FirstFed Financial Corp. in Santa Monica, Calif., said Friday that fourth-quarter profits fell 75%, to $8.4 million, from the year earlier, due to mounting losses in its residential real estate loan portfolio.
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Earnings per share dropped 69%, to 61 cents, though still beat analyst estimates by 2 cents. The $7.2 billion-asset company said that, at Dec. 31, impaired loans totaled $23.5 million, up 127% from a year earlier, and that it charged off $9.2 million in the quarter, compared to just $90,000 the year before. It took a $21 million loan-loss provision in the quarter, bringing the provision for the year to $32.4 million.
