SANTA MONICA, Calif. -- Firstfed Financial Corp., parent of First Federal Bank of California, reported net income of $8.3 million for the second quarter, reversing a $16.4 million loss in the previous period.

The $3.6 billion-asset company sharply reduced its loan-loss provision to $1.9 million, down from $44.1 million in the first quarter. "We decided to take a very conservative approach to loan-loss provisions during the first quarter, which allowed us to reduce our loan-loss provisions in the second quarter," said chief executive William S. Mortensen.

However, he added, "We are not out of the woods with loan problems in Southern California, and we will continue to closely monitor delinquencies and aggressively market any foreclosed properties."

In the second quarter of last year, Firstfed earned $8 million.

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