-----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, MZ9eEJJzoyP8wX3wk3LTOkpdC++gV4At2TBtPxfCLS7z8nefiypB4idSgSNoC+5S RapVABJTEHop2sZHNx0XZA== 0000810536-05-000007.txt : 20050421 0000810536-05-000007.hdr.sgml : 20050421 20050420192048 ACCESSION NUMBER: 0000810536-05-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20050331 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050421 DATE AS OF CHANGE: 20050420 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: 05762963 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 pr0105.txt Q1 2005 EARNINGS RELEASE 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) April 20, 2005 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 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a 12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act 917 CFR 240.13e-4(c)) ITEM 2.02 Results of Operations and Financial Condition On April 20, 2005, the registrant, FirstFed Financial Corp., issued a press release setting forth the Company's first quarter 2005 earnings. A copy of this press release is attached and incorporated herein as Exhibit 99. ITEM 9.01 Financial Statements and Exhibits (a) Financial Statements Not Applicable. (b) Pro Forma Financial Information Not Applicable. (c) Exhibits: Exhibit 99 - Press Release dated April 20, 2005, regarding results for the first quarter of 2005. 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 20, 2005 By: /s/ Douglas J. Goddard ---------------------- Douglas J. Goddard Chief Financial Officer Exhibit 99 FIRSTFED REPORTS RESULTS FOR THE FIRST QUARTER OF 2005 Santa Monica, California, April 20, 2005 -- FirstFed Financial Corp. (NYSE-FED), parent company of First Federal Bank of California, today announced net earnings of $18.5 million or $1.10 per diluted share of common stock for the first quarter of 2005 compared to net earnings of $16.4 million or $0.97 per diluted share of common stock for the fourth quarter of 2004. Net earnings for the first quarter of 2004 were $15.0 million or $0.86 per diluted share of common stock. Net interest income increased to $50.1 million during the first quarter of 2005 from $45.0 million during the fourth quarter of 2004 and $37.7 million during the first quarter of 2004. Average interest-earning assets during the first quarter of 2005 increased by 15% compared to the fourth quarter of 2004 and 60% compared to the first quarter of 2004 due to record loan originations. However, because the Bank's cost of funds responds to changes in rates faster than its earnings from the loan portfolio, interest rate spreads dropped to 2.39% for the first quarter of 2005 from 2.51% for the fourth quarter of 2004 and 2.95% for the first quarter of 2004 due to the increasing rate environment during 2004 and year to date 2005. Loan originations during the first quarter of 2005 were $1.3 billion, comparable to $1.4 billion during the fourth quarter and substantially more than $593.5 million during the first quarter of 2004. As a result, the loan portfolio grew to $7.8 billion at March 31, 2005 compared to $6.8 billion at December 31, 2004 and $4.6 billion at March 31, 2004. Due to substantial growth in the loan portfolio, the Company recorded a $3.8 million provision for loan losses during the first quarter of 2005. A $3.0 million provision was recorded during the fourth quarter of 2004 and no provision was recorded during the same period of the prior year. Net loan loss recoveries of $159 thousand were recorded during the first quarter of 2005 compared to net loan charge-offs of $6 thousand during the fourth quarter of 2004 and net loan loss recoveries of $58 thousand during the first quarter of 2004. Loan servicing and other fees were $2.8 million for the first quarter of 2005 compared to $2.6 million for the fourth quarter of 2004 and $2.0 million for the first quarter of 2004. Because a greater number of loans subject to prepayment fees paid off, loan prepayment fees grew to $2.6 million for the first quarter of 2005 compared to $2.2 million for the fourth quarter of 2004 and $1.5 million for the first quarter of 2004. Loan payoffs and principal reductions were $339.1 million for the first quarter of 2005 compared to $361.5 million for the fourth quarter of 2004 and $331.0 million for the first quarter of 2004. Non-interest expense increased to $18.9 million during the first quarter of 2005 from $18.0 million in the fourth quarter of 2004 and $15.3 million for the first quarter of 2004. The increase is primarily due to higher incentive-based compensation and other operating costs associated with increased loan production. However, due to growth in total assets, the ratio of non-interest expense to average total assets fell to 0.95% for the first quarter of 2005 compared to 1.04% for the fourth quarter of 2004 and 1.22% for the first quarter of 2004. Total assets increased to $8.4 billion at March 31, 2005 compared to $7.5 billion at December 31, 2004 and $5.2 billion at March 31, 2004. The growth in assets was funded primarily with collateralized borrowings which increased to $1.1 billion as of March 31, 2005 from $187.0 million as of December 31, 2004 and $117.1 million as of March 31, 2004. To facilitate these borrowings, the Bank completed a loan securitization with Fannie Mae in which $1.3 billion of multi-family loans were converted into mortgage-backed securities. Because the Bank retained full recourse on the securitized loans, the mortgage-backed securities are accounted for as part of the loan portfolio. The securitized loans are evaluated for risk along with the remainder of the multi-family loan portfolio. There have been no repurchases of common stock during the first quarter of 2005. Common stock repurchases during the year 2004 were 696,900 at an average market price of $40.25 per share. There remain 1,472,079 shares eligible for repurchase under the Company's stock repurchase program as of April 19, 2005. First Federal Bank of California operates 29 full-service retail banking offices in Southern California and lending offices in both Southern and Northern California. 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, and 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 guarantees or promises regarding future results and assumes no responsibility to update such forward-looking statements. Contact: Douglas Goddard, Executive Vice President (310) 319-6014 KEY FINANCIAL RESULTS FOLLOW FIRSTFED FINANCIAL CORP. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except share data) (Unaudited) March 31, December 31, 2005 2004 --------------- -------------- ASSETS Cash and cash equivalents $ 43,444 $ 68,343 Investment securities, available-for-sale (at fair value) 225,260 250,586 Mortgage-backed securities, available-for-sale (at fair value) 90,597 97,059 Loans receivable, net 7,824,493 6,837,945 Accrued interest and dividends receivable 30,629 24,115 Real estate held for investment 656 986 Office properties and equipment, net 15,699 15,881 Investment in Federal Home Loan Bank (FHLB) stock, at cost 158,350 143,425 Other assets 31,575 30,643 --------------- -------------- $ 8,420,703 $ 7,468,983 =============== ============== LIABILITIES Deposits $ 3,803,795 $ 3,761,165 FHLB advances 2,998,813 3,004,600 Securities sold under agreements to repurchase 1,059,700 187,000 Accrued expenses and other liabilities 63,062 38,744 --------------- -------------- 7,925,370 6,991,509 --------------- -------------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Common stock, par value $.01 per share; authorized 100,000,000 shares; issued 23,717,797 and 23,693,350 shares; outstanding 16,523,201 and 16,498,754 shares 237 237 Additional paid-in capital 41,414 40,977 Retained earnings - substantially restricted 567,694 549,202 Unreleased shares to employee stock ownership plan (799) (53) Treasury stock, at cost 7,194,596 and 7,194,596 shares (113,776) (113,776) Accumulated other comprehensive earnings, net of taxes 563 887 --------------- -------------- 495,333 477,474 --------------- -------------- $ 8,420,703 $ 7,468,983 =============== ==============
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, ------------------------------ 2005 2004 ------------- ------------- Interest income: Interest on loans $ 87,113 $ 55,660 Interest on mortgage-backed securities 728 939 Interest and dividends on investments 3,816 1,918 ------------- ------------- Total interest income 91,657 58,517 ------------- ------------- Interest expense: Interest on deposits 17,354 8,484 Interest on borrowings 24,226 12,320 ------------- ------------- Total interest expense 41,580 20,804 ------------- ------------- Net interest income 50,077 37,713 Provision for loan losses 3,750 -- ------------- ------------- Net interest income after provision for loan losses 46,327 37,713 ------------- ------------- Other income: Loan servicing and other fees 2,828 2,001 Retail office fees 1,323 1,320 Gain on sale of loans -- 13 Real estate operations, net 248 49 Other operating income 97 78 ------------- ------------- Total other income 4,496 3,461 ------------- ------------- Non-interest expense: Salaries and employee benefits 12,173 9,194 Occupancy 2,295 2,057 Advertising expense 92 219 Amortization of core deposit intangible 499 499 Federal deposit insurance 116 95 Legal 516 289 Other expense 3,176 2,929 ------------- ------------- Total non-interest expense 18,867 15,282 ------------- ------------- Earnings before income taxes 31,956 25,892 Income tax provision 13,464 10,915 ------------- ------------- Net earnings $ 18,492 $ 14,977 ============= ============= Net earnings $ 18,492 $ 14,977 Other comprehensive loss, net of taxes (324) (46) ------------- ------------- Comprehensive earnings $ 18,168 $ 14,931 ============= ============= Earnings per share: Basic $ 1.12 $ 0.88 ============= ============= Diluted $ 1.10 $ 0.86 ============= ============= Weighted average shares outstanding: Basic 16,502,945 17,067,581 ============= ============= Diluted 16,885,898 17,495,422 ============= =============
FIRSTFED FINANCIAL CORP. AND SUBSIDIARY KEY FINANCIAL RESULTS (Unaudited) Quarter ended March 31, 2005 2004 -------------- ----------- (Dollars in thousands, except per share data) End of period: Total assets $ 8,420,703 $ 5,173,025 Cash and securities $ 268,704 $ 255,022 Mortgage-backed securities $ 90,597 $ 124,217 Loans $ 7,824,493 $ 4,640,055 Core deposit intangible asset $ 4,834 $ 6,829 Deposits $ 3,803,795 $ 2,712,922 Borrowings $ 4,058,513 $ 1,969,122 Stockholders' equity $ 495,333 $ 452,177 Book value per share $ 29.98 $ 26.46 Tangible book value per share $ 29.69 $ 26.06 Stock price (period-end) $ 51.01 $ 46.13 Total loan servicing portfolio $ 7,916,154 $ 4,833,756 Loans serviced for others $ 111,231 $ 132,308 % of adjustable mortgages 93.73 % 81.08 % Other data: Employees (full-time equivalent) 638 590 Branches 29 29 Asset quality: Real estate owned (foreclosed) $ -- $ 1,324 Non-accrual loans $ 6,851 $ 1,561 Non-performing assets $ 6,851 $ 2,885 Non-performing assets to total assets 0.08 % 0.06 % General valuation allowance (GVA) $ 82,579 $ 75,296 Allowances for impaired loans -- 496 -------------- ----------- Allowances for loan losses $ 82,579 75,792 Allowances for loan losses as a percent of gross loans receivable 1.05 % 1.61 % Loans sold with recourse $ 73,545 $ 88,192 GVA for loans sold with recourse $ -- $ 5,400 GVA to loans sold with recourse -- % 6.12 % Modified loans (not impaired) $ 2,061 $ 2,446 Impaired loans, net $ 4,546 $ 1,467 Allowance for impaired loans $ -- $ 496 Capital ratios: Tangible capital ratio 5.77 % 8.21 % Core capital ratio 5.77 8.21 Risk-based capital ratio 11.75 15.63 Net worth to assets ratio 5.88 8.74
FIRSTFED FINANCIAL CORP. AND SUBSIDIARY KEY FINANCIAL RESULTS (continued) (Unaudited) Three months ended March 31, ------------------------------ 2005 2004 ------------ -------------- (Dollars in thousands) Selected ratios: Expense ratios: Efficiency ratio 34.57 % 37.10 % Expense-to-average-assets ratio 0.95 1.22 Return on average assets 0.93 1.20 Return on average equity 15.21 13.48 Yields earned and rates paid: Average yield on loans and mortgage-backed securities 4.71 % 4.90 % Average yield on investment portfolio (1) 3.76 2.52 Average yield on all interest-earning assets (1) 4.67 4.82 Average rate paid on deposits 1.84 1.29 Average rate paid on borrowings 2.74 2.69 Average rate paid on all interest-bearing liabilities 2.28 1.87 Interest rate spread 2.39 2.95 Effective net spread 2.47 3.07 Average balances: Average loans and mortgage-backed securities $ 7,409,789 $ 4,619,315 Average investments (2) 247,283 169,682 ------------ -------------- Average interest-earning assets (2) 7,657,072 4,788,997 ------------ -------------- Average deposits 3,816,761 2,639,485 Average borrowings 3,578,534 1,839,696 ------------ -------------- Average interest-bearing liabilities 7,395,295 4,479,181 ------------ -------------- Excess of interest-earning assets over interest-bearing liabilities $ 261,777 $ 309,816 ============ ============== Loan originations $ 1,316,905 $ 593,538 (1) Excludes FHLB stock dividends and other miscellaneous items. (2) Excludes FHLB stock.
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