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| FED > SEC Filings for FED > Form 8-K on 28-Jan-2004 | All Recent SEC Filings |
28-Jan-2004
Financial Statements and Exhibits
(a) Financial Statements
(b) Pro Forma Financial Information
Not Applicable.
(c) Exhibits:
99. Press Release dated January 28, 2004, regarding results for
the third quarter of 2004.ITEM 12. Results of Operations and Financial Condition
On January 28, 2004, the registrant, FirstFed Financial Corp., issued a press release setting forth the Company's fourth quarter 2003 earnings. A copy of this press release is attached and incorporated herein as Exhibit 99.
S I G N A T U R E SPursuant 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: January 28, 2004 By: /s/ Douglas J. Goddard
----------------------
Douglas J. Goddard
Chief Financial Officer
Exhibit 99
Santa Monica, California, January 28, 2004 FirstFed Financial Corp. (NYSE-FED), parent company of First Federal Bank of California, today announced net earnings of $15.2 million or $0.87 per diluted common share for the fourth quarter of 2003 compared to $18.2 million or $1.04 per diluted common share for the third quarter of 2003 and $14.3 million or $0.83 per diluted common share for the fourth quarter of 2002. Net earnings for the third quarter of 2003 included a $1.6 million reduction in net tax provision resulting from a change in the California tax law relating to bad debts. Also during the third quarter, net income of $870 thousand was recorded as a result of a revised estimate of the Bank's repurchase liability for loans sold with recourse.
Net earnings for the twelve months of 2003 were $64.5 million or $3.70 per diluted common share compared to $55.2 million or $3.15 per diluted common share for the twelve months of 2002. Yearly net earnings increased during 2003 due to higher net interest income, higher loan prepayment fees and reduced operating expenses.
Net interest income for the fourth quarter of 2003 increased by $1.4 million or 4% over the fourth quarter of 2002 due to an 8% increase in the level of interest-earning assets compared to the same period last year. The interest rate spread decreased to 3.09% for the fourth quarter of 2003 compared to 3.21% for the fourth quarter of 2002. The reduction in spread during the fourth quarter is attributable to decreased yields on the Bank's adjustable rate loan portfolio which exceeded decreases in the cost of funds during the period.
Net interest income for the twelve months of 2003 increased by $12.1 million or 9% over the twelve months of 2002 primarily due to an increase in interest rate spread to 3.22% for the year compared to 2.92% for 2002.
Loan originations reached record high levels of $660 million during the fourth quarter of 2003 and $2.3 billion for the year ended 2003 compared to $418 million and $1.3 billion for the respective periods during 2002. Single family loans comprised 75% of originations during the year 2003 compared to 57% during 2002.
Net earnings for the fourth quarter and twelve months of 2003 were also favorably impacted by increased loan fees and reductions in other operating expenses compared to the same periods last year. Loan fees increased throughout 2003 due primarily to higher levels of prepayment fees as borrowers continued to refinance into lower rate loans. Other operating expense decreased during the fourth quarter and twelve months of 2003 compared to the same periods last year as a result of reductions in legal and advertising expenses.
Allowances for loan losses (including general valuation allowances and valuation allowances for impaired loans) totaled $75.7 million or 1.70% of gross loans at December 31, 2003 compared to $75.7 million or 1.96% at December 31, 2002. Non-performing assets were 0.10% of total assets as of December 31, 2003 compared to 0.17% as of December 31, 2002.
The Company did not record a provision for loan losses during 2003 or 2002. The Company recorded net loan charge-offs of $10 thousand for the fourth quarter of 2003 and had net loan recoveries of $15 thousand during the twelve months of 2003. For the comparable periods last year, the Company recorded net loan recoveries of $50 thousand and $950 thousand during the fourth quarter and twelve months of 2002, respectively.
During 2003, the Company repurchased 33,800 shares of its common stock at an average market price of $28.53 per share. During 2002, the Company repurchased 353,000 shares of its common stock at an average market price of $25.02 per share. As approved by the Board and as previously announced, there remain 1,348,677 shares eligible for repurchase under the Company's stock repurchase program as of January 27, 2004.
As of December 31, 2003, the Company had assets totaling $4.8 billion and consolidated stockholders' equity of $436.6 million. First Federal Bank of California operates 29 full-service retail banking offices and 4 loan production offices in Southern California.
This news release contains certain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform 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, the California real estate market, branch openings, 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) 319-6014
KEY FINANCIAL RESULTS FOLLOW
FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except share data)
(Unaudited)
December 31, December 31,
2003 2002
------------------- ------------------
ASSETS
Cash and cash equivalents $ 54,318 $ 45,199
Investment securities, available-for-sale (at fair value) 116,411 103,055
Mortgage-backed securities, available-for-sale (at fair value) 135,176 200,585
Loans receivable, held-for-sale (fair value of $494 and $2,300) 492 2,293
Loans receivable, net 4,373,620 3,766,942
Accrued interest and dividends receivable 16,941 17,752
Real estate, net 1,324 347
Office properties and equipment, net 10,568 10,342
Investment in Federal Home Loan Bank (FHLB) stock, at cost 87,775 78,728
Other assets 28,397 28,486
------------------- ------------------
$ 4,825,022 $ 4,253,729
=================== ==================
LIABILITIES
Deposits $ 2,538,398 $ 2,527,026
FHLB advances 1,694,000 1,167,000
Securities sold under agreements to repurchase 122,622 155,273
Accrued expenses and other liabilities 33,435 32,789
------------------- ------------------
4,388,455 3,882,088
------------------- ------------------
COMMITMENTS AND CONTINGENCIES
outstanding 17,045,643 and 16,931,306 shares 235 234
Additional paid-in capital 37,733 35,680
Retained earnings - substantially restricted 483,360 418,885
Unreleased shares to employee stock ownership plan (125) (597)
Treasury stock, at cost, 6,497,696 and 6,463,896 shares (85,727) (84,762)
Accumulated other comprehensive earnings, net of taxes 1,091 2,201
------------------- ------------------
436,567 371,641
------------------- ------------------
$ 4,825,022 $ 4,253,729
=================== ==================
FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
------------------------------------- ------------------------------------
2003 2002 2003 2002
---------------- ---------------- --------------- ----------------
Interest income:
Interest on loans $ 55,054 $ 58,112 $ 224,779 $ 243,716
Interest on mortgage-backed securities 1,051 1,891 5,328 9,154
Interest and dividends on investments 1,181 2,435 5,774 11,008
---------------- ---------------- --------------- ----------------
Total interest income 57,286 62,438 235,881 263,878
---------------- ---------------- --------------- ----------------
Interest expense:
Interest on deposits 8,671 13,166 39,104 60,808
Interest on borrowings 12,183 14,210 49,238 67,611
---------------- ---------------- --------------- ----------------
Total interest expense 20,854 27,376 88,342 128,419
---------------- ---------------- --------------- ----------------
Net interest income 36,432 35,062 147,539 135,459
Provision for loan losses -- -- -- --
---------------- ---------------- --------------- ----------------
Net interest income after provision for loan
losses 36,432 35,062 147,539 135,459
---------------- ---------------- --------------- ----------------
Non-interest income:
Loan servicing and other fees 2,377 1,263 7,990 4,325
Retail office fees 1,432 1,256 5,095 4,604
Gain on sale of loans 62 1,242 2,444 7,806
Real estate operations, net 465 206 780 339
Other operating income 74 203 432 1,000
---------------- ---------------- --------------- ----------------
Total non-interest income 4,410 4,170 16,741 18,074
---------------- ---------------- --------------- ----------------
Non-interest expense:
Salaries and employee benefits 8,458 8,152 33,484 32,627
Occupancy 2,114 2,158 8,171 8,557
Amortization of core deposit intangible 500 498 1,995 1,962
Other expense 3,450 3,753 11,939 15,066
---------------- ---------------- --------------- ----------------
Total non-interest expense 14,522 14,561 55,589 58,212
---------------- ---------------- --------------- ----------------
Earnings before income taxes 26,320 24,671 108,691 95,321
Income tax provision 11,159 10,380 44,216 40,149
---------------- ---------------- --------------- ----------------
Net earnings $ 15,161 $ 14,291 $ 64,475 $ 55,172
================ ================ =============== ================
Other comprehensive earnings (loss), net of
taxes 52 (390) (1,110) (790)
---------------- ---------------- --------------- ----------------
Comprehensive earnings $ 15,213 $ 13,901 $ 63,365 $ 54,382
================ ================ =============== ================
Earnings per share:
Basic $ 0.89 $ 0.85 $ 3.80 $ 3.22
================ ================ =============== ================
Diluted $ 0.87 $ 0.83 $ 3.70 $ 3.15
================ ================ =============== ================
Weighted average shares outstanding:
Basic 17,027,977 16,888,883 16,986,725 17,149,712
================ ================ =============== ================
Diluted 17,505,446 17,236,018 17,407,459 17,506,129
================ ================ =============== ================
6
FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
KEY FINANCIAL RESULTS
Quarter ended December 31,
2003 2002
----------------- --------------
(Dollars in thousands, except per share data)
End of period:
Total assets $ 4,825,022 $ 4,253,729
Cash and securities $ 170,729 $ 148,254
Mortgage-backed securities $ 135,176 $ 200,585
Loans $ 4,374,112 $ 3,769,235
Core deposit intangible asset $ 7,328 $ 9,323
Deposits $ 2,538,398 $ 2,527,026
Borrowings $ 1,694,000 $ 1,322,273
Stockholders' equity $ 436,567 $ 371,641
Book value per share $ 25.61 $ 21.95
Tangible book value per share $ 25.18 $ 21.40
Stock price (period-end) $ 43.50 $ 28.95
Total loan servicing portfolio $ 4,601,240 $ 4,123,602
Loans serviced for others $ 145,475 $ 197,250
% of Adjustable mortgages 79.03 % 71.46 %
Other data:
Employees (full-time equivalent) 574 497
Branches 29 29
Loan Offices 4 4
Asset quality:
Real estate (foreclosed) $ 1,324 $ 319
Non-accrual loans $ 3,342 $ 6,722
Non-performing assets $ 4,666 $ 7,041
Non-performing assets to total assets 0.10 % 0.17 %
General valuation allowance (GVA) $ 75,238 $ 75,223
Allowances for impaired loans 496 496
----------------- --------------
Allowances for loan losses $ 75,734 75,719
Allowances for loan losses as a percent of gross loans
receivable 1.70 % 1.96 %
Loans sold with recourse $ 91,003 $ 108,606
GVA for loans sold with recourse $ 5,400 $ 6,900
GVA to loans sold with recourse 5.93 % 6.35 %
Modified loans (not impaired) $ 2,472 $ 2,299
Impaired loans, net $ 3,270 $ 1,071
Allowance for impaired loans $ 496 $ 496
Capital ratios:
Tangible capital ratio 8.48 % 8.05 %
Core capital ratio 8.48 8.05
Risk-based capital ratio 15.92 14.53
Net worth to assets ratio 9.05 8.74
FIRSTFED FINANCIAL CORP.
AND SUBSIDIARY
KEY FINANCIAL RESULTS (continued)
Three months ended December 31, Twelve months ended December 31,
------------------------------------- ------------------------------------
2003 2002 2003 2002
--------------- ----------------- ---------------- ---------------
(Dollars in thousands)
Selected ratios:
Expense ratios:
Efficiency ratio 35.61% 38.71% 34.35% 39.95%
Expense-to-average assets ratio 1.24 1.36 1.24 1.31
Return on average assets 1.30 1.33 1.43 1.24
Return on average equity 14.15 15.65 15.97 15.82
Yields earned and rates paid:
Average yield on loans and mortgage-backed
securities 5.14% 6.05% 5.49% 6.18%
Average yield on investment portfolio (1) 1.70 3.86 2.20 3.65
Average yield on all interest-earning assets
(1) 5.08 5.97 5.40 6.08
Average rate paid on deposits 1.36 2.08 1.55 2.42
Average rate paid on borrowings (2) 2.99 4.02 3.21 4.39
Average rate paid on all interest-bearing
liabilities 1.99 2.76 2.18 3.16
Interest rate spread 3.09 3.21 3.22 2.92
Effective net spread 3.22 3.38 3.35 3.09
Average balances:
Average loans and mortgage-backed securities $ 4,363,905 $ 3,961,612 $ 4,194,404 $ 4,091,852
Average investments (3) 84,967 150,729 113,624 172,996
--------------- ----------------- ---------------- ---------------
Average interest-earning assets (3) 4,448,872 4,112,341 4,308,028 4,264,848
--------------- ----------------- ---------------- ---------------
Average deposits 2,535,615 2,515,045 2,515,471 2,517,366
Average borrowings 1,616,091 1,350,902 1,529,630 1,518,283
--------------- ----------------- ---------------- ---------------
Average interest-bearing liabilities 4,151,706 3,865,947 4,045,101 4,035,649
--------------- ----------------- ---------------- ---------------
Excess of interest-earning assets over
interest-bearing liabilities $ 297,166 $ 246,397 $ 262,927 $ 229,199
=============== ================= ================ ===============
Loan originations and purchases $ 659,806 $ 417,713 $ 2,275,530$ $ 1,288,772
(1) Excludes FHLB stock dividends and other miscellaneous items. (2) Excludes accrued interest on tax assessment. (3) Excludes FHLB stock.
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