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SECURITY PACIFIC REPORTS PRELIMINARY 1991 FOURTH QUARTER RESULTS

SECURITY PACIFIC REPORTS PRELIMINARY 1991 FOURTH QUARTER RESULTS
 LOS ANGELES, Jan. 16 /PRNewswire/ -- Security Pacific Corporation (NYSE: SPC) today announced that it expects to report a 1991 fourth quarter net loss of approximately $400 million, or about $3.21 per common share when results are reported on Jan. 21, 1992. This would result in a full year 1991 loss of approximately $765 million, or about $6.30 per common share. These results compare to a net loss of $357.6 million, or $3.15 per common share, reported in the 1990 fourth quarter, and net income of $161.3 million, or $1.03 per common share, for all of 1990.
 Security Pacific Chairman and Chief Executive Officer Robert H. Smith said, "These results continue to reflect adverse economic conditions in the principal markets we serve, as well as further strengthening of the reserve for credit losses. The reserve as a percentage of total loans and leases will increase to about 4.3 percent from 3.9 percent at the end of September, with the ratio of the reserve to non-performing loans increasing to about 92 percent from 87 percent, and significantly above the 70 percent level of a year ago."
 Smith also said, "BankAmerica has advised Security Pacific that the results reported by Security Pacific for the fourth quarter regarding the provision for credit losses, net credit losses, and non-performing assets, do not alter BankAmerica's assessment of the overall benefits of the planned merger. Both companies are proceeding with the regulatory filings necessary to effectuate the merger."
 Fourth quarter results are expected to include a provision for credit losses of about $730 million, or some $180 million more than anticipated fourth quarter net credit losses. Net credit losses in the fourth quarter are expected to total about $550 million. The quarter will also include an approximate $65 million after tax write-down of the corporation's investment in Hoare Govett, reflecting a decision in the quarter to sell the business rather than pursue a partial management buy-out of the company.
 Non-performing assets are expected to increase approximately $375 million, with about $315 million of the increase representing higher other real estate owned. Non-performing loans at the end of the fourth quarter are expected to total about $2.8 billion, or approximately 4.7 percent of related outstandings, little changed from $2.7 billion, or 4.5 percent, at the end of the third quarter.
 Preliminary results indicate that net interest income in the fourth quarter was down about 14 percent from the same quarter of 1990 as a result of reduced asset levels and a higher level of non-performing assets. The net interest margin is expected to be up slightly from both the third quarter of 1991 and the fourth quarter of 1990. Non-interest income is expected to be up about 4 percent from the fourth quarter of 1990, while non-interest expense is expected to be down about 4 percent, excluding the restructuring reserve expense in the fourth quarter of 1990.
 Total assets at Dec. 31, 1991, were $76.4 billion, compared with $84.7 billion at year-end 1990.
 Security Pacific will announce complete financial results for the quarter on Jan. 21, 1992.
 -0- 1/16/92
 /CONTACT: Deborah K. Lewis of Security Pacific, 213-345-5504/
 (SPC) CO: Security Pacific Corporation ST: California IN: FIN SU: ERN


CH -- LA010 -- 0358 01/16/92 09:08 EST
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Date:Jan 16, 1992
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