Coast announces first-quarter earnings.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--April 23, 1996--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 , reported net earnings of $9.5 million, or 50 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, for the quarter ended March 31, 1996, compared with $3.5 million, or 18 cents per fully diluted share, for the first quarter of 1995. ``We are pleased that the company recorded all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high core earnings for the first quarter of 1996 as a result of the continued progress on business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point and widening net interest margin in recent quarters,'' stated Ray Martin, chairman and chief executive officer. ``In addition, checking accounts increased by over 9 percent during the quarter, adding to the significant 36 percent increase registered for all of 1995.'' As of March 31, 1996, Coast's risk-based, leverage and tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. capital ratios were 11.11 percent, 5.58 percent and 5.58 percent, respectively, each of which exceeded the 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 considered a ``well capitalized'' 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 loans, 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 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) were $133.3 million at March 31, 1996, compared with $113.0 million and $134.3 million at Dec. 31, 1995, and March 31, 1995, 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 1996 totaled $248.3 million, more than 85 percent of which were one-to-four family 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. . At March 31, 1996, Coast had 96 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 -- increased to 2.59 percent at March 31, 1996, from 2.56 percent at Dec. 31, 1995. Reflecting the increased amount of transaction accounts and a modest Eleventh In music or music theory an eleventh is the note eleven scale degrees from the root of a chord and also the interval between the root and the eleventh. Since there are only seven degrees in a diatonic scale the eleventh degree is the same as the subdominant and the interval 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. reset lag benefit during the most recent quarter, net interest income totaled $54.3 million for the latest quarter, compared with the $52.1 million and $47.4 million recorded during the quarters ended Dec. 31, 1995, and March 31, 1995, 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 $39.6 million for the three months ended March 31, 1996, compared with $39.0 million and $41.9 million for the three-month periods ended Dec. 31, 1995, and March 31, 1995, respectively. The combined 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 $13.0 million for the three months ended March 31, 1996, compared with $13.1 million for the previous quarter and $11.6 million the comparable year-earlier period. 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 general and administrative expenses plus loan servicing fees and charges and the recurring portion of other income) increased to $27.7 million for the latest quarter, compared with $26.3 million and $17.2 million registered for the three-month periods ended Dec. 31, 1995, and March 31, 1995, 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. increased to $425.4 million, or $22.89 per share at March 31, 1996, from $417.4 million, or $22.46 per share at Dec. 31, 1995. Tangible stockholders' equity increased to $418.3 million, or $22.51 per share at the end of the latest quarter, compared with $410.1 million, or $22.07 per share at Dec. 31, 1995. Coast Savings Financial is the holding company of Coast Federal Bank. With assets of $8.2 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. . Coast's primary emphasis is on residential real estate lending and retail banking provided through 89 retail banking offices located throughout 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). . -0-
Coast Savings Financial Inc. and Subsidiaries
Consolidated Financial Highlights
(Dollars in thousands)
(Unaudited)
March 31, Dec. 31,
1996 1995
Financial Condition
Assets
Cash and due from banks $ 145,602 $ 119,717
Investment securities 88,381 103,179
Loans receivable 5,486,609 5,466,496
Mortgage-backed securities 2,099,803 2,171,801
Real estate held for sale 39,999 31,696
Federal Home Loan Bank stock 86,949 85,837
Land and depreciable assets 97,571 92,920
Interest receivable and other assets 187,911 172,702
Goodwill 7,055 7,332
$ 8,239,880 $ 8,251,680
Liabilities and Stockholders' Equity
Liabilities:
Deposits $ 6,250,070 $ 6,123,472
Federal Home Loan Bank advances 727,000 804,250
Other borrowings 719,198 789,086
Income taxes 13,049 12,684
Other liabilities 105,203 104,754
7,814,520 7,834,246
Stockholders' equity:
Common stock 186 186
Additional paid-in capital 265,026 265,018
Unrealized gain on securities
available for sale 4,970 6,554
Retained earnings 155,178 145,676
425,360 417,434
$ 8,239,880 $ 8,251,680
Regulatory Capital Ratios Risk-based 11.11 % 10.86 % Core 5.58 5.47 Tangible 5.58 5.47 Weighted Average Interest Rates Loans receivable and mortgage-backed securities 7.47 % 7.56 % Investment securities 5.52 5.42 Interest-earning assets 7.42 7.51 Deposits 4.57 4.67 Borrowings 6.09 6.40 Interest-bearing liabilities 4.83 4.95 Net spread 2.59 % 2.56 % One-Year Gap (the cumulative difference between repricing assets and liabilities) to total assets 5 % 7 %
Coast Savings Financial Inc. and Subsidiaries
Consolidated Financial Highlights
(Dollars in thousands except per-share amounts)
(Unaudited)
Three Months Ended
March 31,
1996 1995
Operations
Interest income:
Loans and mortgage-backed securities $ 145,792 $ 139,116
Investment securities 5,190 5,918
150,982 145,034
Interest expense:
Deposits 71,286 64,039
Borrowings 25,420 33,585
96,706 97,624
Net interest income 54,276 47,410
Provision for loan losses 10,000 10,000
Net interest income after provision
for loan losses 44,276 37,410
Noninterest income:
Loan servicing fees and charges 3,458 3,430
Other 9,574 8,162
13,032 11,592
Noninterest expense:
General and administrative expenses 39,573 41,912
Real estate operations, net 1,622 977
Amortization of goodwill 276 316
41,471 43,205
Earnings before income tax
expense 15,837 5,797
Income tax expense 6,335 2,319
Net earnings $ 9,502 $ 3,478 Fully diluted earnings per share of common stock 50 cents 18 cents Shares of common stock outstanding at end of period 18,583,317 18,457,454
Coast Savings Financial Inc. and Subsidiaries
Nonperforming Assets
(Dollars in thousands)
Mar 31, Jun 30, Sep 30,
1994 1994 1994
Nonaccrual loans $ 133,490 $ 137,439 $ 133,724 Foreclosed real estate owned 94,493 76,972 74,219 Modified loans/a 1,020 1,020 1,020 Nonperforming assets $ 229,003 $ 215,431 $ 208,963 General valuation allowance (GVA) $ 130,000 $ 114,000 $ 111,000 Total assets $8,004,331 $8,029,980 $8,127,985 Ratio of nonperforming assets to total assets 2.86% 2.68% 2.57% Ratio of GVA to nonperforming assets 57% 53% 53%
Dec 31, Mar 31, Jun 30, Sep 30,
1994 1995 1995 1995
Nonaccrual loans $ 96,713 $ 82,569 $ 89,693 $ 80,527 Foreclosed real estate owned 44,168 50,674 39,557 39,412 Modified loans/a 1,020 1,020 1,020 1,020 Nonperforming assets $ 141,901 $ 134,263 $ 130,270 $ 120,959 General valuation allowance (GVA) $ 85,000 $ 85,000 $ 85,000 $ 82,000 Total assets $8,196,517 $8,540,077 $8,585,062 $8,430,406 Ratio of nonperforming assets to total assets 1.73% 1.57% 1.52% 1.43% Ratio of GVA to nonperforming assets 60% 63% 65% 68%
Dec 31, Mar 31,
1995 1996
Nonaccrual loans $ 81,351 $ 93,288 Foreclosed real estate owned 31,696 39,999 Modified loans/a -- -- Nonperforming assets $ 113,047 $ 133,287 General valuation allowance (GVA) $ 82,000 $ 82,000 Total assets $8,251,680 $8,239,880 Ratio of nonperforming assets to total assets 1.37% 1.62% Ratio of GVA to nonperforming assets 73% 62%
(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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