FedFirst Financial Corporation Announces Record First Quarter 2013 Results
30 April 2013 - 10:30PM
FedFirst Financial Corporation (Nasdaq:FFCO) (the "Company"), the
parent company of First Federal Savings Bank (the "Bank"), today
announced net income of $794,000 for the three months ended March
31, 2013 compared to $456,000 for the three months ended March 31,
2012, an increase of $338,000 or 74.1%. Basic and diluted earnings
per share were $0.32 for the three months ended March 31, 2013
compared to $0.16 for the three months ended March 31, 2012, an
increase of $0.16 per share or 100.0%.
"We are proud to report record quarterly earnings as we build on
the momentum achieved in 2012," said Patrick G. O'Brien, President
and CEO. "Through management of our funding costs we were able to
improve our net interest margin despite an extremely challenging
interest rate environment and declining asset yields. Additional
stockholder value was created through utilization of excess capital
to continue stock buybacks that were accretive to book value per
share."
First Quarter Results
Net interest income for the three months ended March 31, 2013
decreased $33,000, or 1.3%, to $2.5 million compared to $2.6
million for the three months ended March 31, 2012. Modifications
and payoffs of higher yielding loans and securities due to the
continued historically low interest rate environment resulted in a
$375,000 decline in interest income. This was partially offset by
interest rate reductions and decreases in average balances on
higher-cost deposits that resulted in a $218,000 decrease in
deposits expense and payoffs on borrowings that resulted in
a $124,000 decrease in borrowings expense.
There was no provision for loan losses for the three months
ended March 31, 2013 compared to $160,000 for the three months
ended March 31, 2012. The provision decreased primarily due to a
decrease in charge-offs. Net charge-offs were $23,000 for the three
months ended March 31, 2013 compared to $155,000 for the three
months ended March 31, 2012. The decrease is also
attributable to an increase in loans that were separately evaluated
for impairment in the current period and did not require a specific
reserve.
Noninterest income increased $412,000, or 48.1%,
to $1.3 million for the three months ended March 31, 2013
compared to $857,000 for the three months ended March 31,
2012. Insurance commissions increased $388,000 primarily due to a
$257,000 increase in contingency fee income.
Noninterest expense increased $90,000, or 3.6%,
to $2.6 million for the three months ended March 31, 2013
compared to $2.5 million for the three months ended March 31,
2012. Compensation expense increased $143,000 primarily due to the
hiring of additional staff at the Bank's insurance subsidiary,
Exchange Underwriters, Inc. ("Exchange Underwriters"), and an
increase in stock-based compensation expense. In addition,
advertising expense increased $102,000 primarily related to a
cooperative marketing agreement that was signed by Exchange
Underwriters. This was partially offset by an $87,000 decrease in
professional services primarily due to costs associated with
strategic planning analysis and initiatives in the prior
period.
Balance Sheet Review
Total assets decreased $5.2 million to $313.6 million
at March 31, 2013 compared to $318.8 million at December 31,
2012. Securities available-for-sale decreased $6.0 million due
to paydowns and a $700,000 maturity of a municipal bond. Net loans
increased $2.8 million to $252.3 million primarily as a
result of growth in home equity loans and commercial business loans
as well as disbursements on commercial constructions loans,
partially offset by a decrease in residential mortgage loans.
Deposits increased $5.1 million to $219.2 million
principally in noninterest and interest-bearing demand deposits,
partially offset by a decrease in certificates of deposits.
Borrowings decreased $10.8 million to $37.9 million due
to a $9.8 million net decrease in short-term borrowings and
paydowns on amortizing advances. Stockholders' equity increased
$645,000 to $53.9 million primarily due to $794,000 in net income
partially offset by the purchase of 15,000 shares of the Company's
common stock for $260,000 and a $99,000 dividend payment.
About FedFirst Financial Corporation
FedFirst Financial Corporation is the parent company of First
Federal Savings Bank, a community-oriented financial institution
operating seven 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, |
|
2013 |
2012 |
Selected Financial Condition
Data: |
|
|
Assets |
$ 313,562 |
$ 318,760 |
Cash and cash equivalents |
4,826 |
5,874 |
Securities available-for-sale |
36,540 |
42,582 |
Loans receivable, net |
252,344 |
249,530 |
Deposits |
219,193 |
214,057 |
Borrowings |
37,892 |
48,678 |
Stockholders' equity |
53,939 |
53,294 |
|
|
|
|
(Unaudited) |
|
Three Months
Ended |
|
March 31, |
|
2013 |
2012 |
Selected Operations
Data: |
|
|
Total interest income |
$ 3,244 |
$ 3,619 |
Total interest expense |
714 |
1,056 |
Net interest income |
2,530 |
2,563 |
Provision for loan losses |
-- |
160 |
Net interest income after provision for loan
losses |
2,530 |
2,403 |
Noninterest income |
1,269 |
857 |
Noninterest expense |
2,612 |
2,522 |
Income before income tax expense and
noncontrolling interest in net income of consolidated
subsidiary |
1,187 |
738 |
Income tax expense |
351 |
265 |
Net income before noncontrolling interest in
net income of consolidated subsidiary |
836 |
473 |
Noncontrolling interest in net income of
consolidated subsidiary |
42 |
17 |
Net income of FedFirst Financial
Corporation |
$ 794 |
$ 456 |
|
|
|
Dividends per share |
$ 0.04 |
$ 0.03 |
Earnings per share - basic and diluted |
0.32 |
0.16 |
|
|
|
Weighted average shares outstanding -
basic |
2,457,646 |
2,855,926 |
Weighted average shares outstanding -
diluted |
2,465,233 |
2,860,753 |
|
|
|
|
Three Months
Ended |
|
March 31, |
|
2013 |
2012 |
Selected Financial
Ratios(1): |
|
|
Return on average assets |
1.01% |
0.54% |
Return on average equity |
5.85 |
3.07 |
Average interest-earning assets to average
interest-bearing liabilities |
127.21 |
124.92 |
Average equity to average assets |
17.17 |
17.51 |
Interest rate spread |
3.17 |
2.95 |
Net interest margin |
3.43 |
3.28 |
|
|
|
|
Period
Ended |
|
March 31, |
December 31, |
|
2013 |
2012 |
Allowance for loan losses to total loans |
1.09% |
1.13% |
Allowance for loan losses to nonperforming
loans |
145.33 |
130.94 |
Nonperforming loans to total loans |
0.75 |
0.86 |
Nonperforming assets to total assets |
0.71 |
0.74 |
Nonperforming assets and troubled debt
restructurings performing under modified terms to total assets |
1.23 |
1.21 |
Net charge-offs to average loans |
0.01 |
0.21 |
Tier 1 (core) capital and tangible equity
(2) |
14.54 |
14.02 |
Tier 1 risk-based capital (2) |
22.85 |
22.55 |
Total risk-based capital (2) |
24.10 |
23.81 |
Book value per share |
$ 21.36 |
$ 20.98 |
Outstanding shares |
2,525,341 |
2,540,341 |
|
|
|
(1) Ratios are calculated on an annualized
basis. |
|
|
(2) Capital ratios are for First Federal
Savings Bank only |
|
|
|
|
|
Note: |
|
|
Certain items previously reported
may have been reclassified to conform with the current reporting
period's format. |
CONTACT: Patrick G. O'Brien
Telephone: (724) 684-6800
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