FedFirst Financial Corporation Announces First Quarter 2014 Results
30 Abril 2014 - 3:30PM
FedFirst Financial Corporation (Nasdaq:FFCO) (the "Company"), the
parent company of First Federal Savings Bank (the "Bank"), today
announced net income of $534,000 for the three months ended March
31, 2014 compared to $794,000 for the three months ended March 31,
2013, a decrease of $260,000 or 32.7%. Diluted earnings per share
was $0.23 for the three months ended March 31, 2014 compared to
$0.32 for the three months ended March 31, 2013, a decrease
of $0.09 per share or 28.1%.
"The Company posted strong results in its core banking
operations which included an increase in net interest margin in
comparison to the first quarter of 2013 and modest growth in loans
and deposits," said Patrick G. O'Brien, President and CEO. "Net
income for the quarter increased compared to the fourth quarter of
2013 and, although it decreased in comparison to the first quarter
of 2013, the prior year results were largely influenced by the
receipt of contingency fees on insurance policies."
First Quarter Results
Net interest income for the three months ended March 31, 2014
increased $100,000, or 4.0%, to $2.6 million compared
to $2.5 million for the three months ended March 31, 2013.
Interest rate reductions and decreases in average balances on
higher-cost deposits resulted in a $68,000 decrease in
interest expense on deposits and the payoff of higher-cost
long-term borrowings in the prior year replaced at short-term,
lower rates resulted in a $56,000 decrease in interest expense
on borrowings. In addition, loan volume resulted in a $77,000
increase in interest income on loans. This was partially offset by
a $112,000 decline in interest income on securities from
paydowns.
The provision for loan losses was $75,000 for the three
months ended March 31, 2014. There was no provision for loan losses
for the three months ended March 31, 2013. In the current period,
the provision was impacted by commercial loan growth. Net
recoveries for the three months ended March 31, 2014 were $4,000
compared to net charge-offs of $23,000 for the three months ended
March 31, 2013.
Noninterest income decreased $270,000, or 21.3%,
to $999,000 for the three months ended March 31, 2014 compared
to $1.3 million for the three months ended March 31, 2013.
Insurance commissions decreased $224,000 primarily due to a
$243,000 decline in contingent commissions. In addition, fees and
service charge income decreased $45,000 primarily due to prepayment
fees received in the prior year from commercial loan payoffs.
Noninterest expense increased $67,000, or 2.6%,
to $2.7 million for the three months ended March 31, 2014
compared to $2.6 million for the three months ended March 31,
2013. Compensation expense increased $43,000 primarily due to
increases in stock-based compensation and employee benefit
expenses. In addition, occupancy expenses increased $25,000
primarily from an increase in depreciation due to prior year office
building improvements and an increase in maintenance due to current
year weather conditions.
Balance Sheet Review
Total assets increased $4.3 million to $323.3 million
at March 31, 2014 compared to $319.0 million at December 31,
2013. Net loans increased $5.4 million to $274.3 million
primarily as a result of growth in commercial real estate and
commercial business loans, as well as disbursements on commercial
constructions loans, partially offset by a decrease in residential
mortgage and home equity loans. Securities available-for-sale
decreased $1.3 million primarily due to paydowns. Deposits
increased $14.4 million to $233.6 million principally in
money market accounts and interest and noninterest-bearing demand
deposits, partially offset by a decrease in certificates of
deposit. During the current period, municipal customers made large
deposits, some of which may be temporary. Borrowings
decreased $9.1 million to $36.5 million primarily from
using funds generated from deposit growth to paydown short-term
borrowings. Stockholders' equity decreased $846,000
to $51.0 million at March 31, 2014 compared to $51.9
million at December 31, 2013 primarily due to the purchase of
41,200 shares of the Company's common stock for $825,000 and
$703,000 in dividend payments to stockholders, which included a
$0.25 per share special dividend, partially offset by $534,000 of
net income.
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, |
|
2014 |
2013 |
Selected Financial Condition
Data: |
|
|
Assets |
$ 323,283 |
$ 319,027 |
Cash and cash equivalents |
5,993 |
5,552 |
Securities available-for-sale |
25,477 |
26,772 |
Loans receivable, net |
274,255 |
268,812 |
Deposits |
233,636 |
219,232 |
Borrowings |
36,524 |
45,591 |
Stockholders' equity |
51,005 |
51,851 |
|
|
|
|
(Unaudited) |
|
Three Months
Ended |
|
March 31, |
|
2014 |
2013 |
Selected Operations
Data: |
|
|
Total interest income |
$ 3,220 |
$ 3,244 |
Total interest expense |
590 |
714 |
Net interest income |
2,630 |
2,530 |
Provision for loan losses |
75 |
-- |
Net interest income after provision for loan
losses |
2,555 |
2,530 |
Noninterest income |
999 |
1,269 |
Noninterest expense |
2,679 |
2,612 |
Income before income tax expense and
noncontrolling interest in net income of consolidated
subsidiary |
875 |
1,187 |
Income tax expense |
323 |
351 |
Net income before noncontrolling
interest in net income of consolidated subsidiary |
552 |
836 |
Noncontrolling interest in net income of
consolidated subsidiary |
18 |
42 |
Net income of FedFirst Financial
Corporation |
$ 534 |
$ 794 |
|
|
|
Dividends per share - regular |
$ 0.06 |
$ 0.04 |
Dividends per share - special |
0.25 |
-- |
Earnings per share - basic |
0.24 |
0.32 |
Earnings per share - diluted |
0.23 |
0.32 |
|
|
|
Weighted average shares outstanding -
basic |
2,235,132 |
2,457,646 |
Weighted average shares outstanding -
diluted |
2,286,008 |
2,472,403 |
|
|
|
|
Three Months
Ended |
|
March 31, |
|
2014 |
2013 |
Selected Financial
Ratios(1): |
|
|
Return on average assets |
0.67% |
1.01% |
Return on average equity |
4.16 |
5.85 |
Average interest-earning assets to average
interest-bearing liabilities |
127.55 |
127.21 |
Average equity to average assets |
16.09 |
17.17 |
Interest rate spread |
3.29 |
3.17 |
Net interest margin |
3.51 |
3.43 |
|
|
|
|
Period
Ended |
|
March 31, |
December 31, |
|
2014 |
2013 |
Allowance for loan losses to total loans |
1.17% |
1.17% |
Allowance for loan losses to nonperforming
loans |
146.94 |
136.41 |
Nonperforming loans to total loans |
0.80 |
0.86 |
Nonperforming assets to total assets |
0.75 |
0.80 |
Nonperforming assets and troubled debt
restructurings performing under modified terms to total
assets |
1.47 |
1.54 |
Net charge-offs to average loans |
-- |
0.12 |
Tier 1 (core) capital and tangible equity
(2) |
14.08 |
14.06 |
Tier 1 risk-based capital (2) |
20.56 |
20.59 |
Total risk-based capital (2) |
21.81 |
21.84 |
Book value per share |
$ 22.02 |
$ 22.00 |
Outstanding shares |
2,316,093 |
2,357,293 |
|
|
|
(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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