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SFFED ANNOUNCES SECOND QUARTER 1992 AND SIX-MONTH EARNINGS RESULTS

 SFFED ANNOUNCES SECOND QUARTER 1992
 AND SIX-MONTH EARNINGS RESULTS
 SAN FRANCISCO, July 21 /PRNewswire/ -- SFFed Corp. (NASDAQ: SFFD), the holding company for San Francisco Federal Savings and Loan Association, today announced net income for the quarter ended June 30, 1992, of $5.6 million, or $0.72 per share, compared with net income of $4.9 million, or $0.63 per share, for the second quarter of 1991.
 For the first six months of 1992, net income totaled $12.5 million, or $1.60 per share, which included a one-time credit of $4.0 million related to a change in the method of accounting for income taxes, effective Jan. 1, 1992. This credit was offset in the first quarter of 1992 by a $5.9 million addition to reserves for possible losses, with an additional $2.5 million reserve for such losses being charged against income in the second quarter of 1992. For the first six months of 1991 the compnay earned $9.6 million, or $1.23 per share. Earnings from operations before reserves for losses and taxes were $24.2 million in the first half of 1992, compared with $22.5 million in the year-earlier period.
 Charges against income for reserves for possible losses on loans, real estate and other assets were $2.5 million for the second quarter and $8.4 million for the first half of 1992, compared with $3.3 million and $4.3 million, respectively, for the comparable year-earlier periods. Commenting on the increase in reserve expense for the first half of 1992, Roger L. Gordon, chairman and chief executive officer of SFFed Corp., said, "We took advantage of the one-time first quarter accounting adjustment to achieve our planned goal of increasing the ratio of loan loss reserves to total loans to a minimum of at least 1 percent, without significantly impacting the bottom line, and have continued to increase this ratio so that at June 30, 1992, it stood at 1.06 percent.
 "There has been some limited improvement in the Northern California real estate market, where the majority of our lending occurs, during the first half of 1992, and I am pleased to report that nonperforming assets decreased during the second quarter by 4.9 percent from March 31, 1992. If this trend continues, charges to expense from loan and real estate loss reserves in future periods should be significantly lower than the $21.3 million incurred during the past four quarters. I believe the fact that the company has increased earnings while increasing reserves for these possible losses is indicative of its underlying strength."
 Net interest income at $24.4 million for the second quarter and $47.2 million for the first half of 1992 were almost unchanged from the $24.3 million and $47.3 million for the comparable year-earlier periods. The company's net interest margin on total assets for the 1992 second quarter was 3.05 percent compared with 2.87 percent for the year-earlier period.
 Gordon said, "Operating expenses continued to decrease during the first half of 1992 to $30.7 million, a $1.9 million decrease from the first half of 1991. Loan originations for the first half of 1992 rose substantially to $450 million from $408 million for the year-earlier period."
 At June 30, 1992, stockholders' equity (net worth) at $191.4 million ($24.71 per share) represented 5.97 percent of total assets compared with $173.5 million ($22.42 per share) and 5.15 percent of total assets at June 30, 1991. At June 30, 1992, loans totaled $2.55 billion and deposits totaled $2.29 billion. The association's regulatory core and tangible capital ratios at June 30, 1992, were 5.38 percent and its risk-based capital ratio was 9.26 percent. The association currently exceeds all fully phased-in regulatory capital requirements.
 SFFed Corp., with assets of $3.2 billion, is the holding company for San Francisco Federal Savings and Loan Association, which operates 35 savings branch offices and 10 loan centers throughout Northern and Central California.
 SFFED CORP. AND SUBSIDIARY
 June 30, 1992
 Financial Highlights
 (Dollars in thousands, except per share amounts)
 1992 1991
 For the quarter ended June 30:
 Net income $5,628 4,904
 Earnings per share 0.72 0.63
 Net interest income 24,446 24,251
 Interest rate margin on total assets (pct.) 3.05 2.87
 Ratio of operating expense to
 average assets (pct.) 1.94 2.00
 Profitability ratios (annualized):
 Return on average assets (pct.) 0.71 0.59
 Return on average equity (pct.) 11.90 11.48
 For the six months ended June 30:
 Income before cumulative effect of
 accounting change $8,526 9,562
 Cumulative effect of accounting change 4,000 --
 Net income 12,526 9,562
 Income per share before cumulative
 effect of accounting change 1.09 1.23
 Cumulative effect of accounting change
 per share 0.51 --
 Net income per share 1.60 1.23
 Net interest income 47,182 47,265
 Interest rate margin on total assets (pct.) 2.90 2.76
 Ratio of operating expense
 to average assets (pct.) 1.93 2.01
 Profitability ratios (annualized):
 Return on average assets (pct.) 0.53(A) 0.57
 Return on average equity (pct.) 9.28(A) 11.42
 At June 30:
 Assets $3,206,712 3,369,002
 Loans 2,546,794 2,607,993
 Deposits 2,287,570 2,342,163
 Stockholders' equity (net worth) 191,431 173,532
 Shares outstanding (actual number) 7,747,122 7,741,038
 Book value per share $24.71 22.42
 Interest rate margin on total assets (pct.) 2.99 2.89
 Nonperforming assets:
 Amount $120,959 84,900
 Ratio to total assets (pct.) 3.77 2.52
 Total loan valuation allowances:
 Amount $26,873 18,166
 Ratio to total assets (pct.) 0.84 0.54
 Ratio to gross loans (pct.) 1.06 0.69
 Net worth to total assets (pct.) 5.97 5.15
 Regulatory tangible capital ratio (pct.) 5.38 4.77
 Risk-based capital ratio (pct.) 9.26 8.34
 (A) Excludes cumulative effect of accounting change.
 SFFED CORP. AND SUBSIDIARY
 Condensed Consolidated Statements of Operations
 (Unaudited)
 Three months ended Six months ended
 June 30, June 30,
 (In thousands, except 1992 1991 1992 1991
 per share amounts)
 Interest income on loans
 and investments $62,931 $80,643 $128,713 $163,229
 Interest expense on
 deposits and
 borrowings 38,485 56,392 81,531 115,964
 Net interest income 24,446 24,251 47,182 47,265
 Provision for loan losses 1,715 1,653 6,935 2,427
 Net interest income
 after provision for
 loan losses 22,731 22,598 40,247 44,838
 Other income
 Loan and deposit servicing
 fees and charges 1,836 2,444 3,865 4,384
 Gain on sale of real
 estate loans, mortgage-
 backed securities and
 other assets, net 1,538 1,757 3,417 2,699
 Gain on branch sales
 and closures -- -- 148 361
 Other 201 451 700 684
 Total other income 3,575 4,652 8,130 8,128
 Other expense
 Amortization of excess of
 cost over value of net
 assets acquired 175 175 350 351
 Provision for losses 770 1,623 1,458 1,842
 Operating expenses 15,518 15,820 30,724 32,592
 Total other expense 16,463 17,618 32,532 34,785
 Income before income
 taxes and cumulative
 effect of a change in
 the method of
 accounting for income
 taxes 9,843 9,632 15,845 18,181
 Income tax expense 4,215 4,728 7,319 8,619
 Income before cumulative
 effect of a change in
 the method of accounting
 for income taxes 5,628 4,904 8,526 9,562
 Cumulative effect of a
 change in the method of
 accounting for income
 taxes -- -- 4,000 --
 Net income $5,628 4,904 12,526 9,562
 Earnings per share:
 Before cumulative effect
 of a change in the
 method of accounting
 for income taxes $ 0.72 0.63 1.09 1.23
 Cumulative effect of a
 change in the method
 of accounting for
 income taxes -- -- 0.51 --
 Net income per share $ 0.72 0.63 1.60 1.23
 SFFED CORP. AND SUBSIDIARY
 Condensed Consolidated Statements of Financial Condition
 (Unaudited)
 (in thousands)
 June 30, Dec. 31, June 30,
 1992 1991 1991
 Assets
 Cash and cash equivalents $146,630 164,210 152,708
 Mortgage-backed
 securities, net 357,287 410,520 458,052
 Loans receivable, net 2,546,794 2,590,961 2,607,993
 Real estate acquired
 by foreclosure 45,519 36,769 23,914
 Excess of cost over value
 of net assets acquired 10,423 10,773 11,123
 Other assets 100,059 104,225 115,212
 Total assets $3,206,712 3,317,458 3,369,002
 Liabilities and Stockholders' Equity
 Customer deposits $2,287,570 2,440,134 2,342,163
 Borrowings 691,268 649,710 796,632
 Other liabilities and
 accrued expenses 36,443 48,827 56,675
 Total liabilities 3,015,281 3,138,671 3,195,470
 Stockholders' equity 191,431 178,787 173,532
 Total liabilities and
 stockholders' equity $3,206,712 3,317,458 3,369,002
 -0- 7/21/92
 /CONTACT: Paul Weinberg, 415-955-5814, or Marilu Rumolo-Boucher, 415-955-3083, both of SFFed/
 (SFFD) CO: SFFed Corp. ST: California IN: FIN SU: ERN


MM-DG -- SF004 -- 1158 07/21/92 09:34 EDT
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