-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, K02nfIzT+hiLNao49nnhvoa+BTO2RPy1yXNOMqGsG7VhwGzbwKOhaNrGgLvkfNiy J1jClZ0LSNrAdQ/vdGAzlQ== 0000810536-01-000002.txt : 20010205 0000810536-01-000002.hdr.sgml : 20010205 ACCESSION NUMBER: 0000810536-01-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010131 ITEM INFORMATION: FILED AS OF DATE: 20010131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRSTFED FINANCIAL CORP CENTRAL INDEX KEY: 0000810536 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 954087449 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-09566 FILM NUMBER: 1519693 BUSINESS ADDRESS: STREET 1: 401 WILSHIRE BOULEVARD CITY: SANTA MONICA STATE: CA ZIP: 90401-1490 BUSINESS PHONE: 3103196000 MAIL ADDRESS: STREET 1: 401 WILSHIRE BOULEVARD CITY: SANTA MONICA STATE: CA ZIP: 90401-1490 8-K 1 0001.txt PRESS RELEASE/FINANCIAL INFO/LOAN PORTFOLIO REPORT 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 31, 2001 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 10 Index to Exhibit is on Page 3. ITEM 5. OTHER EVENTS On Janaury 25, 2001, the Registrant issued a press release. A copy of this press release is attached and incorporated herein as exhibit 99. ITEM 7. FINANCIAL STAEMENTS, PRO-FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) Exhibits 99. Press release dated January 25, 2001 99.1 Monthly Financial Data as of December 31, 2000 (Unconsolidated) 99.2 Loan Portfolio Segment Report of First Federal Bank of California as of December 31, 2000 ITEM 9. REGULATION FD DISCLOSURE. The Registrant hereby incorporates by reference into this Item 9 the summary monthly financial data, as of December 31, 2000 attached as Exhibit 99.1 which is being furnished in accordance with Rule 101(e)(1) under Regulation FD and shall not be deemed to be filed. The Registrant hereby incorporates by reference into this Item 9 the Loan Portfolio Segment Report as of December 31, 2000, attached as Exhibit 99.2, which is being furnished in accordance with Rule 101(e)(1)under Regulation FD and shall not be deemed to be filed. This information is being presented by management of the Registrant in response to the request of various analysts and investors for additional information regarding the single family loan portfolio of Registrant's sole subsidiary, First Federal Bank of California (the "Bank"). Specifically, the report presents information which management believes is relevant to the perceived issue of prepayment risk on recently originated single family home loans in the Bank's portfolio. Information regarding prepayment risk on other loans in the Bank's portfolio is not presented herein. A discussion of the factors that could impact this area as to the Bank's loan portfolio in general, and the Registrant's overall business and financial performance, can be found in the Registrant's reports filed with the Securities and Exchange Commission. These factors include, among others, general economic and business conditions and changes therein, competition, consumer preferences and various other matters beyond the Registrant's control. Given these concerns, investors and analysts should not place undue reliance on the enclosed information. These reports speak only as of their stated date, and the Registrant undertakes no obligation to publicly update or revise the reports, although it may do so from time to time as management of the Registrant believes is warranted. 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 31, 2001 By: Douglas J. Goddard Chief Financial Officer INDEX TO EXHIBITS Item Page 99. Press release dated January 25, 2001 4 99.1 Monthly Financial Information as of December 31, 2000 9 99.2 Loan Portfolio Segment Report of First Federal Bank of California as of December 31, 2000 10 FIRSTFED REPORTS RESULTS FOR THE FOURTH QUARTER OF 2000 Santa Monica, California, January 25, 2001 --FirstFed Financial Corp. (NYSE-FED), parent company of First Federal Bank of California, today announced net earnings of $10.8 million or 62 cents per share of common stock for the fourth quarter of 2000. This compares with earnings of $8.7 million or 47 cents per share for the fourth quarter of 1999, before an extraordinary item relating to the early extinquishment of debt. Quarterly net earnings increased due to higher net interest income, which resulted from growth in average interest-earning assets. All per share earnings are presented on a diluted basis. Net earnings for the year 2000 were $38.5 million or $2.20 per share, compared to earnings of $35.4 million or $1.83 per share for 1999, before the extraordinary item. Net earnings after the extraordinary item were $33.3 million or $1.71 per share for 1999. The increase in year-to-date net earnings is also attributable to higher net interest income. Loan originations were $1.1 billion for the year 2000. This compares with $944.1 million for the same period of last year. Loan purchases totaling $125.2 million and $122.1 million were included in loan originations during 2000 and 1999, respectively. Loan originations for the fourth quarter of 2000 were $226.1 million compared to $198.9 million for the same quarter of the prior year. Average interest-earning assets increased to $4.1 billion and $4.0 billion for the fourth quarter and year ended December 31, 2000 from average balances of $3.7 billion and $3.5 billion for the fourth quarter and year ended December 31, 1999. This asset growth resulted in 19% and 9% increases in net interest income during the fourth quarter and year ended December 31, 2000, respectively, compared to the same periods of the prior year. Income from real estate operations decreased during the fourth quarter and year ended December 31, 2000 due to decreased levels of foreclosed real estate during both periods compared to the same periods of the prior year. The Bank's level of foreclosures and delinquencies has continued to improve due to sustained strength in the Southern California economy and real estate market. Non-performing assets were 0.19% of total assets as of December 31, 2000 compared to 0.40% of total assets as of December 31, 1999 and 0.84% of total assets as of December 31, 1998. 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 year 2000. In comparison, net loan charge-offs of $1.5 million and $2.4 million were recorded during the fourth quarter and year ended December 31, 1999. The Company's general valuation allowance was $71.2 million or 1.81% of loans and real estate owned as of December 31, 2000, compared to $70.3 million or 2.15% as of December 31, 1999 and $68.1 million or 2.26% at December 31, 1998. The Company repurchased 821,500 shares of its common stock at an average price of $12.39 per share during the year 2000. No shares were repurchased during the fourth quarter of 2000. As of December 31, 2000, 889,016 shares remain eligible for repurchase under the Company's authorized repurchase program. At December 31, 2000, First Federal Bank of California met the capital requirements necessary to be deemed "well-capitalized" for regulatory capital purposes. The Bank has 25 full-service retail banking offices and 3 retail loan offices. KEY FINANCIAL RESULTS FOLLOW
FIRSTFED FINANCIAL CORP. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except per share data) (Unaudited) December 31, December 31, 2000 1999 ASSETS Cash and cash equivalents $ 77,677 $ 101,807 Investment securities, available-for-sale (at fair value) 136,537 151,195 Mortgage-backed securities, available-for-sale (at fair value) 374,405 428,641 Loans receivable, held-for-sale (fair value of $2,246 and $2,324) 2,246 2,303 Loans receivable, net 3,627,038 3,058,244 Accrued interest and dividends receivable 28,488 21,825 Real estate 2,189 2,236 Office properties and equipment, net 10,651 11,745 Investment in Federal Home Loan Bank (FHLB) stock, at cost 80,885 71,722 Other assets 25,126 22,333 $4,365,242 $3,872,051 LIABILITIES Deposits $2,165,047 $2,061,357 FHLB advances and other borrowings 1,579,000 1,169,000 Securities sold under agreements to repurchase 294,110 363,635 Accrued expenses and other liabilities 59,643 46,926 4,097,800 3,640,918 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Common stock, par value $.01 per share; authorized 100,000,000 shares; issued 23,299,707 and 23,269,051 shares, outstanding 17,232,217 and 18,023,061 shares 233 233 Additional paid-in capital 32,540 31,561 Retained earnings - substantially restricted 313,411 274,946 Unreleased shares to employee stock ownership plan (841) (1,759) Treasury stock, at cost, 6,067,490 and 5,245,990 shares (75,743) (65,568) Accumulated other comprehensive loss, net of taxes (2,158) (8,280) 267,442 231,133 $4,365,242 $3,872,051
FIRSTFED FINANCIAL CORP. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS (Dollars in thousands, except per share data) (Unaudited) Three Months Ended Year Ended December 31, December 31, 2000 1999 2000 1999 Interest income: Interest on loans $ 75,140 $ 56,206 $274,720 $216,634 Interest on mortgage-backed securities 6,146 7,605 24,448 28,700 Interest and dividends on investments 3,497 4,085 15,152 14,667 Total interest income 84,783 67,896 314,320 260,001 Interest expense: Interest on deposits 26,704 22,126 100,174 87,199 Interest on borrowings 29,101 21,479 106,331 73,832 Total interest expense 55,805 43,605 206,505 161,031 Net interest income 28,978 24,291 107,815 98,970 Provision for loan losses - - - - Net interest income after provision for losses 28,978 24,291 107,815 98,970 Other income: Loan servicing and other fees 386 852 2,804 4,204 Gain on sale of loans 42 23 64 1,221 Real estate operations, net 98 704 594 3,217 Other operating income 1,128 1,006 4,285 4,046 Total other income 1,654 2,585 7,747 12,688 Non-interest expense: Compensation 6,230 6,373 26,444 26,664 Occupancy 2,032 2,092 8,031 7,859 Goodwill amortization 1,141 90 1,965 452 Other expenses 1,771 2,913 11,825 14,184 11,174 11,468 48,265 49,159 Earnings before income taxes and extraordinary item 19,458 15,408 67,297 62,499 Income tax provision 8,676 6,688 28,832 27,052 Earnings before extraordinary item 10,782 8,720 38,465 35,447 Extraordinary item Loss on early extinguishment of debt, net of taxes - (1,844) - (2,195) Net earnings $ 10,782 $ 6,876 $ 38,465 $ 33,252 Other comprehensive earnings (loss), net of taxes 5,626 367 6,122 (7,577) Comprehensive earnings $ 16,408 $ 7,243 $ 44,587 $ 25,675 Basic EPS: EPS before extraordinary item $ 0.63 $ 0.48 $ 2.23 $ 1.84 Extraordinary item - (0.10) - (0.11) EPS after extraordinary item $ 0.63 $ 0.38 $ 2.23 $ 1.73 Diluted EPS: EPS before extraordinary item $ 0.62 $ 0.47 $ 2.20 $ 1.83 Extraordinary item - (0.10) - (0.12) EPS after extraordinary item $ 0.62 $ .37 $ 2.20 $ 1.71
KEY FINANCIAL RESULTS ARE HIGHLIGHTED BELOW Quarter Ended December 31, 2000 1999 (Dollars in thousands, except per share data) End of period: Total assets $4,365,242 $3,872,051 Cash and securities $ 214,214 $ 253,002 Mortgage-backed securities $ 374,405 $ 428,641 Loans $3,629,284 $3,060,547 Goodwill $ 9,304 $ 848 Deposits $2,165,047 $2,061,357 Borrowings $1,873,110 $1,532,635 Stockholders' equity $ 267,442 $ 231,133 Book value per share $ 15.52 $ 12.82 Tangible book value per share $ 14.98 $ 12.78 Stock price (period-end) $ 32.31 $ 14.06 Total loan servicing portfolio $4,390,168 $3,949,620 Loans serviced for others $ 322,315 $ 377,661 % of Adjustable mortgages 92.07% 92.00% Other data: Employees (full-time equivalent) 451 459 Branches 25 24 Loan Offices 3 4 December 31, 2000 1999 (Dollars in thousands, except per share data) Asset quality: Real estate (foreclosed) $ 2,157 $ 2,202 Non-accrual loans $ 6,142 $ 13,221 Non-performing assets $ 8,299 $ 15,423 Non-performing assets to total assets 0.19% 0.40% General valuation allowance (GVA) $ 71,159 $ 70,304 GVA to assets with loss exposure * 1.81% 2.15% Loans sold with recourse $ 146,537 $ 178,723 GVA for loans sold with recourse $ 12,824 $ 12,824 GVA to loans sold with recourse 8.75% 7.18% Modified loans (not impaired) $ 809 $ 839 Impaired loans, net $ 8,770 $ 11,433 Allowance for impaired loans $ 1,792 $ 2,596 Capital ratios: Tangible capital ratio 5.84% 6.02% Core capital ratio 5.84% 6.02% Risk-based capital ratio 11.39% 11.92% Net worth to assets ratio 6.13% 5.97% * Primarily the Bank's loans receivable.
Three Months Ended Year Ended December 31, December 31, 2000 1999 2000 1999 Weighted average shares outstanding Basic 17,145,705 18,298,752 17,251,618 19,234,869 Diluted 17,525,944 18,448,306 17,456,895 19,403,052 Loan originations and purchases $ 226,126 $ 198,885 $1,081,010 $ 944,133 Selected ratios: ** Expense ratios: Efficiency ratio 36.53% 43.86% 41.79% 45.85% Expense-to-average- assets ratio 1.04 1.20 1.17 1.30 Return on average assets 1.00 0.91 0.93 0.94 Return on average equity 16.69 15.18 15.85 14.91 Yields earned and rates paid: Average yield on loans and mortgage-backed securities 8.19% 7.36% 7.85% 7.37% Average yield on investment portfolio*** 5.87 5.62 6.11 5.41 Average yield on all interest- earning assets*** 8.09 7.25 7.77 7.26 Average rate paid on deposits 4.90 4.31 4.70 4.22 Average rate paid on borrowings 6.50 5.72 6.29 5.59 Average rate paid on all interest- bearing liabilities 5.62 4.91 5.40 4.76 Interest rate spread 2.47 2.34 2.37 2.50 Effective net spread 2.68 2.54 2.57 2.69
Three Months Ended Twelve Months Ended December 31, December 31, 2000 1999 2000 1999 Average balances: Average loans and mortgage-backed securities $3,950,534 $3,465,967 $3,793,351 $3,328,723 Average investments **** 173,829 224,304 176,476 204,741 Average interest-earning assets **** 4,124,363 3,690,271 3,969,827 3,533,464 Average deposits 2,168,379 2,037,847 2,132,927 2,065,712 Average borrowings 1,796,797 1,500,332 1,688,738 1,323,362 Average interest-bearing liabilities 3,965,176 3,538,179 3,821,665 3,389,074 Excess of interest-earning assets over interest-bearing liabilities $ 159,187 $ 152,092 $ 148,162 $ 144,390
** Ratios are based on earnings before extraordinary items. *** Excludes FHLB stock dividends and other miscellaneous items. **** Excludes FHLB stock. MONTHLY REPORT OF OPERATIONS Unaudited, Unconsolidated Financial Highlights As of, for the Month As of,for the 12 Months Ended December 31, Ended December 31, ---------------------- ---------------------- 2000 1999 2000 1999 (Dollars in thousands) AVERAGE INVESTMENTS $193,542 $260,199 $176,476 $204,741 LOANS Total Loans and Mortgage- Backed Securities $4,003,689 $3,489,188 $4,003,689 $3,489,188 Loans Originated/Purchased $110,644 $64,755 $1,081,010 $944,133 Loans Sold $1,094 $1,850 $9,526 $132,952 Average Rate on Loans Originated/Purchased 8.21% 7.52% 7.73% 7.13% Percentage of Portfolio in Adjustable Rate Loans 92.07% 92.00% 92.07% 92.00% Non-performing Assets to Total Assets 0.19% 0.40% 0.19% 0.40% BORROWINGS Federal Home Loan Bank Advances $1,579,000 $1,169,000 $1,579,000 $1,169,000 Reverse Repurchase Agreements $294,110 $363,635 $294,110 $363,635 DEPOSITS Retail Deposits $1,713,842 $1,529,260 $1,713,842 $1,529,260 Wholesale Deposits $454,909 $535,821 $454,909 $535,821 ---------- ---------- ---------- ---------- $2,168,751 $2,065,081 $2,168,751 $2,065,081 Net Increase (Decrease) $(14,162) $23,910 $103,670 $(83,802) AVERAGE INTEREST RATES Yield on Loans 8.18% 7.46% 7.85% 7.37% Yield on Investments 5.34% 5.47% 6.11% 5.41% Yield on Earning Assets 7.99% 7.32% 7.77% 7.26% Cost of Deposits 4.90% 4.38% 4.70% 4.21% Cost of Borrowings 6.47% 5.67% 6.29% 5.35% Cost of Money 5.62% 4.93% 5.40% 4.64% Earnings Spread 2.37% 2.39% 2.37% 2.62% Effective Net Spread 2.58% 2.64% 2.57% 2.85% First Federal Bank of California, fsb Loan Portfolio Stratification as of 12/31/2000 (000's omitted) Total Real Estate Loan Portfolio Bank Owned Percent of Property Type Balance Total Single $2,158,547 59% Family Multifamily $1,311,820 36% Commercial & Ind $217,812 5% Total Real Estate $3,688,179 100% Loans Single Family Without Prepayment $1,953,860 91% Penalty With Prepayment $204,687 9% Penalty Total Single $2,158,547 100% Family Loans Bank Owned Age Balance 0 to 10 Yrs $1,748,517 89% >10 Yrs $205,343 11% Total $1,953,860 100% Loans 0 to Ten Years Current Balances by Current Principal Balance Interest Rate Range <$252 $252-$275 $275-$500 $500-$1,000 >$1,000 Total <7% $6,815 $1,061 $10,944 $22,547 $27,922 $69,289 7 - 7.25% 1,849 0 4,812 12,906 28,255 47,822 7.25%-7.50% 3,052 1,320 6,190 16,819 18,991 46,372 7.50%-7.75% 7,597 523 6,535 6,197 14,880 35,732 7.75%-8.00% 86,283 12,581 83,850 43,549 12,861 239,124 8.00%-8.25% 143,783 16,660 121,748 111,202 88,707 482,100 8.25%-8.50% 139,804 16,386 89,309 95,943 96,099 437,541 8.50%-8.75% 59,988 8,462 58,678 31,603 45,670 204,401 8.75%-9.00% 29,785 3,955 36,492 11,214 7,139 88,585 9.00%-10% 67,852 3,162 18,516 4,666 1,308 95,504 >10% 2,047 0 0 0 0 2,047 Total $548,855 $64,110 $437,074 $356,646 $341,832 $1,748,517 -----END PRIVACY-ENHANCED MESSAGE-----