Ahmanson reports rise in second-quarter and first-half earnings; stock repurchase program boosts earnings per share.IRWINDALE, Calif.--(BUSINESS WIRE)--July 16, 1996--H.F. Ahmanson & Co. (NYSE NYSE See: New York Stock Exchange :AHM AHM Automated Hacking Machines AHM All Hands Meeting AHM Academy for Healthcare Management AHM Atom Heart Mother (Pink Floyd album) AHM Airport Handling Manual AHM Acutely Hazardous Material AHM Anti-Helicopter Mine ), parent company of Home Savings of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. , Tuesday Tuesday: see week. reported second quarter net income of $68.7 million, or $0.50 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share, compared with $64.4 million, or $0.43 per fully diluted common share, in the second quarter of 1995, and $64.8 million, or $0.45 per fully diluted common share, in the first quarter of 1996. The 16% gain in earnings per share from the second quarter of 1995 is a result of a 7% increase in net income plus the effects of the stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. For the first six months of the year, the company earned $133.5 million, or $0.94 per fully diluted common share, compared with a loss of $117.5 million, or $1.22 per fully diluted common share, in the first six months of 1995. The 1995 loss was due to a charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a change in accounting for goodwill related to acquisitions prior to Sept. 30, 1982. Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by R. Rinehart Rine·hart , Mary Roberts 1876-1958. American writer known for her mysteries, including The Circular Staircase (1908) and The Door (1930). , chairman and chief executive officer of Ahmanson and Home Savings, said: "We are pleased with our progress in enhancing shareholder value. Improving credit costs and stronger fee income offset the effects of a lower net interest margin to increase earnings while our stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program demonstrated its effectiveness in boosting shareholder returns." Results of Operations Net interest income totaled $311.6 million in the second quarter of 1996, compared with $310.2 million in the second quarter of 1995, and $317.0 million for the first quarter of 1996. The decrease in net interest income from the first quarter of 1996 is due to contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction of the company's net interest margin, principally due to the earnings compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. on the 11th District Cost of Funds Index A Cost of Funds Index or COFI is a regional average of interest expenses incurred by financial institutions, which in turn is used as a base for calculating variable rate loans. (COFI COFI Cost of Funds Index COFI Council Of Forest Industries (Canada) COFI Community Organizing and Family Issues COFI Checkout and Fault Isolation COFI Coder/Decoder Filter (electrical engineering) ) assets. As part of the company's efforts to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. its loan portfolio, the company added two new adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. loans to its list of loan products: one loan, 12-MAT, is tied to the 12-Month Average Treasury Index and the other, LAMA, is tied to the LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). Annual Monthly Average. The company has been offering adjustable rate mortgages This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. tied to Treasury Bill indices since Jan. 1, 1995. In addition, the company funded $51 million in consumer loans in the second quarter of 1996, compared with $.5 million in the second quarter of 1995, and $16.6 million in the first quarter of 1996. For the second quarter of 1996, the average net interest margin was 2.66%, compared with 2.38% in the second quarter of 1995 and 2.64% in the first quarter of 1996. At June June: see month. 30, 1996, the net interest margin was 2.61%. The average net interest margin for the periods and the net interest margin at June 30, 1996, reflect a change in the company's method for calculating these amounts, based upon materials provided by Securities and Exchange Commission staff at recent accounting seminars regarding the different methods for addressing the changes in reported balances of mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. resulting from Statement of Financial Accounting Standards No. 115. In the second quarter of 1996, other income was $56.0 million, compared with $53.4 million in the second quarter of 1995, and $60.5 million in the first quarter of 1996. Included therein for the respective periods were gains on sales of loans and MBS See Mb/sec. MBS - mobile broadband services of $6.1 million, $10.5 million, and $15.0 million. Other fee income was $31.3 million in the second quarter of 1996, compared to $26.4 million in the second quarter of 1995 and $26.8 million in the first quarter of 1996. The increase in other fee income reflects increased sales through the company's Personal Financial Service Centers and through Griffin Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , which offers discount stock and bond brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. , proprietary and third party mutual funds, annuities, asset management and property liability and life/health insurance. Credit Costs During the second quarter of 1996, the company provided $33.9 million for loan losses, compared to $25.5 million in the second quarter of 1995 and $45.9 million in the first quarter of 1996. The provision for the second quarter of 1996 reflects a recovery of $4.3 million for loans purchased in bulk in 1993. During the first six months of 1996, the company provided $79.8 million for loan losses, compared with $52.0 million in the first half of 1995. Expenses for the operations of foreclosed real estate amounted to $27.3 million in the second quarter of 1996, compared with $19.6 million in the second quarter of 1995 and $25.7 million in the first quarter of 1996. During the first half of 1996, expenses for the operations of foreclosed real estate amounted to $53.0 million, compared with $40.7 million in the first six months of 1995. Asset Quality At June 30, 1996, nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. totaled $953.7 million, or 1.93% of total assets, compared with $898.4 million or 1.69% of total assets at June 30, 1995, and $977.4 million, or 1.96% of total assets, at March 31, 1996. Nonaccrual loans declined by $58.5 million from the first quarter of 1996, and REO reo Noun NZ a language [Maori] increased by $34.8 million in the same period. Troubled debt restructurings troubled debt restructuring See debt restructuring. (TDRs) totaled $178.0 million at June 30, 1996. The company's ratio of reserves to nonperforming assets was 42.4% at June 30, 1996, compared with 45.6% at June 30, 1995, and 41.7% at March 31, 1996. Net loan charge-offs for the second quarter totaled $36.7 million, compared with $26.6 million in the second quarter of 1995, and $41.5 million in the first quarter of 1996. For the first six months of 1996, net charge-offs totaled $78.2 million, compared with $62.3 million in the first six months of 1995. Real estate development assets, net of reserves, totaled $212.6 million at June 30, 1996, compared with $313.9 million at June 30, 1995, and $230.4 million at March 31, 1996. The reserves for real estate development operations totaled $144.4 million, or 40.5% of gross real estate assets at June 30, 1996. During the second quarter of 1996, the company sold approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $20 million in real estate development assets. General and Administrative Expenses General and administrative expenses (G&A) totaled $189.7 million in the second quarter of 1996, compared with $201.3 million in the second quarter of 1995 and $193.0 million in the first quarter of 1996. Included in the first quarter of 1996 were $5.0 million in severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when expenses. In the second quarter of 1996, the company incurred $9.8 million in expenses for its major business initiatives: Project HOME Run, consumer lending Consumer lending or consumer loans refers to any type of loan product that is not a mortgage; such as a car, boat, manufactured home, home equity loan, home equity line of credit, signature loan, signature line of credit, recreational vehicle, or Certificate of Deposit loans. and electronic banking. In addition, in preparation for the acquisition of 61 California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). branches of First Interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. Bank, which is expected to close in the third quarter, the company incurred approximately $2.0 million in expenses in the second quarter of 1996. The company anticipates preconversion expenses of approximately $0.06 to $0.09 per share in the third quarter of 1996, including the previously announced one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge. The operating efficiency ratio, G&A expenses as a percentage of net interest income plus loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. and other fee income, improved to 52.8% in the second quarter of 1996, versus 57.3% in the second quarter of 1995 and 53.8% in the first quarter of 1996. Loan Originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Home Savings funded $1.4 billion of residential mortgages in the second quarter of 1996. Production was $1.6 billion in the second quarter of 1995, and $1.3 billion in the first quarter of 1996. Of the second quarter 1996 production, 64% were Adjustable Rate Mortgages (ARMs), compared to 82% in the second quarter of 1995 and 43% in the first quarter of 1996. Purchase loans represented 71% of the total second quarter 1996 originations, compared with 74% in the second quarter of 1995, and 56% in the first quarter of 1996. Home Savings funded $51.7 million in consumer loans during the second quarter of 1996 compared to $16.6 million in the first quarter of 1996. The monthly fundings in the consumer loan portfolio have increased each month since the program began in May 1995. Capital At June 30, 1996, Home Savings of America's capital ratios exceeded all regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. for well-capitalized institutions, the highest regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. standard. -0-
Requirement for
Well-Capitalized Home Savings
Status at 6/30/96
Tangible: -- 6.00% Core Capital: 5.00% 6.01% Core Capital to Risk- Weighted Assets: 6.00% 9.65% Risk-Based Capital: 10.00% 11.81% On June 30, 1996, core capital exceeded the well-capitalized standard by $499 million. Stock Repurchase Program In the second quarter of 1996, the company completed its initial stock repurchase program. During that program, the company purchased 10.4 million shares, or 9% of the outstanding common shares. In addition, on May 14, 1996, the company announced a new program to purchase an additional $150 million of its common stock. Through June 30, 1996, under the new program, the company had purchased 717,000 shares of its common stock at an average price of $26.32 per share. At June 30, 1996, the parent company had $198 million in cash. Series B Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to be Called During the quarter, the company announced that on Sept. 3, 1996, it will redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. its 9.60% Preferred Stock, Series B, at $25 per Depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. Share, plus accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. and unpaid dividends Unpaid dividend A dividend declared by the directors of a corporation that has not yet been paid. unpaid dividend 1. A declared dividend that has not yet been paid. 2. See passed dividend. to and including the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. . The redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of the Series B Preferred Stock will contribute approximately $0.09 to annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. earnings per share. H.F. Ahmanson & Co., with $49.5 billion in assets, is the parent company of Home Savings of America. Home Savings' deposit base is $33.3 billion. It operates 347 personal financial service centers in four states and 106 mortgage lending offices in nine states. -0- Note to Editors: Additional information, including monthly financial data, about H.F. Ahmanson & Co. and Home Savings of America can be retrieved free of charge by using the following services: Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the : http://www.investquest.com Fax-on-Demand: 614/844-3860 On-line BBS (1) (Bulletin Board System) A computer system used as an information source and forum for a particular interest group. They were widely used in the U.S. : 614/844-3868 -0-
H.F. AHMANSON & CO. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
(Dollars in thousands except per-share data)
At End of Period 6/30/96 3/31/96 6/30/95
---------------- ------------ ------------ ------------
Total assets $ 49,506,630 $ 49,781,986 $ 53,242,694
Investment portfolio $ 1,124,122 $ 707,045 $ 1,864,471
Loans receivable and
mortgage-backed
securities (MBS) $ 45,855,263 $ 46,530,610 $ 48,809,352
ARMs included in loans
receivable and MBS $ 44,365,520 $ 44,870,834 $ 46,428,415
Allowance for loan losses $ 382,485 $ 385,367 $ 389,927
Deposits $ 33,281,931 $ 33,947,928 $ 42,988,665
Borrowings $ 12,351,740 $ 11,601,867 $ 6,699,546
Stockholders' equity $ 2,777,356 $ 2,952,702 $ 2,831,012
Book value per common
share $ 19.78 $ 20.40 $ 18.50
Tangible book value
per common share $ 18.47 $ 19.12 $ 16.20
Total common shares
outstanding 107,188,014 112,512,418 117,482,087
Home Savings of America
Capital Ratios
(Fully phased-in):
Tangible capital (to
adjusted total assets) 6.00% 6.10% 5.20%
Core capital (to adjusted
total assets) 6.01% 6.11% 5.22%
Core capital (to
risk-weighted assets) 9.65% 9.84% 8.33%
Risk-based capital 11.81% 11.98% 11.37%
For the Three Months Ended
--------------------------
Net interest income $ 311,574 $ 316,982 $ 310,175
Provision for loan
losses $ 33,901 $ 45,942 $ 25,465
Net earnings $ 68,734 $ 64,755 $ 64,389
Net earnings per fully
diluted common share $ 0.50 $ 0.45 $ 0.43
Dividends per common
share $ 0.22 $ 0.22 $ 0.22
Loans originated
and purchased $ 1,438,941 $ 1,339,779 $ 1,582,398
Average Interest Rates:
Yield on loans and MBS 7.41% 7.48% 7.34%
Yield on investment
portfolio 6.06% 5.83% 6.10%
Yield on interest-earning
assets 7.39% 7.46% 7.28%
Cost of deposits 4.45% 4.57% 4.64%
Cost of borrowings 6.20% 6.28% 6.77%
Cost of interest-costing
liabilities 4.91% 5.02% 5.02%
Interest rate spread 2.48% 2.44% 2.26%
Net interest margin 2.66% 2.64% 2.38%
For the Six Months Ended
------------------------
Net interest income $ 628,556 $ 605,419
Provision for loan
losses $ 79,843 $ 52,009
Net earnings (loss) $ 133,489 $ (117,503)
Net earnings (loss) per fully
diluted common share $ 0.94 $ (1.22)
Dividends per common
share $ 0.44 $ 0.44
Loans originated
and purchased $ 2,778,720 $ 3,290,542
Average Interest Rates:
Yield on loans and MBS 7.45% 7.12%
Yield on investment
portfolio 5.94% 6.09%
Yield on interest-earning
assets 7.43% 7.07%
Cost of deposits 4.51% 4.44%
Cost of borrowings 6.24% 6.66%
Cost of interest-costing
liabilities 4.96% 4.85%
Interest rate spread 2.47% 2.22%
Net interest margin 2.65% 2.32%
H.F. AHMANSON & CO. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
NET INTEREST MARGIN
In December 1995, the company reclassified $10.4 billion of
mortgage-backed securities ("MBS") from the held-to-maturity
designation to the available-for-sale designation and adjusted the
reported balance of such MBS from amortized cost to fair value in
accordance with Statement of Financial Accounting Standards ("SFAS")
No. 115. The adjustment to the reported balance of the MBS did not
affect the actual principal balance of such MBS or the income
actually generated by such MBS.
In prior reports, the company gave effect to SFAS No. 115 adjustments in computing the yield on MBS, and therefore net interest margin, so that the reported yield and margin would be consistent with the reported principal balance. The Securities and Exchange Commission (SEC) staff provided materials at a recent seminar indicating their preference for excluding SFAS No. 115 adjustments and using amortized cost for purposes of computing yields and margins. Accordingly, the company has elected to report net interest margin for the periods ending June 30, 1996 and at June 30, 1996, without giving effect to SFAS No. 115 adjustments. For purposes of comparability, set forth below is the net interest margin data which the company would have reported had it been using this method of calculation previously.
Under previous Under new
method of calculation method of calculation
At: June 30, 1995 2.45% 2.48% Dec. 31, 1995 2.62% 2.66% March 31, 1996 2.74% 2.77% June 30, 1996 N/A 2.61% For: Three months ended June 30, 1995 2.38% 2.38% Six months ended June 30, 1995 2.32% 2.32% Three months ended March 31, 1996 2.64% 2.64% Three months ended June 30, 1996 N/A 2.66% Six months ended June 30, 1996 N/A 2.65%
H.F. AHMANSON & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(In thousands)
Assets 6/30/96 3/31/96 12/31/95 6/30/95
------ ----------- ----------- ----------- -----------
Cash and amounts
due from banks $ 722,581 $ 683,480 $ 752,878 $ 687,257
Securities purchased
under agreements
to resell 690,200 278,000 381,000 1,099,000
Other short-term
investments 13,797 14,364 13,278 24,108
----------- ----------- ----------- -----------
Total cash and
cash equivalents 1,426,578 975,844 1,147,156 1,810,365
Other investment securities
held to maturity 2,443 2,445 2,448 259,332
Other investment securities
available for sale 9,912 9,809 9,908 9,159
Investment in stock
of Federal Home
Loan Bank (FHLB) 407,770 402,427 485,938 472,872
Mortgage-backed
securities (MBS)
held to maturity 5,436,023 5,649,418 5,825,276 17,358,836
MBS available for
sale 9,923,982 10,410,053 10,326,866 881,146
Loans receivable
less allowance for
losses of
$382,485 (6/30/96)
$385,367 (3/31/96)
$380,886 (12/31/95) and
$389,927 (6/30/95) 30,375,794 30,211,898 30,273,514 30,445,955
Loans held for sale 119,464 259,241 981,865 123,415
Accrued interest
receivable 218,529 223,968 228,111 153,699
Real estate held for
development and
investment (REI)
less allowance
for losses of
$144,441 (6/30/96)
$286,327 (3/31/96),
$283,748 (12/31/95) and
$331,143 (6/30/95) 212,561 230,445 234,855 313,918
Real estate owned held
for sale (REO)less
allowance for losses of
$37,493 (6/30/96)
$37,137 (3/31/96),
$38,080 (12/31/95) and
$35,824 (6/30/95) 260,735 225,870 225,566 191,524
Premises and equipment 412,602 413,487 410,947 624,988
Goodwill and other
intangible assets 140,022 143,981 147,974 270,787
Other assets 560,215 623,100 229,162 270,339
Income taxes -- -- -- 56,359
----------- ----------- ----------- -----------
$49,506,630 $49,781,986 $50,529,586 $53,242,694
=========== =========== =========== ===========
Liabilities and Stockholders' Equity ------------------------------------
Deposits $33,281,931 $33,947,928 $34,244,481 $42,988,665
Securities sold
under agreements
to repurchase 2,689,000 1,998,431 3,519,311 526,389
Other short-term
borrowings 200,000 50,000 -- 3,452
FHLB and other
borrowings 9,462,740 9,553,436 8,717,117 6,169,705
Other liabilities 1,035,557 1,170,026 873,313 723,471
Income taxes 60,046 109,463 118,442 --
----------- ----------- ----------- -----------
Total liabilities 46,729,274 46,829,284 47,472,664 50,411,682
Stockholders' equity 2,777,356 2,952,702 3,056,922 2,831,012
----------- ----------- ----------- -----------
$49,506,630 $49,781,986 $50,529,586 $53,242,694
=========== =========== =========== ===========
H.F. AHMANSON & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in thousands except per-share data)
For the Three Months Ended
----------------------------------------
6/30/96 3/31/96 6/30/95
------------ ----------- ------------
Interest income:
Interest on loans $ 559,078 $ 574,855 $ 615,281
Interest on MBS 296,927 308,354 294,383
Interest and dividends
on investments 11,231 11,661 39,901
----------- ----------- -----------
Total interest
income 867,236 894,870 949,565
----------- ----------- -----------
Interest expense:
Deposits 372,997 387,173 484,778
Short-term borrowings 36,334 40,230 45,143
FHLB and other
borrowings 146,331 150,485 109,469
----------- ----------- -----------
Total interest
expense 555,662 577,888 639,390
----------- ----------- -----------
Net interest income 311,574 316,982 310,175
Provision for loan
losses 33,901 45,942 25,465
----------- ----------- -----------
Net interest income
after provision
for loan losses 277,673 271,040 284,710
----------- ----------- -----------
Other income:
Gain (loss) on sales of MBS (29) - 8,677
Gain on sales of loans 6,166 15,028 1,779
Loan servicing income 16,657 15,145 14,896
Other fee income 31,291 26,819 26,382
Gain on sales of investment
securities - - 102
Other operating income 1,915 3,538 1,584
----------- ----------- -----------
56,000 60,530 53,420
----------- ----------- -----------
Other expenses:
General and
administrative
expenses (G&A) 189,652 193,048 201,305
Operations of REI 7,535 6,743 2,621
Operations of REO 27,302 25,689 19,605
Amortization of goodwill and
other intangible assets 3,958 3,994 6,934
----------- ----------- -----------
228,447 229,474 230,465
----------- ----------- -----------
Earnings before provision for
income taxes 105,226 102,096 107,665
Provision for income taxes 36,492 37,341 43,276
----------- ----------- -----------
Net earnings $ 68,734 $ 64,755 $ 64,389
=========== =========== ===========
Earnings per common share:
Primary $ 0.51 $ 0.45 $ 0.44
Fully diluted 0.50 0.45 0.43
Common shares outstanding,
weighted average:
Primary 110,016,213 114,781,516 118,054,317
Fully diluted 122,098,197 126,651,898 129,932,055
Return on average assets 0.56% 0.51% 0.47% Return on average equity 9.73% 8.60% 9.17% Return on average tangible equity/a 10.84% 9.60% 11.05% Efficiency ratio 52.75% 53.78% 57.28% (a) Net earnings excluding amortization of goodwill and other intangible assets as a percentage of average equity excluding goodwill and other intangible assets.
For the Six Months Ended
--------------------------
6/30/96 6/30/95
------------ -----------
Interest income:
Interest on loans $ 1,133,933 $ 1,246,072
Interest on MBS 605,281 514,470
Interest and dividends
on investments 22,892 83,006
----------- -----------
Total interest
income 1,762,106 1,843,548
----------- -----------
Interest expense:
Deposits 760,170 924,236
Short-term borrowings 76,564 94,661
FHLB and other
borrowings 296,816 219,232
----------- -----------
Total interest
expense 1,133,550 1,238,129
----------- -----------
Net interest income 628,556 605,419
Provision for loan
losses 79,843 52,009
----------- -----------
Net interest income
after provision
for loan losses 548,713 553,410
----------- -----------
Other income:
Gain (loss) on sales of MBS (29) 9,280
Gain on sales
of loans 21,194 2,010
Loan servicing income 31,802 27,862
Other fee income 58,110 50,354
Gain on sales of investment
securities 112
Other operating income 5,453 (216)
----------- -----------
116,530 89,402
----------- -----------
Other expenses:
General and
administrative
expenses (G&A) 382,700 384,057
Operations of REI 14,278 3,708
Operations of REO 52,991 40,658
Amortization of goodwill and
other intangible assets 7,952 13,845
----------- -----------
457,921 442,268
----------- -----------
Earnings before provision for
income taxes and cumulative
effect of accounting change 207,322 200,544
Provision for income
taxes 73,833 83,305
----------- -----------
Earnings before cumulative
effect of accounting change 133,489 117,239
Cumulative effect of change
in accounting for goodwill - (234,742)
----------- -----------
Net earnings (loss) $ 133,489 $ (117,503)
=========== ===========
Earnings (loss) per common
share - primary:
Earnings before
cumulative effect of
accounting change $ 0.96 $ 0.78
Cumulative effect of
change in accounting
for goodwill - (2.00)
----------- -----------
Net earnings (loss) $ 0.96 $ (1.22)
=========== ===========
Earnings (loss) per common
share - fully diluted:
Earnings before
cumulative effect of
accounting change $ 0.94 $ 0.78
Cumulative effect of
change in accounting
for goodwill - (2.00)
----------- -----------
Net earnings (loss) $ 0.94 $ (1.22)
=========== ===========
Common shares outstanding,
weighted average:
Primary 112,432,758 117,329,168
Fully diluted 124,585,694 117,329,168
Return on average assets 0.54% (0.43)% Return on average equity 9.16% (8.35)% Return on average tangible equity/a 10.22% 10.14 % Efficiency ratio 53.27% 56.18 % (a) Net earnings excluding amortization of goodwill and other intangible assets, and cumulative effect of change in accounting for goodwill, as a percentage of average equity excluding goodwill and other intangible assets. CONTACT: H.F. Ahmanson & Co., Irwindale Mary Mary, the mother of Jesus Mary, in the Bible, mother of Jesus. Christian tradition reckons her the principal saint, naming her variously the Blessed Virgin Mary, Our Lady, and Mother of God (Gr., theotokos). Her name is the Hebrew Miriam. Trigg Trigg is the name of a number of places and people. It may refer to: Places
Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Swartz Swartz is a surname, and may refer to:
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