Coast announces first quarter earnings.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--April 22, 1997--Coast Savings Financial Inc. (NYSE/PSE:CSA (1) (Canadian Standards Association, Toronto, Ontario, www.csa.ca) A standards-defining organization founded in 1919. It is involved in many industries, including electronics, communications and information technology. ), the holding company of Coast Federal Bank, FSB (FrontSide Bus) See system bus. FSB - front side bus , Tuesday Tuesday: see week. reported first quarter 1997 net earnings of $12.3 million or 63 cents 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. share, compared with net earnings of $9.5 million or 50 cents per fully diluted share for the first quarter ended March 31, 1996. "We are pleased to report the highest quarterly core earnings in the company's history," stated Ray Martin, chairman and chief executive officer. "In addition, the improved 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). economy and enhanced overall asset quality resulted in the lowest level of quarterly credit costs since early 1990." As of March 31, 1997, Coast's core and risk-based capital ratios Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. were 5.40 percent and 11.04 percent, respectively, each of which exceeded the applicable 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. thresholds necessary to be designated a "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. " institution. 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. (defined as the sum of nonaccrual and modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. loans, and foreclosed real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most ) were $118.2 million or 1.34 percent of assets, compared with $133.3 million or 1.62 percent of assets and $124.1 million or 1.43 percent of assets at March 31, 1996, and Dec. 31, 1996, respectively. 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. for the first quarter of 1997 totaled $401.5 million, essentially all of which were 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. secured by single family properties. At March 31, 1997, Coast had 97.5 percent of its portfolio in 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, and its one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants gap ratio -- a measure of interest rate exposure -- was a positive 5 percent. Coast's net interest rate spread -- the difference between the yield on interest-earning assets and the cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities -- was 2.34 percent at March 31, 1997, compared with 2.59 percent and 2.35 percent as of March 31, 1996, and Dec. 31, 1996, respectively. Net interest income reached an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high of $55.7 million for the latest quarter, compared with the $54.3 million and $53.8 million recorded during the quarters ended March 31, 1996 and Dec. 31, 1996, respectively. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $37.8 million for the three months ended March 31, 1997, compared with $39.6 million for the three-month period ended March 31, 1996. The total of 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. fees and charges, retail banking fees and the recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. portion of other income from operations was $12.4 million for the latest three months, compared with $13.0 million for the three months ended March 31, 1996, and with $12.2 million for Dec. 31, 1996. As a result of the items detailed above, Coast's pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern core profitability (defined as net interest income before provision for loan losses less operating expenses plus loan servicing fees and charges and the recurring portion of other income) was $30.3 million for the latest quarter, compared with $27.7 million and $27.8 million recorded during the three-month periods ended March 31, 1996, and Dec. 31, 1996, respectively. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $435.9 million or $23.45 per share at March 31, 1997, compared with $425.4 million or $22.89 per share at March 31, 1996. Tangible stockholders' equity was $430.0 million or $23.12 per share at the end of the latest quarter, compared with $418.3 million or $22.51 per share at March 31, 1996. Coast Savings Financial is the holding company of Coast Federal Bank, FSB. With assets of $8.8 billion, Coast is one of the nation's largest thrift institutions Thrift institution An organization formed as a depository for primarily consumer savings. Savings and loan associations and savings banks are thrift institutions. and provides consumer banking services and residential real estate loans through 92 retail banking offices located throughout California. -0-
COAST SAVINGS FINANCIAL INC. AND SUBSIDIARIES
Consolidated Financial Highlights (Unaudited)
(dollars in thousands)
Financial Condition March 31, Dec. 31,
1997 1996
Assets
Cash and due from banks $ 133,031 $ 138,861
Investment securities 223,835 234,628
Loans receivable 6,035,708 5,856,107
Mortgage-backed securities 1,985,115 2,043,270
Real estate held for sale 36,371 41,259
Federal Home Loan Bank stock 92,351 90,882
Land and depreciable assets 93,324 95,010
Interest receivable
and other assets 191,372 198,697
Goodwill 5,968 6,238
$ 8,797,075 $ 8,704,952
Liabilities and
Stockholders' Equity
Liabilities
Deposits $ 6,493,244 $ 6,356,448
Federal Home Loan Bank
advances 1,022,500 1,104,200
Other borrowings 716,055 699,518
Income taxes 3,229 4,747
Other liabilities 126,129 115,508
8,361,157 8,280,421
Stockholders' equity:
Common stock 186 186
Additional paid-in capital 265,343 265,055
Unrealized gain on
securities available
for sale 1,619 2,778
Retained earnings 168,770 156,512
435,918 424,531
$ 8,797,075 $ 8,704,952
Regulatory Capital Ratios
Risk-based 11.04 % 10.90 %
Core 5.40 5.33
Tangible 5.40 5.33
Weighted Average Interest
Rates
Loans receivable and mortgage
backed securities 7.27 % 7.30 %
Investment securities 6.43 6.25
Investment-earning assets 7.24 7.25
Deposits 4.59 4.59
Borrowings 6.05 6.03
Interest-bearing liabilities 4.90 4.91
Net spread 2.34 % 2.34 %
One Year Gap (the cumulative
difference between repricing
assets and liabilities) to
total assets 5 % 6 %
-0-
COAST SAVINGS FINANCIAL INC. AND SUBSIDIARIES
Consolidated Financial Highlights (Unaudited)
(dollars in thousands, except per share amounts)
Three Months Ended
March 31,
1997 1996
Operations
Interest income:
Loans and mortgage-backed securities $ 149,502 $ 145,792
Investment securities 5,578 5,190
155,080 150,982
Interest expense:
Deposits 72,675 71,286
Borrowings 26,686 25,420
99,361 96,706
Net interest income 55,719 54,276
Provision for loan losses 8,000 10,000
Net interest income after provision
for loan losses 47,719 44,276
Noninterest income:
Loan servicing fees and charges 3,132 3,458
Other 9,252 9,574
12,384 13,032
Noninterest expense:
General and administrative expenses 37,835 39,573
Real estate operations, net 863 1,622
Amortization of goodwill 270 276
38,968 41,471
Earnings (loss) before income
tax expense (benefit) 21,135 15,837
Income tax expense (benefit) 8,877 6,335
Net earnings $ 12,258 $ 9,502
Fully diluted earnings per share
of common stock $ 0.63 $ 0.50
Shares of common stock outstanding
at end of period 18,592,567 18,583,317
-0-
COAST SAVINGS FINANCIAL INC. AND SUBSIDIARIES
NONPERFORMING ASSETS
(dollars in thousands)
March 31, June 30, Sept. 30,
1995 1995 1995
Nonaccrual loans $ 82,569 $ 89,693 $ 80,527
Foreclosed real estate
owned 50,674 39,557 39,412
Modified loans (a) 1,020 1,020 1,020
Nonperforming assets $ 134,263 $ 130,270 $ 120,959
General valuation
allowance (GVA) $ 85,000 $ 85,000 $ 82,000
Total assets $ 8,540,077 $ 8,585,062 $ 8,430,406
Ratio of nonperforming
assets to total assets 1.57% 1.52% 1.43%
Ratio of GVA to
nonperforming assets 63% 65% 68%
Dec. 31, March 31, June 30,
1995 1996 1996
Nonaccrual loans $ 81,351 $ 93,288 $ 74,620
Foreclosed real estate
owned 31,696 39,999 57,762
Modified loans (a) -- -- --
Nonperforming assets $ 113,047 $ 133,287 $ 132,382
General valuation
allowance (GVA) $ 82,000 $ 82,000 $ 73,000
Total assets $ 8,251,680 $ 8,239,880 $ 8,350,710
Ratio of nonperforming
assets to total assets 1.37% 1.62% 1.59%
Ratio of GVA to
nonperforming assets 73% 62% 55%
Sept. 30, Dec. 31, March 31,
1996 1996 1997
Nonaccrual loans $ 80,742 $ 82,804 $ 81,799
Foreclosed real estate
owned 50,286 41,259 36,371
Modified loans (a) -- -- --
Nonperforming assets $ 131,028 $ 124,063 $ 118,170
General valuation
allowance (GVA) $ 73,000 $ 93,000 $ 93,000
Total assets $ 8,549,032 $ 8,704,952 $ 8,797,075
Ratio of nonperforming
assets to total assets 1.53% 1.43% 1.34%
Ratio of GVA to
nonperforming assets 56% 75% 79%
(a) Defined as loans whose terms have been modified such that the interest rates charged to the borrowers have been reduced to levels below the original contract rates and below market rates of interest at both the time of modification and the reporting date. CONTACT: Coast Savings Financial Inc., Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Mark Neal/Priscilla Finch finch, common name for members of the Fringillidae, the largest family of birds (including over half the known species), found in most parts of the world except Australia. , 213/362-2134 |
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