FedFirst Financial Corporation Announces First Quarter 2012 Results

FedFirst Financial Corporation (NASDAQ Capital: FFCO; the “Company”), the parent company of First Federal Savings Bank (the “Bank”), today announced net income of $456,000 for the three months ended March 31, 2012 compared to $268,000 for the three months ended March 31, 2011, an increase of $188,000 or 70.1%. Basic and diluted earnings per share were $0.16 for the three months ended March 31, 2012 compared to $0.09 for the three months ended March 31, 2011.

Patrick G. O'Brien, President and CEO, stated, “We are encouraged by our growth in earnings per share quarter to quarter, which represents a 78% increase. That growth, coupled with continued strong asset quality in comparison to peer, reflects the success of our plan of focusing on our core banking business and managing our operating expenses.”

First Quarter Results

Net interest income for the three months ended March 31, 2012 decreased $37,000 compared to the three months ended March 31, 2011 remaining at $2.6 million. Despite overall growth in the loan portfolio, paydowns and payoffs of higher yielding loans and securities resulted in a $313,000 decline in interest income. This was partially offset by payoffs on borrowings that resulted in a $167,000 decrease in borrowings expense and interest rate reductions on deposits that resulted in a $109,000 decrease in deposits expense. Net interest margin remained at 3.28% for the three months ended March 31, 2012 compared to the three months ended March 31, 2011.

The provision for loan losses was $160,000 for the three months ended March 31, 2012 compared to $250,000 for the three months ended March 31, 2011. The provision declined primarily due to a decrease in net charge-offs. Net charge-offs were $155,000 for the three months ended March 31, 2012 compared to $239,000 for the three months ended March 31, 2011. Charge-offs in both periods were composed primarily of purchased residential mortgage loans. Total nonperforming loans at March 31, 2012 were $2.7 million compared to $2.1 million at December 31, 2011. Nonperforming loans at March 31, 2012 were comprised of 15 residential mortgage loans totaling $2.0 million and six commercial real estate loans totaling $641,000. At March 31, 2012, nonperforming loans to totals loans was 1.05%, nonperforming assets to total assets was 0.88%, allowance for loan losses to total loans was 1.23% and allowance for loan losses to nonperforming loans was 116.70 %.

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