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CALIFORNIA FEDERAL BANK WILL FILE REVISED CAPITAL PLAN; IMCR MAY BE WITHDRAWN

 CALIFORNIA FEDERAL BANK WILL FILE
 REVISED CAPITAL PLAN; IMCR MAY BE WITHDRAWN
 LOS ANGELES, July 1 /PRNewswire/ -- California Federal Bank, FSB, the principal subsidiary of CalFed Inc. (NYSE: CAL), said today that it has agreed to file a revision of the capital plan it proposed to the Office of Thrift Supervision (OTS) on Feb. 28, 1992.
 The revised plan will call for the bank to reach core and risk- based capital ratios of 5.0 percent and 9.0 percent, respectively, by June 30, 1993. The plan will also call for the bank to achieve a 10.0 percent risk-based capital ratio by Jan. 1, 1995.
 The bank agreed to file the revised capital plan as an alternative to the OTS issuing an Individual Minimum Capital Requirement (IMCR) requiring the Bank to achieve a core capital ratio of 5 percent and a risk-based ratio of 10 percent as early as Sept. 30, 1992, and by Jan. 1, 1993, at the latest. The bank said that the OTS has indicated that, upon approval of the bank's revised capital plan, it will withdraw the IMCR proposal made to the bank on Nov. 5, 1991.
 "Although our revised capital plan has not yet been submitted, we are encouraged by the prospect of having capital targets that are much more achievable than the previously proposed IMCR," said Jerry St. Dennis, chairman of California Federal Bank. "However, the revised goals are stringent, and their attainability depends in large measure on investor perception of the real estate markets, the California economy and CalFed's continuing progress," he added.
 It is expected that the revised capital plan would include, among other things, an exchange offer to CalFed Inc.'s bondholders, involving principally equity securities of the bank and CalFed Inc., to be completed by Dec. 31, 1992. It is also expected that immediately after completion of a successful exchange offer, CalFed Inc. would merge with a subsidiary of the bank, and CalFed Inc. stockholders would become shareholders of the bank.
 If bondholders and stockholders approve the transactions, the resulting capital ratios of the Bank would be substantially enhanced, the Company said, but it is expected that the revised plan would include further capital raising steps.
 St. Dennis said that regulators have agreed with the bank's revised capital ratio targets, the related timing issues and key elements of the related transactions. However, he stressed that no assurance can be given that the OTS will approve the bank's revised capital plan or that, if approved, the capital plan will be achieved.
 California Federal Bank's core and risk-based capital ratios at March 31, 1992, were 3.92 percent and 7.34 percent, respectively, compared to current regulatory requirements for the industry of 3.00 percent and 7.20 percent respectively. The bank's tangible capital ratio at March 31, 1992, was 2.88 percent, compared to the 1.50 percent regulatory minimum.
 The bank said it expects to file its revised capital plan in July and that further details of the plan would be forthcoming if the plan is approved. Regulatory filings for the proposed exchange offer and related transactions would be made shortly thereafter.
 California Federal Bank, FSB, the nation's fifth largest savings institution, provides retail banking services and home mortgage loans through 179 branches in California, Florida, Nevada and Georgia.
 -0- 7/1/92
 /CONTACT: James F. Hurley, 213-930-9750, or Frank W. Moore, 213-932-4203, both of CalFed/
 (CAL) CO: CalFed Inc.; California Federal Bank ST: California IN: FIN SU:


CH-KJ -- LA010 -- 5727 07/01/92 12:54 EDT
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Publication:PR Newswire
Date:Jul 1, 1992
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