FedFirst Financial Corporation Announces Fourth Quarter 2006 Results
31 Januar 2007 - 1:30PM
Business Wire
FedFirst Financial Corporation (NASDAQ Capital:FFCO; the
�Company�), the parent company of First Federal Savings Bank, today
announced a net loss of $34,000 for the quarter ended December 31,
2006 compared to a net loss of $505,000 for the quarter ended
December 31, 2005. Net income for the year ended December 31, 2006
was $409,000 compared to a net loss of $102,000 for the year ended
December 31, 2005. Basic and diluted earnings per share were
$(0.01) and $(0.08) for the quarters ended December 31, 2006 and
2005, respectively. Basic and diluted earnings per share for the
year ended December 31, 2006 was $0.06. Earnings per share data for
the year ended December 31, 2005 is not presented since the Company
was wholly owned by FedFirst Financial MHC prior to the completion
of its initial public offering on April 6, 2005. Fourth Quarter
Earnings Net interest income remained comparable at $1.6 million
for the quarters ended December 31, 2006 and 2005. Net interest
rate spread and net interest margin continued to compress and were
1.76% and 2.31%, respectively, for the quarter ended December 31,
2006 compared to 2.02% and 2.47%, respectively, for the quarter
ended December 31, 2005. Interest income increased $324,000 or 9.6%
to $3.7 million compared to $3.4 million for the same quarter last
year due to an increase in loans and yields on securities. Interest
expense increased $377,000 to $2.2 million due to an increase in
the cost of funds to attract and retain deposits and the
replacement of maturing lower cost FHLB advances. Noninterest
income decreased $12,000 to $470,000 for the quarter ended December
31, 2006 compared to the same period in 2005. The decrease was
primarily attributable to a decrease in fee and service charge
income, which includes prepayment penalties on mortgage loans, as
well as a decrease in income from bank owned life insurance, which
was partially offset by an increase in insurance commission income.
Noninterest expense decreased $605,000 to $2.0 million for the
quarter ended December 31, 2006 compared to $2.6 million for the
same period in 2005. Noninterest expense for the prior period
included approximately $687,000 of compensation and benefits
expense related to the termination of employment of the former
Chief Financial Officer. Year to Date Earnings Net interest income
totaled $6.2 million for the year ended December 31, 2006 compared
to $6.4 million for the same period last year. Net interest spread
and net interest margin were 1.88% and 2.39%, respectively, for the
year ended December 31, 2006 compared to 2.03% and 2.41%,
respectively, for the year ended December 31, 2005. Noninterest
income totaled $2.2 million at December 31, 2006 which is
comparable to the same period last year. Although comparable, the
composition from the prior year changed with an increase of $66,000
in insurance commissions and gains of $33,000 and $29,000 related
to the sale of real estate owned and the sale of a majority of the
student loan portfolio, respectively. These increases were
partially offset by a decrease in fees and service charges
primarily related to prepayment penalties received on mortgage
loans. Noninterest expense decreased to $7.6 million for the year
ended December 31, 2006 compared to $8.5 million for the same
period in 2005. As noted above in the quarterly results, the prior
period results includes compensation and benefits expense related
to the termination of employment of the former Chief Financial
Officer and approximately $450,000 of expenses related to the
Retirement Agreement entered into with the former President and CEO
which occurred in the third quarter of 2005. Financial Condition
Total assets were $283.5 million at December 31, 2006 compared to
$276.2 million at December 31, 2005. The increase in total assets
was primarily the result of an increase of $5.1 million in
securities and an increase of $3.6 million in loans. We also
experienced deposit growth of $18.6 million from year end which was
primarily in short term certificates. The growth in deposits has
allowed us to decrease our FHLB advances by $13.1 million. Mr. John
G. Robinson, President and Chief Executive Officer of the Company,
stated, �Our balance sheet is beginning to positively�reshape as
our transition to a proactive sales culture takes effect. We look
forward to continued growth in 2007, which will include significant
investments in our infrastructure allowing us to better serve our
customers.� FedFirst Financial Corporation is the parent company of
First Federal Savings Bank, a community-oriented financial
institution operating eight full-service branch locations in
southwestern Pennsylvania. First Federal offers a broad array of
retail and commercial lending and deposit services and provides
commercial and personal insurance services through Exchange
Underwriters, Inc., its 80% owned subsidiary. Financial highlights
of the Company are attached. Statements contained in this news
release that are not historical facts may constitute
forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995 and such forward-looking
statements are subject to significant risks and uncertainties. The
Company intends such forward-looking statements to be covered by
the safe harbor provisions contained in the Act. The Company�s
ability to predict results or the actual effect of future plans or
strategies is inherently uncertain. Factors which could have a
material adverse effect on the operations and future prospects of
the Company and its subsidiaries include, but are not limited to,
changes in market interest rates, general economic conditions,
changes in federal and state regulation, actions by our
competitors, loan delinquency rates and our ability to control
costs and expenses and other factors that may be described in the
Company�s annual report on Form 10-KSB as filed with the Securities
and Exchange Commission. These risks and uncertainties should be
considered in evaluating forward-looking statements and undue
reliance should not be placed on such statements. FEDFIRST
FINANCIAL CORPORATIONSELECTED FINANCIAL INFORMATION � � (In
thousands, except share and per share data) December 31,2006
December 31,2005 Selected Financial Condition Data: Total assets $
283,484� $ 276,176� Cash and cash equivalents 4,432� 6,332�
Securities available-for-sale 83,045� 77,947� Loans receivable, net
174,718� 171,162� Deposits 143,495� 124,897� Federal Home Loan Bank
advances 89,323� 102,404� Equity $ 46,411� $ 45,400� � � Three
Months EndedDecember 31, Year EndedDecember 31, 2006� 2005� 2006�
2005� Selected Operations Data: Total interest income $ 3,709� $
3,385� $ 13,869� $ 13,431� Total interest expense 2,152� 1,775�
7,663� 7,047� Net interest income 1,557� 1,610� 6,206� 6,384�
Provision for loan losses 15� 35� 84� 85� Net interest income after
provision for loan losses 1,542� 1,575� 6,122� 6,299� Noninterest
income 470� 482� 2,240� 2,214� Noninterest expense 2,003� 2,608�
7,630� 8,489� Minority interest in net income (loss) of
consolidated subsidiary 4� (7) 51� 38� Income (loss) before income
tax expense (benefit) 5� (544) 681� (14) Income tax expense
(benefit) 39� (39) 272� 88� Net (loss) income $ (34) $ (505) $ 409�
$ (102) � Earnings per share - basic and diluted $ (0.01) $ (0.08)
$ 0.06� N/A� Weighted average shares outstanding - basic 6,385,692�
6,367,691� 6,379,211� N/A� Weighted average shares outstanding -
diluted 6,389,704� 6,367,691� 6,429,565� N/A� � � Three Months
EndedDecember 31, Year EndedDecember 31, 2006� 2005� 2006� 2005�
Selected Financial Ratios(1): Return on average assets (0.05) %
(0.73) % 0.15� % (0.04) % Return on average equity (0.30) (4.33)
0.89� (0.26) Average interest-earning assets to average
interest-bearing liabilities 117.36� 116.38� 117.39� 114.12�
Average equity to average assets 16.20� 16.91� 16.75� 14.10�
Interest rate spread 1.76� 2.02� 1.88� 2.03� Net interest margin
2.31� % 2.47� % 2.39� % 2.41� % � � � Year Ended � December 31,2006
December 31,2005 Allowance for loan losses to total loans 0.49� %
0.46� % Allowance for loan losses to nonperforming loans 112.86�
295.20� Nonperforming loans to total loans 0.43� % 0.16� % (1)
Three months ended ratios are calculated on an annualized basis. �
Note: Certain items previously reported may have been reclassified
to conform with the current reporting period�s format.
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