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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): January 30, 1997
FIRSTFED BANCORP, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-19609 63-1048648
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(State of other juris- (Commission (I.R.S. employer
diction of incorporation file number) identification no.)
1630 4th Avenue North, Bessemer, Alabama 35020
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(Address of principal executive offices) (zip code)
Registrants telephone number, including area code: (205) 428-8472
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Not Applicable
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(Former name of former address, if changed since last report)
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ITEM 5. OTHER EVENTS
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On January 30, 1997, the Registrant announced that it was establishing
another open-market stock repurchase program to purchase up to 61,500 shares of
the Registrant's common stock, $.01 per value which represents approximately 10%
of shares outstanding. For more information, reference is made to the
Registrant's press release dated January 30, 1997, which is attached hereto as
Exhibit 28.1, and incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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Exhibits
28.1 Press Release, January 30, 1997.
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SIGNATURES
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, thereto duly authorized.
FIRSTFED BANCORP, INC.
DATE: January 30, 1997 BY: /s/ B. K. Goodwin, III
----------------------
B. K. Goodwin, III
Chairman of the Board,
Chief Executive Officer
and President
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EXHIBIT 28.1
[LOGO OF FIRSTFED BANCORP, INC.]
Quarter Ended December 31, 1996 Press Release
Contact: B.K. Goodwin , III, CEO and President
(205) 428-8472
Page 1 of 4
FOR IMMEDIATE RELEASE
FirstFed Bancorp, Inc. Announces Third Quarter Financial Results
and Stock Repurchase Program
(Fiscal year end March 31)
Bessemer, Alabama, January 30, 1997
FirstFed Bancorp, Inc. reported quarterly net income for the third quarter ended
December 31, 1996, of $540,000, or $0.86 per share, compared to net income of
$250,000, or $0.37 per share, for the same quarter a year ago. For the nine
months ended December 31, 1996, net income was $575,000, or $0.92 per share,
compared to $635,000, or $0.95 per share, for the corresponding period last
year.
B.K. Goodwin, III, CEO and President of FirstFed Bancorp, Inc. said, "Excluding
the impact of the payment of a SAIF special assessment and a litigation
settlement, which are nonrecurring items, net income and earnings per share
would have been $1,214,000 and $1.94, respectively, for the nine months ended
December 31, 1996. We are pleased with this record level of core operating
results attained by the Company for the nine month period."
The Company announced that it is establishing another stock repurchase program.
The Board of Directors authorized the purchase of up to 10% of the outstanding
common stock, or up to 61,500 shares, during the next 12 months. The actual
amount of the repurchases, if any, and prices to be paid will be dependent upon
market conditions, and there is no guarantee as to the exact number of shares to
be repurchased by the Company.
Total assets increased to $176,496,000 at December 31, 1996, compared to
$166,184,000 at March 31, 1996, the fiscal year end for FirstFed Bancorp, Inc.
Deposits rose 7.6% to $156,913,000 at December 31, 1996, from $145,858,000 at
March 31, 1996. This increase is the result of growth in certificates of
deposits.
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Page 2 of 4
FirstFed Bancorp, Inc. is the holding company for First Federal Savings Bank and
First State Bank of Bibb County. First Federal Savings Bank operates in Alabama
from its main office in Bessemer and branch offices in Hoover, Hueytown and
Pelham. An additional branch is currently under construction in Vance. First
State Bank of Bibb County operates in Alabama from its main office in West
Blocton and branch offices in Centreville and Woodstock.
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Page 3 of 4
FIRSTFED BANCORP, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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(Dollar amounts in thousands)
<TABLE>
<CAPTION>
ASSETS December 31, March 31,
1996 1996
------------ ---------
<S> <C> <C>
Cash and Cash Equivalents:
Cash on hand and in banks $ 1,791 $ 2,221
Interest-bearing deposits in other banks 5,684 5,018
Federal funds sold 3,875 4,875
-------- --------
11,350 12,114
-------- --------
Securities available for sale, at fair value 10,841 10,845
Assets held for sale, at lower of cost or market 1,044 1,582
Securities, at amortized cost, fair value of
$6,905 and $3,821, respectively 6,839 3,808
Mortgaged-backed securities, at amortized cost,
fair value of $10,001 and $4,778, respectively 9,988 4,766
Loans receivable, net 129,542 126,199
Land, buildings and equipment, net 2,564 2,606
Goodwill 1,514 1,598
Real estate owned 66 12
Real estate held for investment 997 997
Accrued interest receivable 1,480 1,326
Other assets 271 331
-------- --------
$176,496 $166,184
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $156,913 $145,858
Borrowed funds 1,000 2,002
Accrued interest payable 134 172
Income taxes payable 168 232
Dividends payable 123 97
Other liabilities 599 592
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158,937 148,953
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Stockholders' Equity:
Common stock, $.01 par value 3,000,000 shares
authorized, 735,635 shares issued and 612,961
shares outstanding 7 7
Paid-in capital 6,539 6,457
Retained earnings 13,941 13,831
Treasury stock (2,774) (2,774)
Unearned compensation (114) (204)
Unrealized loss on securities available
for sale, net (40) (86)
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17,559 17,231
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$176,496 $166,184
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</TABLE>
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Page 4 of 4
FIRSTFED BANCORP, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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(Dollar amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended Ended
December 31 December 31
------------------ ------------------
1996 1995 1996 1995
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<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 2,891 $ 2,285 $ 8,500 $ 6,642
Interest on mortgage-backed securities 164 84 390 262
Interest and dividends on securities 281 89 783 294
Other interest income 82 82 300 195
-------- -------- -------- --------
Total interest income 3,418 2,540 9,973 7,393
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INTEREST EXPENSE:
Interest on deposits 1,850 1,363 5,390 3,958
Interest on other borrowings 19 40 79 143
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Total interest expense 1,869 1,403 5,469 4,101
-------- -------- -------- --------
Net interest income 1,549 1,137 4,504 3,292
Provision for loan losses 50 15 135 45
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Net interest income after
provision for loan losses 1,499 1,122 4,369 3,247
-------- -------- -------- --------
NONINTEREST INCOME:
Fees for customer service 164 51 453 156
Miscellaneous operating and
non-operating income, net 55 55 164 84
-------- -------- -------- --------
Total noninterest income 219 106 617 240
-------- -------- -------- --------
NONINTEREST EXPENSES:
Salaries and employee benefits 501 515 1,578 1,365
Office building and equipment expenses 123 93 381 267
Deposit insurance expense 69 73 228 210
Loss on real estate owned 1 - 3 1
Amortization of goodwill 28 - 84 -
Other operating expenses 302 252 909 679
Deposit insurance special
assessment (21) - 704 -
Litigation expense (75) - 250 -
-------- -------- -------- --------
Total noninterest expenses 928 933 4,137 2,522
-------- -------- -------- --------
Income before income taxes 790 295 849 965
PROVISION FOR INCOME TAXES 250 45 274 330
-------- -------- -------- --------
Net income $ 540 $ 250 $ 575 $ 635
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EARNINGS PER SHARE $.86 $.37 $.92 $.95
======== ======== ======== ========
AVERAGE NUMBER OF SHARES OUTSTANDING 624,490 660,470 623,163 670,110
======== ======== ======== ========
DIVIDENDS DECLARED PER SHARE $.20 $.16 $.76 $1.12
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</TABLE>