FirstFed Financial Corp. Announces Positive Capital Effects of Worker, Homeownership and Business Assistance Act of 2009

LOS ANGELES--(Business Wire)--
FirstFed Financial Corp. (Pink Sheets: FFED) (the "Company") announced today the
positive capital effects of the Worker, Homeownership, and Business Assistance
Act of 2009, which became law on November 6, 2009. The new law allows businesses
to carry back net operating losses from 2008 and 2009 for up to five years. In
light of the new tax legislation, FirstFed Financial Corp. will book a tax
benefit in the fourth quarter of 2009 and anticipates receiving a federal income
tax cash refund during the first quarter of 2010.

It is too early to estimate the full-year benefit; however, the Company can
quantify the law`s impact in relation to its results for the nine months through
September 30, 2009, and will be disclosing it as a subsequent event in its
quarterly report on Form 10-Q. Had the new law been effective in the third
quarter, the Company`s wholly-owned banking subsidiary, First Federal Bank of
California, would have had an additional $76.28 million in capital at September
30, 2009, which would have raised the Bank`s core and risk-based capital ratios
at that date to 5.49% and 11.13%, respectively.

The Bank`s loan delinquency levels continue to trend downward. Unaudited,
unconsolidated monthly results as of October 31, 2009 show a decline in
delinquent loans of $58.7 million, or 16%, from the previous month. October was
the eighth consecutive month in which the Bank`s loan delinquencies decreased.
Total delinquencies are now less than half of historic peak levels reported by
the Company in early 2009.

About FirstFed Financial Corp.

FirstFed Financial Corp. is a savings and loan holding company. The Company owns
and operates First Federal Bank of California, a federally chartered savings
association. The Company`s principal executive offices are located at 12555 W.
Jefferson Boulevard, Los Angeles, California 90066, and its telephone number is
310-302-5600. Information about the Company, including corporate background and
press releases, is available through the Company`s website at
www.firstfedca.com.

Forward-Looking Statements

This press release contains certain forward-looking statements. These
forward-looking statements are subject to various risks and uncertainties, many
of which are beyond the Company`s control, which could cause actual results to
differ materially from such statements. Such risks and uncertainties include,
but are not limited to, the ability and willingness of borrowers to pay their
mortgage loans, which is affected by external factors such as interest rates,
the California real estate market and the strength of the California market, in
particular employment levels; fluctuations between consumer interest rates and
the cost of funds; federal and state regulation of lending, deposit and other
operations, including the regulatory enforcement actions to which the Company
and the Bank are currently, and may in the future be, subject; competition for
financial products and services within the Bank`s market areas; operational and
infrastructural risks; capital market activities; critical accounting estimates;
and such other factors as are described in greater detail in the Company`s
filings with the Securities and Exchange Commission, including, without
limitation, Item 1A. Risk Factors of the Company`s Annual Report on Form 10-K
for the fiscal year ended December 31, 2008. Unless legally required, the
Company disclaims any obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.

FirstFed Financial Corp.
Douglas J. Goddard
Chief Financial Officer
310-302-1714

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