FedFirst Financial Corporation (NASDAQ Capital: FFCO; the
“Company”), the parent company of First Federal Savings Bank (the
“Bank”), today announced net income of $456,000 for the three
months ended March 31, 2012 compared to $268,000 for the three
months ended March 31, 2011, an increase of $188,000 or 70.1%.
Basic and diluted earnings per share were $0.16 for the three
months ended March 31, 2012 compared to $0.09 for the three months
ended March 31, 2011.
Patrick G. O'Brien, President and CEO, stated, “We are
encouraged by our growth in earnings per share quarter to quarter,
which represents a 78% increase. That growth, coupled with
continued strong asset quality in comparison to peer, reflects the
success of our plan of focusing on our core banking business and
managing our operating expenses.”
First Quarter Results
Net interest income for the three months ended March 31, 2012
decreased $37,000 compared to the three months ended March 31, 2011
remaining at $2.6 million. Despite overall growth in the loan
portfolio, paydowns and payoffs of higher yielding loans and
securities resulted in a $313,000 decline in interest income. This
was partially offset by payoffs on borrowings that resulted in a
$167,000 decrease in borrowings expense and interest rate
reductions on deposits that resulted in a $109,000 decrease in
deposits expense. Net interest margin remained at 3.28% for the
three months ended March 31, 2012 compared to the three months
ended March 31, 2011.
The provision for loan losses was $160,000 for the three months
ended March 31, 2012 compared to $250,000 for the three months
ended March 31, 2011. The provision declined primarily due to a
decrease in net charge-offs. Net charge-offs were $155,000 for the
three months ended March 31, 2012 compared to $239,000 for the
three months ended March 31, 2011. Charge-offs in both periods were
composed primarily of purchased residential mortgage loans. Total
nonperforming loans at March 31, 2012 were $2.7 million compared to
$2.1 million at December 31, 2011. Nonperforming loans at March 31,
2012 were comprised of 15 residential mortgage loans totaling $2.0
million and six commercial real estate loans totaling $641,000. At
March 31, 2012, nonperforming loans to totals loans was 1.05%,
nonperforming assets to total assets was 0.88%, allowance for loan
losses to total loans was 1.23% and allowance for loan losses to
nonperforming loans was 116.70 %.
Noninterest income increased $5,000 to $839,000 for the three
months ended March 31, 2012 compared to $834,000 for the three
months ended March 31, 2011. Fees and service charge income
increased $31,000 primarily due to changes in the Bank’s fee
structure and related customer activity. In addition, the Bank
received the benefit of a prepayment penalty on the payoff of a
commercial real estate loan in the current period. Partially
offsetting these increases was an $18,000 loss on the sale of REO
properties in the current period compared to a $3,000 loss in the
prior period.
Noninterest expense decreased $233,000, or 8.5%, to $2.5 million
for the three months ended March 31, 2012 compared to $2.7 million
for the three months ended March 31, 2011. Compensation expense
decreased $224,000 primarily due to the termination of the
Company’s supplemental executive retirement plan in the fourth
quarter of 2011 and a decrease in stock-based compensation expense
due to the final vesting of 2006 restricted stock awards and
options. In addition, occupancy expense decreased $37,000 primarily
due to fully depreciable assets and a decrease in office building
maintenance costs. There was also a $28,000 decrease in insurance
premiums due to the Federal Deposit Insurance Corporation’s revised
assessment methodology implemented in the second quarter of 2011.
This was partially offset by an increase in professional services
related to strategic planning analysis and initiatives.
Balance Sheet Review
Total assets increased $7.8 million to $343.1 million at March
31, 2012 compared to $335.3 million at December 31, 2011. Cash and
cash equivalents increased $8.5 million primarily due to a $10.5
million increase in deposits, principally in noninterest-bearing
demand deposits and money market accounts. Loans increased $596,000
as a result of disbursements on construction loans and growth in
home equity and commercial real estate loans, partially offset by a
decline in one-to-four family mortgage loans. Securities
available-for-sale decreased $895,000 due to calls and paydowns,
including a $2.0 million call of a Government Sponsored Enterprise
security and a $665,000 partial call of a municipal bond, that was
partially offset by the purchase of $5.2 million of securities,
including a $2.4 million REMIC and $2.7 million in tax exempt
municipal bonds. In addition, borrowings decreased $2.2 million due
to paydowns on amortizing advances and the payoff of a $1.0 million
matured advance.
FedFirst Financial Corporation is the parent company of First
Federal Savings Bank, a community-oriented financial institution
operating eight full-service branch locations in southwestern
Pennsylvania. First Federal offers a broad array of retail and
commercial lending and deposit services and provides commercial and
personal insurance services through Exchange Underwriters, Inc.,
its 80% owned subsidiary. Financial highlights of the Company are
attached.
Statements contained in this news release that are not
historical facts may constitute forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995 and such forward-looking statements are subject to significant
risks and uncertainties. The Company intends such forward-looking
statements to be covered by the safe harbor provisions contained in
the Act. The Company’s ability to predict results or the actual
effect of future plans or strategies is inherently uncertain.
Factors which could have a material adverse effect on the
operations and future prospects of the Company and its subsidiaries
include, but are not limited to, changes in market interest rates,
general economic conditions, changes in federal and state
regulation, actions by our competitors, loan delinquency rates and
our ability to control costs and expenses and other factors that
may be described in the Company’s annual report on Form 10-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
(Unaudited) (In thousands, except share and
per share data)
March 31, December 31, 2012
2011
Selected
Financial Condition Data:
Total assets $ 343,100 $ 335,274 Cash and cash equivalents 23,104
14,571 Securities available-for-sale 51,553 52,448 Loans
receivable, net 245,873 245,277 Deposits 232,061 221,540 Borrowings
47,080 49,289 Stockholders' equity 58,426 58,801
(Unaudited) Three Months Ended March 31,
2012 2011
Selected
Operations Data:
Total interest income $ 3,619 $ 3,932 Total interest expense
1,056 1,332 Net interest income 2,563 2,600
Provision for loan losses 160 250 Net
interest income after provision for loan losses 2,403 2,350
Noninterest income 839 834 Noninterest expense 2,504
2,737
Income before income tax expense and
noncontrolling interest in net income of consolidated
subsidiary
738 447 Income tax expense 265 161
Net income before noncontrolling interest
in net income of consolidated subsidiary
473 286 Noncontrolling interest in net income of consolidated
subsidiary 17 18 Net income of FedFirst
Financial Corporation $ 456 $ 268 Dividends
per share $ 0.03 $ 0.03 Earnings per share - basic and diluted 0.16
0.09 Weighted average shares outstanding - basic 2,855,926
2,905,642 Weighted average shares outstanding - diluted 2,860,753
2,911,768
Three Months Ended March 31,
2012 2011
Selected
Financial Ratios(1):
Return on average assets 0.54 % 0.31 % Return on average equity
3.07 1.82 Average interest-earning assets to average
interest-bearing liabilities 124.92 120.70 Average equity to
average assets 17.51 17.18 Interest rate spread 2.95 2.94 Net
interest margin 3.28 3.28
Period Ended
March 31, December 31, 2012 2011
Allowance for loan losses to total loans 1.23 % 1.21 % Allowance
for loan losses to nonperforming loans 116.70 144.43 Nonperforming
loans to total loans 1.05 0.84 Nonperforming assets to total assets
0.88 0.80 Net charge-offs to average loans 0.06 0.24 Tier 1 (core)
capital and tangible equity (2) 13.46 13.59
Tier 1 risk-based capital (2)
23.33 24.04
Total risk-based capital (2)
24.58 25.30 Book value per share $ 20.06 $ 19.88 Outstanding shares
2,912,302 2,957,302
(1) Three months ended ratios are
calculated on an annualized basis.
(2) Represents capital
ratios for First Federal Savings Bank.
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