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CONTINENTAL SAVINGS OF AMERICA ANNOUNCES EARNINGS FOR THE PERIOD ENDED JUNE 30, 1993

 SAN FRANCISCO, July 20 /PRNewswire/ -- Continental Savings of America (NASDAQ: CSAV), a federally chartered savings and loan association, reports a loss for the three-month period ended June 30, 1993, of $3.9 million or $1.44 per common share. Charles A. Chenes, chairman of the board for Continental, had announced in early July that additional after tax reserves and write-downs of some $3.0 million would be recognized in the second quarter in order to provide for the accelerated disposition of property acquired through foreclosure. Continental reported earnings of $1.5 million, or 51 cents per common share, for the same period a year ago. For the six-month period ended June 30, 1993, Continental reports a loss of $3.8 million, or $1.26 per common share. For the prior year comparable six-month period, Continental reported earnings of $3.3 million, or $1.16 per common share. The provision for loan losses was $394,000 for the current three-month period versus $421,000 for the prior year period. The provision for the current six-month period was $684,000 versus $577,000 for the prior year period.
 According to Chenes, Continental provided, in addition to the provision for loan losses, approximately $5.0 million of reserves for real estate acquired through foreclosure during the quarter along with $1.2 million of write-downs and reserves for securities and the deferred premium asset, and $800,000 of other one-time charges. Continental had provided $1.4 million for reserves and write-downs for real estate, investment securities, and the deferred premium asset in the prior year three month period. An increase in non-performing assets contributed to a decline in net interest income and a step up in expenses associated with real estate property repossessions. Increased operating expenses reflect the expansion of the loan office network from nine at June 30, 1992, to 28 at June 30, 1993.
 Chenes reaffirmed that, "While the board had initially planned on a longer disposition period for assets gained through foreclosure, it had concluded that a discounting of prices would permit a more aggressive timetable for disposition, thus permitting more time for management to devote toward implementing the expansion and diversification of the mortgage banking operation." He added, "California's weak economy during the first half of 1993 has resulted in substantially more delinquencies and foreclosures than expected. We have seen indications of a slackening of delinquencies in recent weeks, a sign that the economy may be stabilizing. Our effort has been to try to keep borrowers in their homes. However, this has not always been possible, and with the increase in the number of foreclosed properties, the board believes that the prompt disposition of these assets now will position the association to take advantage of a resurgence in the economy later this year or in 1994."
 Chenes emphasized that, "The Association will remain in compliance with all regulatory capital requirements."
 Continental Savings is a federally chartered savings and loan association that operates six savings branch offices in the San Francisco area, and 28 loan origination offices in Northern and Southern California and in New York with assets of $510 million. Its principal business consists of originating loans secured by existing single-family residences for sale in the secondary mortgage market.
 CONTINENTAL SAVINGS OF AMERICA
 Financial Summary
 Three months ended Six months ended
 June 30, June 30,
 1993 1992 1993 1992
 Net interest
 income $3,528,310 $4,706,238 $6,875,198 $9,107,484
 Provision for
 possible loan
 losses (393,651) (421,140) (684,059) (577,192)
 Loan servicing
 income & other
 fees 1,271,471 1,202,779 1,917,897 2,225,264
 Gain on sale of
 loans & loan
 servicing rights 1,929,748 2,729,388 3,736,560 4,954,033
 Loss on real estate
 operations (1,013,162) (255,124) (1,391,207) (334,159)
 Operating expense:
 Compensation &
 benefits 2,706,482 1,711,838 4,830,642 3,582,095
 Occupancy &
 equipment 988,624 849,238 1,855,937 1,593,120
 Provision for
 loss on investment
 securities & real
 estate 6,526,221 1,392,318 6,756,103 1,910,318
 Other general &
 administrative
 expenses 2,453,355 1,523,025 4,265,259 2,697,580
 Income before income
 taxes (7,351,966) 2,485,722 (7,253,552) 5,592,317
 Income taxes (3,452,306) 1,019,145 (3,411,956) 2,292,848
 Net income ($3,899,660) $1,466,577 ($3,841,596) $3,299,469
 Average shares
 outstanding 2,701,914 2,850,357 3,050,473 2,776,136
 Net income per common share:
 Primary ($1.44) $0.51 ($1.26) $1.16
 Fully diluted ($1.44) $0.51 ($1.26) $1.16
 6/30/93 6/30/92
 Assets, Liabilities and Capital
 Cash & equivalents $30,258,723 $18,579,782
 Investment securities 38,908,761 38,584,513
 Loans 384,904,814 475,156,544
 Allowance for loan losses (5,311,861) (5,092,703)
 Real estate owned 31,174,462 18,675,789
 Other assets 30,580,893 24,803,225
 Total assets $510,515,792 $570,707,150
 Deposits $434,166,539 $481,414,082
 Advances & borrowings 39,231,965 61,278,022
 Other liabilities 5,870,199 6,944,547
 Shareholders equity 31,247,089 21,070,499
 Total liabilities and equity $510,515,792 $570,707,150
 Capital levels:
 Tangible & core 5.92 pct. 3.69 pct.
 Risk based 8.94 pct. 5.50 pct.
 Three months ended Six months ended
 1993 1992 1993 1992
 Other Information
 Return on average
 common stockholders'
 equity -86.00 pct 28.85 pct. -39.84 pct. 33.82 pct.
 Return on average
 assets -3.05 pct. 1.01 pct. -1.48 pct. 1.13 pct.
 Operating expense/
 average assets 9.90 pct. 3.78 pct 6.81 pct 3.35 pct.
 Loss allowances/loans
 & real estate owned 3.25 pct. 1.36 pct.
 Full-time equivalent
 employees 327 220
 Retail deposit
 branches 6 6
 Loan offices 28 9
 -0- 7/20/93
 /CONTACT: Ralph Christy of Continental Savings of America, 415-274-3000/
 (CSAV)


CO: Continental Savings of America ST: California IN: FIN SU: ERN

LH-BR -- SF008 -- 3341 07/20/93 06:01 EDT
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Date:Jul 20, 1993
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