September figures show that First Federal Bank of California, a wholly owned subsidiary of FirstFed Financial Corp. (Pink Sheets:FFED), has modified more than $1.4 billion worth of home mortgages, enabling nearly 3,000 California families to avert foreclosure. The Bank`s workouts continue to perform better than those of banks nationally, fulfilling the Obama Administration`s goal for lenders to provide affordable and sustainable mortgages to borrowers who face hardship.

The strong loan-modification results accompany other positive financial trends for First Federal Bank of California. Overall loan delinquencies declined significantly as of September 30, 2009 compared to their previous peak levels. Loans that were 30-59 days delinquent fell to $70.6 million as of September 30, or 55% lower than the $157.5 on January 31, 2009, according to unaudited, unconsolidated monthly results. Loans that were greater than 60 days delinquent fell to $16.8 million, or 95% lower than the $341.3 million on February 28, 2009. Loans in foreclosure fell 38% to $281.8 million from $456.2 million on June 30, 2009.

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