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 Company’s modification program (see press release dated October 15, 2009 for more details) has been very successful in shoring up both the Bank’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.