Loans Gone Bad Plague FirstFed’s Q2

0

FirstFed Financial Corp. on Wednesday posted its second straight quarterly loss, as the Santa Monica savings and loan holding company said it was forced to modify more of its home loans or write them off.

The parent company of First Federal Bank of California reported a second-quarter loss of $35.5 million, or – $2.60 per share, compared with net income of $29 million ($1.74) in the same quarter last year.

The loss was in line with expectations of analysts polled by Thomson Financial’s First Call.

FirstFed recorded a $90 million provision for loan losses in the quarter ended June 30, which it said was about 30 times the provision made in the same period a year ago. About 8 percent of its $7.18 billion in total assets were non-performing at the end of the quarter. Net interest income fell 36 percent to $25 million.

After falling 13 cents earlier in the morning, FirstFed shares recovered and were up 33 cents, or 4 percent, to $8.91 in mid-morning trading on the New York Stock Exchange.

No posts to display