FirstFed Financial Corp. in Santa Monica, Calif., said Tuesday that it expects to record a loan-loss provision of $20 million to $23 million for the fourth quarter — up from $4.5 million at Sept. 30 — because of rising customer delinquencies on adjustable-rate mortgages that have recently reset.
The $7.2 billion-asset FirstFed said nonaccrual mortgages more than doubled from Sept. 30 to Dec. 31, to $180 million, and loans delinquent 30 to 89 days increased 229%, to $237 million.
FirstFed said it expects to record about $2 million of additional expenses related to the relocation of its corporate headquarters.
FirstFed expects to report earnings Jan. 25.
It earned $33.4 million in the fourth quarter of 2006 and its 2006 net income was $129.1 million.
In heavy trading, FirstFed's shares closed at $31.59 Tuesday, down 10%.
