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 26, 2000
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
Total number of pages is 4
Index to Exhibit is on Page 3.
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Item 5. Other Events.
On April 26, 2000, the registrant, FirstFed Financial Corp., issued a press
release. A copy of this press release is attached and incorporated herein as
Exhibit 99.
Item 7. Financial Statements and Exhibits
a) Financial Statements of businesses acquired.
Not applicable.
b) Pro forma financial information.
Not applicable.
c) Exhibits
99. Press release dated April 26, 2000.
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 26, 2000 By: BABETTE E. HEIMBUCH
Babette E. Heimbuch
President and Chief
Executive Officer
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INDEX TO EXHIBITS
Item Page
99 Press Release dated April 26, 2000 4
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FIRSTFED REPORTS RESULTS FOR THE FIRST QUARTER OF 2000
Santa Monica, California, April 26, 2000 --FirstFed Financial
Corp. (NYSE-FED), parent company of First Federal Bank of California,
today announced net earnings of $8.8 million or 49 cents per share of
common stock for the first quarter of 2000, compared to $8.9 million
or 43 cents per share for the first quarter of 1999. Quarterly
earnings were slightly less than last year due to decreases in the
following: loan and other fees, gain on sale of loans, and real
estate operations. An increase in net interest income and a decline
in non-interest expense somewhat offset the decreases. All
per-share earnings are presented on a diluted basis.
The Company's general valuation allowance was $71.1 million or
1.99% of loans and real estate owned as of March 31, 2000, compared
to $69.1 million or 2.34% at March 31, 1999. Non-performing assets
were 0.36% of total assets as of March 31, 2000 compared to 0.55% of
total assets as of March 31, 1999.
The Company did not record a provision for loan losses during
the first quarter of 2000 or for the comparable 1999 period. The
Company recorded net recoveries of $567 thousand during the first
quarter of 2000 compared to charge-offs, net of recoveries of $449
thousand during the first quarter of 1999.
The ratio of non-interest expense to average assets decreased to
1.24% for the first quarter of 2000 from 1.32% for the comparable
1999 period. The ratio decreased due to growth in average assets,
and a decline in incentive-based compensation.
On March 31, 2000, First Federal Bank of California acquired two
retail savings branches from Fidelity Federal Bank. In the
transaction, First Federal Bank assumed $168.5 million in branch
deposits and acquired $125.2 million in multi-family residential
mortgage loans. Goodwill totaling $10.4 million resulted from the
purchase. One existing First Federal branch will be closed during
the third quarter of 2000 and consolidated with one of the acquired
Fidelity branches. This will bring the total retail branch network
to 25 branches.
The total loan portfolio (including mortgage-backed securities)
increased by $215.3 million during the first quarter of 2000. The
increase during the first quarter of 2000 is attributable to the loan
purchases mentioned above plus loan originations of $214.0 million,
offset by loan sales and principal amortization.
The Company repurchased 666,700 shares of its common stock at an
average price of $12.49 during the first quarter of 2000. As of
March 31, 2000, 1,043,816 shares remain eligible for repurchase under
the Company's authorized repurchase program.
At March 31, 2000, First Federal Bank met the capital
requirements necessary to be deemed "well-capitalized" for regulatory
capital purposes. It has 26 full-service retail banking offices and 4
retail loan offices.
KEY FINANCIAL RESULTS FOLLOW
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<TABLE>
<CAPTION>
FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)
(Unaudited)
March 31, December 31,
ASSETS 2000 1999____
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Cash and cash equivalents $ 59,812 $ 101,807
Investment securities,
available-for-sale (at fair value) 151,403 151,195
Mortgage-backed securities,
available-for-sale (at fair value) 406,271 428,641
Loans receivable, held-for-sale
(fair value of $1,585 and $2,324) 1,581 2,303
Loans receivable, net 3,296,665 3,058,244
Accrued interest and dividends receivable 23,482 21,825
Real estate 2,545 2,236
Office properties and equipment, net 11,620 11,745
Investment in Federal Home Loan Bank
(FHLB) stock, at cost 72,714 71,722
Other assets 16,100 6,787
$ 4,042,193 $3,856,505
LIABILITIES
Deposits $2,208,143 $2,061,357
FHLB advances and other borrowings 1,229,000 1,169,000
Securities sold under agreements to
repurchase 332,546 363,635
Accrued expenses and other liabilities 43,361 31,380
3,813,050 3,625,372
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, par value $.01 per share;
authorized 100,000,000 shares; issued 23,274,263
and 23,269,051 shares, outstanding
17,361,573 and 18,023,061 shares 233 233
Additional paid-in capital 31,598 31,561
Retained earnings - substantially restricted 283,782 274,946
Loan to employee stock ownership plan (1,783) (1,759)
Treasury stock, at cost,
5,912,690 and 5,245,990 shares (73,896) (65,568)
Accumulated other comprehensive loss,
net of taxes (10,791) (8,280)
229,143 231,133
$4,042,193 $3,856,505
</TABLE>
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<TABLE>
<CAPTION>
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,
<S> <C> <C>
2000 1999
Interest income:
Interest on loans $ 61,126 $ 54,007
Interest on mortgage-backed securities 6,142 7,609
Interest and dividends on investments 3,834 3,121
Total interest income _ 71,102 64,737
Interest expense:
Interest on deposits 23,130 22,664
Interest on borrowings 21,992 16,908
Total interest expense 45,122 39,572
Net interest income 25,980 25,165
Provision for loan losses - -
Net interest income
after provision for losses 25,980 25,165
Other income:
Loan fees 383 679
Loan servicing fees 355 606
Gain (loss) on sale of loans (35) 583
Real estate operations, net (38) 302
Other operating income _1,060 963
Total other income 1,725 3,133
Non-interest expense:
Compensation 6,630 6,990
Occupancy 1,956 1,898
Goodwill amortization 26 121
Other expenses 3,633 3,579
Total non-interest expense 12,245 12,588
Earnings before income taxes 15,460 15,710
Income tax provision 6,625 6,795
Net earnings $ 8,835 $8,915
Other comprehensive earnings (loss)
unrealized gain (loss) on securities
available-for-sale, net of taxes (2,511) 626
Comprehensive earnings $ 6,324 $ 9,541
Earnings per share
Basic $0.50 $ 0.43
Diluted $0.49 $ 0.43
Weighted average shares outstanding
Basic 17,819,996 20,553,809
Diluted 17,930,138 20,715,099
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KEY FINANCIAL RESULTS ARE HIGHLIGHTED BELOW
Quarter Ended March 31,
2000 __ 1999__
(Dollars in thousands, except per share data)
End of period:
Total assets $4,042,193 $ 3,964,891
Cash and securities $ 211,215 $ 531,084
Mortgage-backed securities $ 406,271 $ 525,937
Loans $3,298,246 $ 2,785,158
Goodwill $ 11,242 $ 1,179
Deposits $2,208,143 $ 2,155,879
Borrowings $1,561,546 $ 1,527,531
Stockholders' equity $ 229,143 $ 235,794
Book value per share $ 13.20 $ 12.14
Stock price (period-end) $ 13.25 $ 16.06
Total loan servicing portfolio $4,024,333 $ 3,836,554
Loans serviced for others $ 359,980 $ 424,599
% of Adjustable mortgages 92.49% 94.52%
Other data:
Employees (full-time equivalent) 459 478
Branches 26 24
Loan Offices 4 6
Quarter Ended March 31,___
2000 1999____
(Dollars in thousands)
Asset quality:
Real estate (foreclosed) $ 2,511 $ 5,718
Non-accrual loans $ 11,861 $ 16,056
Non-performing assets $ 14,372 $ 21,774
Non-performing assets to total
assets 0.36% 0.55%
General valuation allowance(GVA) $ 71,097 $ 69,144
GVA to assets with loss exposure* 1.99% 2.34%
Loans sold with recourse $ 163,698 $ 199,170
GVA for loans sold with recourse $ 12,824 $ 12,824
GVA to loans sold with recourse 7.83% 6.44%
Modified loans (not impaired) $ 921 $ 5,007
Impaired loans, net $ 11,726 $ 15,231
Allowance for impaired loans $ 2,371 $ 5,901
Capital ratios:
Tangible capital ratio 5.52% 7.07%
Core capital ratio 5.52 7.07
Risk-based capital ratio 11.00 14.50
Net worth to assets ratio 5.67 5.95
Loan originations and purchases $ 339,198 $ 195,246
Net interest income $ 25,980 $ 25,165
* Primarily the Bank's loans receivable
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Quarter Ended March 31,
2000 1999 _
(Dollars in thousands)
Selected ratios:
Expense ratios:
Efficiency ratio 44.14% 45.92%
Expense-to-average-assets ratio 1.24 1.32
Return on average assets 0.89 0.93
Return on average equity 15.36 14.47
Yields earned and rates paid:
Average yield on loans and
mortgage-backed securities 7.59% 7.47%
Average yield on investment portfolio 6.17 4.93
Average yield on all interest-
earning assets 7.52 7.33
Average rate paid on deposits 4.49 4.27
Average rate paid on borrowings 5.89 5.61
Average rate paid on all interest-
bearing liabilities 5.08 4.75
Interest rate spread 2.44 2.58
Effective net spread 2.63 2.74