8-K 1 mon0902.txt MNTHLY REPORT OF OPERATIONS SEPTEMBER 30, 2002 UNITED STATES 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 Total number of pages is 5 Index to Exhibit is on Page 3. ITEM 7. FINANCIAL STATEMENTS, PRO-FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits 99.0 Monthly Financial Data as of September 30, 2002 (Unconsolidated) 99.1 Loan Portfolio Segment Report of First Federal Bank of California as of September 30, 2002 ITEM 9. REGULATION FD DISCLOSURE. The Registrant hereby incorporates by reference into this Item 9 the summary monthly financial data as of September 30, 2002 attached as Exhibit 99.0, 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 Reports as of September 30, 2002, attached as Exhibit 99.1, which are 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: October 25, 2002 By:/s/ Douglas J. Goddard Douglas J. Goddard Chief Financial Officer 2 INDEX TO EXHIBITS Item Page 99.0 Monthly Financial Information as of September 30, 2002 4 99.1 Loan Portfolio Segment Report of First Federal Bank of California as of September 30, 2002 5 3 First Federal Bank of California, fsb MONTHLY REPORT OF OPERATIONS Unconsolidated Financial Highlights Unaudited (Dollars in thousands) As of, As of, As of, As of, As of, for the for the for the for the for the month month month 9 months 9 months ended ended ended ended ended Sep. 30, Aug. 31, Sep. 30, Sep. 30, Sep. 30, 2002 2002 2001 2002 2001 AVERAGE INVESTMENTS $ 136,155 $ 163,880 $ 179,119 $ 180,418 $ 191,132 LOANS: Total loans and mortgage-backed securities 4,025,767 4,059,958 4,257,212 4,025,767 4,257,212 Loans originated/purchased: Single family loans 44,494 44,928 51,922 444,767 790,695 Multi-family loans 21,731 31,845 30,239 347,376 306,187 Commercial real estate loans 1,230 7,497 18,062 52,614 102,234 Other 5,616 4,272 3,015 26,303 31,481 -------- -------- -------- --------- --------- $ 73,071 $ 88,542 $103,238 $ 871,060 $1,230,597 ======== ======== ======== ========= ========= Loans sold $ 10,411 $ 7,562 $ 5,561 $ 53,519 $ 48,604 Average rate on loans originated/ purchased 5.56% 5.71% 6.79% 6.01% 7.18% Percentage of portfolio in adjustable rate loans 70.57% 70.41% 74.69% 70.57% 74.69% Non-performing assets to total assets 0.11% 0.10% 0.23% 0.11% 0.23% BORROWINGS: Federal Home Loan Bank Advances $ 1,247,000$ 1,272,000$ 1,639,000$ 1,247,000$ 1,639,000 Reverse repurchase agreements $ 166,567$ 170,891$ 228,716$ 166,567$ 228,716 DEPOSITS: Retail deposits $ 2,220,053$ 2,220,964$ 1,865,843$ 2,220,053$ 1,865,843 Wholesale deposits 289,798 321,536 493,745 289,798 493,745 --------- --------- --------- --------- --------- $ 2,509,851$ 2,542,500$ 2,359,588$ 2,509,851$ 2,359,588 ========= ========= ========= ========= ========= Net increase (decrease) $ (32,649)$ 25,102$ (22,987)$ (43,156)$ 190,837 AVERAGE INTEREST RATES: Yield on loans 6.08% 6.10% 7.21% 6.22% 7.85% Yield on investments 4.51% 4.15% 5.04% 3.60% 5.64% Yield on earning assets 6.02% 6.02% 7.12% 6.11% 7.75% Cost of deposits 2.21% 2.30% 3.70% 2.53% 4.40% Cost of borrowings 4.45% 4.45% 5.26% 4.50% 5.92% Cost of money 3.02% 3.09% 4.39% 3.28% 5.09% Earnings spread 3.00% 2.93% 2.73% 2.83% 2.66% Effective net spread 3.18% 3.11% 2.91% 3.00% 2.88%

4 First Federal Bank of California, fsb LOAN PORTFOLIO STRATIFICATION Unconsolidated financial highlights Unaudited (Dollars in thousands) REAL ESTATE LOAN PORTFOLIO Bank Percent owned of balance total Property type: Single family $ 1,772,188 46% Multi-family 1,660,551 43% Commercial & industrial 403,515 10% Construction 10,739 1% Land 537 0% --------- ---- Total real estate loans $ 3,847,530 100% ========= ==== Single family: Without prepayment penalty $ 1,473,884 83% With prepayment penalty 298,304 17% --------- ---- Total single family loans $ 1,772,188 100% ========= ==== Age: 0 to 10 years $ 1,255,653 85% >10 years 218,231 15% --------- ---- Total $ 1,473,884 100% ========= ====
Single family loans without prepayment penalty Loans 0 to 10 Years Balances by Current Principal Balance Current interest Less Greater Percent rate than $252 $275 $500 than of range $252 - $275 -$500 -$1,000 $1,000 Total total <5.00% $ 6,458 $ 1,032 $ 53,684 $ 51,186 $ 17,007 $ 129,367 10.3% 5.00%-5.25% 30,775 5,555 38,650 20,003 6,544 101,527 8.1% 5.25%-5.50% 69,403 9,087 61,717 40,594 17,670 198,471 15.8% 5.50%-5.75% 79,617 8,744 44,089 51,507 42,175 226,132 18.0% 5.75%-6.00% 36,906 5,246 43,353 25,635 31,649 142,789 11.4% 6.00%-6.25% 27,723 2,903 30,158 19,696 11,664 92,144 7.3% 6.25%-6.50% 15,057 2,131 27,632 13,661 16,052 74,533 5.9% 6.50%-6.75% 27,581 1,045 16,180 21,185 15,090 81,081 6.5% 6.75%-7.00% 12,274 1,301 21,889 28,626 10,611 74,701 5.9% 7.00%-7.25% 6,127 1,068 14,456 13,755 22,157 57,563 4.6% 7.25%-7.50% 4,753 1,302 13,507 7,747 13,504 40,813 3.3% 7.50%-7.75% 3,718 526 7,912 690 6,121 18,967 1.5% 7.75%-8.00% 2,881 -- 6,599 1,755 -- 11,235 0.9% 8.00%-9.00% 2,813 256 2,451 684 -- 6,204 0.5% >9.00% 126 -- -- -- -- 126 0.0% ------- ------- ------- ------- ------- -------- ----- Total $326,212 $ 40,196 $382,277 $296,724 $210,244 $1,255,653 100.0% ======== ======= ======= ======= ======= ========= =====
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