Total deposits at September 30, 2010 were $2.4 billion, which was essentially unchanged from the June 30, 2010 quarter end, and an increase of $95.5 million, or 4.1% from September 30, 2009. Core deposits, which exclude all certificates of deposit, totaled $1.1 billion at September 30, 2010, compared to $1.0 billion at the prior year end reflecting First Federal's initiatives in attracting and retaining core deposits. The largest increase was in personal interest-bearing checking accounts resulting from several advertising campaigns highlighting the product during the year. Certificates of deposit increased $12.4 million during the fiscal year to total $1.3 billion at September 30, 2010. Increases in deposits, combined with reductions in assets, resulted in the reduction of short-term borrowings of $258.0 million while FHLB advances increased by $15.5 million or 3.1% as of September 30, 2010 compared to the same quarter of last year.
Shareholders' equity at September 30, 2010 totaled $318.2 million, a decrease of $5.6 million or 1.7% from June 30, 2010 and a decrease of $33.5 million or 9.5% from September 30, 2009. The decrease was primarily a result of net losses incurred. First Federal's regulatory capital ratios are above "well-capitalized" minimums, as evidenced by the following key capital ratios. Additional capital information is presented in the following table for the last five quarters:
|For the Quarter Ended|
|September 30, 2010||June 30, 2010||March 31, 2010||December 31, 2009||September 30, 2009|
|Equity to assets||9.58%||9.74%||9.91%||10.20%||10.02%|
|Tangible common equity to tangible assets (non-GAAP)||6.55||6.71||6.93||7.30||7.16|
|Book value per common share||$ 15.32||$ 15.66||$ 16.34||$ 17.52||$ 18.03|
|Tangible common book value per share (non-GAAP)||13.02||13.34||14.02||15.19||15.64|
|Dividends paid per common share, authorized||0.05||0.05||0.05||0.05||0.05|
|Common shares outstanding, end of period (000s)||16,527||16,527||16,527||16,526||15,897|
|First Federal:||Regulatory Minimum for "Well-Capitalized"|
|Leverage capital ratio||4.00%||8.47%||8.46%||7.74%||7.67%||7.67%|
|Tier 1 risk-based capital ratio||6.00%||11.27||11.19||9.83||9.78||9.77|
|Total risk-based capital ratio||10.00%||12.55||12.46||11.10||11.05||11.02|
First Federal's loan portfolio is impacted by numerous factors, most importantly, the economic environment in the markets in which we operate. The allowance for loan losses was $86.9 million or 3.39% of gross loans at September 30, 2010 compared to $86.9 million or 3.36% at June 30, 2010, and $68.5 million or 2.57% at September 30, 2009. The increase in fiscal 2010 was primarily a result of the higher levels of net charge-offs impacting historical lost rates, as well as higher levels of delinquent and nonperforming loans requiring reserves.