UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-Q
(Mark
One)
T
|
QUARTERLY
REPORT PERSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For the
quarterly period ended
March 31,
2009
OR
£
|
TRANSITION
REPORT PERSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For the
transition period from __________ to __________
Commission
file number: 0-51153
|
FEDFIRST
FINANCIAL CORPORATION
|
|
|
(Exact
name of registrant as specified in its charter)
|
|
United
States
|
|
25-1828028
|
(State
or other jurisdiction of incorporation or organization)
|
|
(I.R.S.
Employer Identification No.)
|
Donner
at Sixth Street, Monessen, Pennsylvania
|
|
15062
|
(Address
of principal executive offices)
|
|
(Zip
Code)
|
|
(724)
684-6800
|
|
|
(Registrant’s
telephone number, including area code)
|
|
Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes
T
No
£
Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding
12 months (or for such shorter period that the registrant was required to submit
and post such files). Yes
£
No
£
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.
Large
accelerated filer
|
£
|
|
Accelerated
filer
|
£
|
Non-accelerated
filer
(Do
not check if a smaller reporting company)
|
£
|
|
Smaller
reporting company
|
T
|
Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes
£
No
T
As of May
13, 2009, the issuer had 6,336,775 shares of common stock
outstanding.
FORM
10-Q
INDEX
|
Page
|
|
|
PART
I – FINANCIAL INFORMATION
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
2
|
|
|
|
3
|
|
|
|
5
|
|
|
|
6
|
|
|
|
17
|
|
|
|
22
|
|
|
|
22
|
|
|
PART
II – OTHER INFORMATION
|
23
|
|
|
|
23
|
|
|
|
23
|
|
|
|
23
|
|
|
|
23
|
|
|
|
23
|
|
|
|
23
|
|
|
|
24
|
|
|
SIGNATURES
|
25
|
PART
I – FINANCIAL INFORMATION
|
|
March
31,
|
|
|
December
31,
|
|
|
|
2009
|
|
|
2008
|
|
(Dollars in
thousands, except share data)
|
|
(UNAUDITED)
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
Cash and due
from banks
|
|
$
|
1,838
|
|
|
$
|
2,224
|
|
Interest-earning
deposits
|
|
|
7,774
|
|
|
|
5,623
|
|
Total cash and
cash equivalents
|
|
|
9,612
|
|
|
|
7,847
|
|
Securities
available-for-sale
|
|
|
76,472
|
|
|
|
85,433
|
|
Loans,
net
|
|
|
229,512
|
|
|
|
230,184
|
|
Federal Home Loan Bank ("FHLB")
stock, at cost
|
|
|
6,901
|
|
|
|
6,901
|
|
Accrued interest receivable -
loans
|
|
|
1,099
|
|
|
|
1,147
|
|
Accrued interest receivable -
securities
|
|
|
390
|
|
|
|
505
|
|
Premises and equipment,
net
|
|
|
2,656
|
|
|
|
2,735
|
|
Bank-owned life
insurance
|
|
|
7,500
|
|
|
|
7,431
|
|
Goodwill
|
|
|
1,080
|
|
|
|
1,080
|
|
Real estate
owned
|
|
|
316
|
|
|
|
295
|
|
Deferred tax
assets
|
|
|
4,479
|
|
|
|
4,930
|
|
Other
assets
|
|
|
919
|
|
|
|
1,273
|
|
Total
assets
|
|
$
|
340,936
|
|
|
$
|
349,761
|
|
Liabilities
and Stockholders' Equity:
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
|
14,411
|
|
|
|
12,005
|
|
Interest-bearing
|
|
|
167,037
|
|
|
|
160,799
|
|
Total
deposits
|
|
|
181,448
|
|
|
|
172,804
|
|
Borrowings
|
|
|
114,450
|
|
|
|
132,410
|
|
Advance payments by borrowers for
taxes and insurance
|
|
|
678
|
|
|
|
474
|
|
Accrued interest payable -
deposits
|
|
|
589
|
|
|
|
743
|
|
Accrued interest payable -
borrowings
|
|
|
480
|
|
|
|
546
|
|
Other
liabilities
|
|
|
3,136
|
|
|
|
3,360
|
|
Total
liabilities
|
|
|
300,781
|
|
|
|
310,337
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
FedFirst
Financial Corporation stockholders' equity:
|
|
|
|
|
|
|
|
|
Preferred stock $0.01 par value;
10,000,000 shares authorized; none issued
|
|
|
-
|
|
|
|
-
|
|
Common stock $0.01 par value;
20,000,000 shares authorized; 6,707,500
shares
|
|
|
|
|
|
|
|
|
issued and 6,336,775 and
6,351,775 shares outstanding
|
|
|
67
|
|
|
|
67
|
|
Additional
paid-in-capital
|
|
|
29,338
|
|
|
|
29,291
|
|
Retained earnings - substantially
restricted
|
|
|
16,249
|
|
|
|
15,930
|
|
Accumulated other comprehensive
loss, net of deferred taxes of
|
|
|
|
|
|
|
|
|
$(442) and
$(716)
|
|
|
(685
|
)
|
|
|
(1,111
|
)
|
Unearned Employee Stock Ownership
Plan ("ESOP")
|
|
|
(1,858
|
)
|
|
|
(1,901
|
)
|
Common stock held in treasury, at
cost (370,725 and 355,725 shares)
|
|
|
(3,022
|
)
|
|
|
(2,955
|
)
|
Total FedFirst Financial
Corporation stockholders' equity
|
|
|
40,089
|
|
|
|
39,321
|
|
Noncontrolling
interest in subsidiary
|
|
|
66
|
|
|
|
103
|
|
Total stockholders'
equity
|
|
|
40,155
|
|
|
|
39,424
|
|
Total
liabilities and stockholders' equity
|
|
$
|
340,936
|
|
|
$
|
349,761
|
|
See Notes
to the Unaudited Consolidated Financial Statements
|
|
For
the Three Months
|
|
|
|
Ended March
31,
|
|
(Dollars in
thousands, except per share data)
|
|
2009
|
|
|
2008
|
|
Interest
income:
|
|
|
|
|
|
|
Loans
|
|
$
|
3,355
|
|
|
$
|
2,818
|
|
Securities
|
|
|
1,209
|
|
|
|
1,386
|
|
Other
interest-earning assets
|
|
|
6
|
|
|
|
102
|
|
Total interest
income
|
|
|
4,570
|
|
|
|
4,306
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
1,124
|
|
|
|
1,308
|
|
Borrowings
|
|
|
1,226
|
|
|
|
1,118
|
|
Total interest
expense
|
|
|
2,350
|
|
|
|
2,426
|
|
Net interest
income
|
|
|
2,220
|
|
|
|
1,880
|
|
Provision for loan
losses
|
|
|
160
|
|
|
|
59
|
|
Net interest
income after provision for loan losses
|
|
|
2,060
|
|
|
|
1,821
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
Fees and
service charges
|
|
|
132
|
|
|
|
102
|
|
Insurance
commissions
|
|
|
701
|
|
|
|
720
|
|
Income
frombank-owned life insurance
|
|
|
74
|
|
|
|
67
|
|
Net gain on
sales of available-for-sale securities
|
|
|
-
|
|
|
|
156
|
|
Loss on sale
of real estate owned
|
|
|
-
|
|
|
|
(3
|
)
|
Other
|
|
|
6
|
|
|
|
3
|
|
Total
noninterest income
|
|
|
913
|
|
|
|
1,045
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
Compensation
and employee benefits
|
|
|
1,458
|
|
|
|
1,462
|
|
Occupancy
|
|
|
354
|
|
|
|
341
|
|
FDIC insurance
premiums
|
|
|
9
|
|
|
|
6
|
|
Data
processing
|
|
|
107
|
|
|
|
106
|
|
Professional
services
|
|
|
131
|
|
|
|
128
|
|
Other
|
|
|
339
|
|
|
|
311
|
|
Total
noninterest expense
|
|
|
2,398
|
|
|
|
2,354
|
|
Income before income tax
expense
and noncontrolling interest in net income of
consolidated subsidiary
|
|
|
575
|
|
|
|
512
|
|
Income tax
expense
|
|
|
218
|
|
|
|
201
|
|
Net income
before
noncontrolling interest in net income of consolidated
subsidiary
|
|
|
357
|
|
|
|
311
|
|
Noncontrolling
interest in net income of consolidated
subsidiary
|
|
|
38
|
|
|
|
43
|
|
Net income of
FedFirst Financial Corporation
|
|
$
|
319
|
|
|
$
|
268
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.05
|
|
|
$
|
0.04
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
6,077,749
|
|
|
|
6,231,354
|
|
Diluted
|
|
|
6,077,749
|
|
|
|
6,231,516
|
|
See Notes
to the Unaudited Consolidated Financial Statements
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
Common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
|
|
Other
|
|
|
|
|
|
Stock
|
|
|
Noncontrolling
|
|
|
Total
|
|
|
|
|
|
|
Common
|
|
|
|
Paid
-in-
|
|
|
Retained
|
|
|
Comprehensive
|
|
|
Unearned
|
|
|
Held
in
|
|
|
Interest
in
|
|
|
Stockholders'
|
|
|
Comprehensive
|
|
(Dollars in
thousands)
|
|
Stock
|
|
|
|
Capital
|
|
|
Earnings
|
|
|
Loss
|
|
|
ESOP
|
|
|
Treasury
|
|
|
Subsidiary
|
|
|
Equity
|
|
|
Income
|
|
Balance at January 1,
2008
|
|
$
|
67
|
|
|
|
$
|
29,084
|
|
|
$
|
18,520
|
|
|
$
|
(70
|
)
|
|
$
|
(2,074
|
)
|
|
$
|
(1,754
|
)
|
|
$
|
80
|
|
|
$
|
43,853
|
|
|
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
-
|
|
|
|
|
-
|
|
|
|
268
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
43
|
|
|
|
311
|
|
|
$
|
311
|
|
Unrealized gain on
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
available-for-sale,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax of
$87
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
135
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
135
|
|
|
|
135
|
|
Reclassification
adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on sales of
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
available-for-sale,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax
$61
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(95
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(95
|
)
|
|
|
(95
|
)
|
Cumulative
effect
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustment on
benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
plan
reserve
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(445
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(445
|
)
|
|
|
|
|
Purchase of
common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stock to be held
in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
treasury (39,100
shares)
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(350
|
)
|
|
|
-
|
|
|
|
(350
|
)
|
|
|
|
|
ESOP shares
committed to be
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
released (4,320
shares)
|
|
|
-
|
|
|
|
|
(6
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
44
|
|
|
|
-
|
|
|
|
-
|
|
|
|
38
|
|
|
|
|
|
Stock-based
compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense
|
|
|
-
|
|
|
|
|
87
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
87
|
|
|
|
|
|
Distribution
to minority
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholder
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(52
|
)
|
|
|
(52
|
)
|
|
|
|
|
Total comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
351
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling
interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
subsidiary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
FedFirst
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
308
|
|
Balance at March 31,
2008
|
|
$
|
67
|
|
|
|
$
|
29,165
|
|
|
$
|
18,343
|
|
|
$
|
(30
|
)
|
|
$
|
(2,030
|
)
|
|
$
|
(2,104
|
)
|
|
$
|
71
|
|
|
$
|
43,482
|
|
|
|
|
|
See Notes
to the Unaudited Consolidated Financial Statements
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
Common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
|
|
Other
|
|
|
|
|
|
Stock
|
|
|
Noncontrolling
|
|
|
Total
|
|
|
|
|
|
|
Common
|
|
|
|
Paid-in-
|
|
|
Retained
|
|
|
Comprehensive
|
|
|
Unearned
|
|
|
Held
in
|
|
|
Interest
in
|
|
|
Stockholders'
|
|
|
Comprehensive
|
|
|
|
Stock
|
|
|
|
Capital
|
|
|
Earnings
|
|
|
Loss
|
|
|
ESOP
|
|
|
Treasury
|
|
|
Subsidiary
|
|
|
Equity
|
|
|
Income
|
|
Balance at January 1,
2009
|
|
$
|
67
|
|
|
|
$
|
29,291
|
|
|
$
|
15,930
|
|
|
$
|
(1,111
|
)
|
|
$
|
(1,901
|
)
|
|
$
|
(2,955
|
)
|
|
$
|
103
|
|
|
$
|
39,424
|
|
|
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
-
|
|
|
|
|
-
|
|
|
|
319
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
38
|
|
|
|
357
|
|
|
$
|
357
|
|
Unrealized gain on
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
available-for-sale,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax of
$275
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
426
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
426
|
|
|
|
426
|
|
Purchase of
common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stock to be held
in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
treasury (15,000
shares)
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(67
|
)
|
|
|
-
|
|
|
|
(67
|
)
|
|
|
|
|
ESOP shares
committed to be
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
released (4,320
shares)
|
|
|
-
|
|
|
|
|
(26
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
43
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17
|
|
|
|
|
|
Stock-based
compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense
|
|
|
-
|
|
|
|
|
73
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
73
|
|
|
|
|
|
Distribution
to minority
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholder
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(75
|
)
|
|
|
(75
|
)
|
|
|
|
|
Total comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
783
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling
interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
subsidiary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
FedFirst
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
745
|
|
Balance at March 31,
2009
|
|
$
|
67
|
|
|
|
$
|
29,338
|
|
|
$
|
16,249
|
|
|
$
|
(685
|
)
|
|
$
|
(1,858
|
)
|
|
$
|
(3,022
|
)
|
|
$
|
66
|
|
|
$
|
40,155
|
|
|
|
|
|
See Notes
to the Unaudited Consolidated Financial Statements
|
|
For
the Three Months
|
|
|
|
Ended March
31,
|
|
(Dollars in
thousands)
|
|
2009
|
|
|
2008
|
|
Cash flows
from operating activities:
|
|
|
|
|
|
|
Net income of
FedFirst Financial Corporation
|
|
$
|
319
|
|
|
$
|
268
|
|
Adjustments to
reconcile net income to net cash provided
|
|
|
|
|
|
|
|
|
by operating
activities
|
|
|
|
|
|
|
|
|
Minority interest in net income
of consolidated subsidiary
|
|
|
38
|
|
|
|
43
|
|
Provision for loan
losses
|
|
|
160
|
|
|
|
59
|
|
Depreciation
|
|
|
134
|
|
|
|
122
|
|
Net gain on sales of
securities
|
|
|
-
|
|
|
|
(156
|
)
|
Net loss on sale of real estate
owned
|
|
|
-
|
|
|
|
3
|
|
Net accretion (amortization) of
security premiums and loan costs
|
|
|
106
|
|
|
|
(20
|
)
|
Noncash expense for
ESOP
|
|
|
17
|
|
|
|
38
|
|
Noncash expense for stock-based
compensation
|
|
|
73
|
|
|
|
87
|
|
Noncash benefit plan
reserve
|
|
|
-
|
|
|
|
445
|
|
Increase in bank-owned life
insurance
|
|
|
(74
|
)
|
|
|
(67
|
)
|
Decrease (increase) in other
assets
|
|
|
1,257
|
|
|
|
(293
|
)
|
(Decrease) increase in other
liabilities
|
|
|
(476
|
)
|
|
|
60
|
|
Net
cash provided by operating activities
|
|
|
1,554
|
|
|
|
589
|
|
Cash flows
from investing activities:
|
|
|
|
|
|
|
|
|
Net loan
repayments (originations)
|
|
|
467
|
|
|
|
(5,445
|
)
|
Proceeds from
maturities of and principal repayments of
|
|
|
|
|
|
|
|
|
securities
available-for-sale
|
|
|
11,585
|
|
|
|
5,402
|
|
Proceeds from
sales of securities available-for-sale
|
|
|
-
|
|
|
|
8,766
|
|
Purchases of
securities available-for-sale
|
|
|
(2,007
|
)
|
|
|
(28,352
|
)
|
Purchases of
premises and equipment
|
|
|
(55
|
)
|
|
|
(64
|
)
|
Acquisition
of Allsurance Insurance Agency
|
|
|
(600
|
)
|
|
|
-
|
|
Increase in
FHLB stock, at cost
|
|
|
-
|
|
|
|
(885
|
)
|
Net
cash provided by (used in) investing
activities
|
|
|
9,390
|
|
|
|
(20,578
|
)
|
Cash flows
from financing activities:
|
|
|
|
|
|
|
|
|
Net decrease
in-short term borrowings
|
|
|
(2,400
|
)
|
|
|
(11,900
|
)
|
Proceeds from
long-term borrowings
|
|
|
-
|
|
|
|
30,500
|
|
Repayments of
long-term borrowings
|
|
|
(15,560
|
)
|
|
|
(4,527
|
)
|
Net increase
in deposits
|
|
|
8,644
|
|
|
|
6,307
|
|
Increase
(decrease) in advance payments by borrowers for taxes and
insurance
|
|
|
204
|
|
|
|
(5
|
)
|
Purchases of
common stock held in treasury
|
|
|
(67
|
)
|
|
|
(350
|
)
|
Net
cash (used in) provided by financing
activities
|
|
|
(9,179
|
)
|
|
|
20,025
|
|
Net increase in cash and cash
equivalents
|
|
|
1,765
|
|
|
|
36
|
|
Cash and cash equivalents,
beginning of period
|
|
|
7,847
|
|
|
|
5,552
|
|
Cash and cash
equivalents, end of period
|
|
$
|
9,612
|
|
|
$
|
5,588
|
|
Supplemental
cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
|
|
|
|
Interest on deposits and
borrowings
|
|
$
|
2,570
|
|
|
$
|
2,241
|
|
Income tax
expense
|
|
|
86
|
|
|
|
16
|
|
Real estate
acquired in settlement of loans
|
|
|
22
|
|
|
|
160
|
|
See Notes
to the Unaudited Consolidated Financial Statements
Note
1. Basis of Presentation/Nature of Operations
The
accompanying unaudited Consolidated Financial Statements include the accounts of
FedFirst Financial Corporation, a federally chartered holding company (“FedFirst
Financial” or the “Company”), whose wholly owned subsidiary is First Federal
Savings Bank (the “Bank”), a federally chartered stock savings bank, which owns
FedFirst Exchange Corporation (“FFEC”), a subsidiary of the Bank. FFEC has an
80% controlling interest in Exchange Underwriters, Inc. Exchange Underwriters,
Inc. is an independent insurance agency that offers property and casualty, life,
health, commercial general liability, surety and other insurance products. The
Company is a majority owned subsidiary of FedFirst Financial Mutual Holding
Company (“FFMHC”), a federally chartered mutual holding company. FFMHC has
virtually no operations and assets other than an investment in the Company, and
is not included in these financial statements. All significant intercompany
transactions have been eliminated.
We
operate as a community-oriented financial institution offering residential,
multi-family and commercial mortgages, consumer loans and commercial business
loans as well as a variety of deposit products for individuals and businesses
from nine locations in southwestern Pennsylvania. We conduct insurance brokerage
activities through Exchange Underwriters, Inc. In March 2009, the Company
announced that
Exchange
Underwriters, Inc. expanded its operation through the acquisition of the
Allsurance Insurance Agency, which is a full service independent insurance
agency that offers life, health and property and casualty insurance for
individuals and small businesses. The Bank is subject to competition from other
financial institutions and to the regulations of certain federal and state
agencies and undergoes periodic examinations by those regulatory
authorities.
The
unaudited consolidated financial statements were prepared in accordance with
instructions to Form 10-Q and, therefore, do not include information or notes
necessary for a complete presentation of financial position, results of
operations, changes in stockholders’ equity and cash flows in conformity with
accounting principles generally accepted in the United States of America
(“GAAP”). However, all normal recurring adjustments that, in the opinion of
management, are necessary to make the consolidated financial statements not
misleading have been included. These interim condensed consolidated
financial statements should be read in conjunction with the consolidated
financial statements and notes thereto in the Company’s Annual Report on Form
10-K for the year ended December 31, 2008. Certain items previously reported
have been reclassified to conform with the current reporting period’s format.
The results of operations for the three months ended March 31, 2009 are not
necessarily indicative of the results that may be expected for the full year or
any other interim period.
In
preparing financial statements in conformity with GAAP, management is required
to make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the financial statements and income and expenses during the reporting period.
Actual results could differ significantly from those estimates. Material
estimates that are particularly susceptible to significant change in the near
term relate to determination of the allowance for losses on loans, the valuation
of real estate acquired in connection with foreclosures or in satisfaction of
loans, evaluation of securities for other-than-temporary impairment, goodwill
impairment, and the valuation of deferred tax assets.
Note
2. Recent Accounting Pronouncements
Effective
Date of FASB Statement No. 157:
In February
2008, the FASB issued F
ASB Staff
Position (“FSP”)
157-2,
Effective
Date of FASB Statement No. 157
, that permits
a one-year deferral in applying the measurement provisions of SFAS
No.
157 to
non-financial assets and non-financial liabilities (non-financial items) that
are not recognized or disclosed at fair value in an entity’s financial
statements on a recurring basis (at least annually). Therefore, if the change in
fair value of a non-financial item is not required to be recognized or disclosed
in the financial statements on an annual basis or more frequently, the effective
date of application of SFAS
No.
157 to that
item is deferred until fiscal years beginning after November 15, 2008 and
interim periods within those fiscal years. This deferral does not apply,
however, to an entity that applied SFAS
No.
157 in interim
or annual financial statements prior to the issuance of FSP 157-2.
This
FSP was adopted on January 1, 2009 and did not have a material effect on the
Company’s financial condition or results of
operations.
Noncontrolling
Interests in Consolidated Financial Statements – an amendment of Accounting
Research Bulletin (“ARB”) No. 51.
In December 2007 the FASB
issued SFAS No. 160,
Noncontrolling
Interests in Consolidated Financial Statements – an amendment of ARB No.
51
. SFAS 160 establishes standards related to the treatment of
noncontrolling interests. A noncontrolling interest, sometimes called a minority
interest, is the portion of equity in a subsidiary not attributable, directly or
indirectly, to a parent. SFAS No. 160 will require noncontrolling interests to
be treated as a separate component of equity, not as a liability or other item
outside permanent equity. The Statement applies to the accounting for
noncontrolling interests and transactions with noncontrolling interest holders
in consolidated financial statements. The objective of this Statement is to
improve the relevance, comparability, and transparency of the financial
information that a reporting entity provides in its consolidated financial
statements. Before this Statement was issued, limited guidance existed for
reporting noncontrolling interests. As a result, considerable diversity in
practice existed. So-called minority interests were reported in the consolidated
statement of financial position as liabilities or in the mezzanine section
between liabilities and equity. This statement is effective for fiscal years and
interim periods within those fiscal years beginning on or after December 15,
2008. Earlier application is prohibited. This statement was adopted on January
1, 2009 and did not have a material effect on the Company’s financial condition
or results of operations.
Determining
Whether a Market Is Not Active and a Transaction Is Not Distressed.
In
April 2009, FASB issued FSP No. FAS 157-4,
Determining
Fair Value When the Volume and Level of Activity for the Asset or Liability Have
Significantly Decreased and Identifying Transactions That Are Not
Orderly
. SFAS No. 157,
Fair Value
Measurements
, defines fair value as the price that would be received to
sell the asset or transfer the liability in an orderly transaction (that is, not
a forced liquidation or distressed sale) between market participants at the
measurement date under current market conditions. FSP FAS 157-4 provides
additional guidance on determining when the volume and level of activity for the
asset or liability has significantly decreased. The FSP also includes guidance
on identifying circumstances when a transaction may not be considered orderly.
FSP FAS 157-4 provides a list of factors that a reporting entity should evaluate
to determine whether there has been a significant decrease in the volume and
level of activity for the asset or liability in relation to normal market
activity for the asset or liability. When the reporting entity concludes there
has been a significant decrease in the volume and level of activity for the
asset or liability, further analysis of the information from that market is
needed and significant adjustments to the related prices may be necessary to
estimate fair value in accordance with SFAS No. 157.
This
FSP clarifies that when there has been a significant decrease in the volume and
level of activity for the asset or liability, some transactions may not be
orderly. In those situations, the entity must evaluate the weight of the
evidence to determine whether the transaction is orderly. The FSP provides a
list of circumstances that may indicate that a transaction is not orderly. A
transaction price that is not associated with an orderly transaction is given
little, if any, weight when estimating fair value.
This
FSP is effective for interim and annual reporting periods ending after
June 15, 2009, with early adoption permitted for periods ending after
March 15, 2009. An entity early adopting FSP FAS 157-4 must also
early adopt FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of
Other-Than-Temporary Impairments. The Company is currently reviewing
the effect this new pronouncement will have on its financial condition or
results of operations.
Recognition
and Presentation of Other-Than-Temporary Impairments.
In April 2009, the
FASB issued FSP No. FAS 115-2 and FAS 124-2,
Recognition
and Presentation of Other-Than-Temporary
Impairments
. FSP FAS 115-2 and FAS 124-2 clarifies the
interaction of the factors that should be considered when determining whether a
debt security is other-than-temporarily impaired. For debt securities,
management must assess whether (a) it has the intent to sell the security
and (b) it is more likely than not that it will be required to sell the
security prior to its anticipated recovery. These steps are done before
assessing whether the entity will recover the cost basis of the investment.
Previously, this assessment required management to assert it has both the intent
and the ability to hold a security for a period of time sufficient to allow for
an anticipated recovery in fair value to avoid recognizing an
other-than-temporary impairment. This change does not affect the need to
forecast recovery of the value of the security through either cash flows or
market price.
In
instances when a determination is made that an other-than-temporary impairment
exists but the investor does not intend to sell the debt security and it is not
more likely than not that it will be required to sell the debt security prior to
its anticipated recovery, FSP FAS 115-2 and FAS 124-2 changes the presentation
and amount of the other-than-temporary impairment recognized in the income
statement. The other-than-temporary impairment is separated into (a) the
amount of the total other-than-temporary impairment related to a decrease in
cash flows expected to be collected from the debt security (the credit loss) and
(b) the amount of the total other-than-temporary impairment related to all
other factors. The amount of the total other-than-temporary impairment related
to the credit loss is recognized in earnings. The amount of the total
other-than-temporary impairment related to all other factors is recognized in
other comprehensive income.
This
FSP is effective for interim and annual reporting periods ending after
June 15, 2009, with early adoption permitted for periods ending after
March 15, 2009. An entity early adopting FSP FAS 115-2 and FAS 124-2 must
also early adopt FSP FAS 157-4. The Company is currently reviewing the effect
this new pronouncement will have on its financial condition or results of
operations.
Interim
Disclosures about Fair Value of Financial Instruments.
In April 2009, the
FASB issued FSP No. FAS 107-1 and APB 28-1,
Interim
Disclosures about Fair Value of Financial Instruments
. FSP FAS 107-1 and
APB 28-1 amends SFAS No. 107,
Disclosures
about Fair Value of Financial Instruments
, to require disclosures about
fair value of financial instruments for interim reporting periods of publicly
traded companies as well as in annual financial statements. This FSP also amends
APB Opinion No. 28,
Interim
Financial Reporting
, to require those disclosures in summarized financial
information at interim reporting periods.
This
FSP is effective for interim and annual reporting periods ending after
June 15, 2009, with early adoption permitted for periods ending after
March 15, 2009. An entity early adopting FSP FAS 107-1 and APB
28-1 must also early adopt FSP FAS 157-4 and FSP FAS 115-2 and FAS 124-2. The
Company is currently reviewing the effect this new pronouncement will have on
its financial condition or results of operations.
Note
3. Securities
The
following table sets forth the amortized cost and fair value of securities
available-for-sale at the dates indicated (dollars in thousands).
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
|
|
|
Amortized
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Fair
|
|
March 31,
2009
|
|
Cost
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
Government-Sponsored
Enterprises
|
|
$
|
1,000
|
|
|
$
|
4
|
|
|
$
|
-
|
|
|
$
|
1,004
|
|
Municipal
bonds
|
|
|
2,006
|
|
|
|
3
|
|
|
|
-
|
|
|
|
2,009
|
|
Mortgage-backed
|
|
|
39,299
|
|
|
|
1,246
|
|
|
|
9
|
|
|
|
40,536
|
|
REMICs
|
|
|
31,250
|
|
|
|
779
|
|
|
|
839
|
|
|
|
31,190
|
|
Corporate
debt
|
|
|
3,995
|
|
|
|
-
|
|
|
|
2,311
|
|
|
|
1,684
|
|
Equities
|
|
|
49
|
|
|
|
-
|
|
|
|
-
|
|
|
|
49
|
|
Total securities
available-for-sale
|
|
$
|
77,599
|
|
|
$
|
2,032
|
|
|
$
|
3,159
|
|
|
$
|
76,472
|
|
|
|
December 31,
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-Sponsored
Enterprises
|
|
$
|
9,267
|
|
|
$
|
99
|
|
|
$
|
-
|
|
|
$
|
9,366
|
|
Mortgage-backed
|
|
|
41,359
|
|
|
|
708
|
|
|
|
87
|
|
|
|
41,980
|
|
REMICs
|
|
|
32,590
|
|
|
|
318
|
|
|
|
525
|
|
|
|
32,383
|
|
Corporate
debt
|
|
|
3,995
|
|
|
|
-
|
|
|
|
2,340
|
|
|
|
1,655
|
|
Equities
|
|
|
49
|
|
|
|
-
|
|
|
|
-
|
|
|
|
49
|
|
Total securities
available-for-sale
|
|
$
|
87,260
|
|
|
$
|
1,125
|
|
|
$
|
2,952
|
|
|
$
|
85,433
|
|
|
|
March 31,
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-Sponsored
Enterprises
|
|
$
|
15,712
|
|
|
$
|
421
|
|
|
$
|
-
|
|
|
$
|
16,133
|
|
Mortgage-backed
|
|
|
57,173
|
|
|
|
814
|
|
|
|
11
|
|
|
|
57,976
|
|
REMICs
|
|
|
26,616
|
|
|
|
290
|
|
|
|
1,005
|
|
|
|
25,901
|
|
Corporate
debt
|
|
|
3,995
|
|
|
|
-
|
|
|
|
558
|
|
|
|
3,437
|
|
Equities
|
|
|
49
|
|
|
|
-
|
|
|
|
-
|
|
|
|
49
|
|
Total securities
available-for-sale
|
|
$
|
103,545
|
|
|
$
|
1,525
|
|
|
$
|
1,574
|
|
|
$
|
103,496
|
|
The
Company reviews its position quarterly to determine if there is an
other-than-temporary impairment on any of its securities. The policy of the
Company is to recognize an other-than-temporary impairment on equity securities
where the fair value has been significantly below cost for three consecutive
quarters. For fixed-maturity investments with unrealized losses due to interest
rates where the Company has the positive intent and ability to hold the
investment for a period of time sufficient to allow a market recovery, declines
in value below cost are not assumed to be other-than-temporary. The Company
evaluates the creditworthiness of the issuers/guarantors as well as the
underlying collateral, if applicable. The Company also monitors the credit
ratings of all securities for downgrades as well as placement on negative
outlook or credit watch. Management may also evaluate other facts and
circumstances that may be indicative of an other-than-temporary impairment
condition.
The
Company invests in and is subject to credit risk related to private label
mortgage-backed securities that are directly supported by underlying mortgage
loans. The Company’s private label mortgage-backed securities are
credit-enhanced, senior tranches of securities in which the subordinate classes
of the securities provide credit support for the senior class of securities.
Losses in the underlying loan pool would generally have to exceed the credit
support provided by the subordinate classes of securities before the senior
class of securities would experience any credit losses. The Company also invests
in corporate debt and is subject to credit risk related to pooled trust
preferred insurance corporation term obligations.
The
Company has reviewed its available for sale investment securities at March 31,
2009 and has determined that all unrealized losses are temporary, based on an
evaluation of the creditworthiness of the issuers/guarantors as well as the
underlying collateral, if applicable, and other facts and circumstances. The
Company monitors the credit ratings of all securities for downgrades as well as
placement on negative outlook or credit watch. Also, management evaluates other
facts and circumstances that may be indicative of an other-than-temporary
impairment condition. Additionally, the Company has the ability and the intent
to hold such securities through to recovery of the unrealized losses. The
ability and intent of the Company is demonstrated by the fact that the Company
is well capitalized and has no need to sell these securities. As a
result of this evaluation, management does not believe it is probable that the
Company will be unable to collect all amounts due according to the contractual
terms of the individual securities. Therefore, the Company does not consider the
investments to be other-than-temporarily impaired at March 31,
2009.
The
following table presents gross unrealized losses and fair value of securities
aggregated by category and length of time that individual securities have been
in a continuous loss position at the dates indicated (dollars in
thousands).
|
|
Less
than 12 months
|
|
|
12 months or more
|
|
|
Total
|
|
|
|
Number
of
|
|
|
Fair
|
|
|
Unrealized
|
|
|
Number
of
|
|
|
Fair
|
|
|
Unrealized
|
|
|
Number
of
|
|
|
Fair
|
|
|
Unrealized
|
|
March 31,
2009
|
|
Securities
|
|
|
Value
|
|
|
Losses
|
|
|
Securities
|
|
|
Value
|
|
|
Losses
|
|
|
Securities
|
|
|
Value
|
|
|
Losses
|
|
Mortgage-backed
|
|
|
30
|
|
|
$
|
1,440
|
|
|
$
|
9
|
|
|
|
2
|
|
|
$
|
14
|
|
|
$
|
-
|
|
|
|
32
|
|
|
$
|
1,454
|
|
|
$
|
9
|
|
REMICs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private label
issuer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime
fixed and adjustable rate
|
|
|
3
|
|
|
|
1,241
|
|
|
|
200
|
|
|
|
3
|
|
|
|
1,208
|
|
|
|
93
|
|
|
|
6
|
|
|
|
2,449
|
|
|
|
293
|
|
Alt-A
fixed rate
|
|
|
7
|
|
|
|
4,516
|
|
|
|
532
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7
|
|
|
|
4,516
|
|
|
|
532
|
|
Government-sponsored
enterprises
|
|
|
2
|
|
|
|
1,504
|
|
|
|
13
|
|
|
|
1
|
|
|
|
269
|
|
|
|
1
|
|
|
|
3
|
|
|
|
1,773
|
|
|
|
14
|
|
Total
REMICs
|
|
|
12
|
|
|
|
7,261
|
|
|
|
745
|
|
|
|
4
|
|
|
|
1,477
|
|
|
|
94
|
|
|
|
16
|
|
|
|
8,738
|
|
|
|
839
|
|
Corporate
debt
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
1,684
|
|
|
|
2,311
|
|
|
|
3
|
|
|
|
1,684
|
|
|
|
2,311
|
|
Total securities temporarily
impaired
|
|
|
42
|
|
|
$
|
8,701
|
|
|
$
|
754
|
|
|
|
9
|
|
|
$
|
3,175
|
|
|
$
|
2,405
|
|
|
|
51
|
|
|
$
|
11,876
|
|
|
$
|
3,159
|
|
|
|
Less
than 12 months
|
|
|
12
months or more
|
|
|
Total
|
|
|
|
Number
of
|
|
|
Fair
|
|
|
Unrealized
|
|
|
Number
of
|
|
|
Fair
|
|
|
Unrealized
|
|
|
Number
of
|
|
|
Fair
|
|
|
Unrealized
|
|
December 31,
2008
|
|
Securities
|
|
|
Value
|
|
|
Losses
|
|
|
Securities
|
|
|
Value
|
|
|
Losses
|
|
|
Securities
|
|
|
Value
|
|
|
Losses
|
|
Mortgage-backed
|
|
|
71
|
|
|
$
|
9,052
|
|
|
$
|
86
|
|
|
|
2
|
|
|
$
|
14
|
|
|
$
|
1
|
|
|
|
73
|
|
|
$
|
9,066
|
|
|
$
|
87
|
|
REMICs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private label
issuer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime
fixed and adjustable rate
|
|
|
3
|
|
|
|
1,277
|
|
|
|
137
|
|
|
|
2
|
|
|
|
710
|
|
|
|
185
|
|
|
|
5
|
|
|
|
1,987
|
|
|
|
322
|
|
Alt-A
fixed rate
|
|
|
1
|
|
|
|
894
|
|
|
|
23
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
894
|
|
|
|
23
|
|
Government-sponsored
enterprises
|
|
|
7
|
|
|
|
3,406
|
|
|
|
180
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7
|
|
|
|
3,406
|
|
|
|
180
|
|
Total
REMICs
|
|
|
11
|
|
|
|
5,577
|
|
|
|
340
|
|
|
|
2
|
|
|
|
710
|
|
|
|
185
|
|
|
|
13
|
|
|
|
6,287
|
|
|
|
525
|
|
Corporate
debt
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
1,655
|
|
|
|
2,340
|
|
|
|
3
|
|
|
|
1,655
|
|
|
|
2,340
|
|
Total securities temporarily
impaired
|
|
|
82
|
|
|
$
|
14,629
|
|
|
$
|
426
|
|
|
|
7
|
|
|
$
|
2,379
|
|
|
$
|
2,526
|
|
|
|
89
|
|
|
$
|
17,008
|
|
|
$
|
2,952
|
|
As
part of the Company’s review of its available-for-sale securities at December
31, 2008, it was determined that 11 private label mortgage-backed securities for
vintages 2005 through 2007 with an unrealized loss of $4.8 million had
other-than-temporary impairment. Of these securities, 9 were significantly
downgraded by the rating agencies in December 2008 with all but one accorded
below investment grade status. In addition to the decrease in fair market value,
the underlying assets reflected further deterioration with respect to
delinquencies, foreclosures and payment speed which identified a potential loss
of principal based on cash flow analysis.
Note
4. Loans
The
following table sets forth the composition of our loan portfolio at the dates
indicated.
|
|
March
31, 2009
|
|
December
31, 2008
|
|
March
31, 2008
|
|
(Dollars in
thousands)
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Real
estate-mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four
family residential
|
|
$
|
154,044
|
|
|
|
65.6
|
%
|
|
$
|
155,871
|
|
|
|
65.7
|
%
|
|
$
|
137,827
|
|
|
|
70.1
|
%
|
|
Multi-family
|
|
|
10,882
|
|
|
|
4.6
|
|
|
|
10,946
|
|
|
|
4.6
|
|
|
|
11,085
|
|
|
|
5.6
|
|
|
Commercial
|
|
|
25,651
|
|
|
|
10.9
|
|
|
|
24,301
|
|
|
|
10.3
|
|
|
|
15,091
|
|
|
|
7.8
|
|
|
Total real
estate-mortgage
|
|
|
190,577
|
|
|
|
81.1
|
|
|
|
191,118
|
|
|
|
80.6
|
|
|
|
164,003
|
|
|
|
83.5
|
|
|
|
|
|
Real
estate-construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
7,059
|
|
|
|
3.0
|
|
|
|
9,833
|
|
|
|
4.2
|
|
|
|
5,503
|
|
|
|
2.8
|
|
|
Commercial
|
|
|
3,443
|
|
|
|
1.5
|
|
|
|
3,443
|
|
|
|
1.5
|
|
|
|
-
|
|
|
|
|
|
|
Total real
estate-construction
|
|
|
10,502
|
|
|
|
4.5
|
|
|
|
13,276
|
|
|
|
5.7
|
|
|
|
5,503
|
|
|
|
2.8
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity
|
|
|
23,099
|
|
|
|
9.8
|
|
|
|
22,344
|
|
|
|
9.4
|
|
|
|
19,149
|
|
|
|
9.8
|
|
|
Loans on
savings accounts
|
|
|
859
|
|
|
|
0.4
|
|
|
|
886
|
|
|
|
0.4
|
|
|
|
521
|
|
|
|
0.3
|
|
|
Home
improvement
|
|
|
223
|
|
|
|
0.1
|
|
|
|
233
|
|
|
|
0.1
|
|
|
|
268
|
|
|
|
0.1
|
|
|
Other
|
|
|
528
|
|
|
|
0.2
|
|
|
|
588
|
|
|
|
0.2
|
|
|
|
597
|
|
|
|
0.3
|
|
|
Total
consumer
|
|
|
24,709
|
|
|
|
10.5
|
|
|
|
24,051
|
|
|
|
10.1
|
|
|
|
20,535
|
|
|
|
10.5
|
|
|
Commercial
business
|
|
|
9,151
|
|
|
|
3.9
|
|
|
|
8,474
|
|
|
|
3.6
|
|
|
|
6,352
|
|
|
|
3.2
|
|
|
Total
loans
|
|
$
|
234,939
|
|
|
|
100.0
|
%
|
|
$
|
236,919
|
|
|
|
100.0
|
%
|
|
$
|
196,393
|
|
|
|
100.0
|
%
|
|
Net premiums on loans
purchased
|
|
|
119
|
|
|
|
|
|
|
|
120
|
|
|
|
|
|
|
|
178
|
|
|
|
|
|
|
Net deferred loan
costs
|
|
|
828
|
|
|
|
|
|
|
|
850
|
|
|
|
|
|
|
|
507
|
|
|
|
|
|
|
Loans in
process
|
|
|
(4,421
|
)
|
|
|
|
|
|
|
(5,899
|
)
|
|
|
|
|
|
|
(2,550
|
)
|
|
|
|
|
|
Allowance for loan
losses
|
|
|
(1,953
|
)
|
|
|
|
|
|
|
(1,806
|
)
|
|
|
|
|
|
|
(1,345
|
)
|
|
|
|
|
|
Loans,
net
|
|
$
|
229,512
|
|
|
|
|
|
|
$
|
230,184
|
|
|
|
|
|
|
$
|
193,183
|
|
|
|
|
|
|
Nonperforming
Assets.
The following table provides information with respect
to our nonperforming assets at the dates indicated.
|
|
March
31,
|
|
|
December31,
|
|
|
March
31,
|
|
(Dollars in
thousands)
|
|
2009
|
|
|
2008
|
|
|
2008
|
|
Nonaccrual
loans:
|
|
|
|
|
|
|
|
|
|
Real estate -
mortgage
|
|
$
|
723
|
|
|
$
|
632
|
|
|
$
|
803
|
|
Consumer
|
|
|
94
|
|
|
|
4
|
|
|
|
23
|
|
Total
|
|
|
817
|
|
|
|
636
|
|
|
|
826
|
|
Accruing loans past due 90 days
or more
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total of
nonaccrual and 90 days or more
|
|
|
|
|
|
|
|
|
|
|
|
|
past due loans (nonperforming
loans)
|
|
|
817
|
|
|
|
636
|
|
|
|
826
|
|
Real estate
owned
|
|
|
316
|
|
|
|
295
|
|
|
|
766
|
|
Total
nonperforming assets
|
|
$
|
1,133
|
|
|
$
|
931
|
|
|
$
|
1,592
|
|
Troubled debt
restructurings
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Troubled debt restructurings and
total
|
|
|
|
|
|
|
|
|
|
|
|
|
nonperforming
assets
|
|
$
|
1,133
|
|
|
$
|
931
|
|
|
$
|
1,592
|
|
Total nonperforming loans to
total loans
|
|
|
0.35
|
%
|
|
|
0.27
|
%
|
|
|
0.42
|
%
|
Total nonperforming loans to
total assets
|
|
|
0.24
|
|
|
|
0.18
|
|
|
|
0.25
|
|
Total nonperforming assets to
total assets
|
|
|
0.33
|
|
|
|
0.27
|
|
|
|
0.49
|
|
Allowance
for loan losses.
The allowance for loan losses is a valuation
allowance for probable losses inherent in the loan portfolio. We evaluate the
need to establish allowances against losses on loans on a quarterly basis. When
additional allowances are necessary, a provision for loan losses is recorded.
The following table summarizes the activity in the allowance for loan losses for
the periods indicated.
|
|
Three
Months Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
|
|
|
December
31,
|
|
(Dollars in
thousands)
|
|
2009
|
|
|
2008
|
|
|
2008
|
|
Allowance at beginning of
period
|
|
$
|
1,806
|
|
|
$
|
1,457
|
|
|
$
|
1,457
|
|
Provision for
loan losses
|
|
|
160
|
|
|
|
59
|
|
|
|
878
|
|
Charge-offs
|
|
|
(14
|
)
|
|
|
(171
|
)
|
|
|
(529
|
)
|
Recoveries
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
Net
charge-offs
|
|
|
(13
|
)
|
|
|
(171
|
)
|
|
|
(529
|
)
|
Allowance at end of
period
|
|
$
|
1,953
|
|
|
$
|
1,345
|
|
|
$
|
1,806
|
|
Note
5. Deposits
The
following table sets forth the balances of our deposit products at the dates
indicated.
|
|
March
31, 2009
|
|
|
December
31, 2008
|
|
|
March
31, 2008
|
|
(Dollars in
thousands)
|
|
Amount
|
|
|
Percent
|
|
|
Amount
|
|
|
Percent
|
|
|
Amount
|
|
|
Percent
|
|
Noninterest-bearing demand
deposits
|
|
$
|
14,411
|
|
|
|
7.9
|
%
|
|
$
|
12,005
|
|
|
|
6.9
|
%
|
|
$
|
10,832
|
|
|
|
6.7
|
%
|
Interest-bearing demand
deposits
|
|
|
12,520
|
|
|
|
6.9
|
|
|
|
11,336
|
|
|
|
6.6
|
|
|
|
11,791
|
|
|
|
7.3
|
|
Savings
accounts
|
|
|
22,813
|
|
|
|
12.6
|
|
|
|
22,477
|
|
|
|
13.0
|
|
|
|
23,441
|
|
|
|
14.5
|
|
Money market
accounts
|
|
|
47,295
|
|
|
|
26.1
|
|
|
|
43,873
|
|
|
|
25.4
|
|
|
|
18,582
|
|
|
|
11.5
|
|
Certificates of
deposit
|
|
|
84,409
|
|
|
|
46.5
|
|
|
|
83,113
|
|
|
|
48.1
|
|
|
|
97,219
|
|
|
|
60.0
|
|
Total
deposits
|
|
$
|
181,448
|
|
|
|
100.0
|
%
|
|
$
|
172,804
|
|
|
|
100.0
|
%
|
|
$
|
161,865
|
|
|
|
100.0
|
%
|
The
FDIC is expected to impose a special emergency assessment as of
June 30, 2009 in order to cover losses in its Deposit Insurance
Fund.
Currently, we expect the assessment to
be between 10 and 20 basis points of assessable deposits. If the assessment was
based on deposits at March 31, 2009, the Bank would incur a charge
of
approximately $180,000 to
$365,000
.
Note
6. Borrowings
We
utilize borrowings as a supplemental source of funds for loans and
securities. The primary source of borrowings are FHLB advances and,
to a limited extent, repurchase agreements. The following table sets forth
information concerning our borrowings for the periods indicated.
|
|
Three
Months
|
|
|
Year
|
|
|
Three
Months
|
|
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
(Dollars in
thousands)
|
|
2009
|
|
|
2008
|
|
|
2008
|
|
Maximum amount outstanding at any
month end
|
|
|
|
|
|
|
|
|
|
during
the period
|
|
$
|
127,559
|
|
|
$
|
135,337
|
|
|
$
|
121,776
|
|
Average amounts outstanding
during the period
|
|
|
126,253
|
|
|
|
120,704
|
|
|
|
109,067
|
|
Weighted average rate during the
period
|
|
|
3.88
|
%
|
|
|
3.99
|
%
|
|
|
4.10
|
%
|
Balance outstanding at end of
period
|
|
$
|
114,450
|
|
|
$
|
132,410
|
|
|
$
|
115,147
|
|
Weighted average rate at end of
period
|
|
|
4.01
|
%
|
|
|
3.87
|
%
|
|
|
3.86
|
%
|
Note
7. Earnings Per Share
Basic
earnings per common share is calculated by dividing FedFirst Financial’s net
income available to common stockholders by the weighted-average number of common
shares outstanding during the period. Diluted earnings per common share is
computed in a manner similar to basic earnings per common share except that the
weighted-average number of common shares outstanding is increased to include the
incremental common shares (as computed using the treasury stock method) that
would have been outstanding if all potentially dilutive common stock equivalents
were issued during the period. Common stock equivalents include restricted stock
awards and stock options. Anti-dilutive shares are common stock equivalents with
weighted-average exercise prices in excess of the weighted-average market value
for the periods presented. There were no dilution from stock options or awards
for the three months ended March 31, 2009. Unallocated common shares held by the
Employee Stock Ownership Plan (“ESOP”) are not included in the weighted-average
number of common shares outstanding for purposes of calculating both basic and
diluted earnings per common share until they are committed to be
released.
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
(Dollars in
thousands, except per share amounts)
|
|
2009
|
|
|
2008
|
|
|
|
Net income of FedFirst Financial
Corporation
|
|
$
|
319
|
|
|
$
|
268
|
|
Weighted-average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
6,077,749
|
|
|
|
6,231,354
|
|
Effect
of dilutive stock options and
|
|
|
|
|
|
|
|
|
restrictive stock
awards
|
|
|
-
|
|
|
|
162
|
|
Diluted
|
|
|
6,077,749
|
|
|
|
6,231,516
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.05
|
|
|
$
|
0.04
|
|
Diluted
|
|
$
|
0.05
|
|
|
$
|
0.04
|
|
Note
8. Fair Value Measurements
SFAS
No. 157 establishes a fair value hierarchy that prioritizes the inputs to
valuation methods used to measure fair value. The hierarchy gives the highest
priority to unadjusted quoted prices in active markets for identical assets or
liabilities (Level 1 measurements) and the lowest priority to unobservable
inputs (Level 3 measurements). The three levels of the fair value
hierarchy under SFAS No. 157 are as follows:
|
Level 1
–
|
Quoted
prices for identical instruments in active
markets.
|
|
Level
2 –
|
Quoted
prices for similar instruments in active markets; quoted prices for
identical or similar instruments in markets that are active, and model
derived valuations in which significant inputs or significant drivers are
observable in active markets.
|
|
Level
3 –
|
Valuations
derived from valuation techniques in which one or more significant inputs
or significant drivers are
unobservable.
|
The
majority of the Company’s securities are included in Level 2 of the fair value
hierarchy. Fair values were determined by a third party pricing service using
both quoted prices for similar assets, when available, and model-based valuation
techniques that derive fair value based on market-corroborated data, such as
instruments with similar prepayment speeds and default interest rates. In some
instances, the fair value of certain securities cannot be determined using these
techniques due to the lack of relevant market data. As such, these securities
are valued using an alternative technique and classified within Level 3 of the
fair value hierarchy.
At
March 31, 2009, Level 3 includes 12 securities totaling $5.3 million. This
balance is comprised of nine mortgage-backed securities at $3.6 million and
three corporate debt securities at $1.7 million, which are pooled trust
preferred insurance corporation term obligations. The mortgage-backed
securities, which were AAA rated at purchase, do not have an active market and
as such the Company has used an alternative method to determine the fair value
of these securities. The fair value has been determined using a discounted cash
flow model using market assumptions, which generally include cash flow,
collateral and other market assumptions. The corporate debt securities, which
were rated A at purchase and recently downgraded to B+, could not be priced
using quoted market prices, observable market activity or comparable trades, and
the financial market was considered not active. The trust preferred market has
been severely impacted by the lack of liquidity in the credit markets and
concern over the financial services industry. Fair values for trust preferred
securities were obtained from pricing sources with reasonable pricing
transparency, taking into account other unobservable inputs related to the risks
for each issuer. The pooled trust preferred corporate term obligations owned are
collateralized by the trust preferred securities of insurance companies in the
U.S. There has been little or no active trading in these securities; therefore
it was more appropriate to determine fair value using a discounted cash flow
analysis. Determining the appropriate discount rate for the discounted cash flow
analysis combined current and observable market spreads for comparable
structured credit products with specific risks identified within each issue. The
observable market spreads incorporated both credit and liquidity
premiums.
The
following tables set forth the fair value hierarchy of securities at March 31,
2009 and December 31, 2008.
|
|
March
31, 2009
|
|
|
December
31, 2008
|
|
Significant other observable
inputs (Level 2)
|
|
$
|
71,136
|
|
|
$
|
80,062
|
|
Significant unobservable inputs
(Level 3)
|
|
|
5,336
|
|
|
|
5,371
|
|
Total
securities
|
|
$
|
76,472
|
|
|
$
|
85,433
|
|
|
|
|
Significant
|
|
|
|
|
|
|
|
Unobservable
Inputs
|
|
|
|
|
|
(Dollars in
thousands)
|
|
(Level
3)
|
|
|
|
|
|
December 31,
2007
|
|
$
|
6,390
|
|
|
|
|
|
Total
unrealized gains
|
|
|
(2,199
|
)
|
|
|
|
|
Paydowns and
maturities
|
|
|
(307
|
)
|
|
|
|
|
Net transfers
in (out) of level 3
|
|
|
1,487
|
|
|
|
|
|
December 31,
2008
|
|
$
|
5,371
|
|
|
|
|
|
Total
unrealized gains
|
|
|
116
|
|
|
|
|
|
Paydowns and
maturities
|
|
|
(151
|
)
|
|
|
|
|
March 31,
2009
|
|
$
|
5,336
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
March
31, 2009
|
|
|
December
31, 2008
|
|
The amount of total unrealized
gains (losses) for the period
|
|
|
|
|
|
|
|
|
included in earnings (or changes
in net assets) attributable to
|
|
|
|
|
|
|
|
|
the change in unrealized gains
(losses) relating to assets still
|
|
|
|
|
|
|
|
|
held at period
indicated
|
|
$
|
116
|
|
|
$
|
(2,199
|
)
|
Note
9. Subsidiary/Segment Reporting
The
consolidated operating results of FedFirst Financial are presented as a single
financial services segment. FedFirst Financial is the parent company of the
Bank, which owns FFEC. FFEC has an 80% controlling interest in Exchange
Underwriters, Inc. Exchange Underwriters, Inc. is managed separately from the
banking and related financial services that the Company offers. Exchange
Underwriters, Inc. is an independent insurance agency that offers property and
casualty, life, health, commercial general liability, surety and other insurance
products. Following is a table of selected financial data for the Company's
subsidiaries and consolidated results for the dates indicated.
|
|
First
Federal Savings Bank
|
|
|
Exchange
Underwriters,
Inc.
|
|
|
Other
|
|
|
Net
Eliminations
|
|
|
Consolidated
|
|
|
|
March 31,
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
$
|
340,896
|
|
|
$
|
1,217
|
|
|
$
|
39,331
|
|
|
$
|
(40,508
|
)
|
|
$
|
340,936
|
|
Liabilities
|
|
|
305,895
|
|
|
|
554
|
|
|
|
46
|
|
|
|
(5,714
|
)
|
|
|
300,781
|
|
Stockholders'
equity
|
|
|
35,001
|
|
|
|
663
|
|
|
|
39,285
|
|
|
|
(34,794
|
)
|
|
|
40,155
|
|
|
|
December 31,
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
$
|
350,517
|
|
|
$
|
1,338
|
|
|
$
|
39,345
|
|
|
$
|
(41,439
|
)
|
|
$
|
349,761
|
|
Liabilities
|
|
|
316,262
|
|
|
|
489
|
|
|
|
45
|
|
|
|
(6,459
|
)
|
|
|
310,337
|
|
Stockholders'
equity
|
|
|
34,255
|
|
|
|
849
|
|
|
|
39,300
|
|
|
|
(34,980
|
)
|
|
|
39,424
|
|
|
|
March 31,
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
$
|
326,371
|
|
|
$
|
1,070
|
|
|
$
|
26,987
|
|
|
$
|
(28,638
|
)
|
|
$
|
325,790
|
|
Liabilities
|
|
|
295,325
|
|
|
|
379
|
|
|
|
45
|
|
|
|
(13,441
|
)
|
|
|
282,308
|
|
Stockholders'
equity
|
|
|
31,046
|
|
|
|
691
|
|
|
|
26,942
|
|
|
|
(15,197
|
)
|
|
|
43,482
|
|
|
|
Three Months
Ended March 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
|
$
|
4,564
|
|
|
$
|
6
|
|
|
$
|
30
|
|
|
$
|
(30
|
)
|
|
$
|
4,570
|
|
Total interest
expense
|
|
|
2,380
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(30
|
)
|
|
|
2,350
|
|
Net interest
income
|
|
|
2,184
|
|
|
|
6
|
|
|
|
30
|
|
|
|
-
|
|
|
|
2,220
|
|
Provision for loan
losses
|
|
|
160
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
160
|
|
Net interest income after
provision for loan losses
|
|
|
2,024
|
|
|
|
6
|
|
|
|
30
|
|
|
|
-
|
|
|
|
2,060
|
|
Noninterest
income
|
|
|
400
|
|
|
|
701
|
|
|
|
-
|
|
|
|
(188
|
)
|
|
|
913
|
|
Noninterest
expense
|
|
|
1,961
|
|
|
|
382
|
|
|
|
55
|
|
|
|
-
|
|
|
|
2,398
|
|
Undistributed net loss of
subsidiary
|
|
|
-
|
|
|
|
-
|
|
|
|
342
|
|
|
|
(342
|
)
|
|
|
-
|
|
Income (loss) before income tax
expense (benefit)
and noncontrolling interest in net income of
consolidated subsidiary
|
|
|
463
|
|
|
|
325
|
|
|
|
317
|
|
|
|
(530
|
)
|
|
|
575
|
|
Income tax expense
(benefit)
|
|
|
83
|
|
|
|
137
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
218
|
|
Net income
(loss)
before noncontrolling interest in net income of
consolidated subsidiary
|
|
|
380
|
|
|
|
188
|
|
|
|
319
|
|
|
|
(530
|
)
|
|
|
357
|
|
Noncontrolling interest in net
income of consolidated subsidiary
|
|
|
38
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
38
|
|
Net income
(loss)
|
|
$
|
342
|
|
|
$
|
188
|
|
|
$
|
319
|
|
|
$
|
(530
|
)
|
|
$
|
319
|
|
|
|
Three Months
Ended March 31, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
|
$
|
4,295
|
|
|
$
|
10
|
|
|
$
|
241
|
|
|
$
|
(240
|
)
|
|
$
|
4,306
|
|
Total interest
expense
|
|
|
2,458
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(32
|
)
|
|
|
2,426
|
|
Net interest
income
|
|
|
1,837
|
|
|
|
10
|
|
|
|
241
|
|
|
|
(208
|
)
|
|
|
1,880
|
|
Provision for loan
losses
|
|
|
59
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
59
|
|
Net interest income after
provision for loan losses
|
|
|
1,778
|
|
|
|
10
|
|
|
|
241
|
|
|
|
(208
|
)
|
|
|
1,821
|
|
Noninterest
income
|
|
|
542
|
|
|
|
720
|
|
|
|
-
|
|
|
|
(217
|
)
|
|
|
1,045
|
|
Noninterest
expense
|
|
|
1,936
|
|
|
|
359
|
|
|
|
59
|
|
|
|
-
|
|
|
|
2,354
|
|
Undistributed net loss of
subsidiary
|
|
|
-
|
|
|
|
-
|
|
|
|
287
|
|
|
|
(287
|
)
|
|
|
-
|
|
Income (loss) before income tax
expense (benefit)
and noncontrolling interest in net income of
consolidated subsidiary
|
|
|
384
|
|
|
|
371
|
|
|
|
469
|
|
|
|
(712
|
)
|
|
|
512
|
|
Income tax expense
(benefit)
|
|
|
54
|
|
|
|
155
|
|
|
|
(8
|
)
|
|
|
-
|
|
|
|
201
|
|
Net income (loss) before
noncontrolling interest in net income of consolidated
subsidiary
|
|
|
330
|
|
|
|
216
|
|
|
|
477
|
|
|
|
(712
|
)
|
|
|
311
|
|
Noncontrolling interest in net
income of consolidated subsidiary
|
|
|
43
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
43
|
|
Net income
(loss)
|
|
$
|
287
|
|
|
$
|
216
|
|
|
$
|
477
|
|
|
$
|
(712
|
)
|
|
$
|
268
|
|
This
discussion should be read in conjunction with the unaudited consolidated
financial statements, notes and tables included in this report. For further
information, refer to the consolidated financial statements and notes included
in FedFirst Financial Corporation’s Annual Report on Form 10-K for the year
ended December 31, 2008.
Forward-Looking
Statements
This
report contains certain “forward-looking statements” within the meaning of the
federal securities laws. These statements are not historical facts, rather
statements based on FedFirst Financial’s current expectations regarding its
business strategies, intended results and future performance. Forward-looking
statements are preceded by terms such as “expects,” “believes,” “anticipates,”
“intends” and similar expressions.
Management’s
ability to predict results or the effect of future plans or strategies is
inherently uncertain. Factors which could affect actual results include the
following: interest rate trends; the general economic climate in the market area
in which FedFirst Financial operates, as well as nationwide; FedFirst
Financial’s ability to control costs and expenses; competitive products and
pricing; loan delinquency rates and changes in federal and state legislation and
regulation. Additional factors that may affect our results are discussed in
FedFirst Financial’s Annual Report on Form 10-K under “Item 1A. Risk Factors.”
These factors should be considered in evaluating the forward-looking statements
and undue reliance should not be placed on such statements. FedFirst Financial
assumes no obligation to update any forward-looking statements.
General
FedFirst
Financial Corporation (“FedFirst Financial” or the “Company”) is a federally
chartered savings and loan holding company established in 1999 to be the holding
company for First Federal Savings Bank (“First Federal” or the “Bank”), a
federally chartered savings bank. FedFirst Financial’s business activity is the
ownership of the outstanding capital stock of First Federal. FedFirst Financial
does not own or lease any property, but uses the premises, equipment and other
property of First Federal with the payment of appropriate rental fees, as
required by applicable law and regulations, under the terms of an expense
allocation agreement. In the future, FedFirst Financial may acquire or organize
other operating subsidiaries; however, there are no current plans, arrangements,
agreements or understandings, written or oral, to do
so.
We operate as a
community-oriented financial institution offering residential, multi-family and
commercial mortgages, consumer loans and commercial business loans as well as a
variety of deposit products for individuals and businesses from nine locations
in southwestern
Pennsylvania
. We conduct
insurance brokerage activities through Exchange Underwriters, Inc., an 80%-owned
subsidiary.
In March 2009, the Company announced that Exchange
Underwriters, Inc. expanded its operation through the acquisition of the
Allsurance Insurance Agency, which is a full service independent insurance
agency that offers life, health and property and casualty insurance for
individuals and small businesses.
The Bank is
subject to competition from other financial institutions and to the regulations
of certain federal and state agencies and undergoes periodic examinations by
those regulatory authorities.
FedFirst
Financial Mutual Holding Company (“FFMHC”) is our federally chartered mutual
holding company parent. As a mutual holding company, FFMHC is a non-stock
company that has as its members the depositors of First Federal. FFMHC does not
engage in any business activity other than owning a majority of the common stock
of FedFirst Financial. So long as we remain in the mutual holding company form
of organization, FFMHC will own a majority of the outstanding shares of FedFirst
Financial.
Our website
address is www.firstfederal-savings.com. Information on our website should not
be considered a part of this Form 10-Q.
Balance
Sheet Analysis
Assets.
Total
assets at March 31, 2009 were $340.9 million, a decrease of $8.8 million, or
2.5%, from total assets of $349.8 million at December 31,
2008.
Securities
available-for-sale decreased $9.0 million, or 10.5%, to $76.5 million at March
31, 2009 compared to $85.4 million at December 31, 2008. The decrease is the
result of $8.3 million of calls on Government-Sponsored Enterprise securities
and paydowns, which was partially offset by the purchase of a $2.0 million
municipal security. In addition, the securities portfolio reflects an unrealized
loss of $1.1 million at March 31, 2009, primarily from corporate debt
securities, compared to $1.8 million at December 31, 2008.
Loans,
net, decreased $672,000, or 0.3%, to $229.5 million at March 31, 2009 compared
to $230.2 million at December 31, 2008. The decrease was primarily the result of
paydowns and payoffs on one-to-four family residential real estate loans,
partially offset by growth in commercial real estate, commercial business, and
home equity loans.
Other
assets include approximately $600,000 related to the purchase of the Allsurance
Insurance Agency in March 2009. The valuation to determine the amount of
goodwill and intangible asset related to the purchase is expected to be
finalized in the second quarter of 2009.
Liabilities.
Total
liabilities at March 31, 2009 were $300.8 million, compared to $310.3 million at
December 31, 2008, a decrease of $9.6 million, or
3.1%.
Total
deposits increased $8.6 million, or 5.0%, to $181.4 million at March 31, 2009
compared to $172.8 million at December 31, 2008. The increase in deposits was
primarily in money market, noninterest-bearing
demand
deposit and certificates of deposit accounts. Money market account and
certificates of deposit growth were due to the marketing of select promotional
rates. The increase in deposits has provided an opportunity for the Bank to
reduce borrowings.
Borrowings
decreased $18.0 million, or 13.6%, to $114.5 million at March 31, 2009 compared
to $132.4 million at December 31, 2008. Funds generated through deposit growth
and security calls were used to reduce borrowings.
Stockholders’
Equity.
Stockholders’ equity was $40.2 million at March 31,
2009, an increase of $731,000 from December 31, 2008. The increase in
stockholders’ equity was primarily due to the $426,000 change in the unrealized
loss position of the securities portfolio, net of tax, and $319,000 in net
income for the three months ended March 31, 2009.
Results
of Operations for the Three Months Ended March 31, 2009 and 2008
Overview.
The
Company had net income of $319,000 for the three months ended March 31, 2009,
compared to $268,000 for the same period in 2008.
|
|
Three
Months Ended March 31,
|
(Dollars
in thousands)
|
|
2009
|
|
2008
|
Net
income of FedFirst Financial Corporation
|
|
$
|
319
|
|
|
$
|
268
|
|
Return
on average assets
|
|
|
0.37
|
%
|
|
|
0.34
|
%
|
Return
on average equity
|
|
|
3.20
|
|
|
|
2.48
|
|
Average
equity to average assets
|
|
|
11.41
|
|
|
|
13.54
|
|
Net
Interest Income.
Net interest income for the three months ended March 31,
2009 increased $340,000 to $2.2 million compared to the three months ended March
31, 2008. Interest rate spread and net interest margin were 2.31% and 2.69%,
respectively, for the three months ended March 31, 2009 compared to 2.01% and
2.50%, respectively, for the three months ended March 31, 2008. The improvement
in interest rate spread and net interest margin is primarily attributed to the
growth in the loan portfolio coupled with lower costs on
deposits.
Interest
income increased $264,000, or 6.1%, to $4.6 million for the three months ended
March 31, 2009 compared to the three months ended March 31, 2008 due to an
increase of $29.8 million in the average balance of interest-earning assets
partially offset by a decrease of 20 basis points in the average yield. Interest
income on loans increased $537,000 due to an increase of $39.4 million in the
average balance, primarily driven by increases in one-to-four family residential
real estate, commercial real estate, commercial business, and home equity loans.
Interest income on securities decreased $177,000 due to a decrease of $12.1
million in the average balance, primarily from calls and paydowns of
Government-sponsored agencies and mortgage-backed securities.
Interest
expense decreased $76,000, or 3.1%, to $2.4 million for the three months ended
March 31, 2009 as compared to the three months ended March 31, 2008 due to a
decrease of 50 basis points in cost, partially offset by an increase of $30.5 in
the average balance of interest-bearing liabilities. Interest expense on
deposits decreased $184,000 due to a decrease of 72 basis points in cost,
primarily related to the repricing of money market accounts and maturing
certificates of deposits at lower rates, partially offset by an increase of
$13.3 million in the average balance, primarily in money market accounts.
Interest expense on borrowings increased $108,000 due to an increase of $17.2
million in the average balance, partially offset by a decrease of 22 basis
points in cost related to the repricing of borrowings at lower costs in the
current economic environment.
Average
Balances and Yields
.
The
following table presents information regarding average balances of assets and
liabilities, the total dollar amounts of interest income and dividends from
average interest-earning assets, the total dollar amounts of interest expense on
average interest-bearing liabilities, and the resulting average yields and
costs. The yields and costs for the periods indicated are derived by dividing
income or expense by the average balances of assets or liabilities,
respectively, for the periods presented and are expressed in annualized rates
(dollars in thousands).
|
|
|
|
|
Three Months
Ended March 31,
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
Average
|
|
|
and
|
|
|
Yield/
|
|
Average
|
|
|
and
|
|
|
Yield/
|
|
|
Balance
|
|
|
Dividends
|
|
|
Cost
|
|
Balance
|
|
|
Dividends
|
|
|
Cost
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net
(1)(2)
|
|
$
|
230,047
|
|
|
$
|
3,355
|
|
|
|
5.83
|
%
|
|
$
|
190,664
|
|
|
$
|
2,818
|
|
|
|
5.91
|
%
|
Securities
(3)
|
|
|
86,657
|
|
|
|
1,209
|
|
|
|
5.58
|
|
|
|
98,732
|
|
|
|
1,386
|
|
|
|
5.62
|
|
Other
interest-earning assets
|
|
|
13,392
|
|
|
|
6
|
|
|
|
0.18
|
|
|
|
10,908
|
|
|
|
102
|
|
|
|
3.74
|
|
Total interest-earning
assets
|
|
|
330,096
|
|
|
$
|
4,570
|
|
|
|
5.54
|
|
|
|
300,304
|
|
|
$
|
4,306
|
|
|
|
5.74
|
|
Noninterest-earning
assets
|
|
|
19,230
|
|
|
|
|
|
|
|
|
|
|
|
19,291
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
349,326
|
|
|
|
|
|
|
|
|
|
|
$
|
319,595
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liablities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
demand
deposits
|
|
$
|
11,992
|
|
|
$
|
14
|
|
|
|
0.47
|
%
|
|
$
|
11,899
|
|
|
$
|
14
|
|
|
|
0.47
|
%
|
Savings
accounts
|
|
|
22,658
|
|
|
|
41
|
|
|
|
0.72
|
|
|
|
23,111
|
|
|
|
51
|
|
|
|
0.88
|
|
Money market
accounts
|
|
|
45,221
|
|
|
|
301
|
|
|
|
2.66
|
|
|
|
15,269
|
|
|
|
127
|
|
|
|
3.33
|
|
Certificates
of deposit
|
|
|
84,843
|
|
|
|
768
|
|
|
|
3.62
|
|
|
|
101,162
|
|
|
|
1,116
|
|
|
|
4.41
|
|
Total interest-bearing
deposits
|
|
|
164,714
|
|
|
|
1,124
|
|
|
|
2.73
|
|
|
|
151,441
|
|
|
|
1,308
|
|
|
|
3.45
|
|
Borrowings
|
|
|
126,253
|
|
|
|
1,226
|
|
|
|
3.88
|
|
|
|
109,067
|
|
|
|
1,118
|
|
|
|
4.10
|
|
Total interest-bearing
liabilities
|
|
|
290,967
|
|
|
|
2,350
|
|
|
|
3.23
|
|
|
|
260,508
|
|
|
|
2,426
|
|
|
|
3.73
|
|
Noninterest-bearing
liabilities
|
|
|
18,514
|
|
|
|
|
|
|
|
|
|
|
|
15,815
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
309,481
|
|
|
|
|
|
|
|
|
|
|
|
276,323
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
39,845
|
|
|
|
|
|
|
|
|
|
|
|
43,272
|
|
|
|
|
|
|
|
|
|
Total liabilities
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
|
$
|
349,326
|
|
|
|
|
|
|
|
|
|
|
$
|
319,595
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
$
|
2,220
|
|
|
|
|
|
|
|
|
|
|
$
|
1,880
|
|
|
|
|
|
|
Interest rate spread
(4)
|
|
|
|
|
|
|
|
|
|
|
2.31
|
%
|
|
|
|
|
|
|
|
|
|
|
2.01
|
%
|
Net interest margin
(5)
|
|
|
|
|
|
|
|
|
|
|
2.69
|
|
|
|
|
|
|
|
|
|
|
|
2.50
|
|
Average
interest-earning
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets to
average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing
liablities
|
|
|
|
|
|
|
|
|
|
|
113.45
|
%
|
|
|
|
|
|
|
|
|
|
|
115.28
|
%
|
(1)
|
Amount is net of
deferred loan costs, loans in process and allowance for loan
losses.
|
(2)
|
Amount includes
nonaccrual loans in average balances only.
|
(3)
|
Amount does not include
effect of unrealized gain (loss) on securities
available-for-sale.
|
(4)
|
Interest rate spread
represents the difference between the weighted-average yield on
interest-earning assets and the weighted-average cost of interest-bearing
liabilities.
|
(5)
|
Net interest margin
represents net interest income divided by average interest-earning
assets.
|
Rate/Volume
Analysis
.
The
following table sets forth the effects of changing rates and volumes on our
net interest income. The volume column shows the effects attributable to changes
in volume (changes in volume multiplied by prior rate). The rate column shows
the effects attributable to changes in rate (changes in rate multiplied by
prior volume). Changes related to volume/rate are prorated into volume and rate
components. The total column represents the net change in volume and
rate.
|
|
Three Months
Ended March 31, 2009
|
|
|
|
Compared
To
|
|
|
|
Three Months
Ended March 31, 2008
|
|
|
|
Increase
(decrease) due to
|
|
(Dollars in
thousands)
|
|
Volume
|
|
|
Rate
|
|
|
Total
|
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Loans,
net
|
|
$
|
575
|
|
|
$
|
(38
|
)
|
|
$
|
537
|
|
Securities
|
|
|
(167
|
)
|
|
|
(10
|
)
|
|
|
(177
|
)
|
Other
interest-earning assets
|
|
|
19
|
|
|
|
(115
|
)
|
|
|
(96
|
)
|
Total interest-earning
assets
|
|
|
427
|
|
|
|
(163
|
)
|
|
|
264
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
107
|
|
|
|
(291
|
)
|
|
|
(184
|
)
|
Borrowings
|
|
|
170
|
|
|
|
(62
|
)
|
|
|
108
|
|
Total interest-bearing
liablities
|
|
|
277
|
|
|
|
(353
|
)
|
|
|
(76
|
)
|
Change in net
interest income
|
|
$
|
150
|
|
|
$
|
190
|
|
|
$
|
340
|
|
Provision
for Loan Losses.
The provision for loan losses was $160,000
for the three months ended March 31, 2009 compared to $59,000 for the three
months ended March 31, 2008. The increase in the provision is primarily related
to growth in the loan portfolio, predominantly in one-to-four family
residential, commercial real estate and business, and home equity loans. In
addition, there has been a change in the loan portfolio composition with an
increase as a percent of total loans in commercial real estate and business
loans and a decrease in one-to-four family residential. Current conditions in
the housing and credit markets also contributed to the increase in the
provision. Charge-offs in the current period declined to $14,000 for the three
months ended March 31, 2009 compared to $171,000 for the three months ended
March 31, 2008. The current period charge-offs were related to unsecured
consumer loans. The prior period charge-off was related to the Company taking
possession of a one-to-four family property.
Noninterest
Income
.
Noninterest
income decreased $132,000 or 12.6%, to $913,000 for the three months ended March
31, 2009 compared to $1.0 million for the three months ended March 31, 2008. The
decrease is primarily attributable to a gain of $156,000 recognized on the sales
of securities in the prior period.
Noninterest
Expense.
The following table summarizes noninterest expense
for the periods indicated.
|
|
Three
Months Ended
|
|
|
|
March
31,
|
|
(Dollars in
thousands)
|
|
2009
|
|
|
2008
|
|
Compensation and employee
benefits
|
|
|
1,458
|
|
|
|
1,462
|
|
Occupancy
|
|
|
354
|
|
|
|
341
|
|
FDIC insurance
premiums
|
|
|
9
|
|
|
|
6
|
|
Data
processing
|
|
|
107
|
|
|
|
106
|
|
Professional
services
|
|
|
131
|
|
|
|
128
|
|
Advertising
|
|
|
44
|
|
|
|
32
|
|
Stationary, printing and
supplies
|
|
|
35
|
|
|
|
28
|
|
Telephone
|
|
|
15
|
|
|
|
16
|
|
Postage
|
|
|
36
|
|
|
|
38
|
|
Correspondent bank
fees
|
|
|
42
|
|
|
|
43
|
|
All
other
|
|
|
167
|
|
|
|
154
|
|
Total noninterest
expense
|
|
$
|
2,398
|
|
|
$
|
2,354
|
|
Income
Tax Expense.
Income tax expense for the three months ended
March 31, 2009 was $218,000 compared to $201,000 for the same period in
2008.
Liquidity
and Capital Management
Liquidity
Management
.
Liquidity is
the ability to meet current and future financial obligations of a short-term
nature. Our primary sources of funds consist of deposit inflows, loan
repayments, maturities and sales of available-for-sale securities and
borrowings. While maturities and scheduled amortization of loans and securities
are predictable sources of funds, deposit flows and mortgage prepayments are
greatly influenced by general interest rates, economic conditions and
competition.
We regularly
adjust our investments in liquid assets based upon our assessment of (1)
expected loan demand, (2) expected deposit flows, (3) yields available on
interest-earning deposits and securities and (4) the objectives of our
asset/liability management policy.
Our
most liquid assets are cash and cash equivalents and interest-bearing deposits.
The levels of these assets depend on our operating, financing, lending and
investing activities during any given period. At
March
31, 2009
,
cash and cash equivalents totaled
$9.6
million.
At
March 31, 2009, s
ecurities
classified as available-for-sale totaled
$76.5
million,
which provides an additional source of liquidity. In addition, at
March
31, 2009
,
the
maximum remaining borrowing capacity at the FHLB of Pittsburgh was
approximately
$
103.3
mil
lion
.
Certificates
of deposit due within one year of
March
31, 2009
totaled
$
39.8
million,
or
47.1
%
of certificates of deposit. If these maturing deposits do not remain with us, we
will be required to seek other sources of funds including other certificates of
deposit and borrowings. We believe, however, based on past experience, that a
significant portion of our maturing certificates of deposit will remain with us.
We have the ability to attract and retain deposits by adjusting the interest
rates offered.
The following table summarizes the Company’s
commitments a
t the date
indicated.
|
|
March
31,
|
|
(Dollars in
thousands)
|
|
2009
|
|
Loans in
process
|
|
$
|
4,421
|
|
Unused revolving lines of
credit
|
|
|
2,940
|
|
Unused commercial business lines
of credit
|
|
|
3,109
|
|
One-to-four family residential
commitments
|
|
|
1,950
|
|
Consumer
commitments
|
|
|
429
|
|
Total
commitments outstanding
|
|
$
|
12,849
|
|
Capital
Management.
We are subject to various regulatory capital
requirements administered by the Office of Thrift Supervision, including a
risk-based capital measure. The risk-based capital guidelines include both a
definition of capital and a framework for calculating risk-weighted assets by
assigning balance sheet assets and off-balance sheet items to broad risk
categories. At March 31, 2009, we exceeded all of our regulatory capital
requirements and are considered “well capitalized” under regulatory guidelines.
After careful analysis, we determined that existing capital is sufficient to
meet anticipated needs and that it would not be in the best interests of
shareholders to participate in the Capital Purchase Program conducted through
the United States Treasury Department as part of the Troubled Asset Relief
Program.
Off-Balance
Sheet Arrangements.
In the normal course of operations, we
engage in a variety of financial transactions that, in accordance with generally
accepted accounting principles, are not recorded in our financial statements.
These transactions involve, to varying degrees, elements of credit, interest
rate and liquidity risk. Such transactions are used primarily to manage
customers’ requests for funding and take the form of loan commitments and lines
of credit.
For
the
three
months
ended
March
31, 2009
,
we engaged in no off-balance sheet transactions reasonably likely to have a
material effect on our financial condition, results of operations or cash
flows.
Not applicable
as the registrant is a smaller reporting company.
FedFirst
Financial’s management, including FedFirst Financial’s principal executive
officer and principal financial officer, have evaluated the effectiveness of
FedFirst Financial’s “disclosure controls and procedures,” as such term is
defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). Based upon their evaluation, the principal
executive officer and principal financial officer concluded that, as of the end
of the period covered by this report, FedFirst Financial’s disclosure controls
and procedures were effective for the purpose of ensuring that the information
required to be disclosed in the reports that FedFirst Financial files or submits
under the Exchange Act with the Securities and Exchange Commission (the “SEC”)
(1) is recorded, processed, summarized and reported within the time periods
specified in the SEC’s rules and forms, and (2) is accumulated and communicated
to FedFirst Financial’s management, including its principal executive and
principal financial officers, as appropriate to allow timely decisions regarding
required disclosure.
There
has been no change in FedFirst Financial’s internal control over financial
reporting during the quarter ended March 31, 2009, that has materially affected,
or is reasonably likely to materially affect, FedFirst Financial’s internal
control over financial reporting.
PART
II – OTHER INFORMATION
Periodically,
there have been various claims and lawsuits against us, such as claims to
enforce liens, condemnation proceedings on properties in which we hold security
interests, claims involving the making and servicing of real property loans and
other issues incident to our business. We are not a party to any pending legal
proceedings that we believe would have a material adverse effect on our
financial condition, results of operations or cash
flows.
In
addition to the other information set forth in this report, you should carefully
consider the factors discussed in “Part I, Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2008, which could materially
affect our business, financial condition or future results. The risks
described in our Annual Report on Form 10-K are not the only risks that we
face. Additional risks and uncertainties not currently known to us or
that we currently deem to be immaterial also may materially affect our business,
financial condition and/or operating results.
The
Company made the following purchases of its common stock during the three months
ended March 31, 2009.
|
|
|
|
|
|
|
|
Total Number
of Shares
|
|
|
Maximum
Numberof
|
|
|
|
|
|
|
Average
|
|
|
Purchased as
Part of the
|
|
|
Shares that
May Yet Be
|
|
|
|
Total Number
of
|
|
|
Price
Paid
|
|
|
Publicly
Announced
|
|
|
Purchased
Under the
|
|
Period
|
|
Shares
Purchased
|
|
|
per
Share
|
|
|
Program
(1)
|
|
|
Program
(1)
|
|
January
2009
|
|
|
15,000
|
|
|
$
|
4.49
|
|
|
|
15,000
|
|
|
|
-
|
|
(1)
|
On
May 23, 2008, the Company announced that the board of directors had
approved a program allowing the Company to repurchase up to 140,000 shares
of the Company’s outstanding common stock, which was approximately 5% of
outstanding shares held by persons other than FFMHC on that date. This
repurchase program was scheduled to expire on November 30, 2008, but was
extended to May 31, 2009. On February 6, 2009, the Company announced the
cancellation of this program. At the time of cancellation, the
Company had purchased 85,250 shares of common stock under the program at
an average price of $5.76.
|
Not
applicable.
None.
None.
3.1
|
Amended and Restated Charter of FedFirst
Financial Corporation
(1)
|
3.2
|
Amended and Restated Bylaws of FedFirst
Financial Corporation
(2)
|
4.0
|
Specimen Stock Certificate of FedFirst
Financial Corporation
(1)
|
31.1
|
Rule
13a-14 (a) / 15d-14 (a) Certification (President and Chief Executive
Officer)
|
31.2
|
Rule
13a-14 (a) / 15d-14 (a) Certification (Chief Financial
Officer)
|
32.1
|
Certification
of John G. Robinson pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
32.2
|
Certification
of Robert C. Barry Jr. pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
(1)
|
Incorporated
herein by reference to the Exhibits to the Registration Statement on Form
SB-2, and amendments thereto, initially filed on December 17, 2004,
Registration No. 333-121405.
|
(2)
|
Incorporated
herein by reference to the Exhibits to FedFirst Financial Corporation’s
Form 10-K filed on March 16, 2009.
|
In
accordance with the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
|
|
|
FEDFIRST
FINANCIAL CORPORATION
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
Date:
|
May
13, 2009
|
|
/s/
John G. Robinson
|
|
|
|
|
John
G. Robinson
|
|
|
|
|
President
and Chief Executive Officer
|
|
|
|
|
|
|
Date:
|
May
13, 2009
|
|
/s/
Robert C. Barry Jr.
|
|
|
|
|
Robert
C. Barry Jr.
|
|
|
|
|
Chief
Financial Officer and Senior Vice President
|
|
|
|
|
(Principal
Financial Officer and Chief Accounting Officer)
|
|
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