial Statements of businesses acquired.
Not applicable.
b) Pro forma financial information.
Not applicable.
c) Exhibits
i)Press Release dated January 25, 2002.
ii)Press Release dated January 25, 2002.
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
FIRSTFED FINANCIAL CORP.
Dated: January 25, 2002 By: /s/
Babette E. Heimbuch
Chief Executive Officer
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INDEX TO EXHIBITS
Item Page
Press Release dated January 25, 2002. 4
Press Release dated January 25, 2002. 5
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FIRSTFED FINANCIAL CORP. ANNOUNCES
RETIREMENT OF WILLIAM S. MORTENSEN
AS CHAIRMAN OF THE BOARD AND
APPOINTMENT AS CHAIRMAN EMERITUS
January 25, 2002, Santa Monica, California. The Board of Directors of
FirstFed Financial Corp. (NYSE-FED) today announced the retirement of
William S. Mortensen as Chairman of the Board and as a Director of the
Company and the Bank, and his appointment as Chairman Emeritus, all to be
effective April 24, 2002. Babette E. Heimbuch, the Company's current
President and Chief Executive Officer, who is also a Director of the
Company and the Bank, has been appointed Chairman of the Board effective
with Mr. Mortensen's retirement.
Mr. Mortensen has served First Federal Bank for over 45 years and was the
Company's Chief Executive Officer for over 28 years. He is past Chairman
of America's Community Bankers and the Western League of Financial
Institutions. Mr. Mortensen will continue to serve as Chairman Emeritus
following his retirement, as well as continuing to serve on the boards of
a number of charitable and community organizations including the Los
Angeles Metropolitan YMCA, Pepperdine University, St. John's Health Center
and United Way.
Mr. Mortensen commented, "I am proud of the financial performance of our
Company and the important role that it plays in our community. I believe
the Company is well positioned for the future, and am confident that the
ongoing leadership of the management team will continue to serve the
interests of our stockholders, employees and community in the future."
Ms. Heimbuch has served as President of the Company and the Bank since
1989 and has served as Chief Executive Officer since 1997. She has been a
Director of the Company since 1986. Ms. Heimbuch stated, "I cannot say
enough about Bill Mortensen's contribution to the success of the Company
and the Bank, as well as the significant leadership role he has played in
the Santa Monica community for the past 45 years. The management team has
learned a great deal from working with Bill, and we wish him the best for
the years ahead."
FirstFed Financial Corp. is the parent holding company of First Federal
Bank of California, a $4.7 billion banking institution with 29 retail
offices and 4 regional loan centers throughout Southern California.
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Contact: Douglas Goddard, Executive Vice President
(310) 319-6014
FIRSTFED REPORTS RESULTS FOR THE FOURTH QUARTER OF 2001
Santa Monica, California, January 25, 2002 --FirstFed Financial Corp.
(NYSE-FED), parent company of First Federal Bank of California, today announced
net earnings of $12.9 million or 73 cents per share of common stock for the
fourth quarter of 2001, compared to $10.8 million or 62 cents per share of
common stock for the fourth quarter of 2000. Quarterly net earnings increased
due to higher net interest income, which resulted from improved margins and
growth in average interest-earning
assets.
Net earnings for the twelve months of 2001 were $50.3 million or $2.85 per
share, compared to $38.5 million or $2.20 per share for the twelve months of
2000. The increase in year-to-date earnings is also attributable to higher net
interest income. All per-share earnings are presented on a diluted basis.
On November 30, 2001, First Federal Bank of California completed the
acquisition of Del Amo Savings Bank and Frontier Bancorp, former subsidiaries of
City Holding Company of West Virginia. In this transaction, the Bank added four
retail branches with deposits totaling $174.8 million and mortgage and
construction loans totaling $150.0 million.
Average interest-earning assets increased 8% over the fourth quarter of
last year and 10% over the twelve months of last year. The increase is
attributable to $271.7 million in loan originations for the fourth quarter of
2001 compared with $226.1 million for the fourth quarter of the prior year. Loan
originations of $1.4 billion and purchases of $132.6 million for the year 2001
compare with loan originations of $941.5 million and purchases of $139.5 million
for the year 2000.
The interest rate spread improved to 2.82% for the fourth quarter of 2001
from 2.47% for the fourth quarter of the prior year. The Bank's cost of funds
for the fourth quarter of 2001 decreased by 169 basis points compared to the
fourth quarter of the prior year, while the yield on the loan portfolio
decreased by only 128 basis points compared to the same period. In a decreasing
interest rate environment, the Bank's cost of funds is impacted before the yield
earned on its loan portfolio because of a three-month time lag before changes in
the Federal Home Loan Bank 11th District Cost of Funds Index ("Index") can be
implemented with respect to the Bank's loans. Due to the same factors, the
interest rate spread improved to 2.71% for the twelve months of 2001 from 2.37%
for the same period of the prior year.
The Company's general valuation allowance was $73.3 million or 1.70% of
loans and real estate owned as of December 31, 2001, compared with $71.2 million
or 1.81% as of December 31, 2000. Non-performing assets were 0.17% of total
assets as of December 31, 2001 compared with 0.19% as of December 31, 2000.
The Company did not record a provision for loan losses during the twelve
months of 2001 or the twelve months of 2000. Net loan loss recoveries of $288
thousand and $118 thousand were recorded during the fourth quarter and twelve
months of 2001, respectively. For the comparable periods of the prior year, the
Company recorded net loan charge-offs of $555 thousand during the fourth quarter
of 2000 and net loan loss recoveries of $50 thousand during the twelve months of
2000.
At December 31, 2001, First Federal Bank of California met the capital
requirements necessary to be deemed "well-capitalized" for regulatory capital
purposes. It has 29 full-service retail banking offices and 4 retail loan
offices.
KEY FINANCIAL RESULTS FOLLOW
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FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)
(Unaudited)
December 31, December 31,
ASSETS 2001 2000
Cash and cash equivalents $ 173,908 $ 77,677
Investment securities, available-for-sale (at fair value) 110,444 136,537
Mortgage-backed securities, available-for-sale
(at fair value) 284,079 374,405
Loans receivable, held-for-sale (fair value of
$5,246 and $2,246) 5,246 2,246
Loans receivable, net 3,999,643 3,627,038
Accrued interest and dividends receivable 22,069 28,488
Real estate 1,515 2,189
Office properties and equipment, net 10,608 10,651
Investment in Federal Home Loan Bank
(FHLB) stock, at cost 91,713 80,885
Other assets 27,157 25,126
$4,726,382 $4,365,242
LIABILITIES
Deposits $2,546,647 $2,165,047
FHLB advances 1,597,000 1,579,000
Securities sold under agreements to repurchase 211,040 294,110
Accrued expenses and other liabilities 46,017 59,643
4,400,704 4,097,800
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, par value $.01 per share;
authorized 100,000,000 shares; issued 23,362,196
and 23,299,707 shares, outstanding
17,294,706 and 17,232,217 shares 234 233
Additional paid-in capital 34,483 32,540
Retained earnings - substantially restricted 363,713 313,411
Unreleased shares to employee stock ownership plan - (841)
Treasury stock, at cost, 6,067,490 shares (75,743) (75,743)
Accumulated other comprehensive earnings (loss),
net of taxes 2,991 (2,158)
325,678 267,442
$4,726,382 $4,365,242
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FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
Interest income:
Interest on loans $69,614 $75,140 $298,942 $274,720
Interest on mortgage-backed securities 3,717 6,146 19,803 24,448
Interest and dividends on investments 3,304 3,497 15,187 15,152
Total interest income 76,635 84,783 333,932 314,320
Interest expense:
Interest on deposits 19,878 26,704 94,568 100,174
Interest on borrowings 22,733 29,101 107,186 106,331
Total interest expense 42,611 55,805 201,754 206,505
Net interest income 34,024 28,978 132,178 107,815
Provision for loan losses - - - -
Net interest income
after provision for losses 34,024 28,978 132,178 107,815
Other income:
Loan and other fees 841 386 3,319 2,804
Gain on sale of loans 155 42 656 64
Real estate operations, net (79) 98 304 594
Other operating income 1,335 1,128 4,640 4,285
Total other income 2,252 1,654 8,919 7,747
Non-interest expense
Compensation 7,357 6,230 29,682 26,444
Occupancy 2,122 2,032 8,302 8,031
Other expenses 4,229 2,912 15,190 13,790
Total non-interest expense 13,708 11,174 53,174 48,265
Earnings before income taxes 22,568 19,458 87,923 67,297
Income tax provision 9,658 8,676 37,621 28,832
Net earnings $ 12,910 $10,782 $50,302 $38,465
Other comprehensive earnings,
net of taxes (561) 5,626 5,149 6,122
Comprehensive earnings $12,349 $16,408 $55,451 $44,587
Earnings per share:
Basic $ 0.75 $ 0.63 $ 2.92 $ 2.23
Diluted $ 0.73 $ 0.62 $ 2.85 $ 2.20
Weighted average shares outstanding:
Basic 17,283,591 17,145,705 17,234,591 17,251,618
Diluted 17,619,704 17,525,944 17,645,647 17,456,895
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KEY FINANCIAL RESULTS ARE HIGHLIGHTED BELOW
Quarter Ended December 31,
2001 2000
(Dollars in thousands, except per share data)
End of period:
Total assets $4,726,382 $4,365,242
Cash and securities $ 284,352 $ 214,214
Mortgage-backed securities $ 284,079 $ 374,405
Loans $4,004,889 $3,629,284
Core deposit intangible asset $ 12,750 $ 9,304
Deposits $2,546,647 $2,165,047
Borrowings $1,808,040 $1,873,110
Stockholders' equity $ 325,678 $ 267,442
Book value per share $ 18.83 $ 15.52
Tangible book value per share $ 18.09 $ 14.98
Stock price (period-end) $ 25.63 $ 32.31
Total loan servicing portfolio $4,436,112 $4,390,168
Loans serviced for others $ 257,629 $ 322,315
% of Adjustable mortgages 71.38% 92.07%
Other data:
Employees (full-time equivalent) 506 451
Branches 29 25
Loan Offices 4 3
Quarter Ended December 31,
2001 2000
(Dollars in thousands)
Asset quality:
Real estate (foreclosed) $ 1,485 $ 2,157
Non-accrual loans $ 6,443 $ 6,142
Non-performing assets $ 7,928 8,299
Non-performing assets to total assets 0.17% 0.19%
General valuation allowance (GVA) $ 73,269 $ 71,159
GVA to assets with loss exposure * 1.70% 1.81%
Loans sold with recourse $ 126,432 $ 146,537
GVA for loans sold with recourse $ 12,824 $ 12,824
GVA to loans sold with recourse 10.14% 8.75%
Modified loans (not impaired) $ 927 $ 809
Impaired loans, net $ 7,394 $ 8,770
Allowance for impaired loans $ 1,850 $ 1,792
Capital ratios:
Tangible capital ratio 6.42% 5.84%
Core capital ratio 6.42% 5.84%
Risk-based capital ratio 12.51% 11.39%
Net worth to assets ratio 6.89% 6.13%
* Primarily the Bank's loans receivable
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Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
(Dollars in thousands)
Selected ratios:
Expense ratios:
Efficiency ratio 37.95% 36.53% 37.86% 41.79%
Expense-to-average-assets rati 1.18 1.04 1.17 1.17
Return on average assets 1.11 1.00 1.10 0.93
Return on average equity 16.19 16.69 16.93 15.85
Yields earned and rates paid:
Average yield on loans and
mortgage-backed securities 6.91% 8.19% 7.61% 7.85%
Average yield on investment portfolio ** 3.96 5.87 5.16 6.11
Average yield on all interest-
earning assets ** 6.76 8.09 7.50 7.77
Average rate paid on deposits 3.24 4.90 4.08 4.70
Average rate paid on borrowings 4.85 6.50 5.67 6.29
Average rate paid on all interest-
bearing liabilities 3.93 5.62 4.79 5.40
Interest rate spread 2.82 2.47 2.71 2.37
Effective net spread 2.99 2.68 2.90 2.57
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
(Dollars in thousands)
Averages:
Average loans
and mortgage-backed securities $4,225,715 $3,950,534 $4,181,554 $3,793,351
Average investments *** 229,831 173,829 200,807 176,476
Average interest-earning assets *** 4,455,546 4,124,363 4,382,361 3,969,827
Average deposits 2,432,038 2,168,379 2,317,744 2,132,927
Average borrowings 1,831,462 1,796,797 1,885,426 1,688,738
Average interest-bearing liabilities 4,263,500 3,965,176 4,203,170 3,821,665
Excess of interest-earning assets over
interest-bearing liabilities $ 192,046 $ 159,187 $ 179,191 $148,162
Loan originations and purchases $ 271,738 $ 226,126 $1,502,335 $1,081,010
** Excludes FHLB stock dividends and other miscellaneous items.
*** Excludes FHLB stock.
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