FedFirst Financial Corporation Announces First Quarter 2007 Results
30 April 2007 - 10:39PM
Business Wire
FedFirst Financial Corporation (NASDAQ Capital:FFCO; the
�Company�), the parent company of First Federal Savings Bank, today
announced a net loss of $969,000 for the quarter ended March 31,
2007 compared to net income of $238,000 for the quarter ended March
31, 2006. Basic and diluted earnings per share were $(0.15) for the
quarter ended March 31, 2007 compared to $0.04 for the quarter
ended March 31, 2006. Net interest income for the quarter ended
March 31, 2007 was comparable to the quarter ended March 31, 2006
at $1.5 million, but interest rate spread and net interest margin
continued to compress. Interest rate spread and net interest margin
were 1.71% and 2.26% for the quarter ended compared to 1.91% and
2.38% for the quarter ended March 31, 2006, respectively.
Noninterest income decreased $1.4 million to an expense of $650,000
for the quarter ended March 31, 2007 compared to income of $725,000
for the quarter ended March 31, 2006. The decrease was attributable
to a $1.4 million loss recorded as a result of the securities
restructuring which was completed in April 2007. The Company sold
$40.8 million of securities at an average yield of 4.08% and from
the proceeds purchased $30.8 million of securities yielding 5.44%.
The remaining $10.0 million will be utilized to pay maturing short
term Federal Home Loan Bank borrowings. The decision to sell the
securities required the Company to reclassify the securities from
available-for-sale into held for trading at March 31, 2007 and, as
a result, required the recognition of a loss for the decline in the
fair value of the securities. Excluding the loss related to the
reclassification of the securities, the Company had noninterest
income of $759,000. Noninterest expense increased to $2.2 million
for the quarter ended March 31, 2007 compared to $1.8 million for
the quarter ended March 31, 2006. The increase is primarily related
to compensation and benefits. The Company hired key personnel to
compliment existing staff and strengthen our retail operations
sales force in connection with the opening of the Peters Township
office in July 2006 and the upcoming opening of the Washington
office, tentatively scheduled for June 2007. Additionally, the
current quarter includes expense related to awards under the 2006
Equity Incentive Plan which were granted in August 2006. Total
assets were $285.1 million at March 31, 2007 compared to $283.5
million at December 31, 2006. The increase in total assets was
primarily from loan growth in commercial real estate and home
equity loans which was primarily funded from cash flows from
securities and deposits. Mr. Robinson, President and Chief
Executive Officer of the Company, stated, �We continue to strive
towards building a solid foundation of infrastructure which
includes personnel, products and services, and expansion into new
markets that should provide greater opportunity to improve
earnings.� 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 CORPORATION SELECTED FINANCIAL INFORMATION � � (In
thousands, except share and per share data) March 31, December 31,
2007� 2006� Selected Financial Condition Data: Total assets $
285,141� $ 283,517� Cash and cash equivalents 8,351� 4,432�
Securities held for trading 41,122� -� Securities
available-for-sale 38,724� 83,045� Loans receivable, net 176,082�
174,718� Deposits 147,721� 143,495� Borrowings 87,135� 89,323�
Equity $ 46,269� $ 46,346� � � Three Months Ended March 31, 2007�
2006� Selected Operations Data: Total interest income $ 3,638� $
3,322� Total interest expense 2,124� 1,783� Net interest income
1,514� 1,539� Provision for loan losses 45� 20� Net interest income
after provision for loan losses 1,469� 1,519� Noninterest income
(650) 725� Noninterest expense 2,214� 1,832� Minority interest in
net income of consolidated subsidiary 31� 31� (Loss) income before
income tax (benefit) expense (1,426) 381� Income tax (benefit)
expense (457) 143� Net (loss) income $ (969) $ 238� � Earnings per
share - basic and diluted $ (0.15) $ 0.04� Weighted average shares
outstanding - basic 6,390,012� 6,372,731� Weighted average shares
outstanding - diluted 6,393,516� 6,372,731� � � Three Months Ended
March 31, 2007� 2006� Selected Financial Ratios(1): Return on
average assets (1.36) % 0.35� % Return on average equity (8.35)
2.09� Average interest-earning assets to average interest-bearing
liabilities 117.52� 116.86� Average equity to average assets 16.29�
16.67� Interest rate spread 1.71� 1.91� Net interest margin 2.26� %
2.38� % � � Period Ended � March 31, December 31, 2007� 2006�
Allowance for loan losses to total loans 0.51� % 0.49� % Allowance
for loan losses to nonperforming loans 127.95� 112.91�
Nonperforming loans to total loans 0.40� % 0.43� % (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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