FirstFed Financial Corp. (OTC:FFED.PK), parent company of First Federal Bank of California, announced preliminary results for the third quarter of 2009. Non-performing assets (NPAs) as of September 30, 2009 have dropped $78.5 million from June 30, 2009. Loans delinquent less than ninety days at September 30, 2009 have declined to $74.7 million from their peak of $262.0 million in February of this year. Only $7.5 million of the shorter term delinquencies as of September 30, 2009 were past due more than 60 days.
The Company has $150.0 million in outstanding unsecured fixed/floating rate senior debentures on which it has not paid interest since December 15, 2008. On June 19, 2009, the Company commenced a cash tender offer and consent solicitation for these debentures with an offer to pay $200.00 per $1,000.00 principal amount of securities. As of October 15, 2009, 95% of the debentures have tendered. The tendered notes are to be paid with proceeds from additional capital raised by the Company.
The Companyâ€™s modification program (see press release dated October 15, 2009 for more details) has been very successful in shoring up both the Bankâ€™s loan documentation and reducing the levels of Option ARM loans. After modification, only 17% of loans in the total portfolio had low documentation as of September 30, 2009. Non-modified loans originated between 2004 and 2007 yet to recast were reduced to 22% of the single family loan portfolio at September 30, 2009.
The net loss of $46.0 million or $3.36 per diluted share of common stock for the third quarter of 2009 compared to a net loss of $46.0 million or $3.37 per diluted share of common stock for the second quarter of 2009 and a net loss of $51.6 million during the third quarter of 2008. The 2008 third quarter loss was net of a $27.6 million tax benefit. No such benefit was available during 2009.