EXHIBIT 99.1
FIRSTFED
REPORTS PRELIMINARY RESULTS
FOR
THE THIRD QUARTER OF 2008
Los
Angeles, California, October 31, 2008 -- FirstFed Financial Corp. (NYSE-FED),
parent company of First Federal Bank of California, today announced a net loss
of $51.6 million or $3.77 per diluted share of common stock for the third
quarter of 2008 compared to a net loss of $35.5 million or $2.60 per diluted
share of common stock for the second quarter of 2008 and net income of $23.0
million or $1.57 per diluted share of common stock for the third quarter of
2007.
The third
quarter loss resulted primarily from a $110.3 million provision for loan losses.
The loan loss provision was due to ongoing charge-offs and modifications of
single family loans as well as the continuing weakness in the California real
estate market. The Company recorded a $90.2 million provision for loan losses
during the second quarter of 2008 and a $4.5 million loan loss provision during
the third quarter of 2007.
Non-accrual
single family loans (loans greater than 90 days delinquent or in foreclosure)
decreased to $445.2 million as of September 30, 2008 from $491.7 million at June
30, 2008. In comparison, single family non-accrual loans were $179.7 million at
December 31, 2007 and $83.0 million at September 30, 2007. Single family loans
less than 90 days delinquent increased to $212.1 million at September 30, 2008
from $207.7 million at June 30, 2008 and decreased compared to $273.3 million at
March 31, 2008 and $236.7 million at December 31, 2007. Single family loans less
than 90 days delinquent were $71.7 million as of September 30,
2007.
The level
of delinquent loans during 2008 was significantly impacted by adjustable rate
mortgages that reached their maximum allowable negative amortization and
required an increased payment. The Bank estimates that 1,560 loans with balances
totaling approximately $722.8 million were scheduled to recast during the nine
months of 2008. 181 loans with balances totaling approximately $79.5
million are scheduled to recast during the remainder of 2008. Another 1,304
loans, with balances totaling $577.9 million, are scheduled to recast during
2009. In comparison, 1,801 loans with balances totaling approximately $823.0
million were scheduled to recast during 2007. All of the recasts during 2007
occurred during the last two quarters of that year. The Bank continues to
actively reach out to borrowers faced with loan recasts to encourage them to
modify their loans before the recast date.
Total
modified loans were $559.0 million as of September 30, 2008. Among these
modified loans, $542.8 million were considered troubled debt restructurings
(“TDRs”) and valuation allowances of $42.7 million were established as of
September 30, 2008. Another $16.2 million in adjustable rate mortgages were
modified as of September 30, 2008 but were not considered TDRs, and therefore no
valuation allowances were established. Modified loans totaled $308.7 million at
June 30, 2008, $108.1 million at March 31, 2008, and $1.8 million at December
31, 2007. At September 30, 2007, the Bank had $1.1 million in modified
loans.
Third
quarter net earnings were also impacted by lower net interest income which
decreased by $16.4 million or 26% compared to the third quarter of 2007. Net
interest income decreased due to lower interest-earning assets, increased
non-accrual loans and lower interest rate spreads compared to the prior year.
Net interest income for the third quarter was approximately the same as the
second quarter due to similar levels of interest-earning assets and interest
rate spread.
On a
year-to-date basis, the Company reported a net loss of $156.9 million or $11.48
per diluted share for the nine months ended September 30, 2008 compared to net
income of $84.5 million or $5.25 per diluted share for the nine months ended
September 30, 2007. The year-to-date loss was attributable to the increased loan
loss provision recorded during the nine months of 2008 and a 32% decrease in net
interest income compared to the same period of the prior year.
Net loan
charge-offs totaled $103.4 million and $212.3 million for the third quarter and
the nine months ended September 30, 2008 compared to $3.2 million and $4.9
million for the third quarter and the nine months ended September 30, 2007. The
Bank’s non-performing assets to total assets ratio decreased to 7.87% at
September 30, 2008 from 8.20% at June 30, 2008, but increased compared to 2.79%
at December 31, 2007 and 1.40% at September 30, 2007. The decrease from the
second quarter of 2008 to the third quarter of 2008 was due to lower levels of
single family non-accrual loans at the end of the third quarter.
Total
allowances for loan losses (general valuation allowances plus allowances for
impaired loans) as a percentage of gross loans were 3.96% or $264.1 million at
September 30, 2008, consistent with 3.96% or $259.7 million at June 30, 2008. In
comparison, loan loss allowances were 1.93% or $128.1 million as of December 31,
2007 and 1.73% or $116.2 million at September 30, 2007. Allowances allocated to
single family loans were 5.5% of gross single family loans at both September 30,
2008 and June 30, 2008.
Sales of
real estate owned resulted in net gains of $10.8 million for the third quarter
of 2008 and $20.5 million for the nine months of 2008. The gains recorded during
2008 resulted from write downs at the time of foreclosure which created gains
upon the ultimate disposition of the properties. Offsetting these gains were
additional write downs taken on real estate loans during their holding period
that amounted to $6.7 million for the third quarter and $13.2 million for the
nine months of 2008. In comparison, net gains of $51 thousand were recorded
during the third quarter of 2007 and net losses of $29 thousand were recorded
for the nine months of 2007. Holding costs associated with foreclosed real
estate totaled $4.4 million and $8.7 million during the third quarter and the
nine months of 2008 compared to $452 thousand and $1.0 million during the third
quarter and the nine months of 2007.
Net
interest income was $45.8 million and $139.8 million during the third quarter
and the nine months ended September 30, 2008 compared to $62.2 million and
$207.1 million during the third quarter and the nine months ended September 30,
2007. Net interest income decreased during 2008 compared to 2007 due to declines
in average interest-earning assets and lower net interest spreads. Due to loan
payoffs, average interest-earning assets decreased by 4% during the third
quarter of 2008 compared to the third quarter of 2007 and 13% during the nine
months of 2008 compared to same period of 2007. The interest rate spread
decreased by 54 basis points during the third quarter of 2008 compared to the
third quarter of 2007 and the interest rate spread decreased by 59 basis points
during the nine months of 2008 compared to the nine months of 2007. The
decreased spreads were primarily caused by interest lost on non-performing loans
which lowered the loan yield by 82 basis points during the third quarter of 2008
and 90 basis points during the nine months of 2008.
Loan
originations were $479.3 million and $1.3 billion during the third quarter and
the nine months ended September 30, 2008 compared to $262.9 million and $702.8
million during the third quarter and the nine months ended September 30, 2007.
Single family loans comprised 62% of loan originations during the third quarter
of 2008 compared with 63% of loan originations during the third quarter of 2007.
Multi-family and commercial real estate loans comprised 36% of loan originations
during both the third quarter of 2008 and the third quarter of
2007.
Total
assets were $7.4 billion at September 30, 2008 and September 30, 2007. Due to
increased loan originations during the nine months of 2008, total assets at
September 30, 2008 slightly increased from $7.2 billion at December 31,
2007.
Negative
amortization, included in the balance of loans receivable, totaled $289.6
million at September 30, 2008 compared to $301.7 million at December 31, 2007
and $290.0 million at September 30, 2007. Negative amortization represents
unpaid interest earned by the Bank that is added to the principal balance of the
loan. Due to decreased interest rates on the indices underlying the Bank’s
adjustable rate mortgages, negative amortization decreased by $12.7 million and
$12.1 million for the third quarter and the nine months ended September 30,
2008. In comparison, negative amortization increased by $22.5 million and $74.2
million for the third quarter and the nine months of 2007.
Negative
amortization as a percentage of all single family loans that allow negative
amortization totaled 9.29% at September 30, 2008 compared to 7.68% at December
31, 2007, and 7.08% at September 30, 2007.
The
portfolio of adjustable single family loans with one-year fixed monthly payments
totaled $2.5 billion at September 30, 2008 compared to $3.2 billion at December
31, 2007 and $3.4 billion at September 30, 2007. The portfolio of adjustable
single family loans with three-to-five year fixed monthly payments totaled
$784.4 million at September 30, 2008 compared to $1.1 billion at December 31,
2007 and $1.2 billion at September 30, 2007.
Non-interest
expense was $23.2 million and $70.4 million for the third quarter and the nine
months ended September 30, 2008 compared to $19.1 million and $60.9 million for
the third quarter and the nine months ended September 30, 2007. The ratio of
non-interest expense to average total assets was 1.28% and 1.30% for the third
quarter and the nine months ended September 30, 2008 compared to 1.02% and 0.99%
for the third quarter and the nine months ended September 30, 2007. The increase
in non-interest expense during the third quarter of 2008 compared to the third
quarter of 2007 was due primarily to holding costs associated with foreclosed
real estate, increased federal deposit insurance costs and increased legal
costs. Legal costs in the third quarter of 2007 were lower because of the
reversal of accrued legal expense due to the favorable outcome of a pending
legal matter. The increase in non-interest expense during the nine months of
2008 compared to the nine months of 2007 was due to increased holding costs on
foreclosed real estate, increased federal deposit insurance costs, increased
legal costs, increased occupancy costs due to the opening of new branches and a
$1.1 million lease write-off for the former corporate headquarters during the
first quarter of 2008.
The
Bank’s risk-based capital ratio was 15.87% at September 30, 2008 and its core
and tangible capital ratios were 8.38%, which were in excess of the 10% and 5%
ratios, respectively, required by the Bank’s federal regulators to be considered
well capitalized.
First
Federal Bank of California operates 38 retail banking offices in Southern
California. In keeping with the Bank’s retail branch expansion plan, three new
retail branches were opened during the nine months of 2008. Two more branches
are expected to be opened later this year. The Bank operates a central lending
office in Los Angeles with agents throughout 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, changes in laws and regulations affecting the Company’s
business, the California real estate market, 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)
302-1714
KEY
FINANCIAL RESULTS FOLLOW
FIRSTFED
FINANCIAL CORP.
AND
SUBSIDIARY
CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except share
data)
(Unaudited)
|
|
|
September
30,
2008
|
|
|
December
31,
2007
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
62,661
|
|
|
$
|
53,974
|
|
|
Investment
securities, available-for-sale
(at
fair value)
|
|
|
329,042
|
|
|
|
316,788
|
|
|
Mortgage-backed
securities, available-for-sale (at fair value)
|
|
|
41,510
|
|
|
|
46,435
|
|
|
Loans
receivable, net of allowances for loan losses of $264,092 and
$128,058
|
|
|
6,395,706
|
|
|
|
6,518,214
|
|
|
Accrued
interest and dividends receivable
|
|
|
32,260
|
|
|
|
45,492
|
|
|
Real
estate owned, net (REO)
|
|
|
132,957
|
|
|
|
21,090
|
|
|
Office
properties and equipment, net
|
|
|
21,140
|
|
|
|
17,785
|
|
|
Investment
in Federal Home Loan Bank (FHLB) stock, at cost
|
|
|
130,496
|
|
|
|
104,387
|
|
|
Other
assets
|
|
|
209,524
|
|
|
|
98,816
|
|
|
|
|
$
|
7,355,296
|
|
|
$
|
7,222,981
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
4,328,850
|
|
|
$
|
4,156,692
|
|
|
FHLB
advances
|
|
|
2,313,000
|
|
|
|
2,084,000
|
|
|
Securities
sold under agreements to repurchase
|
|
|
—
|
|
|
|
120,000
|
|
|
Senior
debentures
|
|
|
150,000
|
|
|
|
150,000
|
|
|
Accrued
expenses and other liabilities
|
|
|
64,250
|
|
|
|
57,790
|
|
|
|
|
|
6,856,100
|
|
|
|
6,568,482
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS
AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Common
stock, par value $.01 per share; authorized 100,000,000
shares;
|
|
|
|
|
|
|
|
|
|
issued 24,002,093 and 23,970,227 shares; outstanding 13,684,553 and
13,640,997 shares
|
|
|
240
|
|
|
|
240
|
|
|
Additional
paid-in capital
|
|
|
57,176
|
|
|
|
55,232
|
|
|
Retained
earnings
|
|
|
708,532
|
|
|
|
865,411
|
|
|
Unreleased
shares to employee stock ownership plan
|
|
|
(31
|
)
|
|
|
(339
|
)
|
|
Treasury
stock, at cost, 10,317,540 and 10,329,230 shares
|
|
|
(266,040
|
)
|
|
|
(266,040
|
)
|
|
Accumulated
other comprehensive loss,
net
of taxes
|
|
|
(681
|
)
|
|
|
(5
|
)
|
|
|
|
|
499,196
|
|
|
|
654,499
|
|
|
|
|
$
|
7,355,296
|
|
|
$
|
7,222,981
|
|
FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)
INCOME
(Dollars in thousands, except per share data)
(Unaudited)
|
|
Three
months ended
September
30,
|
|
|
Nine months ended September 30,
|
|
|
|
2008
|
|
|
2007
|
|
|
2008
|
|
|
2007
|
|
|
Interest and dividend income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans
|
$
|
93,141
|
|
|
$
|
134,090
|
|
|
$
|
297,807
|
|
|
$
|
445,923
|
|
|
Interest on mortgage-backed securities
|
|
427
|
|
|
|
636
|
|
|
|
1,543
|
|
|
|
2,026
|
|
|
Interest and dividends on investments
|
|
6,356
|
|
|
|
5,687
|
|
|
|
17,754
|
|
|
|
17,617
|
|
|
Total interest income
|
|
99,924
|
|
|
|
140,413
|
|
|
|
317,104
|
|
|
|
465,566
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
|
32,280
|
|
|
|
50,606
|
|
|
|
105,738
|
|
|
|
165,724
|
|
|
Interest on borrowings
|
|
21,864
|
|
|
|
27,628
|
|
|
|
71,541
|
|
|
|
92,753
|
|
|
Total interest expense
|
|
54,144
|
|
|
|
78,234
|
|
|
|
177,279
|
|
|
|
258,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
45,780
|
|
|
|
62,179
|
|
|
|
139,825
|
|
|
|
207,089
|
|
|
Provision for loan losses
|
|
110,300
|
|
|
|
4,500
|
|
|
|
350,800
|
|
|
|
11,400
|
|
|
Net interest (loss) income after provision for loan
losses
|
|
(64,520
|
)
|
|
|
57,679
|
|
|
|
(210,975
|
)
|
|
|
195,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan servicing and other fees
|
|
149
|
|
|
|
550
|
|
|
|
3,407
|
|
|
|
2,364
|
|
|
Banking service fees
|
|
1,848
|
|
|
|
1,663
|
|
|
|
5,306
|
|
|
|
5,035
|
|
|
Gain on sale of loans
|
|
—
|
|
|
|
308
|
|
|
|
20
|
|
|
|
4,746
|
|
|
Net gain (loss) on real estate owned
|
|
4,170
|
|
|
|
(1,625
|
)
|
|
|
7,357
|
|
|
|
(1,814
|
)
|
|
Other operating income
|
|
2,374
|
|
|
|
610
|
|
|
|
5,098
|
|
|
|
1,369
|
|
|
Total other income
|
|
8,541
|
|
|
|
1,506
|
|
|
|
21,188
|
|
|
|
11,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
11,105
|
|
|
|
12,366
|
|
|
|
35,456
|
|
|
|
37,119
|
|
|
Occupancy
|
|
3,029
|
|
|
|
3,295
|
|
|
|
10,932
|
|
|
|
9,095
|
|
|
Advertising
|
|
284
|
|
|
|
194
|
|
|
|
619
|
|
|
|
636
|
|
|
Amortization of core deposit intangible
|
|
127
|
|
|
|
127
|
|
|
|
380
|
|
|
|
752
|
|
|
Federal deposit insurance
|
|
1,074
|
|
|
|
743
|
|
|
|
2,970
|
|
|
|
2,295
|
|
|
Data processing
|
|
559
|
|
|
|
535
|
|
|
|
1,667
|
|
|
|
1,738
|
|
|
OTS assessment
|
|
439
|
|
|
|
501
|
|
|
|
1,347
|
|
|
|
1,654
|
|
|
Legal
|
|
421
|
|
|
|
(1,352
|
)
|
|
|
1,604
|
|
|
|
(359
|
)
|
|
Real estate owned operations
|
|
4,353
|
|
|
|
452
|
|
|
|
8,742
|
|
|
|
1,007
|
|
|
Other operating expense
|
|
1,776
|
|
|
|
2,253
|
|
|
|
6,642
|
|
|
|
6,964
|
|
|
Total non-interest expense
|
|
23,167
|
|
|
|
19,114
|
|
|
|
70,359
|
|
|
|
60,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes
|
|
(79,146
|
)
|
|
|
40,071
|
|
|
|
(260,146
|
)
|
|
|
146,488
|
|
|
Income taxes (benefit) expenses
|
|
(27,560
|
)
|
|
|
17,070
|
|
|
|
(103,267
|
)
|
|
|
62,032
|
|
|
Net (loss) income
|
$
|
(51,586
|
)
|
|
$
|
23,001
|
|
|
$
|
(156,879
|
)
|
|
$
|
84,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
$
|
(51,586
|
)
|
|
$
|
23,001
|
|
|
$
|
(156,879
|
)
|
|
$
|
84,456
|
|
|
Other comprehensive (loss) income, net of
taxes(benefits)
|
|
(756
|
)
|
|
|
761
|
|
|
|
(676
|
)
|
|
|
50
|
|
|
Comprehensive (loss) income
|
$
|
(52,342
|
)
|
|
$
|
23,762
|
|
|
$
|
(157,555
|
)
|
|
$
|
84,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(3.77
|
)
|
|
$
|
1.58
|
|
|
$
|
(11.48
|
)
|
|
$
|
5.32
|
|
|
Diluted
|
$
|
(3.77
|
)
|
|
$
|
1.57
|
|
|
$
|
(11.48
|
)
|
|
$
|
5.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
13
,668,576
|
|
|
|
14,536,615
|
|
|
|
13,663,059
|
|
|
|
15,865,884
|
|
|
Diluted
|
|
13,668,576
|
|
|
|
14,693,226
|
|
|
|
13,663,059
|
|
|
|
16,075,136
|
|
FIRSTFED
FINANCIAL CORP.
AND
SUBSIDIARY
KEY FINANCIAL
RESULTS
(Unaudited)
|
|
|
Quarter
ended September 30,
|
|
|
|
|
2008
|
|
|
2007
|
|
|
|
(Dollars
in thousands, except per share data)
|
|
End
of period:
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
7,355,296
|
|
|
$
|
7,368,096
|
|
|
Cash
and securities
|
|
$
|
391,703
|
|
|
$
|
441,908
|
|
|
Mortgage-backed
securities
|
|
$
|
41,510
|
|
|
$
|
47,293
|
|
|
Loans,
net
|
|
$
|
6,395,706
|
|
|
$
|
6,632,610
|
|
|
Core
deposit intangible asset
|
|
$
|
84
|
|
|
$
|
591
|
|
|
Deposits-retail
and commercial
|
|
$
|
3,080,602
|
|
|
$
|
3,293,005
|
|
|
Deposits-wholesale
|
|
$
|
1,248,248
|
|
|
$
|
1,173,514
|
|
|
Borrowings
|
|
$
|
2,463,000
|
|
|
$
|
2,171,000
|
|
|
Stockholders'
equity
|
|
$
|
499,196
|
|
|
$
|
642,832
|
|
|
Book
value per share
|
|
$
|
36.48
|
|
|
$
|
47.14
|
|
|
Tangible
book value per share
|
|
$
|
36.47
|
|
|
$
|
47.10
|
|
|
Stock
price (period-end)
|
|
$
|
7.84
|
|
|
$
|
49.55
|
|
|
Total
loan servicing portfolio
|
|
$
|
6,948,390
|
|
|
$
|
6,870,204
|
|
|
Loans
serviced for others
|
|
$
|
55,205
|
|
|
$
|
66,904
|
|
|
%
of adjustable mortgages
|
|
|
73.51
|
%
|
|
|
94.45
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Employees
(full-time equivalent)
|
|
|
606
|
|
|
|
606
|
|
|
Branches
|
|
|
38
|
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
quality:
|
|
|
|
|
|
|
|
|
|
Real
estate owned (foreclosed)
|
|
$
|
132,957
|
|
|
$
|
18,728
|
|
|
Non-accrual
loans
|
|
|
446,186
|
|
|
|
84,218
|
|
|
Non-performing
assets
|
|
$
|
579,143
|
|
|
$
|
102,946
|
|
|
Non-performing
assets to total assets
|
|
|
7.87
|
%
|
|
|
1.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Single
family loans delinquent less than 90 days
|
|
$
|
212,096
|
|
|
$
|
71,654
|
|
|
|
|
|
|
|
|
|
|
|
|
General
valuation allowance (GVA)
|
|
$
|
221,360
|
|
|
$
|
116,224
|
|
|
Allowance
for impaired loans
|
|
|
42,732
|
|
|
|
—
|
|
|
Allowance
for loan losses
|
|
$
|
264,092
|
|
|
$
|
116,224
|
|
|
Allowance
for loan losses as a percentage of
gross
loans receivable
|
|
|
3.96
|
%
|
|
|
1.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loans
sold with recourse
|
|
$
|
37,720
|
|
|
$
|
45,457
|
|
|
Modified
loans (not impaired)
|
|
$
|
16,157
|
|
|
$
|
1,090
|
|
|
Impaired
loans, net
|
|
$
|
530,809
|
|
|
$
|
16,385
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
Tangible
capital ratio
|
|
|
8.38
|
%
|
|
|
10.61
|
%
|
|
Core
capital ratio
|
|
|
8.38
|
|
|
|
10.61
|
|
|
Risk-based
capital ratio
|
|
|
15.87
|
|
|
|
21.44
|
|
|
Net
worth to assets ratio
|
|
|
6.79
|
|
|
|
8.72
|
|
FIRSTFED
FINANCIAL CORP.
AND
SUBSIDIARY
KEY
FINANCIAL RESULTS (continued)
(Unaudited)
(Dollars
in thousands)
|
|
Three
months ended
September
30,
|
|
|
Nine
months ended
September
30,
|
|
|
|
2008
|
|
|
2007
|
|
|
2008
|
|
|
2007
|
|
|
|
(Dollars
in thousands)
|
|
|
Selected
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
|
|
42.65
|
|
%
|
|
30.01
|
|
%
|
|
43.70
|
|
%
|
|
27.84
|
%
|
|
Expense to average assets ratio
|
|
1.28
|
|
|
|
1.02
|
|
|
|
1.30
|
|
|
|
0.99
|
|
|
Return on average assets
|
|
(2.84
|
)
|
|
|
1.22
|
|
|
|
(2.90
|
)
|
|
|
1.37
|
|
|
Return on average equity
|
|
(39.30
|
)
|
|
|
13.46
|
|
|
|
(36.51
|
)
|
|
|
16.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields
earned and rates paid:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
yield on loans
|
|
5.85
|
|
%
|
|
7.93
|
|
%
|
|
6.21
|
|
%
|
|
7.97
|
%
|
|
Average
yield on investment portfolio
|
|
4.92
|
|
|
|
5.55
|
|
|
|
5.03
|
|
|
|
5.49
|
|
|
Average yield on all interest-earning assets
|
|
5.78
|
|
|
|
7.78
|
|
|
|
6.13
|
|
|
|
7.82
|
|
|
Average
rate paid on deposits
|
|
3.12
|
|
|
|
4.37
|
|
|
|
3.45
|
|
|
|
4.41
|
|
|
Average
rate paid on borrowings
|
|
3.43
|
|
|
|
5.43
|
|
|
|
3.89
|
|
|
|
5.37
|
|
|
Average rate paid on interest-bearing liabilities
|
|
3.24
|
|
|
|
4.70
|
|
|
|
3.61
|
|
|
|
4.71
|
|
|
Interest rate spread
|
|
2.54
|
|
|
|
3.08
|
|
|
|
2.52
|
|
|
|
3.11
|
|
|
Effective net spread
|
|
2.65
|
|
|
|
3.44
|
|
|
|
2.70
|
|
|
|
3.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
$
|
6,367,111
|
|
|
$
|
6,764,534
|
|
|
$
|
6,390,301
|
|
|
$
|
7,459,006
|
|
|
Average
investments
|
|
551,527
|
|
|
|
455,903
|
|
|
|
511,412
|
|
|
|
477,189
|
|
|
Average
interest-earning assets
|
|
6,918,638
|
|
|
|
7,220,437
|
|
|
|
6,901,713
|
|
|
|
7,936,195
|
|
|
Average
deposits
|
|
4,135,349
|
|
|
|
4,627,267
|
|
|
|
4,084,812
|
|
|
|
5,010,165
|
|
|
Average
borrowings
|
|
2,553,089
|
|
|
|
2,035,882
|
|
|
|
2,454,768
|
|
|
|
2,303,286
|
|
|
Average
interest-bearing liabilities
|
|
6,688,438
|
|
|
|
6,663,149
|
|
|
|
6,539,580
|
|
|
|
7,313,451
|
|
|
Excess
of interest-earning assets over
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities
|
$
|
230,200
|
|
|
$
|
557,288
|
|
|
$
|
362,133
|
|
|
$
|
622,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
originations and purchases
|
$
|
479,281
|
|
|
$
|
262,945
|
|
|
$
|
1,256,236
|
|
|
$
|
702,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|