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GREAT WESTERN REPORTS FIRST QUARTER EARNINGS

 CHATSWORTH, Calif., April 20 /PRNewswire/ -- Great Western Financial Corp. (NYSE: GWF) today reported first quarter 1993 net earnings of $45.2 million, or $.30 per share, compared with $81.6 million, or $.60 per share, for the first quarter of 1992.
 Earnings in the first quarter of 1992 included $31 million, related to the adoption of accounting pronouncements. Before these accounting changes, first quarter 1992 earnings were $50.5 million, or $.37 per share.
 First quarter 1993 results were reduced by provisions of $88 million for loan and real estate losses, compared with $107 million in the first quarter of 1992. The company's total reserves for losses were $624 million at March 31, 1993, compared with $322 million at March 31, 1992.
 "The continued high level of provisions for losses is the result of rising single-family residential delinquencies related to the weakness in the California economy and the company's accelerated efforts to dispose of problem real estate," said James F. Montgomery, chairman and chief executive of Great Western Financial Corp. "In recent months, the sale of non-performing real estate assets has gained velocity in a very gratifying way," he added.
 During the first quarter of 1993, the company sold $121 million of foreclosed real estate, compared with $41.6 million in the same period of 1992. Sales of foreclosed real estate for the year 1992 totaled $239 million.
 Total non-performing assets were 5.43 percent of assets at March 31, 1993. Non-performing assets were 5.12 percent of total assets at Dec. 31, 1992, and 4.48 percent of assets at March 31, 1992.
 Total new loans for the 1993 first quarter were $2.3 billion, compared with $3.2 billion in the first quarter of 1992. New real estate loan volume was $1.8 billion in the first quarter of 1993, compared with $2.7 billion in the same period of 1992. Loan volume in 1992 was affected by a high volume of home mortgage refinance activity involving the origination of 30-year fixed-rate loans.
 In the first quarter of 1993, approximately 70 percent of new real estate loans were adjustable rate mortgages, compared with 34 percent in the first quarter of 1992.
 The net interest margin, the difference between the company's yield on interest earning assets and its cost of funds, was 3.91 percent for the first quarter of 1993, compared with 3.89 percent for the first quarter of 1992. The continuing strong margin is the result of low interest rates and long-term efforts to increase checking and other low-cost transaction account balances.
 With assets of $38 billion, Great Western Financial Corp. is a diversified financial services company operating nearly 1,100 mortgage lending, retail banking and consumer finance offices nationwide. The company's principal subsidiary, Great Western Bank, is a mortgage-oriented consumer bank which operates extensive banking branch networks in California and Florida.
 GREAT WESTERN FINANCIAL CORP.
 Consolidating Statement of Operations(A)
 (Dollars in thousands, except per share)
 Consumer
 For the three months Banking Finance
 ended March 31 Operations Group 1993 1992
 Interest income
 Real estate loans $520,248 --- $520,248 $639,621
 Mortgage-backed
 securities 50,797 --- 50,797 70,945
 Consumer loans 15,814 85,658 101,472 107,937
 Securities and other 13,250 2,032 15,282 18,898
 Total 600,109 87,690 687,799 837,401
 Interest expense
 Customer accounts 252,841 1,733 254,574 376,832
 Borrowings 60,205 23,427 83,632 98,577
 Total 313,046 25,160 338,206 475,409
 Net interest income 287,063 62,530 349,593 361,992
 Provision for loan losses 52,700 9,800 62,500 77,700
 Net interest income
 after provision for
 loan losses 234,363 52,730 287,093 284,292
 Other operating income
 Real estate services
 Loan fees 9,350 --- 9,350 8,726
 Mortgage banking
 Gain on mortgage sales 5,036 --- 5,036 8,473
 Servicing 13,084 --- 13,084 15,057
 Real estate operations (8,883) --- (8,883) (675)
 Provision for real
 estate losses (25,500) --- (25,500) (29,000)
 Total (6,913) --- (6,913) 2,581
 Retail banking
 Banking fees 24,452 --- 24,452 21,408
 Securities operations 8,940 --- 8,940 8,149
 Total 33,392 --- 33,392 29,557
 Net gain on securities
 and investments 194 --- 194 211
 Net insurance operations 1,805 4,164 5,969 6,307
 Other 215 1,095 1,310 1,345
 Total other operating
 income 28,693 5,259 33,952 40,001
 Operating and
 administrative expenses 212,119 36,115 248,234 236,502
 Earnings before taxes
 and accounting changes 50,937 21,874 72,811 87,791
 Taxes on income 18,300 9,300 27,600 37,300
 Earnings before
 accounting changes 32,637 12,574 45,211 50,491
 Accounting changes
 Postretirement benefits
 cost, net --- --- --- (29,906)
 Income taxes --- --- --- 61,000
 Net earnings $32,637 $12,574 $45,211 $81,585
 Primary earnings
 per common share before
 accounting changes $.30 $.37
 Fully diluted earnings
 per common share before
 accounting changes .30 .37
 Primary earnings
 per common share .30 .60
 Fully diluted earnings
 per common share .30 .60
 Dividends per common share .23 .22
 Operating and administrative
 expenses (annualized)
 as a percent of
 Average assets 2.34 pct 7.52 pct 2.60 pct 2.40 pct
 Revenue 62.16 pct 53.28 pct 60.69 pct 54.87 pct
 Net earnings (annualized)
 as a percent of
 Average assets .47 pct .83 pct
 Average equity 7.37 pct 13.94 pct
 (A) Unaudited
 GREAT WESTERN FINANCIAL CORP.
 Selected Financial Statistics(A)
 (Dollars in thousands, except per share)
 At March 31, 1993 1992
 Assets
 Cash, U.S. government
 and other securities $1,121,844 $1,990,512
 Mortgage-backed securities
 held for investment --- 1,583,058
 Mortgage-backed securities
 available for sale 2,972,592 1,969,758
 Loans receivable, net 30,268,194 30,496,469
 Loans receivable available
 for sale 452,684 431,955
 Real estate available for sale
 or development, net 1,179,074 1,125,891
 Interest receivable
 and other assets 682,759 783,298
 Investment in
 Federal Home Loan Banks 310,421 312,807
 Premises and equipment-at cost 615,234 544,345
 Intangibles arising from
 acquisitions 312,465 355,138
 Total $37,915,267 $39,593,231
 Liabilities
 Customer accounts $29,078,171 $32,529,626
 Borrowings 5,460,211 3,567,207
 Other liabilities and
 accrued expenses 699,116 706,601
 Taxes on income,
 principally deferred 210,966 412,374
 Stockholders' equity 2,466,803 2,377,423
 Total $37,915,267 $39,593,231
 Stockholders' equity
 per common share $16.55 $17.26
 Common shares outstanding 131,244,603 130,229,398
 Loans serviced for others $12,895,678 $13,459,828
 Non-performing assets and
 troubled debt restructurings
 Delinquent loans
 (essentially 90 days
 or more delinquent) $921,126 $758,719
 Troubled debt restructurings 164,380 160,652
 Loans in-substance foreclosed 465,050 459,640
 Real estate owned 556,123 424,944
 Total $2,106,679 $1,803,955
 Percent to total assets 5.43 pct 4.48 pct
 Great Western Bank,
 A Federal Savings Bank
 Fully phased-in capital ratios
 Leverage/tangible capital 5.24 pct 4.91 pct
 Risk-based capital 11.06 9.40
 (A) Unaudited
 GREAT WESTERN FINANCIAL CORP.
 SELECTED FINANCIAL STATISTICS(A)
 (Dollars in thousands)
 At or for the three months
 ended March 31 1993 1992
 Reserve for estimated loan losses
 Beginning balance $444,897 $263,050
 Provision for loan losses
 Real estate loans
 Single-family 40,000 10,000
 Commercial and other 4,500 50,700
 Consumer finance 9,800 10,500
 Bank card 5,178 6,337
 Other 3,022 163
 Total provision for loan losses 62,500 77,700
 Net charge-offs
 Real estate loans
 Single-family (32,159) (8,624)
 Commercial and other (21,080) (19,800)
 Consumer finance (9,111) (7,642)
 Bank card (6,108) (5,961)
 Other 19 (1,095)
 Total net charge-offs (68,439) (43,122)
 Ending balance 438,958 297,628
 Reserve for estimated real estate losses 184,971 24,616
 Total reserve for losses $623,929 $322,244
 Mortgage sales $454,655 $1,795,887
 (Decrease)increase
 in customer accounts (1,830,494) 1,959,258
 Amortization of intangibles 8,937 14,527
 Net interest margin for the period
 Average yield on
 Loans 7.96 pct 9.40 pct
 Mortgage-backed securities 6.64 8.11
 Securities 6.33 6.39
 Earning assets 7.80 9.18
 Average cost of
 Customer accounts 3.39 4.85
 Borrowings 7.06 8.09
 Funds 3.89 5.29
 Net interest margin 3.91 pct 3.89 pct
 New loans originated
 Real estate $1,804,058 $2,714,686
 Consumer 469,753 496,939
 Total new loans $2,273,811 $3,211,625
 Average common shares outstanding
 Without dilution 131,602,482 130,466,382
 Fully diluted 137,944,394 136,808,294
 (A) Unaudited
 -0- 4/20/93
 /EDITOR'S NOTE: This news release includes the attached consolidating statement of operations for the three months ended March 31, 1993, and selected financial statistics for the same period./
 /CONTACT: Ian Campbell, 818-775-3773, or Steve Hawkins, 818-775-3766, both of Great Western/
 (GWF)


CO: Great Western Financial Corp.; Great Western Bank ST: California IN: FIN SU: ERN

JL-BP -- LA012 -- 7802 04/20/93 08:48 EDT
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