FirstFed Slips on Delinquencies

0

FirstFed Financial Corp. reported that fourth-quarter net income plunged 75 percent due delinquent home loans, causing shares to dip as much as 10 percent Friday morning.


The parent company of First Federal Bank of California reported a fourth-quarter loss of $8.41 million (-61 cents per share), compared to earnings of $33.4 million ($1.97), for the same period a year earlier.


The Santa Monica-based bank company said earlier this month that due to delinquencies in single-family loans, the bank was forced to increase its provision for losses to $21 million, compared to $3 million a year earlier.


Shares in FirstFed fell 10 percent to $35.13 in early trading Friday on the New York Stock Exchange. Shares had been on a run earlier this month, gaining 23 percent before Friday’s announcement due to investor optimism after the Federal Reserve cut a key interest rate.

No posts to display