First Federal Bankshares has reported a net loss of $854,000, or $0.26 per diluted share for the fourth quarter ended June 30, 2008, compared to a net income of $670,000, or $0.20 per diluted share for the fourth quarter ended June 30, 2007.
For the quarter, net interest income was $4 million, a decrease of $0.1 million from $4.1 million for the 2007 fourth quarter. Net interest margin was 3.13%, versus 2.83% for the same period a year ago.
Excluding the goodwill impairment charge, the net loss amounted to $4 million, or $1.25 per diluted share for the 12 months ended June 30, 2008, as against a net income of $3.1 million, or $0.92 diluted share for the corresponding period in 2007.
Net interest income for the period improved to $16.2 million from $15.9 million in the comparable period of 2007. The company’s net interest margin rose to 2.97% from 2.90% recorded a year ago.
Total assets declined by $80.9 million, or 12.5%, to $565 million at June 30, 2008, from $646 million at June 30, 2007. In addition, loans receivable declined $20.1 million as loan prepayment activity increased.