Fedfirst Financial declares 3Q results
MONESSEN, PA
FedFirst Financial Corporation, the parent company of First Federal Savings Bank today announced net income of $649,000 for the three months ended September 30, 2012 compared to $290,000 for the three months ended September 30, 2011, an increase of $359,000 or 123.8%. Basic and diluted earnings per share were $0.23 for the three months ended September 30, 2012 compared to $0.10 for the three months ended September 30, 2011, an increase of $0.13 per share or 130.0%. The Company reported net income of $1.7 million for the nine months ended September 30, 2012 compared to $804,000 for the nine months ended September 30, 2011, an increase of $895,000 or 111.3%. Basic and diluted earnings per share were $0.60 for the nine months ended September 30, 2012 compared to basic and diluted earnings per share of $0.28 for the nine months ended September 30, 2011, an increase of $0.32 per share or 114.3%.
While the uncertain economic environment and intense competition create challenging headwinds, we are very pleased with the strong results we posted this quarter, said Patrick G. O'Brien, President and CEO. Net interest income edged down slightly, but we were able to balance the reduction in the loan and investment portfolios with modifications to our deposit rate structure and pay-offs of borrowings that allowed us to achieve a net interest margin that was consistent with the prior year. Noninterest income increased over the prior year primarily due to higher income from our insurance activities, and adjustments to our compensation arrangements and branch structure reduced noninterest expense.
Net interest income for the three months ended September 30, 2012 decreased $56,000, or 2.1%, to $2.6 million compared to $2.7 million for the three months ended September 30, 2011. Paydowns and payoffs of higher yielding loans and securities resulted in a $404,000 decline in interest income. This was partially offset by interest rate reductions on deposits that resulted in a $238,000 decrease in deposits expense and payoffs on borrowings that resulted in a $110,000 decrease in borrowings expense.
The provision for loan losses was $100,000 for the three months ended September 30, 2012 compared to $325,000 for the three months ended September 30, 2011. The provision decreased primarily due to a decline in charge-offs.