-----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, HInxCREcVbSY7TyNNwSIdIjV4WPGv6TwfeQOKSH9SM+QBlsMeXmm2RGqnpcG52A/ MSfwkma0me0TMpLzczaZ8Q== 0000810536-09-000078.txt : 20091102 0000810536-09-000078.hdr.sgml : 20091102 20091102172743 ACCESSION NUMBER: 0000810536-09-000078 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20090930 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20091102 DATE AS OF CHANGE: 20091102 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: 091152043 BUSINESS ADDRESS: STREET 1: 12555 WEST JEFFERSON BLVD CITY: LOS ANGELES STATE: CA ZIP: 90066 BUSINESS PHONE: 3103025600 MAIL ADDRESS: STREET 1: 12555 WEST JEFFERSON BLVD CITY: LOS ANGELES STATE: CA ZIP: 90066 8-K 1 mrop093009edgar.htm MONTHLY REPORT OF OPERATIONS & LOAN PORTFOLIO ANALYSIS, SEPTEMBER 30, 2009 mrop093009edgar.htm


 
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 30, 2009
 
 

 
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.)
 
 
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
 




 
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 September 30, 2009 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 September 30, 2009 (Unconsolidated)
 
99.2
Preliminary Quarterly Loan Portfolio Analysis as of and for the period ended September 30, 2009
 
 
 
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 30, 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 September 30, 2009 
4-5
99.2
 Preliminary Quarterly Loan Portfolio Analysis as of and for the period ended September 30, 2009 
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
September 30,
 2009
    
As of, for
the month
ended
August 31,
 2009
    
As of, for
the month
ended
September 30,
2008
    
As of, for
the 9 months ended
September 30,
 2009
    
As of, for
the 9 months ended
September 30,
 2008
  
                               
Cash and investment securities
   $ 292,541     $ 314,246     $ 391,730              
Total mortgage-backed securities
   $ -     $ -     $ 41,510              
Total assets
   $ 6,150,613     $ 6,313,289     $ 7,355,296              
                                     
LOANS:
                                    
Gross loans receivable
   $ 5,712,727     $ 5,826,313     $ 6,661,731              
                                     
Loans funded:
                                    
    Single family loans
   $ 388     $ -     $ 101,286     $ 29,910     $ 773,797  
Multi family loans
     -       -       36,072       68,248       433,313  
Commercial & industrial real estate loans
     -       -       5,075       -       17,450  
Other loans
     1,105       91       1,238       9,808       31,676  
        Total loans funded
     1,493       91       143,671       107,966       1,256,236  
Loans originated for third parties
     -       -       3,499       26,358       10,343  
Total loans originated
   $ 1,493     $ 91     $ 147,170     $ 134,324     $ 1,266,579  
                                         
Percentage of ARMs originated
     100 %     100 %     5 %     83 %     9 %
Loan repayments:
                                        
    Single family loans
   $ 37,756     $ 20,040     $ 20,392     $ 176,211     $ 455,009  
    Multi family & commercial real estate loans
     6,257       8,816       33,762       123,999       308,453  
Other loans
     84       1,143       658       36,612       17,043  
    $ 44,097     $ 29,999     $ 54,812     $ 336,822     $ 780,505  
                                         
Loans sold
   $ -     $ 15,551     $ -     $ 62,718     $ 1,380  
                                         
                                         
Non-performing assets to total assets ratio
     9.23 %     10.03 %     7.87 %                
                                         
Delinquent loans:
                                        
    Non-accrual single family loans
   $ 389,223     $ 453,700     $ 446,186                  
    Single family loans 30-59 days delinquent
   $ 67,264     $ 63,734     $ 115,105                  
    Single family loans 60-89 days delinquent
   $ 7,458     $ 12,592     $ 96,991                  
                                         
BORROWINGS:
                                        
Federal Home Loan Bank advances
   $ 1,300,000     $ 1,350,000     $ 2,313,000                  
Reverse repurchase agreements
   $ -     $ -     $ -                  
                                         
DEPOSITS:
                                        
Retail deposits
   $ 3,889,282     $ 3,800,137     $ 2,922,661                  
Wholesale deposits
     640,095       774,181       1,415,558                  
    $ 4,529,377     $ 4,574,318     $ 4,338,219                  
                                         
Net increase (decrease) in deposits
   $ (44,941 )   $ (19,736 )   $ 68,313     $ (387,335 )   $ 169,271  
 
 
4
 
AVERAGE INTEREST RATES (CONSOLIDATED):
 
   
As of, for
the month
ended
September 30,
2009
  
As of, for
the month
ended
August 31,
2009
  
As of, for
the month
ended
September 30,
2008
  
As of, for
the 9 months
ended
September 30,
 2009
  
As of, for
the 9 months
ended
September 30,
 2008
 
Yield on loans
  
 
5.19%
  
 
5.12%
  
 
5.72%
  
 
5.18%
  
 
6.21%
 
Yield on investments
  
0.24%
  
0.24%
  
 
5.34%
  
1.81%
  
5.03%
 
Yield on earning assets
  
4.84%
  
4.80%
  
 
5.69%
  
4.91%
  
6.13%
 
Cost of deposits
  
 
2.03%
  
 
2.19%
  
 
3.13%
  
 
2.62%
  
 
3.45%
 
Cost of  borrowings
  
3.26%
  
3.26%
  
 
3.46%
  
2.99%
  
3.89%
 
Cost of money
  
 
2.34%
  
 
2.46%
  
 
3.25%
  
 
2.72%
  
 
3.61%
 
Earnings spread
  
 
2.50%
  
 
2.34%
  
 
2.44%
  
 
2.19%
  
 
2.52%
 
Effective net spread
  
2.48%
  
2.32%
  
 
2.56%
  
2.17%
  
2.70%
                     

 
5
 

EXHIBIT 99.2
                                       
PRELIMINARY QUARTERLY LOAN PORTFOLIO ANALYSIS
Unaudited, Unconsolidated
(Dollars in thousands)
                                       
Summary of Loan Portfolio Balances
                                    
       September 30, 2009  
 
       June 30, 2009            December 31, 2008   
 
  
First trust deeds residential loans:
                                      
One to four units
     $ 3,654,209           $ 3,988,511           $ 4,378,731        
Five or more units
       1,835,117             1,906,711             1,936,286        
Residential loans
       5,489,326             5,895,222             6,315,017        
                                             
Other real estate loans
       137,305             141,751             154,995        
Non-Real estate loans
       86,096             96,237             114,393        
Total loans receivable
     $ 5,712,727           $ 6,133,210           $ 6,584,405        
                                             
                                             
                                             
Single family loan portfolio by year of origination
                                    
                                             
Year of Origination
        September 30, 2009        June 30, 2009        December 31, 2008  
2003 and prior
     $ 266,780       7.3 %   $ 278,951       7.0 %   $ 301,288       6.8 %
2004
       468,873       12.8 %     513,925       12.9 %     567,660       13.0 %
2005
       1,076,142       29.4 %     1,204,398       30.2 %     1,390,979       31.8 %
2006
       677,979       18.6 %     767,324       19.2 %     876,255       20.0 %
2007
       300,003       8.2 %     320,012       8.0 %     341,023       7.8 %
2008
       835,304       22.9 %     875,129       22.0 %     901,526       20.6 %
2009
       29,128       0.8 %     28,772       0.7 %     -       0.0 %
Total single family portfolio
     $ 3,654,209       100.0 %   $ 3,988,511       100.0 %   $ 4,378,731       100.0 %
                                                   
                                                   
                                                   
Single family loan portfolio by original LTV ratio
                                          
                                                   
Original LTV Ratio
      September 30, 2009        June 30, 2009        December 31, 2008  
<65%
     $ 850,185       23.3 %   $ 900,015       22.6 %   $ 949,119       21.6 %
 65 - 70%     476,456       13.0 %     508,443       12.7 %     535,765       12.2 %
 70 - 75%     520,526       14.2 %     564,335       14.1 %     606,856       13.9 %
 75 - 80%     1,638,678       44.9 %     1,825,963       45.8 %     2,047,508       46.8 %
 80 - 85%     31,099       0.9 %     37,162       0.9 %     46,797       1.1 %
 85 - 90%     103,385       2.8 %     117,399       2.9 %     153,273       3.5 %
>90%
       33,880       0.9 %     35,194       1.0 %     39,413       0.9 %
Total single family portfolio
     $ 3,654,209       100.0 %   $ 3,988,511       100.0 %   $ 4,378,731       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
  
 
          
<65%
     $ 593,012       16.2 %     42.7 %                        
 65 - 70%     129,198       3.5 %     67.5 %                        
 70 - 75%     208,874       5.7 %     73.2 %                        
 75 - 80%     189,075       5.2 %     77.9 %                        
 80 - 85%     226,937       6.2 %     82.9 %                        
 85 - 90%     264,467       7.2 %     87.3 %                        
>90%
       1,900,119       52.0 %     111.1 %                        
Partially Charged Off (2)
       133,218       3.7 %     100.0 %                        
Not in MSAs
       9,309       0.3 %     N/A                          
Total single family portfolio
     $ 3,654,209       100.0 %     79.9 %                        
                                                     
(1) The current estimated loan to value ratio is based on FHFA June 2009 data.  The FHFA 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 FHFA 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) The $133.2 million of loans were charged off by $81.5 million to their estimated collateral value.
                          
 
 
6
 
Single family loan portfolio by borrower current documentation type
                        
                                     
     Borrower documentation type
      September 30, 2009       June 30, 2009        December 31, 2008  
     Verified Income/Verified Assets
  $ 2,660,809       72.9 %   $ 2,513,335       43.4 %   $ 2,383,688       41.2 %
     Stated Income/Verified Assets (3)
     457,519       12.5 %     649,149       24.0 %     867,098       24.9 %
     Stated Income/Stated Assets (3)
     396,318       10.8 %     608,987       24.2 %     830,818       25.2 %
     No Income/No Assets (3)
     139,563       3.8 %     217,040       8.4 %     297,127       8.7 %
        Total single family portfolio
   $ 3,654,209       100.0 %   $ 3,988,511       100.0 %   $ 4,378,731       100.0 %
                                                 
(3) As part of the loan modification process, an aggregate of $1.0 billion of loans originated in these low documentation categories have become fully documented.
                                                 
                                                 
                                                 
Single family loan portfolio by geographic distribution
                                          
                                                 
     Region
      September 30, 2009       June 30, 2009        December 31, 2008  
     Los Angeles County
   $ 1,107,597       30.3 %   $ 1,168,364       29.3 %   $ 1,233,889       28.2 %
     San Francisco Bay Area
     635,366       17.4 %     698,885       17.5 %     768,262       17.5 %
     Central California Coast
     495,458       13.6 %     549,470       13.8 %     598,268       13.7 %
     Orange County
     417,113       11.4 %     444,160       11.1 %     479,464       10.9 %
     San Diego Area
     359,058       9.8 %     396,623       9.9 %     441,631       10.1 %
     San Bernardino / Riverside Counties
     225,537       6.2 %     257,220       6.5 %     296,624       6.8 %
     Sacramento Valley
     144,048       3.9 %     163,949       4.1 %     197,861       4.6 %
     San Joaquin Valley
     136,221       3.7 %     158,246       4.0 %     194,741       4.4 %
     Other
     133,811       3.7 %     151,594       3.8 %     167,991       3.8 %
        Total single family portfolio
   $ 3,654,209       100.0 %   $ 3,988,511       100.0 %   $ 4,378,731       100.0 %
                                                 
                                                 
                                                 
Delinquent and nonaccrual loans by year of origination
                                          
                                                 
               Year of Origination
      30-89 Days Delinquent (4)       Non-accrual (5)       Total  
               2003 and prior
   $ 4,543       6.1 %   $ 13,776       3.5 %   $ 18,319       3.9 %
               2004
     13,143       17.6 %     55,862       14.4 %     69,004       14.9 %
               2005
     31,700       42.4 %     172,537       44.3 %     204,237       44.0 %
               2006
     19,862       26.6 %     112,810       29.0 %     132,672       28.6 %
               2007
     5,114       6.8 %     23,685       6.1 %     28,799       6.2 %
               2008
     360       0.5 %     8,249       2.1 %     8,610       1.9 %
               2009
     -       0.0 %     2,304       0.6 %     2,304       0.5 %
                  Total single family defaults
   $ 74,722       100.0 %   $ 389,223       100.0 %   $ 463,945       100.0 %
                                                 
(4) This category includes one loan that was non-accrual in the previous quarter with partial charge-offs of $144 thousand.
  
(5) This category includes $125.2 million of loans, which were charged off by $76.9 million 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
   $ 87,675       18.9 %     7.9 %                        
San Francisco Bay Area
     85,465       18.4 %     13.5 %                        
Central California Coast
     60,451       13.0 %     12.2 %                        
San Diego Area
     55,150       11.9 %     15.4 %                        
Orange County
     47,604       10.3 %     11.4 %                        
San Bernardino/Riverside
     46,690       10.1 %     20.7 %                        
San Joaquin Valley
     28,360       6.1 %     20.8 %                        
Sacramento Valley
     30,525       6.6 %     21.2 %                        
Other
     22,025       4.7 %     16.5 %                        
                  Total single family defaults
   $ 463,945       100.0 %     12.7 %                        
                                                 
                                                 
                                                 
Delinquent and nonaccrual loans by borrower documentation type
                                
     Borrower documentation type
   Delinquent Balance     % of Total Delinquent     Delinquent % of documentation type  
 
          
     Verified Income/Verified Assets
   $ 104,291       22.5 %     6.3 %                        
     Stated Income/Verified Assets
     127,312       27.4 %     14.9 %                        
     Stated Income/Stated Assets
     177,091       38.2 %     20.7 %                        
     No Income/No Assets
     55,251       11.9 %     18.7 %                        
           Total single family defaults
   $ 463,945       100.0 %     12.7 %                        
 
7
 
 
Delinquent and nonaccrual loans by estimated current loan to value ratio
  
                   
Estimated Current LTV -Price Adjusted (6)
  
Loan Balance
     % of Total Delinquent 
 
   Average Estimated Current LTV Ratio
 
<70%
   $ 19,205       4.1 %     48.7 %
>70% <=80%
     25,627       5.5 %     75.2 %
>80% <=90%
     22,344       4.8 %     85.4 %
>90% <=100%
     33,690       7.3 %     95.8 %
>100% <=110%
     61,798       13.3 %     104.8 %
>110%
     175,220       37.8 %     126.3 %
Partially Charged Off (7)
     125,403       27.0 %     100.0 %
Not in MSAs
     658       0.2 %     N/A  
           Total single family defaults
   $ 463,945       100.0 %     102.2 %
                         
(6) The current estimated loan to value ratio is based on FHFA June 2009 data.
  
(7) The $125.4 million of loans were charged off by $77.1 million to their estimated collateral value.
  
                         
                         
Forecast of single family loan portfolio payment recast
                  
Recast quarter (8)
  
Recast Balance
     Number of Loans  
 
  
                         
4th quarter 2009
   $  56,145       129          
   Total 2009
     56,145       129          
                         
2010
   $ 343,957       771          
2011
     257,105       505          
Thereafter
     166,871       239          
Grand total
   $ 824,078       1,644          
                         
(8) 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 6/30/2009)
   $ 98,032       413          
Acquisitions
     162,356       608          
Write-downs
     (5,465 )                
Sales of REO
     (79,198 )     (356 )        
Ending REO Balance (as of 9/30/2009)
   $ 175,725       665          
Properties in Escrow
   $ 65,181       280          
                         
                         
                         
Loss Mitigation Activity (9)
                        
Active modified loans as of  9/30/2009
  
Loan Balance
     Number of Loans  
 
  
Loan terms modified to:
                        
     Monthly Adjustable Interest Only 5-years
   $  641,006       1,304          
     Fixed Interest Only 5-years
     362,679       780          
     Monthly Adjustable Amortizing 5-years
     98,803       233          
     Fixed Amortizing 5-years
     105,075       249          
     6-month Adjustable Interest Only 5-years
     39,268       96          
     6-month Adjustable Amortizing
     22,863       54          
     Other
     3,712       8          
Grand Total (10)
   $ 1,273,406       2,724          
 
                        
(9) Of these 2,724 modified loans, 2,452 loans with a net balance of $1.2 billion were considered to be troubled debt restructuring based
on the Bank's underwriting of the borrower and the property at the date of the modification. Based on the yield reduction of these
modified loans the bank maintains an impaired valuation allowance of $68.0 million.
  
(10) This disclosure includes 202 modified loans that were reported as non-accrual with an estimated collateral value of $76.6 million.
 
8
 
 
   
 
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