8-K 1 pr0102.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 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.