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GLENFED NAMES NEW CEO AS CHAIRMAN RETIRES; ANTICIPATES LOSS FOR MARCH QUARTER; EXPECTS TO BE BELOW RISK-BASED CAPITAL REQUIREMENT

 GLENFED NAMES NEW CEO AS CHAIRMAN RETIRES; ANTICIPATES LOSS FOR MARCH QUARTER; EXPECTS TO BE BELOW RISK-BASED CAPITAL REQUIREMENT
 GLENDALE, Calif., March 25 /PRNewswire/ -- GLENFED Inc. (NYSE: GLN) today announced that Norman M. Coulson has resigned as chairman and director of the company and Glendale Federal Bank and will retire from both institutions. Stephen J. Trafton, vice chairman and chief financial officer of GLENFED and president and chief operating officer of the bank, has been elected to the additional positions of chief executive officer and president of GLENFED and chairman and chief executive officer of the bank.
 The company also stated that it will record in the March 31, 1992 quarter a provision for loan losses of approximately $145 million and will adjust downward the carrying value of its real estate investments by approximately $65 million. These actions reflect the prolonged recession and the continued deterioration in the real estate markets, which have seriously affected the value of the company's real estate investments, and resulted in further losses in the bank's commercial finance subsidiaries and an increase in the company's non-performing assets.
 These increased loss provisions and valuation adjustments were partially offset by the bank's net interest margin and the continuing effect of its expense reduction programs. As a result, the company expects to record a net loss for the quarter of approximately $110 million, or $3.21 per share. In the first six months of fiscal 1992, GLENFED had net earnings of $51.6 million, or $1.51 per share.
 The net loss for the quarter, together with the Jan. 1, 1992 reduction in the amount of supervisory goodwill allowable in regulatory capital, is expected to result in the bank falling below its risk-based capital requirement as of March 31. Accordingly, the bank is developing a capital restoration plan which will be submitted to the Office of Thrift Supervision. The company has been actively exploring possible means for attracting additional capital.
 Coulson, 59, retires from Glendale Federal Bank after a career of more than 30 years. Trafton, 45, joined GLENFED in 1990 and was named president and chief operating officer of the bank in October 1991. Under his direction, the company has implemented a comprehensive restructuring and expense reduction program.
 GLENFED Inc., the parent company of Glendale Federal Bank, provides community banking services through 214 bank offices in California, Florida and Washington.
 -0- 3/25/92
 /CONTACT: Judy Cunningham, 818-500-2274, or Rosanne O'Brien, 818-500-2824, both of GLENFED/
 (GLN) CO: GLENFED Inc. ST: California IN: FIN SU: PER ERP


KJ -- LA027 -- 1681 03/25/92 16:55 EST
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Publication:PR Newswire
Date:Mar 25, 1992
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