FedFirst Financial Corporation (NASDAQ Capital: FFCO; the “Company”), the parent company of First Federal Savings Bank, today announced net income of $268,000 for the three months ended March 31, 2011 compared to net income of $374,000 for the three months ended March 31, 2010. Basic and diluted earnings per share were $0.09 for the three months ended March 31, 2011 compared to earnings per share of $0.13 for the three months ended March 31, 2010. The per share amount for the prior period was adjusted to reflect the share exchange as a result of the completion of the Company’s conversion from the mutual holding company form of organization to the stock holding company form on September 21, 2010.
Patrick G. O'Brien, President and CEO, stated. "We are pleased that during unstable and soft market conditions we’ve been able to maintain a strong and stable asset base, while also increasing our deposit base and presence in our footprint.”
First Quarter Results
Net interest income for the three months ended March 31, 2011 increased $100,000, or 4.0%, to $2.6 million compared to $2.5 million for the three months ended March 31, 2010. Net interest margin was 3.28% for the three months ended March 31, 2011 compared to 3.09% for the three months ended March 31, 2010. The improvement in net interest margin is primarily attributable to a funding shift on the Company’s balance sheet whereby a reduction in borrowings resulted in a $358,000 decrease in borrowings expense and, despite an increase in overall deposits, interest rate reductions on deposits resulted in a $174,000 decrease in deposits expense that together offset the decline in interest income from securities and loans.The provision for loan losses was $250,000 for the three months ended March 31, 2011 compared to $200,000 for the three months ended March 31, 2010. The provision for loan losses was determined based on our evaluation of the loan portfolio, which considers several components including, but not limited to, the quantitative and qualitative attributes of the portfolio to determine adequacy. In the current period, the primary driver of the provision was net charge-offs of $239,000 compared to $92,000 for the three months ended March 31, 2010. Total nonperforming loans at March 31, 2011 were $1.5 million compared to $1.2 million at December 31, 2010. Nonperforming loans at March 31, 2011 were comprised of eight residential real estate loans totaling $796,000, three commercial real estate loans totaling $580,000, and two home equity loans totaling $155,000. At March 31, 2011, nonperforming loans to totals loans was 0.63%, nonperforming assets to total assets was 0.58%, allowance for loan losses to total loans was 1.16% and allowance for loan losses to nonperforming loans was 185.17%.
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