-----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, TrH+i2GirUtXowJIwtAOkCq+z/zBugiX2Xuw0ShQ/LFVMwyRvKosogyH2aap9rYD qmXKfPU9v+fGvJ4fTAtF7Q== 0000810536-02-000077.txt : 20021025 0000810536-02-000077.hdr.sgml : 20021025 20021025161126 ACCESSION NUMBER: 0000810536-02-000077 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020930 ITEM INFORMATION: Other events FILED AS OF DATE: 20021025 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: 1934 Act SEC FILE NUMBER: 001-09566 FILM NUMBER: 02798830 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 8-K 1 pr0902.txt 3RD QTR 2002 EARNINGS RELEASE 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) October 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 ITEM 5. Other Events. On October 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 October 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: October 25, 2002 By:/s/ Douglas J. Goddard Douglas J. Goddard Chief Financial Officer Contact: Douglas Goddard, Executive Vice President (310) 319-6014 FIRSTFED REPORTS RESULTS FOR THE THIRD QUARTER OF 2002 Santa Monica, California, October 24, 2002 -- FirstFed Financial Corp. (NYSE-FED), parent company of First Federal Bank of California, today announced net earnings of $16.2 million or $0.92 per diluted common share for the third quarter of 2002, compared to net earnings of $12.3 million or $0.70 per diluted common share for the second quarter of 2002 and $12.4 million or $0.70 per diluted common share for the third quarter of September 2001. Net earnings for the first nine months of 2002 were $40.9 million or $2.32 per diluted common share, compared to $37.4 million or $2.12 per diluted common share for the first nine months of 2001. Net earnings for the third quarter and first nine months of 2002 include a $5.9 million gain resulting from a revised estimate of the Bank's repurchase liability for loans sold with recourse. The Bank revised its estimate of repurchase liability because its portfolio of loans sold with recourse has been experiencing greater payoffs and better credit performance than previously estimated. After tax, quarterly and year-to-date earnings were increased by $3.4 million or $0.19 per diluted common share during 2002 due to this adjustment. Net interest income increased by 3% and 2% during the third quarter and first nine months of 2002 compared to the prior year periods due to increased interest rate spreads. The interest rate spreads increased to 2.95% and 2.83% for the third quarter and first nine months of 2002 from 2.70% and 2.67% during the same periods last year as the cost of interest-bearing liabilities re-priced at reduced rates more quickly than the yield on interest-earning assets. The increased spreads compensated for declines in average earning assets. Due to continued high levels of loan payoffs, average interest-earning assets decreased to $4.2 billion for the third quarter and $4.3 billion for the first nine months of 2002 compared to $4.4 billion for both the third quarter and first nine months of the prior year. Loan originations were $283.5 million and $871.1 million for the third quarter and first nine months of 2002 compared to $415.9 million and $1.2 billion for the same periods last year. Allowances for loan losses (including general valuation allowances and valuation allowances for impaired loans) totaled $75.7 million or 1.94% of the loan portfolio as of September 30, 2002. This compares with $74.4 million or 1.82% as of December 31, 2001 and $72.4 million or 1.80% as of September 30, 2001. Non-performing assets were 0.11% of total assets as of September 30, 2002 compared with 0.17% as of December 31, 2001 and 0.23% as of September 30, 2001. The Bank did not record a provision for loan losses during the first nine months of 2002 or for any period during 2001. Net loan charge-offs totaling $271 thousand were recorded during the third quarter of 2002, however, net loan recoveries totaling $900 thousand were recorded during the first nine months of 2002. For the comparable periods last year, the Bank recorded net loan recoveries of $55 thousand and net loan charge-offs of $170 thousand for the third quarter and first nine months of 2001, respectively. 1 The Company had assets totaling $4.3 billion as of September 30, 2002. First Federal Bank of California operates 29 full-service retail banking offices and 4 loan production offices in Southern California. At September 30, 2002, the consolidated stockholders' equity of the Company was $358.8 million. The Company repurchased 233,400 shares during the third quarter of 2002 and an additional 119,600 shares through October 17, 2002. There remain 536,016 shares eligible for repurchase under the Company's stock repurchase program as of October 17, 2002. This news release contains certain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to various factors, many of which are beyond the Company's control, which could cause actual results to differ materially from such statements. Such factors include, but are not limited to, the general business environment, interest rate fluctuations that may affect operating margin, the California real estate market, branch openings, competitive conditions in the business and geographic areas in which the Company conducts its business and regulatory actions. In addition, these forward-looking statements are subject to assumptions as to future business strategies and decisions that are subject to change. The Company makes no guarantee or promises regarding future results and assumes no responsibility to update such forward-looking statements. KEY FINANCIAL RESULTS FOLLOW 2 FIRSTFED FINANCIAL CORP. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except share data) (Unaudited) September 30, December 31, September 30, 2002 2001 2001 ------------ ----------- ------------ ASSETS Cash and cash equivalents $ 43,122 $ 174,171 $ 69,050 Investment securities, available-for-sale (at fair value) 109,858 110,444 120,679 Mortgage-backed securities, available-for-sale (at fair value) 218,424 284,079 311,342 Loans receivable, held-for-sale (fair value of $2,861, $5,250 and $3,939) 2,848 5,246 3,920 Loans receivable, net 3,804,495 3,999,643 3,941,950 Accrued interest and dividends receivable 18,567 22,076 25,201 Real estate 506 1,515 819 Office properties and equipment, 10,461 10,822 9,615 net Investment in Federal Home Loan Bank (FHLB) stock, at cost 79,666 91,713 88,891 Other assets 29,335 26,580 22,993 --------- -------- --------- $ 4,317,282 $ 4,726,289 $ 4,594,460 ========= ========= ========= LIABILITIES Deposits $ 2,508,768 $ 2,546,647 $ 2,354,058 FHLB advances 1,247,000 1,597,000 1,639,000 Securities sold under agreements to repurchase 166,567 211,040 228,716 Accrued expenses and other liabilities 36,163 45,924 60,463 --------- --------- --------- 3,958,498 4,400,611 4,282,237 --------- --------- --------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Common stock, par value $.01 per share; Authorized 100,000,000 shares; issued 23,390,742, 23,362,196 and 23,359,272 shares, outstanding 17,046,446, 17,251,300 and 17,291,782 shares 234 234 233 Additional paid-in capital 34,797 34,670 33,588 Retained earnings - substantially restricted 404,594 363,713 350,803 Unreleased shares to employee stock ownership plan (1,748) -- (210) Treasury stock, at cost, 6,344,296, 6,110,896 and 6,067,490 shares (81,684) (75,930) (75,743) Accumulated other comprehensive gain, net of taxes 2,591 2,991 3,552 --------- --------- --------- 358,784 325,678 312,223 --------- --------- --------- $ 4,317,282 $ 4,726,289 $ 4,594,460 ========= ========= =========
3 FIRSTFED FINANCIAL CORP. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS (Dollars in thousands, except per share data) (Unaudited) Three months ended Nine months ended September 30, September 30, -------------------- ------------------- 2002 2001 2002 2001 -------- ---------- -------- -------- Interest income: Interest on loans $ 59,941 $ 73,457 $ 185,605 $ 229,328 Interest on mortgage- backed securities 2,026 4,585 7,263 16,086 Interest and dividends on investments 2,774 3,795 8,573 11,883 -------- --------- -------- -------- Total interest income 64,741 81,837 201,441 257,297 -------- --------- -------- -------- Interest expense: Interest on deposits 14,645 22,889 47,642 74,690 Interest on borrowings 16,667 26,508 53,401 84,453 -------- --------- ------- -------- Total interest expense 31,312 49,397 101,043 159,143 -------- --------- ------- -------- Net interest income 33,429 32,440 100,398 98,154 Provision for loan losses -- -- -- -- -------- --------- ------- -------- Net interest income after provision for loan losses 33,429 32,440 100,398 98,154 -------- --------- ------- -------- Other income: Loan servicing and other fees 1,172 1,003 3,062 2,478 Retail office fees 1,173 952 3,348 2,640 Gain on sale of loans 6,195 291 6,564 501 Real estate operations, net (60) 609 133 383 Other operating income 231 164 797 665 -------- -------- ------- -------- Total other income 8,711 3,019 13,904 6,667 -------- -------- ------- -------- Non-interest expense: Compensation 8,008 7,595 24,475 22,325 Occupancy 2,249 2,201 6,399 6,180 Amortization of core deposit intangible 499 372 1,464 1,116 Other expenses 3,351 3,570 11,313 9,845 -------- -------- ------- -------- Total non-interest expense 14,107 13,738 43,651 39,466 -------- -------- ------- -------- Earnings before income taxes 28,033 21,721 70,651 65,355 Income tax provision 11,807 9,294 29,770 27,963 -------- --------- ------- -------- Net earnings $ 16,226 $ 12,427 $ 40,881 $ 37,392 ======== ========= ======= ======== Other comprehensive earnings (loss), net of taxes (145) 2,826 (400) 5,710 -------- --------- ------- -------- Comprehensive earnings $ 16,081 $ 15,253 $ 40,481 $ 43,102 ======== ========= ======= ======== Earnings per share: Basic $ 0.94 $ 0.72 $ 2.37 $ 2.17 ======== ========= ======= ======== Diluted $ 0.92 $ 0.70 $ 2.32 $ 2.12 ======== ========= ======= ======== Weighted average shares outstanding: Basic 17,257,643 17,253,063 17,258,970 17,218,177 ========== ========== ========== ========== Diluted 17,555,150 17,677,749 17,602,324 17,651,674 ========== ========== ========== ==========
4 FIRSTFED FINANCIAL CORP. AND SUBSIDIARY KEY FINANCIAL HIGHLIGHTS Quarter ended September 30, 2002 2001 --------- -------- (Dollars in thousands, except per share data) End of period: Total assets $ 4,317,282 $ 4,594,460 Cash and securities $ 152,980 $ 189,729 Mortgage-backed securities $ 218,424 $ 311,342 Loans $ 3,807,343 $ 3,945,870 Core deposit intangible asset $ 9,813 $ 8,187 Deposits $ 2,508,768 $ 2,354,058 Borrowings $ 1,413,567 $ 1,867,716 Stockholders' equity $ 358,784 $ 312,223 Book value per share $ 21.05 $ 18.06 Tangible book value per share $ 20.47 $ 17.58 Stock price (period-end) $ 25.75 $ 26.00 Total loan servicing portfolio $ 4,189,654 $ 4,449,599 Loans serviced for others $ 213,701 $ 269,726 % of Adjustable mortgages 70.57% 74.69% Other data: Employees (full-time equivalent) 515 462 Branches 29 25 Loan production offices 4 3 Asset quality: Real estate (foreclosed) $ 477 $ 790 Non-accrual loans $ 4,470 $ 9,997 Non-performing assets $ 4,947 $ 10,787 Non-performing assets to total assets 0.11% 0.23% General valuation allowance (GVA) $ 73,515 $ 70,581 Allowance for impaired loans $ 2,154 $ 1,850 -------- -------- Allowances for loan losses $ 75,669 $ 72,431 Allowances for loan losses to gross loans receivable 1.94% 1.80% Loans sold with recourse $ 115,115 $ 132,424 GVA for loans sold with recourse $ 6,900 $ 12,824 GVA to loans sold with recourse 5.99% 9.68% Modified loans (not impaired) $ 2,479 $ 934 Impaired loans, net $ 3,043 $ 10,081 Capital ratios: Tangible capital ratio 8.00% 6.41% Core capital ratio 8.00 6.41 Risk-based capital ratio 14.63 12.71 Net worth to assets ratio 8.31 6.80
5 FIRSTFED FINANCIAL CORP. AND SUBSIDIARY KEY FINANCIAL HIGHLIGHTS (continued) Three months ended Nine months ended September 30, September 30, ---------------------- --------------------- 2002 2001 2002 2001 --------- ----------- --------- ---------- (Dollars in thousands) Selected ratios: Expense ratios: Efficiency ratio 39.05% 39.06% 40.38% 37.83% Expense-to-average-assets ratio 1.26 1.20 1.27 1.17 Return on average assets 1.45 1.08 1.19 1.10 Return on average equity 18.88 16.34 16.14 17.20 Yields earned and rates paid: Average yield on loans and mortgage-backed securities 6.09% 7.38% 6.22% 7.85% Average yield on investment portfolio (1) 4.36 5.85 3.60 5.64 Average yield on all interest-earning assets (1) 6.03 7.32 6.11 7.75 Average rate paid on deposits 2.30 3.89 2.53 4.38 Average rate paid on borrowings 4.42 5.54 4.50 5.92 Average rate paid on all interest-bearing liabilities 3.08 4.63 3.28 5.08 Interest rate spread 2.95 2.70 2.83 2.67 Effective net spread 3.12 2.89 3.00 2.88 Average balances: Average loans and mortgage-backed securities $4,067,612 $4,237,617 $4,135,266 $4,166,834 Average investments (2) 152,573 174,266 180,418 191,132 --------- --------- --------- --------- Average interest-earning assets (2) 4,220,185 4,411,883 4,315,684 4,357,966 --------- --------- --------- --------- Average deposits 2,521,587 2,335,125 2,520,321 2,279,646 Average borrowings (3) 1,461,129 1,895,224 1,574,076 1,903,414 --------- --------- --------- --------- Average interest-bearing liabilities 3,982,716 4,230,349 4,094,397 4,183,060 --------- --------- --------- --------- Excess of interest-earning assets over interest- bearing liabilities $ 237,469 $ 181,534 $ 221,287 $ 174,906 ========= ========= ======== ========= Loan originations and purchases $ 283,495 $ 415,862 $ 871,059 $1,230,597
(1) Excludes FHLB stock dividends and other miscellaneous items. (2) Excludes FHLB stock. (3) Excludes accrued interest on tax assessment. 6 -----END PRIVACY-ENHANCED MESSAGE-----