mrop093008.htm

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 24, 2008

FirstFed Financial Corp.

(Exact name of registrant as specified in its charter)

Delaware	1-9566	95-4087449
(State of Delaware)	(Commission File No.)	(IRS Employer Identification No.)

12555 W. Jefferson Boulevard, Los Angeles, California	90066
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (310) 302-5600

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Total number of pages is 8

Index to Exhibits is on Page 3

ITEM 7.01. Regulation FD Disclosure.

The Registrant hereby incorporates by reference into this Item. 7 the summary monthly financial data and preliminary quarterly loan portfolio analysis as of and for the period ended September 30, 2008 attached as Exhibits 99.1 and 99.2, respectively, which are being furnished in accordance with Rule 101(e)(1) under Regulation FD.

A discussion of the factors that could impact the Bank's loan portfolio in general, and the Registrant's overall business and financial performance, can be found in the Registrant's reports filed with the Securities and Exchange Commission. These factors include, among others, general economic and business conditions and changes therein, competition, consumer preferences and various other matters beyond the Registrant's control. Given these concerns, investors and analysts should not place undue reliance on the enclosed information. These reports speak only as of their stated date and period of time, and the Registrant undertakes no obligation to publicly update or revise the reports, although it may do so from time to time as management of the Registrant believes is warranted.

ITEM 9.01.

Financial Statements and Exhibits.

(d)

Exhibits

99.1

Monthly Financial Data as of and for the period ended September 30, 2008 (Unconsolidated)

99.2

Preliminary Quarterly Loan Portfolio Analysis as of and for the period ended September 30, 2008

S I G N A T U R E S

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FIRSTFED FINANCIAL CORP.

Dated: October 24, 2008	By:/s/	Douglas J. Goddard
		Douglas J. Goddard

Chief Financial Officer

INDEX TO EXHIBITS

Exhibit

Page

99.1	Monthly Financial Data as of and for the period ended September 30, 2008	4-5
99.2	Preliminary Quarterly Loan Portfolio Analysis as of and for the period ended September 30, 2008	6-8

EXHIBIT 99.1

First Federal Bank of California MONTHLY REPORT OF OPERATIONS Unaudited, Unconsolidated Financial Highlights (Dollars in thousands)

	As of, for the month ended September 30, 2008			As of, for the month ended August 31, 2008			As of, for the month ended September 30, 2007			As of, for the 9 months ended September 30, 2008			As of, for the 9 months ended September 30, 2007

Cash and investment securities	$	391,730		$	421,435		$	441,908
Total mortgage-backed securities	$	41,510		$	42,006		$	47,923
Total assets	$	7,356,371		$	7,360,888		$	7,368,096

LOANS:
Gross loans receivable	$	6,661,731		$	6,650,680		$	6,736,893	*

Loans funded:
Single family loans	$	101,286		$	113,954		$	77,558		$	773,797		$	518,027
Multi family loans		36,072			43,691			36,744			433,313			157,992
Commercial & industrial real estate loans		5,075			-			-			17,450			13,455
Other loans		1,238			5,152			162			31,676			13,356
Total loans funded	$	143,671		$	162,797		$	114,464		$	1,256,236		$	702,830
Loans originated for third parties		3,499			2,983			2,551			10,343			98,094
Total loans originated	$	147,170		$	165,780		$	117,015		$	1,266,579		$	800,924

Percentage of ARMs originated		5	%		8	%		69	%		9	%		53	%
Loan repayments:
Single family loans	$	20,392		$	26,313		$	78,240		$	455,009		$	1,659,720
Multi family & commercial real estate loans		33,762			18,909			47,157			308,453			409,746
Other loans		658			1,707			1,781			17,043			38,436
	$	54,812		$	46,929		$	127,178		$	780,505		$	2,107,902

Loans sold	$	-		$	-		$	5,761		$	1,380		$	416,572

Percentage of adjustable rate loans to the total portfolio		73.51	%		75.45	%		94.45	%

Non-performing assets to total assets ratio		7.87	%		7.86	%		1.40	%

Delinquent loans:
Non-accrual loans	$	446,186		$	452,277		$	84,215
Single family loans 30-59 days delinquent	$	115,105		$	133,252		$	60,851
Single family loans 60-89 days delinquent	$	96,991		$	92,096		$	10,803

BORROWINGS:
Federal Home Loan Bank advances	$	2,313,000		$	2,285,000		$	1,501,000
Reverse repurchase agreements	$	-		$	70,000		$	520,000

DEPOSITS:
Retail deposits	$	2,922,661		$	2,915,307		$	3,101,323
Wholesale deposits		1,415,558			1,354,599			1,377,410
	$	4,338,219		$	4,269,906		$	4,478,733

Net increase (decrease) in deposits	$	68,313		$	109,787		$	(22,264	)	$	169,271		$	(1,423,385	)

* Revised.

AVERAGE INTEREST RATES (CONSOLIDATED):

	As of, for the month ended September 30, 2008	As of, for the month ended August 31, 2008	As of, for the month ended September 30, 2007	As of, for the 9 months ended September 30, 2008	As of, for the 9 months ended September 30, 2007
Yield on loans	5.72%	5.71%	7.86%	6.21%	7.97%
Yield on investments	5.34%	4.55%	5.52%	5.03%	5.49%
Yield on earning assets	5.69%	5.61%	7.70%	6.13%	7.82%
Cost of deposits	3.13%	3.16%	4.32%	3.45%	4.42%
Cost of borrowings	3.46%	3.38%	5.40%	3.89%	5.38%
Cost of money	3.25%	3.24%	4.67%	3.61%	4.73%
Earnings spread	2.44%	2.37%	3.03%	2.52%	3.09%
Effective net spread	2.67%	2.45%	3.40%	2.70%	3.48%

EXHIBIT 99.2

PRELIMINARY QUARTERLY LOAN PORTFOLIO ANALYSIS
Unaudited, Unconsolidated
(Dollars in thousands)


Summary of Loan Portfolio Balances

	September 30, 2008					June 30, 2008					December 31, 2007
First trust deeds residential loans:
One to four units	$	4,521,889				$	4,495,508				$	4,652,876
Five or more units		1,857,634					1,787,336					1,709,815
Residential loans	$	6,379,523				$	6,282,844				$	6,362,691

Other real estate loans	$	156,134				$	155,245				$	165,453
Non-real estate loans		126,074					121,521					111,045
Total loans receivable	$	6,661,731				$	6,559,610				$	6,639,189


Single family loan portfolio by year of origination

Year of Origination	September 30, 2008					June 30, 2008					December 31, 2007
2003 and prior	$	317,558		7.0	%	$	346,289		7.7	%	$	395,506	8.5	%
2004		603,461		13.3	%		630,690		14.0	%		725,904	15.6	%
2005		1,554,599		34.4	%		1,748,128		38.9	%		2,106,973	45.3	%
2006		929,907		20.6	%		984,204		21.9	%		1,066,660	22.9	%
2007		355,388		7.9	%		357,479		8.0	%		357,833	7.7	%
2008		760,976		16.8	%		428,718		9.5	%		-	0.0	%
Total single family portfolio	$	4,521,889		100.0	%	$	4,495,508		100.0	%	$	4,652,876	100.0	%




Single family loan portfolio by original LTV ratio

Original LTV Ratio	September 30, 2008					June 30, 2008					December 31, 2007
<65%	$	922,295		20.4	%	$	816,910		18.2	%	$	817,580	17.6	%
65 - 70%		539,725		11.9	%		512,392		11.4	%		505,320	10.9	%
70 - 75		617,812		13.7	%		608,860		13.5	%		593,386	12.8	%
75 - 80		2,161,945		47.8	%		2,236,273		49.7	%		2,348,772	50.5	%
80 - 85		53,881		1.2	%		63,043		1.4	%		73,564	1.6	%
85 - 90		182,318		4.0	%		210,132		4.7	%		262,719	5.6	%
>90%		43,913		1.0	%		47,898		1.1	%		51,535	1.0	%
Total single family portfolio	$	4,521,889		100.0	%	$	4,495,508		100.0	%	$	4,652,876	100.0	%


Single family loan portfolio by estimated current LTV ratio

Estimated Current LTV -Price Adjusted (1)	Loan Balance		% of Portfolio			Average Current LTV Ratio
<70%	$	1,090,710		24.1	%		51.7	%
>70% <=80%		851,199		18.8	%		76.3	%
>80% <=90%		696,141		15.4	%		85.7	%
>90% <=100%		798,544		17.7	%		94.8	%
>100% <=110%		674,134		14.9	%		104.3	%
>110%		334,052		7.4	%		119.0	%
Not in MSAs		77,109		1.7	%		N/A
Total single family portfolio	$	4,521,889		100.0	%		82.4	%


(1) The current estimated loan to value ratio is based on OFHEO June 2008 data. The OFHEO housing price index provides a broad measure
of the housing price movements by Metropolitan Statistical Area (MSA). In evaluating the potential for loan losses within the bank’s portfolio, the Bank
considers both the fact that OFHEO data cannot reflect price movements for the most recent three months, and that individual areas within an MSA will
perform worse than the average for the larger area. The Bank therefore also looks at sales data that is available by zip code, as well as the Bank’s experience
with marketing foreclosed properties in estimating the loan loss reserve that is required.


Single family loan portfolio by borrower documentation type

Borrower documentation type	September 30, 2008				June 30, 2008					December 31, 2007
Verified Income/Verified Assets	$	1,717,687	38.0	%	$	1,460,340		32.5	%	$	1,135,358	24.4	%
Stated Income/Verified Assets		1,179,708	26.1	%		1,274,404		28.3	%		1,468,686	31.6	%
Stated Income/Stated Assets		1,205,543	26.7	%		1,314,829		29.2	%		1,506,627	32.4	%
No Income/No Assets		418,951	9.2	%		445,935		10.0	%		542,205	11.6	%
Total single family portfolio	$	4,521,889	100.0	%	$	4,495,508		100.0	%	$	4,652,876	100.0	%


Single family loan portfolio by geographic distribution

Region	September 30, 2008				June 30, 2008					December 31, 2007
Los Angeles County	$	1,224,568	27.1	%	$	1,185,376		26.4	%	$	1,148,942	24.7	%
San Francisco Bay Area		785,080	17.4	%		756,335		16.8	%		775,303	16.7	%
Central California Coast		612,533	13.5	%		584,317		13.0	%		592,547	12.7	%
San Diego Area		471,140	10.4	%		501,929		11.2	%		558,452	12.0	%
Orange County		478,161	10.6	%		444,080		9.9	%		428,667	9.2	%
San Bernardino/Riverside Counties		321,616	7.1	%		336,630		7.5	%		374,303	8.1	%
San Joaquin Valley		227,129	5.0	%		259,053		5.8	%		298,788	6.4	%
Sacramento Valley		222,163	4.9	%		242,384		5.4	%		275,313	5.9	%
Other		179,499	4.0	%		185,404		4.0	%		200,561	4.2	%
Total single family portfolio	$	4,521,889	100.0	%	$	4,495,508		100.0	%	$	4,652,876	100.0	%


Delinquent and non-accrual loans by year of origination

Year of Origination	30-89 Days Delinquent				Non-accrual					Total
2003 and prior	$	4,338	2.0	%	$	15,685		3.5	%	$	20,023	3.0	%
2004		29,401	13.9	%		56,673		12.7	%		86,074	13.1	%
2005		112,827	53.2	%		269,024		60.4	%		381,851	58.1	%
2006		62,055	29.3	%		93,386		21.0	%		155,441	23.6	%
2007		3,475	1.6	%		10,478		2.4	%		13,953	2.2	%
2008		-	0.0	%		-		0.0	%		-	0.0	%
Total single family defaults	$	212,096	100.0	%	$	445,246		100.0	%	$	657,342	100.0	%


Delinquent and non-accrual loans by geographic distribution

Region	Delinquent Balance		% of Total Delinquent		Delinquent % of regional portfolio
Los Angeles County	$	87,391	13.3	%		7.1	%
San Francisco Bay Area		126,153	19.2	%		16.1	%
Central California Coast		87,343	13.3	%		14.3	%
San Diego Area		85,121	12.9	%		18.1	%
Orange County		47,445	7.2	%		9.9	%
San Bernardino/Riverside		70,251	10.7	%		21.8	%
San Joaquin Valley		64,686	9.8	%		28.5	%
Sacramento Valley		51,820	7.9	%		23.3	%
Other		37,132	5.7	%		20.7	%
Total single family defaults	$	657,342	100.0	%		14.5	%


Delinquent and non-accrual loans by borrower documentation type

Borrower documentation type	Delinquent Balance		% of Total Delinquent		Delinquent % of documentation type
Verified Income/Verified Assets	$	97,051	14.8	%		5.7	%
Stated Income/Verified Assets		222,243	33.8	%		18.8	%
Stated Income/Stated Assets		248,726	37.8	%		20.6	%
No Income/No Assets		89,322	13.6	%		21.3	%
Total single family defaults	$	657,342	100.0	%		14.5	%


Delinquent and non-accrual loans by estimated current loan to value ratio

Estimated Current LTV -Price Adjusted (1)	Loan Balance				% of Total Delinquent		Average Estimated Current LTV Ratio
<70%	$	30,974			4.7	%		54.6	%
>70% <=80%		93,034			14.2	%		75.6	%
>80% <=90%		97,572			14.8	%		85.8	%
>90% <=100%		160,486			24.4	%		94.8	%
>100% <=110%		162,329			24.7	%		104.5	%
>110% <=120%		67,612			10.3	%		114.5	%
>120% <=130%		22,533			3.4	%		123.9	%
>130%		19,461			3.0	%		135.4	%
Not in MSAs		3,341			0.5	%		N/A
Total single family defaults	$	657,342			100.0	%		95.5	%

(1) The current estimated loan to value ratio is based on OFHEO June 2008 data.


Forecast of single family loan portfolio payment recast

Recast quarter (2)	Recast Balance			Number of Loans
4th quarter 2008	$	79,477			181

1st quarter 2009	$	104,854			236
2nd quarter 2009		97,581			224
3rd quarter 2009		139,866			336
4th quarter 2009		235,627			508
Total 2009	$	577,928			1,304

2010	$	804,037			1,696
2011		490,070			937
Thereafter		104,625			203
Grand total	$	2,056,137			4,321

(1) Period in which currently performing borrowers are estimated to reach their maximum negative amortization, and be required to make a fully amortizing payment,
assuming all borrowers make the minimum payment, and no loans are prepaid prior to their reset date. Does not include loans that have already reached their
payment recast or loans that by their terms do not allow for negative amortization.

Real estate owned activity

Real Estate Owned	Balance			Number of Properties
Beginning balance (as of 6/30/2008)	$	96,670			380
Acquired REOs		119,212			450
Writedowns		(6,654	)		-
Sold REOs		(76,271	)		(329	)
Ending REO balance (as of 9/30/2008)	$	132,957			501
Properties in escrow	$	16,997			81


Loss Mitigation Activity

Loan modifications 2008 year-to-date	Loan Balance			Number of Loans
Loan terms modified to:
Five Year Fixed Interest Only	$	253,211			526
Five Year Fixed Amortizing		46,959			109
Five Year Adjustable Interest Only		105,969			214
Adjustable Rate Amortizing		114,826			248
Modified Negam Cap		1,808			5
Stepped Rate Interest Only 5 Years		18,821			39
Other		19,270			33
Grand total (1)	$	560,864			1,174

(1) Of these modified loans, 1,141 loans for $543 million were considered to be troubled debt restructurings, based on the Bank's
underwriting of the the borrower and the property at the date of the modification.