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GREAT WESTERN REPORTS THIRD QUARTER EARNINGS

 GREAT WESTERN REPORTS THIRD QUARTER EARNINGS
 CHATSWORTH, Calif., Oct. 15 /PRNewswire/ -- Great Western


Financial Corp. (NYSE: GWF) today reported third quarter 1992 earnings of $31.7 million, or $.22 per share, compared with $77.3 million, or $.57 per share, for the third quarter of 1991. The 1992 third quarter earnings were reduced by provisions for loans and real estate losses of $129 million compared with $40.7 million in the 1991 third quarter.
 For the nine months of 1992, net earnings were $182 million, or $1.33 per share, which included $31 million related to the adoption of accounting pronouncements in the first quarter of 1992. This is compared with $227 million, or $1.71 per share, for the same period of 1991.
 "The increased provisions for loss reserves reflect continuing weakness in real estate markets and an effort by Great Western to accelerate the liquidation of nonperforming commercial real estate loans and properties," said James F. Montgomery, chairman and chief executive of Great Western Financial Corp. At Sept. 30, 1992, the company's nonperforming commercial real estate assets totaled approximately $620 million.
 Nonperforming assets totaled $1.9 billion, or 4.85 percent of total assets, at Sept. 30, 1992 compared with $1.48 billion, or 3.68 percent of total assets, at Sept. 30, 1991. Total nonperforming assets at June 30, 1992 were $1.8 billion, or 4.58 percent of total assets.
 "Essentially all of the third quarter increase in nonperforming assets involves single family residential mortgages," said Montgomery. "The level of single family residential nonperforming assets is not expected to decline appreciably until the California economy improves."
 The company said its operating results continued to benefit from strong net interest margins and net interest income and a 38 percent increase in fee and commission income in the third quarter of 1992 compared with the same period of 1991.
 The net interest margin, the difference between the company's yield on interest earning assets and its cost of funds, was 3.87 percent for the third quarter of 1992 compared with 3.35 percent a year earlier.
 Net interest income, the primary measure of core operating results, increased to $349 million in the 1992 third quarter compared with $319 million in the 1991 third quarter. For the nine months of 1992, net interest income rose 14 percent to $1.1 billion compared with $931 million in the same period of 1991.
 Retail banking fee and commission income increased 38 percent to $32.7 million during the third quarter of 1992, compared with $23.7 million during the same period of 1991. For the first nine months of 1992, retail banking fee and commission income increased 50 percent to $95.4 million compared with $63.4 million in the same period of 1991.
 Customer accounts at Sept. 30, 1992 were $31.3 billion compared with $30.2 billion at Sept. 30, 1991.
 Total new loans were $2.7 billion in the third quarter of 1992 compared with $2.3 billion in the same period of the prior year. For the 1992 nine months, total new loans were $8.2 billion compared with $6.8 billion in 1991.
 In the third quarter of 1992, approximately 60 percent of new mortgage originations were adjustable rate loans.
 With assets of $38.5 billion, Great Western is a diversified financial services company operating more than 1,100 mortgage lending, retail banking and consumer finance offices nationwide. The company's principal subsidiary, Great Western Bank, is a home mortgage-oriented consumer bank with banking branch networks in California, Florida and Washington.
 GREAT WESTERN FINANCIAL CORP.
 Consolidating Statement of Operations(a)
 (Dollars in thousands, except per share)
 Consumer
 For the three months Banking Finance
 ended Sept. 30 Operations Group 1992 1991
 Interest Income
 Real estate loans $563,904 --- $563,904 $715,418
 Mortgage-backed securities 63,024 --- 63,024 85,590
 Consumer loans 17,051 84,542 101,593 91,028
 Securities and other 19,310 1,782 21,092 19,210
 Total 663,289 86,324 749,613 911,246
 Interest Expense
 Customer accounts 318,435 2,121 320,556 474,896
 Borrowings 55,584 24,196 79,780 117,663
 Total 374,019 26,317 400,336 592,559
 Net Interest Income 289,270 60,007 349,277 318,687
 Provision for loan losses 89,900 10,100 100,000 37,700
 Net interest income after
 provision for loan losses 199,370 49,907 249,277 280,987
 Other operating income
 Real estate services
 Loan fees 7,356 --- 7,356 7,655
 Mortgage banking
 Gain on mortgage sales 8,594 --- 8,594 6,594
 Servicing 13,159 --- 13,159 16,176
 Real estate operations 1,904 --- 1,904 (1,507)
 Provision for real
 estate losses (29,000) --- (29,000) (3,000)
 Total 2,013 --- 2,013 25,918
 Retail banking
 Banking fees 23,436 --- 23,436 18,604
 Securities brokerage 9,305 --- 9,305 5,106
 Total 32,741 --- 32,741 23,710
 Net (loss) gain on securities
 and investments (552) --- (552) 847
 Net insurance operations 1,820 4,647 6,467 5,896
 Other 339 1,705 2,044 1,791
 Total other operating income 36,361 6,352 42,713 58,162
 Operating and administrative
 expenses 200,811 35,320 236,131 207,940
 Earnings before taxes
 on income 34,920 20,939 55,859 131,209
 Taxes on income 15,500 8,700 24,200 53,900
 Net Earnings $19,420 $12,239 $31,659 $77,309
 Primary earnings per
 common share --- --- $.22 $.58
 Fully diluted earnings per
 common share --- --- .22 .57
 Dividends per common share --- --- .23 .22
 Operating and administrative
 expenses (annualized) as a
 percent of average assets 2.19 pct 7.41 pct 2.45 pct 2.10 pct
 Net earnings (annualized)
 as a percent of
 Average assets --- --- .33 pct .78 pct
 Average equity --- --- 5.15 pct 13.77 pct
 (a) Unaudited
 GREAT WESTERN FINANCIAL CORP.
 Consolidating Statement of Operations(a)
 (Dollars in thousands, except per share)
 Consumer
 For the nine months Banking Finance
 ended Sept. 30, Operations Group 1992 1991
 Interest Income
 Real estate loans $1,801,378 --- $1,801,378 $2,217,813
 Mortgage-backed
 securities 201,740 --- 201,740 263,262
 Consumer loans 53,839 258,676 312,515 276,855
 Securities and other 52,519 5,081 57,600 82,188
 Total 2,109,476 263,757 2,373,233 2,840,118
 Interest Expense
 Customer accounts 1,043,783 6,463 1,050,246 1,530,251
 Borrowings 186,720 71,209 257,929 378,534
 Total 1,230,503 77,672 1,308,175 1,908,785
 Net interest income 878,973 186,085 1,065,058 931,333
 Provision for loan losses 206,600 31,100 237,700 102,700
 Net interest income after
 provision for loan losses 672,373 154,985 827,358 828,633
 Other operating income
 Real estate services
 Loan fees 23,705 --- 23,705 22,041
 Mortgage banking
 Gain on mortgage sales 25,206 --- 25,206 20,542
 Servicing 41,525 --- 41,525 51,648
 Real estate operations 3,755 --- 3,755 224
 Provision for real
 estate losses (67,000) --- (67,000) (10,000)
 Total 27,191 --- 27,191 84,455
 Retail banking
 Banking fees 68,691 --- 68,691 51,057
 Securities brokerage 26,688 --- 26,688 12,385
 Total 95,379 --- 95,379 63,442
 Net gain on securities
 and investments 258 --- 258 2,151
 Net insurance operations 5,598 14,057 19,655 19,484
 Other 595 4,346 4,941 6,765
 Total other operating
 income 129,021 18,403 147,424 176,297
 Operating and administrative
 expenses 603,456 107,627 711,083 620,570
 Earnings before taxes
 and accounting changes 197,938 65,761 263,699 384,360
 Taxes on income 85,100 27,400 112,500 157,700
 Earnings before
 accounting changes 112,838 38,361 151,199 226,660
 Accounting changes
 Postretirement benefits
 cost, net (21,870) (8,036) (29,906) ---
 Income taxes 61,000 --- 61,000 ---
 Net earnings $151,968 $30,325 $182,293 $226,660
 Primary earnings per
 common share before
 accounting changes --- --- $1.10 $1.72
 Fully diluted earnings per
 common share before
 accounting changes --- --- 1.10 1.71
 Primary earnings
 per common share --- --- 1.33 1.72
 Fully diluted earnings
 per common share --- --- 1.33 1.71
 Dividends per common share --- --- .68 .65
 Operating and administrative
 expenses (annualized)
 as a percent of
 average assets 2.17 pct 7.47 pct 2.43 pct 2.09 pct
 Net earnings (annualized)
 as a percent of
 Average assets --- --- .62 pct .76 pct
 Average equity --- --- 10.14 pct 14.17 pct
 (a) Unaudited
 GREAT WESTERN FINANCIAL CORP.
 Selected Financial Statistics(a)
 (Dollars in thousands, except per share)
 At Sept. 30, 1992 1991
 ASSETS
 Cash, U.S. government and other
 securities $1,251,560 $1,391,143
 Mortgage-backed securities --- 2,439,069
 Mortgage-backed securities
 available for sale 3,258,951 1,290,493
 Loans receivable, net 30,491,394 31,045,268
 Real estate loans available for sale 279,369 373,350
 Real estate held for sale or
 development, net 1,180,670 1,072,547
 Interest receivable and other assets 776,547 790,682
 Investment in Federal Home Loan Banks 317,807 314,437
 Premises and equipment-at cost 570,791 499,857
 Intangibles arising from acquisitions 336,246 320,201
 Total $38,463,335 $39,537,047
 Liabilities
 Customer accounts $31,261,509 $30,158,511
 Borrowings 3,598,148 5,858,818
 Other liabilities and accrued expenses 704,502 745,923
 Taxes on income, principally deferred 317,126 491,220
 Stockholders' equity 2,582,050 2,282,575
 Total $38,463,335 $39,537,047
 Stockholders' equity per common share $17.49 $16.71
 Common shares outstanding 130,826,793 128,873,753
 Loans serviced for others $13,056,625 $12,738,087
 Nonperforming Assets and
 Troubled Debt Restructurings
 Delinquent loans (essentially 90 days
 or more delinquent) $867,121 $549,226
 Troubled debt restructurings 145,670 110,350
 Loans in-substance foreclosed 482,224 493,050
 Real estate owned 401,788 322,561
 Total $1,896,803 $1,475,187
 Percent to total assets 4.85 pct 3.68 pct
 Great Western Bank, a Federal Savings Bank
 Fully Phased-In Capital Ratios
 Leverage/tangible capital 5.36 pct 4.81 pct
 Risk-based capital 9.84 8.82
 (a) Unaudited
 GREAT WESTERN FINANCIAL CORP.
 Selected Financial Statistics(a)
 (Dollars in thousands)
 At or for the three months
 ended Sept. 30, 1992 1991
 New loans originated
 Real estate $2,130,513 $1,764,218
 Consumer 533,986 501,146
 Total new loans 2,664,499 2,265,364
 Mortgage sales 692,968 468,391
 Increase (decrease) in customer accounts 94,573 (418,288)
 Reserve for estimated loan losses
 Beginning balance $258,662 $255,882
 Provision for loan losses
 Real estate loans 81,200 22,300
 Consumer finance 10,100 7,800
 Bank card 8,201 7,353
 Other 499 247
 Total provision for loan losses 100,000 37,700
 Net charge-offs
 Real estate loans (30,602) (26,470)
 Consumer finance (12,935) (6,596)
 Bank card (6,768) (4,930)
 Other (59) (4,635)
 Total net charge-offs (50,364) (42,631)
 Transfers (7,866) ---
 Ending balance $300,432 $250,951
 Amortization of intangibles $10,522 $10,925
 At or for the nine months
 ended Sept. 30
 New loans originated
 Real estate $6,680,238 $5,426,878
 Consumer 1,556,073 1,400,360
 Total new loans 8,236,311 6,827,238
 Mortgage sales 3,078,921 1,564,985
 Increase in customer accounts 691,141 509,473
 Reserve for estimated loan losses
 Beginning balance $263,050 $278,846
 Provision for loan losses
 Real estate loans 179,500 59,100
 Consumer finance 31,100 23,100
 Bank card 22,783 15,893
 Other 4,317 4,607
 Total provision for loan losses 237,700 102,700
 Net charge-offs
 Real estate loans (136,961) (64,574)
 Consumer finance (29,932) (47,775)
 Bank card (19,928) (12,990)
 Other (5,631) (5,256)
 Total net charge-offs (192,452) (130,595)
 Transfers (7,866) ---
 Ending balance 300,432 250,951
 Reserve for estimated real estate losses 53,411 7,156
 Total reserve for losses $353,843 $258,107
 Amortization of intangibles $35,407 $22,072
 (a) Unaudited
 GREAT WESTERN FINANCIAL CORP.
 Selected Financial Statistics(a)
 For the three months ended Sept. 30, 1992 1991
 Net interest margin for the period
 Average yield on
 Loans 8.54 pct 10.14 pct
 Mortgage-backed securities 7.51 8.91
 Securities 8.74 7.04
 Earning assets 8.45 9.92
 Average cost of
 Customer accounts 4.11 6.25
 Borrowings 8.48 8.26
 Funds 4.58 6.57
 Net interest margin 3.87 pct 3.35 pct
 Average common shares outstanding 130,861,902 129,549,309
 Without dilution 137,203,814 135,891,221
 Fully diluted
 For the nine months ended Sept. 30,
 Net interest margin for the period
 Average yield on
 Loans 8.97 pct 10.50 pct
 Mortgage-backed securities 7.82 9.05
 Securities 7.12 8.41
 Earning assets 8.80 10.28
 Average cost of
 Customer accounts 4.48 6.72
 Borrowings 8.23 8.58
 Funds 4.92 7.02
 Net interest margin 3.88 pct 3.26 pct
 Average common shares outstanding 130,385,197 129,067,742
 Without dilution 136,727,109 132,394,754
 Fully diluted
 Note: Accounting Changes
 The company adopted Statement of Financial Accounting Standards No. 106 "Employers' Accounting for Postretirement Benefits Other Than Pensions" (FAS 106) as of Jan. 1, 1992. FAS 106 requires that the expected cost of these postretirement benefits be charged to expense during the period that the eligible employees render such service.
 The unfunded benefit obligation as of Jan. 1, 1992, shown as a liability on the Consolidated Statement of Financial Condition and as an accounting change on the Consolidated Statement of Operations, was $50.7 million less tax benefits of $20.8 million or an aggregate net charge of $29.9 million. Actual expense for costs incurred during the three months and nine months ended Sept. 30, 1992 was $1.3 million and $3.7 million, respectively.
 The company also adopted Statement of Financial Accounting Standards No. 109 "Accounting for Income Taxes" (FAS 109) which supersedes Statement No. 96 "Accounting for Income Taxes" which was adopted in 1987. FAS 109 requires the company to record previously unrecognized tax benefits totaling $61 million as of Dec. 31, 1991 for its general loss reserves.
 (a) Unaudited
 -0- 10/15/92
 /CONTACT: Ian Campbell, 818-775-3773, or Steve Hawkins, 818-775-3766, both of Great Western Financial/
 (GWF) CO: Great Western Financial Corp.; Great Western Bank ST: California IN: FIN SU: ERN


KJ -- LA015 -- 0222 10/15/92 08:50 EDT
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