FirstFed Financial Corp. in Santa Monica, Calif., said Friday that third-quarter earnings fell 29%, to $23 million, due to lower net interest income, losses on real estate operations and higher operating costs.
The $7.4 billion-asset parent of First Federal Bank of California said that net interest income fell 16%, to $62.2 million, due to decreased loan originations and increased loan payoffs. Losses on its real estate operations tripled, to $2.1 million, from a year earlier, which included $1.7 million in mortgage write-downs.
Noninterest expense was $18.7 million, or 0.99% of average total assets, compared to $18.3 million, or 0.72% of average total assets, in the third quarter of 2006. The increase in operating expenses was due primarily to increased compensation costs, higher deposit insurance costs, increased assessments by the Office of Thrift Supervision, and increased occupancy costs with the opening of an additional branch.
