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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from N/A to
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Commission File Number: 1-9566
FirstFed Financial Corp.
(Exact name of registrant as specified in its charter)
Delaware 95-4087449
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) 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
Securities registered pursuant to Section 12(b) of the Act:
Common Stock $0.01 par value
(Title of Class)
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
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The approximate aggregate market value of the voting stock held
by non-affiliates of the Registrant as of February 15, 1996:
$139,389,004.
The number of shares of Registrant's $0.01 par value common stock
outstanding as of February 15, 1996: 10,614,402.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Proxy Statement for Annual Meeting of
Stockholders, April 24, 1996 (Parts III & IV).
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K (sub-section 229.405 of
this chapter) is not contained herein, and will not be contained,
to the best of Registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of
the Form 10-K or any amendment to this Form 10-K. [X]
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ITEM 7--MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
The Company's results of operations are affected by its
levels of net interest income, provisions for loan losses,
non-interest income, non-interest expense and income taxes. The
Company's results are strongly influenced by the Southern
California economy in which it operates.
Net earnings of $6.5 million or $0.61 per share were
recorded in 1995. Net losses of $24.5 million and $2.0 million
were reported in 1994 and 1993, respectively. On a per share
basis, the losses during 1994 and 1993 were $2.32 and $0.20,
respectively. The Company's results over the last three years
have been impacted by the prolonged economic recession in
Southern California. Loan charge-offs were $39.7 million, $45.4
million, and $48.6 million during 1995, 1994 and 1993,
respectively. The Company also transferred $21.4 million and
$32.5 million to valuation allowances for impaired loans during
1995 and 1994, respectively. Loan charge-offs during 1994
include $13.8 million in losses directly attributable to the
January 17, 1994 earthquake in Southern California. Charge-offs
related to the 1994 earthquake during 1995 were $2.4 million.
Certain key financial ratios for the Company are presented
below:
<TABLE>
<CAPTION>
Average
Return on Return on Equity to
Average Average Average
Assets Equity Assets
--------- --------- ---------
<S> <C> <C> <C>
1995................................. .16% 3.47% 4.49%
1994................................. (.64) (12.78) 4.97
1993................................. (.06) (1.01) 5.61
1992................................. .65 11.09 5.86
1991................................. .90 16.09 5.63
</TABLE>
Core earnings reflect the Company's results from basic
operations and were $45.6 million in 1995, $46.5 million in 1994
and $62.2 million in 1993. Core earnings are defined as net
interest income before provision for loan losses plus other
income (excluding gain on sale of loans and securities) less
non-interest expense. Non-recurring items are excluded from
core earnings. Core earnings decreased in 1995 compared to 1994
primarily as a result of decreased loan servicing fees due to
payoffs of loans serviced for others. Core earnings decreased in
1994 compared to 1993 primarily due to a decline in net interest
income.
Non-performing assets (primarily loans 90 days past due or
in foreclosure plus foreclosed real estate) were $96.6 million or
2.33% of total assets at December 31, 1995. This figure compares
to $92.6 million or 2.23% of total assets at December 31, 1994
and $118.2 million or 3.23% of total assets at December 31, 1993.
The increase in non-performing assets during 1995 was due
primarily to growth in foreclosed real estate and a small
increase in non-performing loans. The decrease during 1994
compared to 1993 was due to a bulk sale of $29.6 million in non-
performing loans and $2.3 million in foreclosed real estate.
Increased delinquencies and foreclosures resulting from
unemployment and decreased real estate values in Southern
California have impacted the level of non-performing assets over
the last four years.
The Company issued $50 million in 10-year Notes during 1994.
The net proceeds were contributed to the Bank as capital. At
December 31, 1995, the Bank's regulatory risk-based capital ratio
increased to 10.98% and the tangible and core capital ratios
increased to 5.63%. The Bank met the regulatory capital standards
to be deemed "well-capitalized" at December 31, 1995.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.,
a Delaware corporation
By: /s/ William S. Mortensen
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William S. Mortensen,
Chairman and Chief Executive Officer
Date: March 26, 1996
POWER OF ATTORNEY
Each person whose signature appears below hereby authorizes
William S. Mortensen and James P. Giraldin, and each of them or
either of them, as attorney-in-fact to sign on his or her behalf
as an individual and in every capacity stated below, and to file
all amendments to the Registrant's Form 10-K, and the Registrant
hereby confers like authority to sign and file in its behalf.
Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in the capacities
indicated on the 26th day of March, 1996.
SIGNATURE TITLE
/s/ William S. Mortensen Chairman of the Board (Principal
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William S. Mortensen Executive Officer)
/s/ James P. Giraldin Executive Vice President (Principal
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James P. Giraldin Financial Officer)
/s/ Ruben H. Valle Senior Vice President and Controller
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Ruben H. Valle (Principal Accounting Officer)
/s/ Samuel J. Crawford, Jr. Director
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Samuel J. Crawford, Jr.
/s/ Christopher M. Harding Director
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Christopher M. Harding
/s/ Babette E. Heimbuch Director
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Babette E. Heimbuch
/s/ James L. Hesburgh Director
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James L. Hesburgh
/s/ June Lockhart Director
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June Lockhart
/s/ William G. Ouchi Director
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William G. Ouchi
/s/ William P. Rutledge Director
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William P. Rutledge
/s/ Charles F. Smith Director
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Charles F. Smith
/s/ Steven L. Soboroff Director
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Steven L. Soboroff
/s/ John R. Woodhull Director
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John R. Woodhull
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