Printer Friendly

SFFED CORP. REPORTS THIRD QUARTER RESULTS

 SAN FRANCISCO, Oct. 18 /PRNewswire/ -- SFFed Corp. (NASDAQ: SFFD), the holding company for San Francisco Federal Savings and Loan Association, today announced net income for the quarter ended Sept. 30, 1993, of $2.2 million, or 28 cents per share. This compares with $3.1 million, or 40 cents per share, for the third quarter of 1992.
 For the nine months ended Sept. 30, 1993 the company earned $7.8 million, or $0.99 per share, compared with $15.7 million, or $1.99 per share, in the year-earlier period. The 1992 year-to-date income includes $4.0 million, or 51 cents per share, of benefits relating to a change in the method of accounting for income taxes.
 Nonperforming assets (loans over 90 days delinquent and foreclosed real estate) totalled $123.9 million at Sept. 30, 1993. This level of nonperforming assets is $4.3 million lower than June 30, 1993 and 14 percent lower than March 31, 1993 levels. During the quarter ended Sept. 30, 1993 the company charged $6.1 million to earnings as losses and provisions for loan and real estate losses compared with $3.8 million for the comparable 1992 period. At Sept. 30, 1993 total reserves for loan losses aggregated $26.8 million or 1.02 percent of total loans while the total of reserves for loan and real estate losses totalled $40.3 million, a $3.0 million increase over June 30, 1993.
 Net interest income for the quarter ended Sept. 30, 1993 at $21.5 million was $0.6 million higher than for the year-earlier period. For the first nine months of 1993 net interest income totalled $65.6 million compared with $68.0 million for 1992. The company's interest rate margin on total assets was 2.50 percent at Sept. 30, 1993 compared with 2.87 percent a year earlier. However, the effect of this decrease in margin upon net interest income for the 1993 quarter was more than offset by an increase in interest earning assets compared with the 1992 period.
 During the current quarter the company originated $298 million of residential mortgage loans, 68 percent of which were adjustable rate. Total loan originations aggregated $314 million. This total compares with $207 million of total loan originations in the third quarter of 1992. Loan originations for the first nine months of 1993 totalled $835 million, a $179 million or 27 percent increase over the year- earlier period. At Sept. 30, 1993 total assets aggregated $3.38 billion, an increase of $190 million from Sept. 30, 1992 and an increase of $84 million from June 30, 1993 levels.
 At Sept. 30, 1993 stockholders' equity (net worth) of $203 million or $26.08 per share represented 6.01 percent of total assets. The association exceeds all fully phased-in regulatory capital requirements and is classified for regulatory purposes as a "well capitalized" financial institution.
 Commenting on the quarterly results, Roger L. Gordon, chairman and chief executive officer said, "The company has continued to produce positive operating results even though its interest margin is narrowing and despite significant charges for loan and real estate losses and loss provisions. Nonperforming assets have continued to decrease and I am optimistic that there will be further reductions of these assets during the fourth quarter of 1993. Loan originations have remained strong and are significantly higher than in 1992. To summarize, I believe that we have continued to make progress towards our goal of improving the company's future profitability by increasing its asset base and reducing nonperforming assets."
 SFFed Corp. is the holding company for San Francisco Federal Savings and Loan Association, which operates 35 branch offices and 13 loan centers throughout Northern and Central California.
 SFFED CORP. AND SUBSIDIARY
 Sept. 30, 1993
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except per-share amounts)
 1993 1992
 For the quarter ended Sept. 30:
 Net income $ 2,207 3,148
 Earnings per share 0.28 0.40
 Net interest income 21,450 20,862
 Interest rate margin on total assets 2.65pct 2.66pct
 Ratio of operating expense to
 average assets 1.97pct 1.96pct
 Profitability ratios (annualized):
 Return on average assets 0.27pct 0.39pct
 Return on average equity 4.33pct 6.45pct
 For the nine months ended Sept. 30:
 Income before cumulative effect of
 accounting change $ 7,847 11,674
 Cumulative effect of accounting change --- 4,000
 Net income 7,847 15,674
 Income per share before cumulative
 effect of accounting change 0.99 1.48
 Cumulative effect of accounting change
 per share --- 0.51
 Net income per share 0.99 1.99
 Net interest income 65,583 68,044
 Interest rate margin on total assets 2.68pct 2.82pct
 Ratio of operating expense to
 average assets 1.98pct 1.94pct
 Profitability ratios (annualized):
 Return on average assets 0.32pct 0.49pct (A)
 Return on average equity 5.25pct 8.30pct (A)
 At Sept. 30:
 Assets $3,379,599 3,190,022
 Loans 2,651,313 2,543,793
 Deposits 2,334,030 2,283,044
 Stockholders' equity (net worth) 203,106 194,618
 Shares outstanding (actual number) 7,788,241 7,749,388
 Book value per share $ 26.08 25.11
 Interest rate margin on total assets 2.50pct 2.87pct
 Nonperforming assets:
 Amount $ 123,882 119,105
 Ratio to total assets 3.67pct 3.73pct
 Total loan valuation allowances:
 Amount $ 26,825 26,839
 Ratio to nonaccrual loans 58.04pct 49.56pct
 Ratio to total assets 0.79pct 0.84pct
 Ratio to gross loans 1.02pct 1.05pct
 Net worth to total assets 6.01pct 6.10pct
 Regulatory tangible capital ratio 5.45pct 5.52pct
 Risk-based capital ratio 10.10pct 9.55pct
 (A) Excludes cumulative effect of accounting change.
 SFFED CORP. AND SUBSIDIARY
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Three months ended Nine months ended
 (In thousands, except per- Sept. 30, Sept. 30,
 share amounts) 1993 1992 1993 1992
 Interest income on loans
 and investments $ 54,854 57,844 164,907 186,557
 Interest expense on deposits
 and borrowings 33,404 36,982 99,324 118,513
 Net interest income 21,450 20,862 65,583 68,044
 Provision for loan losses 1,417 1,982 4,367 8,917
 Net interest income after provision
 for loan losses 20,033 18,880 61,216 59,127
 Other income
 Mortgage banking income 1,893 1,126 4,745 5,614
 Loan and deposit fees
 and charges 1,290 1,491 3,534 4,140
 Branch sales and closures --- --- --- 148
 Other 1,902 1,524 3,504 2,369
 5,085 4,141 11,783 12,271
 Other expense
 Amortization of excess of
 cost over fair value of
 net assets acquired 177 175 532 525
 Provision for losses 2,570 1,320 5,578 2,778
 Real estate owned
 operations, net 2,111 484 5,228 578
 Operating expenses 16,080 15,459 47,531 46,089
 20,938 17,438 58,869 49,970
 Income before income taxes and cumulative
 effect of a change in the method of accounting
 for income taxes 4,180 5,583 14,130 21,428
 Income tax expense 1,973 2,435 6,283 9,754
 Income before cumulative effect of a
 change in the method of accounting
 for income taxes 2,207 3,148 7,847 11,674
 Cumulative effect of a change in
 the method of accounting
 for income taxes --- --- --- 4,000
 Net income $ 2,207 3,148 7,847 15,674
 Earnings per share:
 Before cumulative effect of a change
 in the method of accounting
 for income taxes $ 0.28 0.40 0.99 1.48
 Cumulative effect of a change
 in the method of accounting
 for income taxes --- --- --- 0.51
 Net income per share $ 0.28 0.40 0.99 1.99
 SFFED CORP. AND SUBSIDIARY
 CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Unaudited)
 Sept. 30, Dec. 31, Sept. 30,
 (In thousands) 1993 1992 1992
 ASSETS
 Cash and cash equivalents $ 163,501 144,818 144,043
 Mortgage-backed
 securities, net 396,560 312,314 332,875
 Loans receivable, net 2,651,313 2,506,875 2,543,793
 Real estate acquired
 by foreclosure 70,873 86,187 62,086
 Excess of cost over fair value
 of net assets acquired 9,607 10,139 10,248
 Other assets 87,745 100,077 96,977
 Total Assets $ 3,379,599 3,160,410 3,190,022
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Customer deposits $ 2,334,030 2,271,529 2,283,044
 Borrowings 799,639 650,575 670,164
 Other liabilities and
 accrued expenses 42,824 42,701 42,196
 Total liabilities 3,176,493 2,964,805 2,995,404
 Stockholders' equity 203,106 195,605 194,618
 Total Liabilities and
 Stockholders' Equity $ 3,379,599 3,160,410 3,190,022
 -0- 10/18/93
 /NOTE: Tables attached and additional tables available upon request./
 /CONTACT: Paul Weinberg, 415-955-5814, or Marilu Rumolo-Boucher, 415-955-3083, both of SFFED/
 (SFFED)


CO: San Francisco Federal Savings and Loan Association ST: California IN: FIN SU: ERN

PK -- SF006 -- 3411 10/18/93 12:51 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 18, 1993
Words:1503
Previous Article:YORK FINANCIAL CORP. REPORTS FIRST QUARTER EARNINGS AND DIVIDEND
Next Article:SOUTHERN ELECTRIC INTERNATIONAL ACQUIRES INTEREST IN CHILEAN UTILITY
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters