-----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, Jop8hMYuOrvtcAv5MzzpJVPTUShj84j6+OMCD8rDgW+IDAP5j0YbxmV5IgfnTDEG U4xhMjQVBbZ4aF0fg7ofaQ== 0000810536-01-500004.txt : 20010426 0000810536-01-500004.hdr.sgml : 20010426 ACCESSION NUMBER: 0000810536-01-500004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010331 ITEM INFORMATION: FILED AS OF DATE: 20010425 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: 1610400 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 finalprs.txt 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 25, 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 8 Index to Exhibit is on Page 3. Item 5. Other Events. On April 25, 2001, 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 25, 2001. 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 25, 2001 By: /S/ ____ Babette E. Heimbuch President and Chief Executive Officer INDEX TO EXHIBITS Item Page 99 Press Release dated April 25, 2001 4 Contact: Douglas Goddard, Executive Vice President (310) 319-6014 FIRSTFED REPORTS RESULTS FOR THE FIRST QUARTER OF 2001 Santa Monica, California, April 25, 2001 --FirstFed Financial Corp. (NYSE-FED), parent company of First Federal Bank of California, today announced net earnings of $12.4 million or 70 cents per share of common stock for the first quarter of 2001, compared to net earnings of $10.8 million or 62 cents per share for the fourth quarter of 2000. Comparable earnings for the first quarter of 2000 were $8.8 million or 49 cents per share. Net earnings improved due to increased net interest income resulting from growth in average interest-earning assets and higher interest rate spreads. All per-share earnings are presented on a diluted basis. Interest-earning assets increased by 4% during the first quarter of 2001 over the fourth quarter of 2000. The interest rate spread increased to 2.59% during the first quarter of 2001 from 2.47% in the previous quarter due to the three-month time lag before the Bank's adjustable rate loans are affected by changes in the Federal Home Loan Bank Cost of Funds Index ("Index"). Although the Company's internal cost of funds decreased by 11 basis points in the first quarter of 2001 compared to the fourth quarter of 2000, its loan yield increased by 3 basis points as a result of the three-month time lag. Net interest income improved 24% compared to the prior year first quarter. The first quarter of last year included one extra day of interest expense due to leap year. Also, due to increases in the Index, the loan yield improved by 63 basis points compared to the prior year first quarter while the Company's cost of funds increased by only 43 basis points. As a result, the Company's interest rate spread improved by 15 basis points in the first quarter of 2001 compared to the first quarter of 2000. Interest-earning assets increased by 15% compared to the first quarter of 2000. The Company's general valuation allowance was $71.0 million or 1.71% of loans and real estate owned as of March 31, 2001, compared to $71.2 million or 1.81% as of December 31, 2000 and $71.1 million or 1.99% at March 31, 2000. Non-performing assets were 0.27% of total assets as of March 31, 2001 compared to 0.19% as of December 31, 2000 and 0.36% as of March 31, 2000. The Company did not record a provision for loan losses during the first quarter of 2001 or any quarter during 2000. Net charge-offs totaling $65 thousand and $555 thousand were recorded during the first quarter of 2001 and the fourth quarter of 2000, respectively. Net recoveries totaling $567 thousand were recorded during the first quarter of 2000. The total loan portfolio (including mortgage-backed securities) increased by $150.2 million during the first quarter of 2001. The increase is attributable to loan originations of $234.6 million and loan purchases of $127.6 million, offset by principal amortization and loan payoffs. Payoff activity increased during the first quarter of 2001 compared to the first quarter of 2000 and the fourth quarter of 2000, as borrowers refinanced existing loans into new loans at lower rates. At March 31, 2001, First Federal Bank met the capital requirements necessary to be deemed well-capitalized for regulatory capital purposes. It has 25 full-service retail banking offices and 3 retail loan offices. KEY FINANCIAL RESULTS FOLLOW CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except per share data) (Unaudited) March 31, December 31, ASSETS 2001 2000 __ Cash and cash equivalents $92,171 $ 77,677 Investment securities, available-for-sale (at fair value) 120,519 136,537 Mortgage-backed securities, available-for-sale (at fair value) 362,643 374,405 Loans receivable, held-for-sale (fair value of $10,773 and $2,324) 10,773 2,246 Loans receivable, net 3,780,518 3,627,038 Accrued interest and dividends receivable 28,298 28,488 Real estate 2,267 2,189 Office properties and equipment, net 10,259 10,651 Investment in Federal Home Loan Bank (FHLB) stock, at cost 84,635 80,885 Other assets 25,213 25,126 $4,517,296 $4,365,242 LIABILITIES Deposits $2,291,287 $2,165,047 FHLB advances and other borrowings 1,604,000 1,579,000 Securities sold under agreements to repurchase 275,205 294,110 Accrued expenses and other liabilities 63,306 59,643 4,233,798 4,097,800 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Common stock, par value $.01 per share; authorized 100,000,000 shares; issued 23,320,249 and 23,299,707 shares, outstanding 17,252,759 and 17,232,217 shares 233 233 Additional paid-in capital 32,942 32,540 Retained earnings - substantially restricted 325,784 313,411 Unreleased shares to employee stock ownership plan (631) (841) Treasury stock, at cost, 6,067,490 shares (75,743) (75,743) Accumulated other comprehensive gain (loss), net of taxes 913 (2,158) 283,498 267,442 $4,517,296 $4,365,242 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, 2001 2000 Interest income: Interest on loans $ 76,837 $ 61,126 Interest on mortgage-backed securities 7,102 6,142 Interest and dividends on investments 4,078 3,834 Total interest income 88,017 71,102 Interest expense: Interest on deposits 26,616 23,130 Interest on borrowings 29,249 21,992 Total interest expense 55,865 45,122 Net interest income 32,152 25,980 Provision for loan losses - - Net interest income after provision for losses 32,152 25,980 Other income: Loan servicing and other fees 851 738 Gain (loss) on sale of loans 102 (35) Real estate operations, net 42 (38) Other operating income 1,012 1,060 Total other income 2,007 1,725 Non-interest expense: Compensation 7,295 6,630 Occupancy 1,881 1,956 Goodwill amortization 372 26 Other expenses 2,985 3,633 Total non-interest expense 12,533 12,245 Earnings before income taxes 21,626 15,460 Income tax provision 9,253 6,625 Net earnings $ 12,373 $ 8,835 Other comprehensive earnings (loss): net of taxes 3,071 (2,511) Comprehensive earnings $ 15,444 $6,324 Earnings per share: Basic $0.72 $ 0.50 Diluted $0.70 $ 0.49 Weighted average shares outstanding: Basic 17,182,624 17,819,996 Diluted 17,626,521 17,930,138 Quarter Ended March 31, 2001 2000 (Dollars in thousands, except per share data) End of period: Total assets $4,517,296 $ 4,042,193 Cash and securities $ 212,690 $ 211,215 Mortgage-backed securities $ 362,643 $ 406,271 Loans $3,791,291 $ 3,298,246 Goodwill $ 8,931 $ 11,242 Deposits $2,291,287 $ 2,208,143 Borrowings $1,879,205 $ 1,561,546 Stockholders' equity $ 283,498 $ 229,143 Book value per share $ 16.43 $ 13.20 Tangible book value per share $ 15.91 $ 12.55 Stock price (period-end) $ 28.00 $ 13.25 Total loan servicing portfolio $4,393,104 $ 4,024,333 Loans serviced for others $ 304,721 $ 359,980 % of Adjustable mortgages 89.04% 92.49% Other data: Employees (full-time equivalent) 451 459 Branches 25 26 Loan Offices 3 4 Quarter Ended March 31, ___ 2001 2000 (Dollars in thousands) Asset quality: Real estate (foreclosed) $ 2,236 $ 2,511 Non-accrual loans $ 9,866 $ 11,861 Non-performing assets $ 12,102 $ 14,372 Non-performing assets to total assets 0.27% 0.36% General valuation allowance(GVA) $ 71,036 $ 71,097 GVA to assets with loss exposure * 1.71% 1.99% Loans sold with recourse $ 141,578 $ 163,698 GVA for loans sold with recourse $ 12,824 $ 12,824 GVA to loans sold with recourse 9.06% 7.83% Modified loans (not impaired) $ 803 $ 921 Impaired loans, net $ 10,311 $ 11,726 Allowance for impaired loans $ 1,850 $ 2,371 Capital ratios: Tangible capital ratio 5.95% 5.52% Core capital ratio 5.95 5.52 Risk-based capital ratio 11.95 11.00 Net worth to assets ratio 6.28 5.67 Loan originations and purchases $ 362,213 $ 339,198 Net interest income $ 32,152 $ 25,980 * Primarily the Bank's loans receivable Quarter Ended March 31, 2001 2000 (Dollars in thousands) Selected ratios: Expense ratios: Efficiency ratio 36.80% 44.14% Expense-to-average-assets ratio 1.13 1.24 Return on average assets 1.11 0.89 Return on average equity 17.97 15.36 Yields earned and rates paid: Average yield on loans and mortgage-backed securities 8.22% 7.59% Average yield on investment portfolio** 5.82 6.17 Average yield on all interest- earning assets** 8.10 7.52 Average rate paid on deposits 4.85 4.49 Average rate paid on borrowings 6.30 5.89 Average rate paid on all interest- bearing liabilities 5.51 5.08 Interest rate spread 2.59 2.44 Effective net spread 2.81 2.63 Average balances: Average loans and mortgage-backed securities $ 4,078,319 $ 3,527,951 Average investments *** 198,208 183,492 Average interest-earning assets*** 4,276,527 3,711,443 Average deposits 2,224,330 2,072,582 Average borrowings 1,879,022 1,500,178 Average interest-bearing liabilities 4,103,352 3,572,760 Excess of interest-earning assets over interest-bearing liabilities $ 173,175 $ 138,683 ** Excludes FHLB stock dividends and other miscellaneous items. *** Excludes FHLB stock. -----END PRIVACY-ENHANCED MESSAGE-----