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) October 25, 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 12
Index to Exhibit is on Page 3.
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Item 5. Other Events.
On October 25, 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 October 25, 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: October 25, 2000 By: /S/
Douglas J. Goddard
Chief Financial Officer
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INDEX TO EXHIBITS
Item Page
99 Press Release dated October 25, 2000 4
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FIRSTFED REPORTS RESULTS FOR THE THIRD QUARTER OF 2000
Santa Monica, California, October 25, 2000 --FirstFed Financial
Corp. (NYSE-FED), parent company of First Federal Bank of California,
today announced net earnings of $9.5 million or 54 cents per share of
common stock for the third quarter of 2000, compared to earnings of $8.7
million or 46 cents per share before the extraordinary item recorded
during the third quarter of 1999. Net earnings after the extraordinary
item were $8.4 million or 44 cents per share for the third quarter of
1999. The extraordinary item during 1999 was due to a loss on the early
extinguishment of debt. The increase in quarterly earnings compared to
last year was due to growth in net interest income, offset by decreases in
gain on sale of loans and real estate operations. All per share earnings
are presented on a diluted basis.
Net earnings for the first nine months of 2000 were $27.7 million or
$1.58 per share, compared to earnings of $26.7 million or $1.36 per share
for the first nine months of 1999 before the extraordinary item. Net
earnings after the extraordinary item were $26.4 million or $1.34 per
share for the first nine months of 1999. The increase in year-to-date net
earnings resulted from the same factors that affected third quarter
earnings.
Loan originations were $854.9 million for the first nine months of
2000, compared to $745.2 million for the same period of the prior year.
Loan purchases totaling $125.2 million and $122.1 million were included in
loan originations during the first nine months of 2000 and the first nine
months of 1999, respectively. Loan originations for the third quarter of
2000 were $228.8 million compared to $339.1 million during same quarter of
last year. Loan purchases totaling $122.1 million were included in loan
originations during the third quarter of 1999. There were no loan
purchases during the third quarter of 2000. Average interest-earning
assets increased to $4.1 billion and $3.9 billion for the third quarter
and first nine months of 2000 from $3.5 billion for both the third quarter
and first nine months of 1999.
Income from real estate operations decreased during the third
quarter and first nine months of 2000 due to decreased levels of
foreclosed real estate during the periods. The Bank's level of
foreclosures and delinquencies has continued to improve as a result of the
strong Southern California economy and real estate market. Non-performing
assets were 0.25% of total assets as of September 30, 2000 compared to
0.40% of total assets as of December 31, 1999 and 0.37% of total assets as
of September 30, 1999.
The Company recorded net loan charge-offs of $181 thousand during
the third quarter of 2000 and net loan loss recoveries of $605 thousand
during the first nine months of 2000. In comparison, net loan loss
recoveries of $315 thousand were recorded during the third quarter of 1999
and net loan charge-offs of $898 thousand were recorded during the first
nine months of 1999. The Company's general valuation allowance was $71.7
million or 1.91% of loans and real estate owned as of September 30, 2000,
compared to $70.3 million or 2.15% as of December 31, 1999 and $69.3
million or 2.16% at September 30, 1999.
The Company repurchased 821,500 shares of its common stock at an
average price of $12.39 during the first nine months of 2000. No shares
were repurchased during the third quarter of 2000. As of September 30,
2000, 889,016 shares remain eligible for under the Company's authorized
repurchase program.
At September 30, 2000, First Federal Bank met the capital
requirements necessary to be deemed "well-capitalized" for regulatory
capital purposes. It has 25 full-service retail banking offices and 4
retail loan offices.
KEY FINANCIAL RESULTS FOLLOW
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<CAPTION>
FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)
(Unaudited)
September 30, December 31,
ASSETS 2000 1999
<S> <C> <C>
Cash and cash equivalents $ 47,234 $ 101,807
Investment securities,
available-for-sale (at fair value) 142,375 151,195
Mortgage-backed securities,
available-for-sale (at fair value) 381,074 428,641
Loans receivable, held-for-sale
(fair value of $1,422 and $2,324) 1,422 2,303
Loans receivable, net 3,536,906 3,058,244
Accrued interest and dividends
receivable 26,758 21,825
Real estate 2,031 2,236
Office properties and equipment, net 11,045 11,745
Investment in Federal Home Loan Bank
(FHLB) stock, at cost 76,700 71,722
Other assets 26,681 19,607
$4,252,226 $3,869,325
LIABILITIES
Deposits $2,159,879 $2,061,357
FHLB advances and other borrowings 1,469,000 1,169,000
Securities sold under agreements
to repurchase 321,822 363,635
Accrued expenses and other liabilities 52,298 44,200
4,002,999 3,638,192
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, par value $.01 per share;
authorized 100,000,000 shares; issued
23,293,799 and 23,269,051 shares,
outstanding 17,226,309 and 18,023,061
shares 233 233
Additional paid-in capital 31,725 31,561
Retained earnings - substantially
restricted 302,629 274,946
Loan to employee stock ownership plan (1,833) (1,759)
Treasury stock, at cost,
6,067,490 and 5,245,990 shares (75,743) (65,568)
Accumulated other comprehensive loss,
net of taxes (7,784) (8,280)
249,227 231,133
$4,252,226 $3,869,325
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<CAPTION>
FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Interest income:
Interest on loans $ 71,967 $ 53,097 $ 199,580 $160,428
Interest on mortgage-backed
securities 6,064 6,443 18,302 21,095
Interest and dividends on
investments 3,949 4,131 11,655 10,582
Total interest income 81,980 63,671 229,537 192,105
Interest expense:
Interest on deposits 25,832 21,141 73,470 65,073
Interest on borrowings 29,458 18,235 77,230 52,353
Total interest expense 55,290 39,376 150,700 117,426
Net interest income 26,690 24,295 78,837 74,679
Provision for loan losses - - - -
Net interest income after
provision for losses 26,690 24,295 78,837 74,679
Other income:
Loan servicing and other fees 886 968 2,418 3,352
Gain on sale of loans 19 111 22 1,198
Real estate operations, net 58 685 496 2,513
Other operating income 987 1,049 3,157 3,040
Total other income 1,950 2,813 6,093 10,103
Non-interest expense
Compensation 6,775 6,664 20,214 20,291
Occupancy 2,022 1,877 5,999 5,767
Goodwill amortization 399 122 824 362
Other expenses 3,080 3,327 10,054 11,271
Total non-interest expense 12,276 11,990 37,091 37,691
Earnings before income taxes and
extraordinary item 16,364 15,118 47,839 47,091
Income tax provision 6,867 6,409 20,156 20,364
Earnings before extraordinary item 9,497 8,709 27,683 26,727
Extraordinary item
Loss on early extinguishment of
debt, net of taxes - (351) - (351)
Net earnings $ 9,497 $ 8,358 $ 27,683 $ 26,376
Other comprehensive earnings (loss),
net of taxes 3,049 (1,268) 496 (7,944)
Comprehensive earnings $ 12,546 $7,090 $28,179 $18,432
Basic EPS:
EPS before extraordinary item $ 0.55 $ 0.46 $ 1.59 $ 1.37
Extraordinary item - (0.02) - (0.02)
EPS after extraordinary item $ 0.55 $ 0.44 $ 1.59 $ 1.35
Diluted EPS:
EPS before extraordinary item $ 0.54 $ 0.46 $ 1.58 $ 1.36
Extraordinary item - (0.02) - (0.02)
EPS after extraordinary item $ 0.54 $ 0.44 $ 1.58 $ 1.34
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<CAPTION>
KEY FINANCIAL RESULTS ARE HIGHLIGHTED BELOW
September 30,
2000 1999
<S> <C> <C>
End of period:
Total assets $4,252,226 $ 3,762,145
Cash and securities $ 189,609 $ 227,864
Mortgage-backed securities $ 381,074 $ 447,444
Loans $3,538,328 $ 2,973,228
Goodwill $ 10,445 $ 938
Deposits $2,159,879 $ 2,004,212
Borrowings $1,790,822 $ 1,491,283
Stockholders' equity $ 249,227 $ 228,541
Book value per share $ 14.47 $ 12.41
Tangible book value per share $ 13.86 $ 12.36
Stock price (period-end) $ 23.00 $ 17.38
Total loan servicing portfolio $4,325,125 $ 3,787,076
Loans serviced for others $ 337,780 $ 398,244
% of Adjustable mortgages 92.64% 92.02%
Other data:
Employees (full-time equivalent) 444 466
Branches 25 24
Loan Offices 4 5
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September 30,
2000 1999
(Dollars in thousands, except per share data)
<S> <C> <C>
Asset quality:
Real estate (foreclosed) $ 1,998 $ 2,017
Non-accrual loans $ 8,456 $ 12,078
Non-performing assets $ 10,454 $ 14,095
Non-performing assets to total
assets 0.25% 0.37%
General valuation allowance
(GVA) $ 71,713 $ 69,301
GVA to assets with loss
exposure * 1.91% 2.16%
Loans sold with recourse $ 155,047 $ 187,708
GVA for loans sold with recourse $ 12,824 $ 12,824
GVA to loans sold with recourse 8.27% 6.83%
Modified loans (not impaired) $ 1,306 $ 846
Impaired loans, net $ 8,813 $ 11,644
Allowance for impaired loans $ 1,792 $ 5,294
Capital ratios:
Tangible capital ratio 5.69% 7.08%
Core capital ratio 5.69% 7.08%
Risk-based capital ratio 11.30% 13.46%
Net worth to assets ratio 5.86% 6.07%
* Primarily the Bank's loans receivable
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<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Weighted average shares
outstanding
Basic 17,217,052 18,785,478 17,420,034 19,550,337
Diluted 17,441,026 18,946,508 17,566,316 19,723,254
Loan originations and purchases $ 228,798 $ 339,123 $ 854,884 $ 745,248
Selected ratios: **
Expense ratios:
Efficiency ratio 42.89% 44.41% 43.68% 45.09%
Expense-to-average-assets ratio 1.16 1.30 1.21 1.34
Return on average assets 0.90 0.94 0.90 0.95
Return on average equity 15.64 14.99 15.61 14.89
Yields earned and rates paid:
Average yield on loans and
mortgage-backed securities 7.94% 7.28% 7.73% 7.38%
Average yield on investment
portfolio*** 6.62 5.88 6.22 5.35
Average yield on all interest-
earning assets*** 7.90 7.20 7.66 7.27
Average rate paid on deposits 4.79 4.13 4.63 4.18
Average rate paid on borrowings 6.55 5.51 6.22 5.53
Average rate paid on all interest-
bearing liabilities 5.59 4.67 5.32 4.69
Interest rate spread 2.31 2.53 2.34 2.58
Effective net spread 2.48 2.72 2.52 2.75
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<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Average balances:
Average loans
and mortgage-backed securities $3,908,839 $3,270,359 $3,740,957 $3,282,975
Average investments **** 148,535 217,901 163,052 194,247
Average interest-
earning assets **** 4,057,374 3,488,260 3,904,009 3,477,222
Average deposits 2,146,262 2,030,290 2,121,575 2,082,816
Average borrowings 1,787,548 1,312,683 1,652,719 1,264,398
Average interest-bearing
liabilities 3,933,810 3,342,973 3,774,294 3,347,214
Excess of interest-earning
assets over interest-bearing
liabilities $ 123,564 $ 145,287 $ 129,715 $ 130,008
** Ratios are based on earnings before extraordinary items.
*** Excludes FHLB stock dividends and other miscellaneous items.
**** Excludes FHLB stock.
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