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AHMANSON SELLS DELINQUENT LOANS, ADDS TO REAL ESTATE DEVELOPMENT RESERVES

 Actions Will Strengthen Balance Sheet, Position Company for Growth
 IRWINDALE, Calif., July 19 /PRNewswire/ -- Culminating a year-long program designed to eliminate lingering effects of the recession from its balance sheet and position itself for future growth, H.F. Ahmanson & Co. (NYSE: AHM) today announced that it has sold $1.2 billion of delinquent, nonaccruing single-family real estate loans, and it will add $163 million to its reserves for certain real estate development projects.
 The company also announced plans to raise approximately $200 million of additional capital to position itself for future expansion opportunities.
 Richard H. Deihl, chairman and chief executive officer, stated: "These actions, together with others we have taken, give the company one of the strongest balance sheets in our industry. We are now in an excellent position to capitalize on opportunities for expansion as well as on the growth we see coming in residential lending, our core business. The company expects to see the earnings benefits of these actions in the third quarter."
 Deihl added that, by selling the delinquent loans in a bulk sale, the company benefits by reducing future losses and replacing these nonperforming assets with earning assets.
 As a result of the sale of delinquent loans and addition to reserves for real estate development projects, the company expects to report a loss of approximately $290 million for the second quarter ended June 30 and therefore a loss for the entire year. The company expects to be profitable in the third and fourth quarters.
 Deihl also stated that the bulk sale accelerates an already steady decline in the company's nonperforming assets. Prior to the bulk sale, Ahmanson's nonperforming assets had declined 16 percent in the past nine months, from $2.3 billion at Sept. 30, 1992, to $2.0 billion at June 30, 1993, and declined $207 million, or 10 percent, in the past three months alone, to 3.91 percent of total assets at June 30.
 The bulk sale will reduce the company's ratio of nonperforming assets to total assets to approximately 2.04 percent from 5.02 percent at its peak last fall. The sale will also boost the company's ratio of reserves to nonperforming loans to approximately 129.3 percent from 27.8 percent as of March 31, 1993.
 The loans are being sold to a subsidiary of The Bear, Stearns Companies Inc. The transaction is expected to close within 45 days.
 The addition to the real estate development reserves brings the total real estate development reserves to $317 million. Ahmanson has previously announced its strategy to phase out of real estate development activities in order to focus on its traditional strength in single-family residential lending. Ahmanson recently retained Lowe Enterprises, an asset management firm, to assist in the management of these assets.
 The company's capital ratios will remain well in excess of the current and fully phased-in federal requirements even without raising additional capital.
 Any public offering of securities by the company will be made only by means of a prospectus complying with federal and state securities laws.
 H.F. Ahmanson & Co., with $50 billion in assets, is the parent company of Home Savings of America, the nation's largest savings institution. Home Savings operates 368 savings branches in nine states and 89 mortgage lending offices in 13 states.
 -0- 7/19/93
 /CONTACT: Mary Trigg of H.F. Ahmanson & Co., 818-814-7922/
 (AHM)


CO: H.F. Ahmanson & Co. ST: California IN: FIN SU:

JL -- LA012 -- 2862 07/19/93 08:06 EDT
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Publication:PR Newswire
Date:Jul 19, 1993
Words:579
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