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) April 24, 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 8
Index to Exhibit is on Page 2.
ITEM 5. Other Events.
On April 24, 2002, the registrant, FirstFed Financial Corp., issued a press
release. A copy of this press release is attached and incorporated herein as
Exhibit 99.
Item 99. Press release dated April 24, 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: April 24, 2002 By: /S/ Babette E. Heimbuch
Babette E. Heimbuch
President and Chief Executive Officer
Contact: Douglas Goddard, Executive Vice President
(310) 319-6014
FIRSTFED REPORTS RESULTS FOR THE FIRST QUARTER OF 2002
Santa Monica, California, April 24, 2002 --FirstFed
Financial Corp. (NYSE-FED), parent company of First Federal
Bank of California, today announced net earnings of $12.4
million or $0.70 cents per diluted share of common stock for
the first quarter of 2002, compared to net earnings of $12.9
million or $0.73 per diluted share for the fourth quarter of
2001. Results for the first quarter of 2002 were approximately
the same as results for the first quarter of 2001.
First quarter earnings decreased from the fourth quarter
of 2001 due the impact of falling interest rates on the Bank's
interest rate spreads. The interest rate spread decreased to
2.72% for the first quarter of 2002 from 2.82% for the fourth
quarter of 2001 because the yield on the Bank's loan portfolio
dropped due to declines in the Federal Home Loan Bank Eleventh
District Cost of Funds Index ("COFI Index"). Nearly 70% of the
Bank's portfolio is adjustable based on changes in the COFI
Index. Additionally, average interest-earning assets decreased
from $4.5 billion for the fourth quarter of 2001 to $4.4
billion for the first quarter of 2002 due to record high levels
of loan payoffs, which offset $299.8 million of loan
originations.
First quarter net earnings also included the impact of the
loans and four retail branches acquired in November of 2001.
The additional net interest income and operating expense were
fully included in the Bank's operations during the first
quarter of 2002 but only impacted one month of the fourth
quarter of 2001. In addition, first quarter results included
higher advertising costs and legal expenses compared to the
fourth quarter.
Net earnings for the first quarter of 2002 were
approximately the same as the first quarter of last year
because the additional operating costs of the new branches were
offset by a 6% increase in net interest income due to an
improved interest rate spread to 2.72% from 2.59% and growth in
average interest-earning assets from $4.3 billion to $4.4 billion.
The Company's general valuation allowance was $73.1
million or 1.73% of loans and real estate owned as of March 31,
2002, compared to $73.3 million or 1.70% as of December 31,
2001 and $71.0 million or 1.71% at March 31, 2001.
Non-performing assets were 0.16% of total assets as of March
31, 2002 compared to 0.17% as of December 31, 2001 and 0.27% as
of March 31, 2001.
The Company did not record a provision for loan losses
during the first quarter of 2002 or any quarter during 2001.
Loan charge-offs, net of recoveries, totaled $196 thousand
during the first quarter of 2002 compared to net loan loss
recoveries of $288 thousand during the fourth quarter of 2001
and net loan charge-offs of $65 thousand during the first
quarter of 2001.
At March 31, 2002, First Federal Bank 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
FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except share data)
(Unaudited)
March 31, December
2002 31, 2001
----------- -------------
ASSETS
Cash and cash equivalents $ 148,349 $ 174,171
Investment securities, available-for-sale 104,068 110,444
(at fair value)
Mortgage-backed securities, 256,934 284,079
available-for-sale (at fair value)
Loans receivable, held-for-sale (fair 4,469 5,246
value of $4,469 and $5,246)
Loans receivable, net 3,902,667 3,999,643
Accrued interest and dividends receivable 20,623 22,076
Real estate 1,005 1,515
Office properties and equipment, net 10,651 10,822
Investment in Federal Home Loan Bank 92,738 91,713
(FHLB) stock, at cost
Other assets 24,951 26,580
----------- -------------
$ 4,566,455 $ 4,726,289
=========== =============
LIABILITIES
Deposits $ 2,582,043 $ 2,546,647
FHLB advances 1,467,000 1,597,000
Securities sold under agreements to 127,695 211,040
repurchase
Accrued expenses and other liabilities 52,380 45,924
----------- -------------
4,229,118 4,400,611
----------- -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, par value $.01 per share;
authorized 100,000,000 shares; issued
23,370,167
and 23,362,196 shares, outstanding
17,259,271 and
17,251,300 shares 234 234
Additional paid-in capital 34,748 34,670
Retained earnings - substantially 376,082 363,713
restricted
Treasury stock, at cost, 6,110,896 shares (75,930) (75,930)
Accumulated other comprehensive gain, net 2,203 2,991
of taxes
----------- -------------
337,337 325,678
----------- -------------
$ 4,566,455 $ 4,726,289
=========== =============
FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended March 31,
2002 2001
------------ ------------
Interest income:
Interest on loans $ 65,150 $ 77,980
Interest on mortgage-backed securities 2,970 5,959
Interest and dividends on investments 2,844 4,078
------------ ------------
Total interest income 70,964 88,017
------------ ------------
Interest expense:
Interest on deposits 17,359 26,616
Interest on borrowings 19,428 29,249
------------ ------------
Total interest expense 36,787 55,865
------------ ------------
Net interest income 34,177 32,152
Provision for loan losses - -
------------ ------------
Net interest income after provision
for loan losses 34,177 32,152
------------ ------------
Other income:
Loan servicing and other fees 864 851
Gain (loss) on sale of loans 186 102
Real estate operations, net 161 42
Other operating income 1,301 1,012
------------ ------------
Total other income 2,512 2,007
------------ ------------
Non-interest expense:
Compensation 8,197 7,295
Occupancy 2,051 1,881
Amortization of core deposit intangible 501 372
Other expenses 4,562 2,985
------------ ------------
Total non-interest expense 15,311 12,533
------------ ------------
Earnings before income taxes 21,378 21,626
Income tax provision 9,009 9,253
------------ ------------
Net earnings $ 12,369 $ 12,373
============ ============
Other comprehensive earnings (loss),
net of taxes (788) 3,071
------------ ------------
Comprehensive earnings $ 11,581 $ 15,444
============ ============
Earnings per share:
Basic $ 0.72 $ 0.72
============ ============
Diluted $ 0.70 $ 0.70
============ ============
Weighted average shares outstanding:
Basic 17,254,769 17,182,624
============ ============
Diluted 17,608,147 17,626,521
============ ============
KEY FINANCIAL RESULTS ARE HIGHLIGHTED BELOW
Quarter ended March 31,
2002 2001
------------ --------
(Dollars in thousands, except per share data)
End of period:
Total assets $ 4,566,455 $ 4,517,296
Cash and securities $ 252,417 $ 212,690
Mortgage-backed securities $ 256,934 $ 362,643
Loans $ 3,907,136 $ 3,791,291
Core deposit intangible asset $ 10,806 $ 8,931
Deposits $ 2,582,043 $ 2,291,287
Borrowings $ 1,594,695 $ 1,879,205
Stockholders' equity $ 337,337 $ 283,498
Book value per share $ 19.55 $ 16.43
Tangible book value per share $ 19.20 $ 15.91
Stock price (period-end) $ 26.15 $ 28.00
Total loan servicing portfolio $ 4,251,959 $ 4,393,104
Loans serviced for others $ 242,252 $ 304,721
% of Adjustable mortgages 69.80 % 89.04 %
Other data:
Employees (full-time equivalent) 503 451
Branches 29 25
Loan Offices 4 3
Asset quality:
Real estate (foreclosed) $ 975 $ 2,236
Non-accrual loans $ 6,419 $ 9,866
Non-performing assets $ 7,394 $ 12,102
Non-performing assets to total assets 0.16 % 0.27 %
General valuation allowance (GVA) $ 73,073 $ 71,036
GVA to assets with loss exposure * 1.73 % 1.71 %
Loans sold with recourse $ 119,150 $ 141,578
GVA for loans sold with recourse $ 12,824 $ 12,824
GVA to loans sold with recourse 10.76 % 9.06 %
Modified loans (not impaired) $ 2,393 $ 803
Impaired loans, net $ 3,441 $ 10,311
Allowance for impaired loans $ 1,850 $ 1,850
Capital ratios:
Tangible capital ratio 6.96 % 5.95 %
Core capital ratio 6.96 5.95
Risk-based capital ratio 13.11 11.95
Net worth to assets ratio 7.39 6.28
Loan originations and purchases $ 299,771 $ 362,213
Net interest income $ 34,177 $ 32,152
* Primarily the Bank's loans receivable
Quarter ended March 31,
2002 2001
----------- ----------
(Dollars in thousands)
Selected ratios:
Expense ratios:
Efficiency ratio 41.94% 36.80%
Expense-to-average-assets ratio 1.32 1.13
Return on average assets 1.06 1.11
Return on average equity 14.92 17.97
Yields earned and rates paid:
Average yield on loans and 6.44% 8.22%
mortgage-backed securities
Average yield on investment portfolio** 2.55 5.82
Average yield on all interest-earning 6.24 8.10
assets**
Average rate paid on deposits 2.79 4.85
Average rate paid on borrowings 4.59 6.30
Average rate paid on all interest-bearing 3.52 5.51
liabilities
Interest rate spread 2.72 2.59
Effective net spread 2.89 2.81
Average balances:
Average loans and mortgage-backed $ $
securities 4,219,538 4,078,319
Average investments *** 227,636 198,208
----------- ----------
Average interest-earning assets *** 4,447,174 4,276,527
----------- ----------
Average deposits 2,526,068 2,224,330
Average borrowings 1,715,087 1,879,022
----------- ----------
Average interest-bearing liabilities 4,241,155 4,103,352
----------- ----------
Excess of interest-earning assets over $ 206,019$ 173,175
interest-bearing liabilities =========== ==========
** Excludes FHLB stock dividends and other
miscellaneous items.
*** Excludes FHLB stock.