May 1, 2013 3 min read

MONESSEN – FedFirst Financial Corp., the parent company of First Federal Savings Bank, has announced net income of $794,000 for the three months ended March 31 compared to $456,000 for the three months ended March 31, 2012, an increase of $338,000 or 74.1 percent.

Basic and diluted earnings per share were 32 cents for the three months ended March 31, 2013, compared to 16 cents for the three months ended March 31, 2012, an increase of 16 cents per share or 100 percent.

“We are proud to report record quarterly earnings as we build on the momentum achieved in 2012,” said Patrick G. O’Brien, president and CEO. “Through management of our funding costs we were able to improve our net interest margin despite an extremely challenging interest rate environment and declining asset yields.”

According to a press release issued by the bank, net interest income for the three months ended March 31 decreased $33,000, or 1.3 percent, to $2.5 million compared to $2.6 million for the three months ended March 31, 2012.

First Federal said modifications and payoffs of higher yielding loans and securities due to the continued historically low interest rate environment resulted in a $375,000 decline in interest income. The decline was partially offset by interest rate reductions and decreases in average balances on higher-cost deposits that resulted in a $218,000 decrease in deposits expense and payoffs on borrowings that resulted in a $124,000 decrease in borrowings expense.

There was no provision for loan losses for the three months ended March 31, compared to $160,000 for the three months ended March 31, 2012. The provision decreased primarily because of a decrease in charge-offs.

Noninterest income increased $412,000, or 48.1 percent, to $1.3 million in the first quarter, compared to $857,000 for the three months ended March 31, 2012. Insurance commissions increased $388,000 primarily because of a $257,000 increase in contingency fee income.

Noninterest expense increased $90,000, or 3.6 percent, to $2.6 million for the three months ended March 31, 2013, compared to $2.5 million for the three months ended March 31, 2012. Compensation expense increased $143,000 primarily because of the hiring of additional staff at the bank’s insurance subsidiary, Exchange Underwriters Inc., and an increase in stock-based compensation expense.

Total assets decreased $5.2 million to $313.6 million at March 31, compared to $318.8 million at December 31, 2012. Deposits increased $5.1 million to $219.2 million principally in noninterest and interest-bearing demand deposits, partially offset by a decrease in certificates of deposit. Borrowings decreased $10.8 million to $37.9 million because of a $9.8 million net decrease in short-term borrowings and paydowns on amortizing advances.

Stockholders’ equity increased $645,000 to $53.9 million primarily because of $794,000 in net income partially offset by the purchase of 15,000 shares of the Company’s common stock for $260,000 and a $99,000 dividend payment.