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HOMEFED ANNOUNCES FIRST QUARTER EARNINGS

 HOMEFED ANNOUNCES FIRST QUARTER EARNINGS
 SAN DIEGO, April 8 /PRNewswire/ -- HomeFed Corp. (NYSE: HFD), the


parent company of HomeFed Bank, Federal Savings Bank, today reported net earnings of $30.7 million or $1.35 per fully diluted share for the first quarter of 1992, compared to a net loss of $173.9 million or $8.09 per share for the first quarter of 1991.
 Earnings for the quarter resulted from a $15 million tax benefit from the settlement of various audit issues relating to prior years, a $9.2 million gain on the sale of mortgage-backed securities and other net income of $6.5 million.
 For the quarter, total revenues were $294.9 million, compared to $428.1 million in 1991's first quarter.
 Net interest income, before provisions for loan losses, for the quarter was $33.5 million, compared to $82.8 million in the same quarter of 1991.
 Service charges, other fees and other operating income totalled $18.9 million for the quarter, compared to $17.9 million for 1991's first quarter.
 For the first quarter of 1992, income from real estate operations was $16.8 million, compared to $5.6 million for the first quarter of 1991.
 Gains from sales of loans and securities for the first quarter were $9.2 million, compared to a loss of $9.4 million for the same period in 1991.
 General and administrative expenses were $59.4 million during the quarter, compared to $76.7 million for 1991's first quarter.
 During the quarter, the company established no new provisions for loan and real estate losses. "Our review of the adequacy of our loss allowances concluded that we have sufficiently provided for losses, and additional provisions are not required at this time," said Thomas J. Wageman, president and chief executive officer.
 In the first quarter of 1991, the company had established $200 million in new provisions. At March 31, 1992, the company's level of total allowances for losses stood at $538.5 million, compared to $563.5 million at year-end and $567.3 million at March 31, 1991.
 Last week, HomeFed announced that the Office of Thrift Supervision (OTS) had placed the bank in its Accelerated Resolution Program and that the OTS and the Resolution Trust Corp. intend to sell the bank with assistance.
 This action does not limit the ability of the OTS to appoint a receiver for the bank; however, the bank believes that a receiver will not be appointed except in connection with the closing of the sale. Until the transaction is completed, daily operations at HomeFed remain unchanged.
 At March 31, 1992, HomeFed Corp.'s stockholders' equity, under generally accepted accounting principles (GAAP), was $44.3 million, representing .33 percent of total consolidated assets, compared to $627.8 million or 3.49 percent at March 31, 1991.
 The company's earnings in the first quarter do not have a significant impact on the bank's non-compliance with its regulatory capital requirements.
 HomeFed ended the quarter with $13.6 billion in total consolidated assets and $9.8 billion in total deposits, compared to $18 billion and $12.9 billion, respectively at March 31, 1991.
 HomeFed Corp.'s unconsolidated total assets, including an $11.3 million investment in the bank, totalled $52.8 million at March 31, 1992. These assets also included $3.9 million in cash and marketable securities, and $32.7 million in investments in real estate development subsidiaries.
 The unconsolidated liabilities of HomeFed Corp. totalled $8.5 million, including $3.4 million in income taxes payable and $3.5 million in a loss allowance for litigation settlement. HomeFed Corp. is also a joint obligor on the $120 million principal amount of convertible subordinated debentures issued in 1986 by the bank. In the event of non-performance by the bank, the holders of the debentures would be required to seek recourse through HomeFed Corp.
 Founded in 1934, HomeFed Bank, FSB, operates a network of 201 retail offices throughout California.
 HOMEFED CORP.
 CONSOLIDATED FINANCIAL SUMMARY
 (Dollars amounts in thousands,
 except share and per share data)
 Quarter Ended
 March 31,
 1991
 Investment revenues:
 Interest on loans $389,024
 Interest on investments 24,971
 Total investment revenues 413,995
 Interest expense:
 Interest on deposits 255,807
 Interest on borrowings 75,357
 Total interest expense 331,164
 Net interest income 82,831
 Provision for loan losses 140,174
 Net interest income (expense) after
 provision for loan losses (57,343)
 Service charges and other fees 7,408
 Other operating income 10,532
 Total (39,403)
 General and administrative expenses:
 Compensation and employee benefits 37,808
 Occupancy expenses 17,289
 Other general and administrative 13,237
 Deposit insurance premium
 and regulatory assessment 8,393
 Total general and administrative
 expenses 76,727
 Other income (expense):
 Gains (loss) on sale of loans and
 securities, net (9,388)
 Real estate operations, net 5,585
 Provision for losses (59,826)
 Amortization of excess of cost over net
 assets acquired and of value of core
 deposits (3,442)
 Earnings (loss) before income tax benefit (183,201)
 Income tax benefit (9,300)
 Net Earnings (loss) ($173,901)
 Primary earnings (loss) per share ($8.09)
 Fully diluted earnings (loss) per share ($8.09)
 Average shares used for computing
 earnings (loss) per share:
 Primary shares 21,484,332
 Fully diluted shares 21,484,332
 Dividends per share ---
 HOMEFED CORP.
 CONSOLIDATED FINANCIAL SUMMARY
 (Dollar amounts in thousands,
 except share and per share data)
 Quarter Ended
 March 31,
 1992
 Investment revenues:
 Interest on loans $233,981
 Interest on investments 16,070
 Total investment revenues 250,051
 Interest expense:
 Interest on deposits 161,472
 Interest on borrowings 55,082
 Total interest expense 216,554
 Net interest income 33,497
 Provision for loan losses ---
 Net interest income (expense) after
 provision for loan losses 33,497
 Service charges and other fees 6,336
 Other operating income 12,515
 Total 52,348
 General and administrative expenses:
 Compensation and employee benefits 28,644
 Occupancy expenses 13,653
 Other general and administrative 9,678
 Deposit insurance premium
 and regulatory assessment 7,419
 Total general and administrative expenses 59,394
 Other income (expense):
 Gains (loss) on sale of loans and
 securities, net 9,172
 Real estate operations, net 16,822
 Provision for losses ---
 Amortization of excess of cost over net
 assets acquired and of value of core
 deposits (3,200)
 Earnings (loss) before income tax benefit 15,748
 Income tax benefit (15,000)
 Net Earnings (loss) $30,748
 Primary earnings (loss) per share $1.43
 Fully diluted earnings (loss) per share $1.35
 Average shares used for computing
 earnings (loss) per share:
 Primary shares 21,484,332
 Fully diluted shares 24,227,189
 Dividends per share ---
 HomeFed Corp.(N)
 QTD March 1992 1992 1991
 Net income (loss) $30,748,000 ($173,901,000)
 Shr Earns (primary):
 Net income (loss) $1.43 ($8.09)
 Shr earns (fully-diluted):
 Net income (loss) $1.35 ($8.09)
 -0- 4/8/92
 /CONTACT: Monica Wiley of HomeFed, 619-450-7885/
 (HFD) CO: HomeFed Corp.; HomeFed Bank, Federal Savings Bank ST: California IN: FIN SU: ERN


JL-AL -- SD004 -- 6092 04/08/92 09:10 EDT
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