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AHMANSON REPORTS 38 PERCENT INCREASE IN THIRD QUARTER EARNINGS

 IRWINDALE, Calif., Oct. 19 /PRNewswire/ -- H.F. Ahmanson & Co. (NYSE: AHM), parent company of Home Savings of America, the nation's largest savings institution, today reported that third quarter net earnings increased to $70.0 million, or $.50 per fully diluted common share, compared with $50.7 million, or $.40 per fully diluted common share, in the same 1992 period. This gain in quarterly net earnings was primarily due to a lower provision for possible loan losses.
 Commenting on the third quarter earnings results, Richard H. Deihl, chairman and chief executive officer, said, "Declining delinquencies, robust sales of foreclosed real estate and a lower provision for loan losses are positive signs for the company. This has permitted us, as predicted, to return to profitability following the bulk sale of nonaccrual delinquent loans in the second quarter."
 As a result of the bulk sale of $1.2 billion of nonaccruing delinquent loans and additions to reserves for real estate development projects which occurred in the second quarter of 1993, for the first nine months of the year, the company reported a net loss of $188.1 million, or $1.82 per fully diluted common share, compared to net earnings of $188.6 million, or $1.51 per fully diluted common share, earned in the first nine months of 1992.
 As previously announced in July, the company adopted Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan, which defines new accounting rules for the measurement of impaired loans and eliminates the category of loans classified as "in-substance foreclosures." The first and second quarters of 1993 have been restated as a result of the adoption of FASB 114. The adoption of FASB 114 did not result in any change to previously reported net income.
 The ratio of nonperforming assets to total assets was 2.05 percent at Sept. 30, 1993, compared to 2.03 percent at June 30, 1993, and 4.36 percent at March 31, 1993.
 Nonperforming assets totaled $1.0 billion at Sept. 30, 1993. This compares with total nonperforming assets of $1.0 billion at June 30, 1993, following the bulk sale, and $2.1 billion at March 31, 1993. Loans classified as troubled debt restructurings were $90.1 million at Sept. 30, 1993.
 During the third quarter and first nine months of 1993, the company sold $223.8 million and $639.0 million, respectively, in foreclosed real estate. REO totaled $312.5 million at Sept. 30, 1993, and $477.0 million at June 30, 1993.
 During the quarter ended Sept. 30, 1993, the company added $22.2 million to its reserve for possible loan losses. Net loan charge- offs for the quarter totaled $16.6 million, compared to $57.7 million for the third quarter of 1992. The reserves for nonperforming assets were $530.5 million at Sept. 30, 1993, compared to $458.0 million at Sept. 30, 1992. At Sept. 30, 1993, the reserves were 47.7 percent of nonperforming assets, compared to 47.8 percent at June 30, 1993, and 19.3 percent at Sept. 30, 1992.
 Net interest income totaled $333.2 million for the quarter, compared to $336.2 million in the third quarter of 1992. The average effective net spread during the third quarter of 1993 was 2.87 percent, compared to 3.02 percent during the third quarter of 1992 and 3.00 percent during the second quarter of 1993.
 Mortgage loan originations during the third quarter were $2.9 billion, compared to $3.0 billion in the third quarter of 1992. Of the loans originated in the third quarter, 77 percent were Adjustable Rate Mortgages. Year-to-date loan originations totaled $8.0 billion, 78 percent of which were Adjustable Rate Mortgages.
 The company, during the third quarter, sold $605.6 million of fixed- rate loans originated for sale and $306.2 million of ARM mortgage-backed securities and reported total gains on sale of $22.3 million.
 General and administrative expenses totaled $206.1 million in the third quarter of 1993, compared to $186.2 million in the year-ago quarter. General and administrative expenses as a percentage of average assets on an annualized basis were 1.64 percent in the third quarter of 1993 and 1.63 percent for the first nine months of 1993.
 Home Savings continued to strengthen its capital during the quarter. On July 29, 1993, the company sold $287.5 million of Convertible Preferred Stock. The Preferred Stock was rated Baa3 by Moody's Investors Service Inc., and BBB- by Standard & Poor's Corp. Approximately $141.0 million of the proceeds from the sale of the Preferred Stock was contributed to Home Savings as capital.
 At Sept. 30, 1993, the capital ratios of Home Savings of America were:
 Required Home Savings Home Savings
 at 9/30/93 at 9/30/93 Fully Phased-in
 Tangible: 1.50 pct 4.86 pct 4.61 pct
 Core: 3.00 pct 5.61 pct 4.61 pct
 Risk-based: 8.00 pct 12.14 pct 10.76 pct
 On Sept. 7, 1993, Home Savings acquired 10 branches in the New York City metropolitan area from Long Island Savings Bank. The deposits at these branches totaled $833 million. Two of the Long Island Savings Bank branches were consolidated with existing Home Savings branches.
 In addition, on Sept. 17, 1993, Home Savings acquired four branches of Homestead Federal Savings Association in Northern California from the RTC. The savings deposits of these four offices totaled approximately $160 million. Three of these offices will be consolidated into existing Home Savings offices nearby.
 H.F. Ahmanson & Co., with $50.1 billion in assets, is the parent company of Home Savings of America. Home's $38.9 billion deposit base is the largest of any U.S. savings bank. It operates 375 savings branches in nine states and 88 mortgage lending offices in 13 states.
 H.F. AHMANSON & CO. AND SUBSIDIARIES
 Consolidated Financial Highlights
 (Unaudited)
 (Dollars in thousands except per share data)
 At End of Period 9/30/93 6/30/93 9/30/92
 Total assets $50,138,633 $49,938,818 $47,518,666
 Investment portfolio $3,350,356 $2,258,935 $1,268,844
 Loans receivable and
 mortgage-backed
 securities (MBS) $43,308,382 $43,954,154 $42,423,342
 Allowance for possible
 loan losses $443,027 $437,420 $417,456
 ARM loans included in
 loans receivable
 and MBS $41,651,752 $42,053,366 $39,104,853
 Deposits $38,901,710 $38,578,984 $39,690,911
 Borrowings $7,192,978 $7,554,616 $3,891,877
 Stockholders' equity $2,936,626 $2,616,256 $2,758,083
 Book value per common
 share $19.50 $19.23 $22.22
 Tangible book value
 per common share $15.63 $15.29 $18.01
 Total common shares
 outstanding 116,868,967 116,816,262 116,238,902
 Average Interest Rates
 Yield on loans and MBS 6.69 pct 6.92 pct 7.68 pct
 Yield on investment
 portfolio 3.62 pct 3.57 pct 3.90 pct
 Yield on interest-
 earning assets 6.47 pct 6.76 pct 7.57 pct
 Cost of deposits 3.21 pct 3.33 pct 3.99 pct
 Cost of borrowings 5.18 pct 5.13 pct 6.70 pct
 Cost of interest-bearing
 liabilities 3.52 pct 3.62 pct 4.23 pct
 Earnings spread 2.95 pct 3.14 pct 3.34 pct
 Effective net spread 3.00 pct 3.13 pct 3.33 pct
 Home Savings of America
 capital ratios:
 Tangible 4.86 pct 4.51 pct 4.94 pct
 Core 5.61 pct 5.26 pct 5.92 pct
 Risk-based 12.14 pct 12.10 pct 12.52 pct
 For the Three Months Ended:
 Net interest income $333,230 $345,215 $336,244
 Provision for loan
 losses $22,243 $437,854 $74,005
 Net earnings (loss) $69,989 ($290,982) $50,735
 Net earnings (loss) per
 fully diluted common share $0.50 ($2.55) $0.40
 Dividends per common
 share $0.22 $0.22 $0.22
 Loans originated $2,907,635 $2,947,840 $2,968,382
 Loans purchased $2,033 $5,677 $795
 For the Nine Months Ended:
 Net interest income $1,018,223 $1,022,246
 Provision for loan
 losses $527,077 $266,487
 Earnings (loss) before
 cumulative effect of
 accounting change ($188,137) $140,873
 Net earnings (loss) ($188,137) $188,550
 Net earnings (loss) per
 fully diluted common
 share ($1.82) $1.51
 Dividends per common
 share $0.66 $0.66
 Loans originated $8,005,383 $8,739,479
 Loans purchased $1,062,685 $3,597
 MBS purchased $98,214 ---
 -0- 10/19/93
 /CONTACT: Mary Trigg of H.F. Ahmanson & Co., 818-814-7922/
 (AHM)


CO: H.F. Ahmanson & Co. ST: California IN: FIN SU: ERN

JL-LM -- LA013 -- 3895 10/19/93 11:03 EDT
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Date:Oct 19, 1993
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