FedFirst Financial Corporation (NASDAQ Capital: FFCO; the
�Company�), the parent company of First Federal Savings Bank, today
announced net income of $66,000 for the three months ended
September 30, 2008 compared to a net loss of $347,000 for the three
months ended September 30, 2007. Basic and diluted earnings (loss)
per share were $0.01 for the three months ended September 30, 2008
compared to $(0.05) for the three months ended September 30, 2007.
Year-to-date, the Company reported net income of $399,000 compared
to a net loss of $1.4 million for the same period in the prior
year. Basic and diluted earnings (loss) per share were $0.07 for
the nine months ended September 30, 2008 compared to $(0.21) for
the same period in the prior year. Results for 2007 include the
effects of the previously disclosed restructuring of the securities
portfolio which resulted in the recognition of a $1.4 million loss.
Mr. Robinson, President and Chief Executive Officer of the Company,
stated, �Despite the unprecedented turmoil in the financial
industry, we have seen solid growth in loans and deposits, which we
believe will lay the foundation for stable and sustained growth.�
Third Quarter Results Net interest income for the three months
ended September 30, 2008 increased $531,000 to $2.2 million
compared to the three months ended September 30, 2007. Interest
rate spread and net interest margin were 2.23% and 2.66%,
respectively, for the three months ended September 30, 2008
compared to 1.90% and 2.50%, respectively, for the three months
ended September 30, 2007. The improvement in interest rate spread
and net interest margin is primarily attributed to the growth in
the loan and securities portfolio coupled with lower costs on
deposits and borrowings. The provision for loan losses was $260,000
for the three months ended September 30, 2008 compared to $395,000
for the three months ended September 30, 2007. The decrease in the
provision is primarily related to a decline in charge-offs in the
current period. Net charge-offs were $130,000 for the three months
ended September 30, 2008 compared to $318,000 for the three months
ended September 30, 2007. Also contributing to the provision was
growth in the loan portfolio, predominantly in one-to-four family,
commercial, and home equity loans. Year-to-Date Results Net
interest income for the nine months ended September 30, 2008
increased $1.2 million to $6.1 million compared to $4.8 million for
the nine months ended September 30, 2007. Interest rate spread and
net interest margin were 2.11% and 2.57%, respectively, for the
nine months ended September 30, 2008 compared to 1.86% and 2.43%,
respectively, for the nine months ended September 30, 2007. The
improvement in interest rate spread and net interest margin is
primarily attributed to growth in loans and securities. The
securities restructuring in April 2007 and the Company�s decision
in March 2008 to sell several securities that were likely to be
called and purchase mortgage-backed securities improved the overall
yield on securities. Despite growth in deposits and borrowings, the
Company�s maturing short-term certificates of deposits and
borrowings repriced at lower interest rates, which helped to
improve the net interest spread and net interest margin. The
provision for loan losses was $539,000 for the nine months ended
September 30, 2008 compared to $470,000 for the nine months ended
September 30, 2007. Contributing to the provision was growth in the
loan portfolio, predominantly in one-to-four family, commercial,
and home equity loans. Charge-offs in the current period also
contributed to the increase in the provision. Net charge-offs were
$350,000 for the nine months ended September 30, 2008 compared to
$318,000 for the nine months ended September 30, 2007. Noninterest
income increased $1.8 million to $2.2 million for the nine months
ended September 30, 2008 compared to $441,000 for the nine months
ended September 30, 2007. The increase was primarily attributable
to a $1.4 million loss recorded as a result of the securities
restructuring which was completed in the prior period. In addition,
insurance commissions increased $158,000 compared to the prior
period and the Company recognized a gain of $156,000 on the sales
of securities in the current period. Noninterest expense increased
$225,000, or 3.3%, for the nine months ended September 30, 2008
compared to the nine months ended September 30, 2007. The increase
is primarily related to increased occupancy costs for the nine
months ended September 30, 2008 in connection with the opening of
the Washington office in June 2007. In addition, the Company
incurred $114,000 in real estate owned expenses in the current
period. Total assets at September 30, 2008 were $350.1 million, an
increase of $44.8 million, or 14.7%, from total assets of $305.3
million at December 31, 2007. The increase in total assets was
primarily from loan growth in one-to-four family real estate,
commercial real estate and home equity loans, which was funded by
borrowings and deposits. Total equity at September 30, 2008
decreased $3.3 million from December 31, 2007, to $40.5 million.
The decrease in stockholders� equity was primarily due to the $2.4
million change in the unrealized loss position of the securities
portfolio, net of tax. In addition, year-to-date, the Company has
repurchased 154,925 shares of its common stock at a
weighted-average price of $7.70 per share primarily as part of the
previously announced repurchase programs. FedFirst Financial
Corporation is the parent company of First Federal Savings Bank, a
community-oriented financial institution operating nine
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-K 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) �
(Unaudited) September 30, � December 31, � � 2008 2007 Selected
Financial Condition Data: Total assets $ 350,111 $ 305,273 Cash and
cash equivalents 7,649 5,552 Securities available-for-sale 91,906
89,073 Loans receivable, net 225,455 187,954 Deposits 173,085
155,558 Borrowings 131,508 101,074 Equity $ 40,466 $ 43,773 � � �
(Unaudited) (Unaudited) Three Months Ended Nine Months Ended
September 30, September 30, 2008 2007 2008 2007 Selected Operations
Data: Total interest income $ 4,602 $ 3,825 $ 13,263 $ 11,171 Total
interest expense � 2,422 � � 2,176 � � 7,204 � � 6,358 � Net
interest income 2,180 1,649 6,059 4,813 Provision for loan losses �
260 � � 395 � � 539 � � 470 � Net interest income after provision
for loan losses 1,920 1,254 5,520 4,343 Noninterest income 582 575
2,216 441 Noninterest expense 2,380 2,326 6,970 6,745 Minority
interest in net income of consolidated subsidiary � 5 � � 15 � � 61
� � 53 � Income (loss) before income tax expense (benefit) 117 (512
) 705 (2,014 ) Income tax expense (benefit) � 51 � � (165 ) � 306 �
� (640 ) Net income (loss) $ 66 � $ (347 ) $ 399 � $ (1,374 ) �
Earnings (loss) per share - basic and diluted $ 0.01 $ (0.05 ) $
0.07 $ (0.21 ) Weighted average shares outstanding - basic
5,905,927 6,438,228 5,968,648 6,442,220 Weighted average shares
outstanding - diluted 5,905,927 6,438,228 5,968,648 6,442,220 � � �
Three Months Ended Nine Months Ended September 30, September 30,
2008 2007 2008 2007 Selected Financial Ratios(1): Return on average
assets 0.08 % (0.49 )% 0.16 % (0.65 )% Return on average equity
0.65 (3.07 ) 1.26 (4.00 ) Average interest-earning assets to
average interest-bearing liabilities 114.73 118.00 114.99 117.89
Average equity to average assets 11.81 16.03 12.70 16.30 Interest
rate spread 2.23 1.90 2.11 1.86 Net interest margin 2.66 % 2.50 %
2.57 % 2.43 % � � � Period Ended September 30, December 31, 2008
2007 Allowance for loan losses to total loans 0.70 % 0.76 %
Allowance for loan losses to nonperforming loans 191.84 113.74
Nonperforming loans to total loans 0.37 % 0.67 % Book value per
share $ 6.34 $ 6.72 � � (1) Three months and nine 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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