8-K/A 1 amrop123108edgar.htm AMENDED MONTHLY REPORT OF OPERATIONS & LOAN PORTFOLIO ANALYSIS amrop123108edgar.htm





FORM 8-K/A

CURRENT REPORT
 
PURSUANT TO SECTION 13 OR 15(d) OF THE
 
SECURITIES EXCHANGE ACT OF 1934
 
 
Date of Report (Date of earliest event reported): February 3, 2009
 
 
 
FirstFed Financial Corp.
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
1-9566
95-4087449
(State of Delaware)
(Commission File No.)
(IRS Employer Identification No.)
 
 
12555 W. Jefferson Boulevard, Los Angeles, California
90066
(Address of principal executive offices)
(Zip Code)
                   
 
Registrant's telephone number, including area code:       (310) 302-5600
 
 
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 (17 CFR 240.13e-4(c))
 
 
Total number of pages is 8
 
Index to Exhibits is on Page 3
 
 

 
1
 

 
 
Explanatory Note
 
     The purpose of this amendment on Form 8-K/A is to revise descriptions contained in the Registrant’s Current Report on Form 8-K filed on February 2, 2009 under Items 7.01 and 9.01, in which the Registrant furnished summary monthly financial data and preliminary quarterly loan portfolio analysis as of and for the period ended December 31, 2008 in accordance with Rule 101(e)(1) under Regulation FD.  The revisions, on page 8, are marked with an asterisk in this Form 8-K/A.
 
 
 
ITEM 7.01.  Regulation FD Disclosure.
 
     The Registrant hereby incorporates by reference into this Item. 7 the summary monthly financial data and preliminary quarterly loan portfolio analysis as of and for the period ended December 31, 2008 attached as Exhibits 99.1 and 99.2, respectively, which are being furnished in accordance with Rule 101(e)(1) under Regulation FD.
 
     A discussion of the factors that could impact 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 period of time, 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.
 
 
 
ITEM 9.01.  Financial Statements and Exhibits. 
 
(d)
 Exhibits 
 
 
99.1
Monthly Financial Data as of and for the period ended December 31, 2008 (Unconsolidated)
 
99.2
Preliminary Quarterly Loan Portfolio Analysis as of and for the period ended December 31, 2008
 
 
 
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: February 3, 2009  By:/s/  Douglas J. Goddard 
 
 
 Douglas J. Goddard
 
 Chief Financial Officer

 

 
2
 

 
 
 
 
INDEX TO EXHIBITS
 
 
 
 
Exhibit 
Page
 
99.1
 Monthly Financial Data as of and for the period ended December 31, 2008 
4-5
99.2
 Preliminary Quarterly Loan Portfolio Analysis as of and for the period ended December 31, 2008 
6-8



 
3
 

EXHIBIT 99.1
 
First Federal Bank of California
MONTHLY REPORT OF OPERATIONS
Unaudited, Unconsolidated Financial Highlights
(Dollars in thousands)
  
                               
   
As of, for
the month
ended
December 31,
 2008
    
As of, for
the month
ended
November 30,
 2008
    
As of, for
the month
ended
December 31,
2007
    
As of, for
the 12 months ended
December 31,
 2008
    
As of, for
the 12 months ended
December 31,
 2007
  
                               
Cash and investment securities
   $ 714,517     $ 868,440     $ 370,762              
Total mortgage-backed securities
   $ 40,504     $ 40,599     $ 46,435              
Total assets
   $ 7,452,203     $ 7,822,681     $ 7,222,981              
                                     
LOANS:
                                    
Gross loans receivable
   $ 6,584,404     $ 6,665,896     $ 6,639,189              
                                     
Loans funded:
                                    
    Single family loans
   $ 24,298     $ 50,191     $ 35,814     $ 921,943     $ 652,932  
Multi family loans
     49,629       44,858       74,539       552,527       366,236  
Commercial & industrial real estate loans
     840       -       9,935       19,290       28,460  
Other loans
     784       193       477       34,993       26,146  
        Total loans funded
     75,551       95,242       120,765       1,528,753       1,073,774  
Loans originated for third parties
     -       -       -       10,343       110,073  
Total loans originated
   $ 75,551     $ 95,242     $ 120,765     $ 1,539,096     $ 1,183,847  
                                         
Percentage of ARMs originated
     71 %     33 %     37 %     14 %     50 %
Loan repayments:
                                        
    Single family loans
   $ 8,790     $ 18,368     $ 132,424     $ 505,356     $ 1,967,298  
    Multi family & commercial real estate loans
     8,713       12,246       25,796       353,364       536,439  
Other loans
     4,688       6,809       3,527       31,999       46,453  
    $ 22,191     $ 37,423     $ 161,747     $ 890,719     $ 2,550,190  
                                         
Loans sold
   $ -     $ -     $ -     $ 1,380     $ 417,191  
                                         
Percentage of adjustable rate loans to the total portfolio
     71.27 %     71.58 %     90.17 %                
                                         
Non-performing assets to total assets ratio
     7.00 %     7.54 %     2.79 %                
                                         
Delinquent loans:
                                        
    Non-accrual loans
   $ 403,777     $ 465,660     $ 179,679                  
    Single family loans 30-59 days delinquent
   $ 133,681     $ 120,259     $ 217,625                  
    Single family loans 60-89 days delinquent
   $ 74,503     $ 91,819     $ 19,151                  
                                         
BORROWINGS:
                                        
Federal Home Loan Bank advances
   $ 2,060,000     $ 2,300,000     $ 2,084,000                  
Reverse repurchase agreements
   $ -     $ -     $ 120,000                  
Federal Reserve Bank borrowings
   $ 25,000     $ 25,000     $ -                  
                                         
DEPOSITS:
                                        
Retail deposits
   $ 3,118,755     $ 3,063,629     $ 3,107,490                  
Wholesale deposits
     1,797,957       1,747,307       1,061,458                  
    $ 4,916,712     $ 4,810,936     $ 4,168,948                  
                                         
Net increase (decrease) in deposits
   $ 105,776     $ 293,934     $ (91,467 )   $ 747,764     $ (1,733,170 )
                                         
 
4
 


AVERAGE INTEREST RATES (CONSOLIDATED):
 
   
As of, for
the month
ended
December 31,
2008
  
As of, for
the month
ended
November 30,
2008
  
As of, for
the month
ended
December 31,
2007
  
As of, for
the 12 months
ended
December 31,
 2008
  
As of, for
the 12 months
ended
December 31,
 2007
 
Yield on loans
  
 
5.45%
  
 
5.67%
  
 
7.52%
  
 
6.06%
  
 
7.89%
 
Yield on investments
  
3.12%
  
3.10%
  
 
5.42%
  
4.45%
  
5.42%
 
Yield on earning assets
  
5.18%
  
5.37%
  
 
7.38%
  
5.93%
  
7.74%
 
Cost of deposits
  
 
3.18%
  
 
3.22%
  
 
4.17%
  
 
3.39%
  
 
4.38%
 
Cost of  borrowings
  
2.92%
  
3.11%
  
 
4.93%
  
3.70%
  
5.32%
 
Cost of money
  
 
3.09%
  
 
3.18%
  
 
4.44%
  
 
3.50%
  
 
4.68%
 
Earnings spread
  
 
2.09%
  
 
2.19%
  
 
2.94%
  
 
2.43%
  
 
3.06%
 
Effective net spread
  
2.12%
  
2.24%
  
 
3.27%
  
2.58%
  
3.42%
                     

 

 
5
 
 
EXHIBIT 99.2
  
                                       
PRELIMINARY QUARTERLY LOAN PORTFOLIO ANALYSIS
  
Unaudited, Unconsolidated
  
(Dollars in thousands)
  
                                       
Summary of Loan Portfolio Balances
                                    
     
December 31, 2008
  
 
    
September 30, 2008
  
 
    
December 31, 2007
 
 
  
First trust deeds residential loans:
                                      
     One to four units
     $ 4,378,731           $ 4,521,889           $ 4,652,876        
     Five or more units
       1,936,286             1,857,634             1,709,815        
     Residential loans
       6,315,017             6,379,523             6,362,691        
                                             
     Other real estate loans
       154,995             156,134             165,453        
     Non-real estate loans
       114,392             126,074             111,045        
Total loans receivable
     $ 6,584,404           $ 6,661,731           $ 6,639,189        
                                             
                                             
                                             
Single family loan portfolio by year of origination
                                    
                                             
Year of Origination
    
December 31, 2008
    
September 30, 2008
    
December 31, 2007
 
   2003 and prior
     $ 301,288       6.8 %   $ 317,558       7.0 %   $ 395,506       8.5 %
     2004
       567,660       13.0 %     603,461       13.3 %     725,904       15.6 %
     2005
       1,390,979       31.8 %     1,554,599       34.4 %     2,106,973       45.3 %
     2006
       876,255       20.0 %     929,907       20.6 %     1,066,660       22.9 %
     2007
       341,023       7.8 %     355,388       7.9 %     357,833       7.7 %
     2008
       901,526       20.6 %     760,976       16.8 %     -       0.0 %
Total single family portfolio
     $ 4,378,731       100.0 %   $ 4,521,889       100.0 %   $ 4,652,876       100.0 %
                                                   
                                                   
                                                   
Single family loan portfolio by original LTV ratio
                                          
                                                   
Original LTV Ratio
    
December 31, 2008
    
September 30, 2008
    
December 31, 2007 
 
     <65%
     $ 949,119       21.6 %   $ 922,295       20.4 %   $ 817,580       17.6 %
     65 - 70%       535,765       12.2 %     539,725       11.9 %     505,320       10.9 %
     70 - 75%       606,856       13.9 %     617,812       13.7 %     593,386       12.8 %
     75 - 80%       2,047,508       46.8 %     2,161,945       47.8 %     2,348,772       50.5 %
     80 - 85%       46,797       1.1 %     53,881       1.2 %     73,564       1.6 %
     85 - 90%       153,273       3.5 %     182,318       4.0 %     262,719       5.6 %
     >90%
       39,413       0.9 %     43,913       1.0 %     51,535       1.0 %
Total single family portfolio
     $ 4,378,731       100.0 %   $ 4,521,889       100.0 %   $ 4,652,876       100.0 %
                                                     
                                                     
                                                     
Single family loan portfolio by estimated current LTV ratio
                                  
Estimated Current LTV -Price Adjusted (1)
  
Loan Balance
    
% of Portfolio
    
Average Estimated Current LTV Ratio
  
 
          
     <70%
     $ 941,870       21.5 %     52.3 %                        
     >70% <=80%
       643,426       14.7 %     76.0 %                        
     >80% <=90%
       554,334       12.7 %     85.0 %                        
     >90% <=100%
       629,528       14.4 %     95.0 %                        
     >100% <=110%
       590,125       13.5 %     105.1 %                        
     >110%
       796,763       18.2 %     124.3 %                        
     Partially Charged Off (2)
       137,556       3.1 %     100.0 %                        
     Not in MSAs
       85,129       1.9 %     N/A                          
Total single family portfolio
     $ 4,378,731       100.0 %     88.5 %                        
                                                     
(1) The current estimated loan to value ratio is based on OFHEO September 2008 data.  The OFHEO housing price index provides a broad measure
  
of the housing price movements by Metropolitan Statistical Area (MSA).  In evaluating the potential for loan losses within the bank’s portfolio, the Bank
  
considers both the fact that OFHEO data cannot reflect price movements for the most recent three months, and that individual areas within an MSA will
  
perform worse than the average for the larger area.  The Bank therefore also looks at sales data that is available by zip code, as well as the Bank’s experience
  
with marketing foreclosed properties in estimating the loan loss reserve that is required.
                  
(2) 431 severely delinquent loans with a net balance of $137.6 million were partially charged off to their estimated collateral value.
  
 
6
 
                                     
Single family loan portfolio by borrower documentation type
                          
                                     
Borrower documentation type
  
December 31, 2008
    
September 30, 2008
    
December 31, 2007
  
     Verified Income/Verified Assets
   $ 1,808,445       41.3 %   $ 1,717,687       38.0 %   $ 1,135,358       24.4 %
     Stated Income/Verified Assets
     1,087,151       24.8 %     1,179,708       26.1 %     1,468,686       31.6 %
     Stated Income/Stated Assets
     1,100,672       25.2 %     1,205,543       26.7 %     1,506,627       32.4 %
     No Income/No Assets
     382,463       8.7 %     418,951       9.2 %     542,205       11.6 %
Total single family portfolio
   $ 4,378,731       100.0 %   $ 4,521,889       100.0 %   $ 4,652,876       100.0 %
                                                 
                                                 
                                                 
Single family loan portfolio by geographic distribution
                                          
                                                 
     Region
  
December 31, 2008
    
September 30, 2008
    
December 31, 2007
  
     Los Angeles County
   $ 1,233,889       28.2 %   $ 1,224,568       27.1 %   $ 1,148,942       24.7 %
     San Francisco Bay Area
     768,262       17.5 %     785,080       17.4 %     775,303       16.7 %
     Central California Coast
     598,268       13.7 %     612,533       13.5 %     592,547       12.7 %
     San Diego Area
     441,631       10.1 %     471,140       10.4 %     558,452       12.0 %
     Orange County
     479,464       10.9 %     478,161       10.6 %     428,667       9.2 %
     San Bernardino/Riverside Counties
     296,624       6.8 %     321,616       7.1 %     374,303       8.0 %
     San Joaquin Valley
     194,741       4.4 %     227,129       5.0 %     298,788       6.4 %
     Sacramento Valley
     197,861       4.6 %     222,163       4.9 %     275,313       5.9 %
     Other
     167,991       3.8 %     179,499       4.0 %     200,561       4.4 %
Total single family portfolio
   $ 4,378,731       100.0 %   $ 4,521,889       100.0 %   $ 4,652,876       100.0 %
                                                 
                                                 
                                                 
Delinquent and nonaccrual loans by year of origination
                                          
                                                 
     Year of Origination
  
30-89 Days Delinquent
    
Non-accrual (3)
    
Total
  
     2003 and prior
   $ 6,531       3.1 %   $ 16,531       4.0 %   $ 23,062       3.7 %
     2004
     34,968       16.8 %     50,692       12.6 %     85,660       14.0 %
     2005
     90,114       43.3 %     212,648       52.7 %     302,762       49.5 %
     2006
     61,954       29.8 %     112,298       27.8 %     174,252       28.5 %
     2007
     10,773       5.2 %     11,608       2.9 %     22,381       3.7 %
     2008
     3,844       1.8 %     -       0.0 %     3,844       0.6 %
Total single family defaults
   $ 208,184       100.0 %   $ 403,777       100.0 %   $ 611,961       100.0 %
                                                 
(3) 431 severely delinquent loans with a net balance of $137.6 million were partially charged off to their estimated collateral value.
  
                                                 
                                                 
                                                 
Delinquent and nonaccrual loans by geographic distribution
                                  
     Region
  
Delinquent Balance
     % of Total Delinquent 
 
  
Delinquent % of regional portfolio 
  
 
          
     Los Angeles County
   $ 94,167       15.4 %     7.6 %                        
     San Francisco Bay Area
     113,313       18.5 %     14.7 %                        
     Central California Coast
     84,179       13.8 %     14.1 %                        
     San Diego Area
     73,569       12.0 %     16.7 %                        
     Orange County
     55,468       9.1 %     11.6 %                        
     San Bernardino/Riverside
     68,128       11.1 %     23.0 %                        
     San Joaquin Valley
     50,262       8.2 %     25.8 %                        
     Sacramento Valley
     42,303       6.9 %     21.4 %                        
     Other
     30,572       5.0 %     18.2 %                        
Total single family defaults
   $ 611,961       100.0 %     14.0 %                        
                                                 
                                                 
                                                 
Delinquent and nonaccrual loans by borrower documentation type
                                  
     Borrower documentation type
  
Delinquent Balance
     % of Total Delinquent 
 
  
Delinquent % of documentation type 
  
 
          
     Verified Income/Verified Assets
   $ 96,923       15.9 %     5.4 %                        
     Stated Income/Verified Assets
     206,940       33.8 %     19.0 %                        
     Stated Income/Stated Assets
     234,010       38.2 %     21.3 %                        
     No Income/No Assets
     74,088       12.1 %     19.4 %                        
Total single family defaults
   $ 611,961       100.0 %     14.0 %                        
                                                 
 
7
 
                   
Delinquent and nonaccrual loans by estimated current loan to value ratio
  
Estimated Current LTV -Price Adjusted (4)
  
Loan Balance
    
% of Total Delinquent 
 
  
Average Estimated Current LTV Ratio 
 
     <70%
   $ 28,984       4.7 %     54.4 %
     >70% <=80%
     46,539       7.6 %     75.3 %
     >80% <=90%
     45,941       7.5 %     86.2 %
     >90% <=100%
     75,008       12.3 %     95.5 %
     >100% <=110%
     98,721       16.1 %     105.0 %
     >110% <=120%
     175,411       28.7 %     126.6 %
     Partially Charged Off (5)
     137,556       22.5 %     100.0 %
     Not in MSAs
     3,801       0.6 %     N/A  
Total single family defaults
   $ 611,961       100.0 %     102.8 %
                         
(4) The current estimated loan to value ratio is based on OFHEO September 2008 data.
(5) 431 severely delinquent loans with a net balance of $137.6 million were partially charged off to their estimated collateral value.
                         
                         
                         
Forecast of single family loan portfolio payment recast
                  
Recast quarter (6)
  
Recast Balance
    
Number of Loans 
  
 
  
                         
     1st quarter 2009
   $ 43,657       95          
     2nd quarter 2009
     67,746       163          
     3rd quarter 2009
     110,837       267          
     4th quarter 2009
     173,783       388          
Total 2009
     396,023       913          
                         
     2010
     694,260       1,508          
     2011
     545,381       1,091          
     Thereafter
     285,697       417          
Grand total
   $ 1,921,361       3,929          
                         
(6) Period in which currently performing borrowers are estimated to reach their maximum negative amortization, and be required to make a fully amortizing payment,
assuming all borrowers make the minimum payment, and no loans are prepaid prior to their reset date. Does not include loans that have already reached their
payment recast or loans that by their terms do not allow for negative amortization.
  
                         
                         
                         
Real estate owned activity
                        
Real Estate Owned
  
Balance
    
Number of Properties 
  
 
  
     Beginning balance (as of 9/30/2008)
   $ 132,957       501          
     Acquired REOs
     168,517       361          
     Charged-offs and writedowns
     (90,581 )     -          
     Sold REOs
     (93,229 )     (384 )        
     Ending REO Balance (as of 12/31/2008)
   $ 117,664       478          
     Properties in Escrow
   $ 49,485       226          
                         
                         
                         
Loss Mitigation Activity
                        
Loan modifications 2008 year-to-date (7)
  
Loan Balance
    
Number of Loans 
  
 
  
     Loan terms modified to:
                        
     Monthly Adjustable Interest Only 5-years*
   $ 256,272       528          
     Fixed Interest Only 5-years*
     173,586       366          
     Monthly Adjustable Amortizing 5-years*
     132,899       293          
     Fixed Amortizing 5-years*
     40,788       96          
     6-month Adjustable Interest Only 5-years*
     24,910       41          
     6-month Adjustable Amortizing*
     4,129       7          
     Other
     4,472       8          
Grand total (8)
   $ 637,056       1,339          
                         
(7) This disclosure does not include 112 severely delinquent modified loans with a net balance of $37.3 million that were partially charged off to 
their estimated collateral value and moved to non-accrual loan status. 
(8) Of these 1,339 modified loans, 1,298 loans with a net balance of $619.0 million were considered to be troubled debt restructurings, based on the Bank's
underwriting of the borrower and the property at the date of the modification with discount calculation totaled $46,667.
 
* Revised. 

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