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AHMANSON REPORTS RISE IN SECOND QUARTER, FIRST HALF EARNINGS

 AHMANSON REPORTS RISE IN SECOND QUARTER, FIRST HALF EARNINGS
 IRWINDALE, Calif., July 21 /PRNewswire/ -- H.F. Ahmanson & Co. (NYSE: AHM), parent company of Home Savings of America, the nation's largest savings bank, today reported second quarter net earnings of $67.1 million, or $.54 per common share, a 10.5 percent increase, compared with the $60.8 million or $.52 per common share earned in the second quarter of 1991. Core earnings comprised all of the company's second quarter net earnings.
 Net interest income totaled a record $348.1 million in the second quarter, compared to $326.0 million in the second quarter of 1991. This increase is attributable to an increased effective net spread and increased loan volume. The effective net spread was 3.34 percent on June 30, 1992, compared to 3.24 percent on June 30, 1991.
 Richard H. Deihl, chairman and chief executive officer, said, "Despite the condition of the national and California economies, H.F. Ahmanson & Co. turned in a very solid earnings performance. Throughout much of the second quarter, the effective net spread continued to be at one of the highest levels in the company's history. In addition, during the quarter the company funded $2.8 billion in residential real estate loans, 81.6 percent of which were adjustable rate mortgages. The company also continued to maintain its level of operating efficiency."
 For the first six months of the year, net earnings were $137.8 million, up 18.2 percent from $116.6 million in the first six months of 1991. Earnings per common share were $1.11 for the first six months of 1992, compared with earnings per common share of $1.00 in the same period last year. Core earnings comprised all of the company's first six months' net earnings.
 Mortgage loan originations were $5.8 billion in the first half of 1992, a 46.4 percent increase from the $4.0 billion in the first half of 1991. Of the loans originated in the first half of the year, 66.3 percent were adjustable rate mortgages.
 Income from the portfolio of loans serviced for investors was $18.7 million during the second quarter. The company's portfolio of loans serviced for investors now totals $16.9 billion.
 During the second quarter, the company sold $1.1 billion of fixed rate loans that were originated for sale. These sales resulted in cash gains of $12.0 million.
 Deposits were $39.3 billion at June 30, 1992, a slight increase from the totals at June 30, 1991.
 The coerve now stands at $391.6 million, 53.3 percent higher than a year ago and 17.5 percent of nonperforming assets.
 Nonperforming assets totaled $2.2 billion at June 30, 1992. Foreclosed real estate, which is included in nonperforming assets, was $612.5 million. The company had $307.7 million in modified loans at June 30, 1992. During the quarter ended June 30, 1992, net loan charge- offs totaled $39.2 million.
 Deihl also commented on the company's level of nonperforming assets, stating, "The economy's impact on some of our borrowers continues to manifest itself in rising nonperforming assets. While our nonperforming assets are high by our historic norms, we have seen a leveling off in the company's delinquencies and we are continuing to concentrate our efforts on selling foreclosed real estate as quickly as possible."
 General and administrative expenses totaled $188.8 million in the second quarter of 1992, compared to $187.3 million in the second quarter of 1991. The rise in general and administrative expenses is due principally to a one time write-off of $4.3 million in data processing costs. General and administrative expenses as a percentage of average assets on an annualized basis were 1.54 percent in the second quarter of 1992, compared to 1.47 percent in the second quarter of 1991. For the first half of 1992, the ratio of general and administrative expenses to average assets on an annualized basis was 1.51 percent.
 At June 30, 1992, the capital ratios of Home Savings of America were:
 Tangible Capital Ratio: 4.40 percent
 Core Capital Ratio: 5.15 percent
 Risk-Based Capital Ratio: 10.62 percent
 H.F. Ahmanson & Co., with $46.8 billion in assets, is the parent company of Home Savings of America. Home's $39.3 billion deposit base is the largest of any U.S. savings bank. It operates 390 savings branches in 9 states and 90 mortgage lending offices in 13 states.
 H. F. AHMANSON & CO.
 Consolidated Financial Highlights (unaudited)
 (dollars in thousands except per share data)
 At End of Period: June 30, 1992 March 31, 1992 June 30, 1991
 Total assets $46,780,558 $47,220,382 $47,822,357
 Investment portfolio $1,196,032 $1,324,253 $1,136,322
 Loans receivable and
 mortgage-backed
 securities (MBSs) $41,759,178 $42,149,256 $43,031,594
 Allowance for possible
 loan losses $391,606 $367,286 $255,380
 ARM loans included in
 loans receivable
 and MBSs $38,720,904 $38,347,153 $39,154,797
 Deposits $39,341,074 $39,914,971 $39,126,268
 Borrowings $3,538,151 $3,236,728 $5,083,823
 Stockholders' equity $2,736,497 $2,698,294 $2,410,954
 Book value per
 common share $22.03 $21.70 $20.79
 Tangible book value
 per common share $17.71 $17.32 $16.18
 Total common shares
 outstanding 116,271,860 116,267,550 115,975,900
 Average Interest Rates:
 Yield on loans
 and MBSs 8.03 pct. 8.52 pct. 9.87 pct.
 Yield on investment
 portfolio 4.06 pct. 4.65 pct. 6.19 pct.
 Yield on interest-earning
 assets 7.92 pct. 8.40 pct. 9.78 pct.
 Cost of deposits 4.35 pct. 4.77 pct. 6.35 pct.
 Cost of borrowings 7.21 pct. 7.90 pct. 7.94 pct.
 Cost of interest-bearing
 liabilities 4.59 pct. 5.01 pct. 6.53 pct.
 Earnings spread 3.33 pct. 3.39 pct. 3.25 pct.
 Effective net spread 3.34 pct. 3.43 pct. 3.24 pct.
 Home Savings of America
 capital ratios:
 Tangible 4.40 pct. 4.33 pct. 3.72 pct.
 Core 5.15 pct. 5.09 pct. 4.48 pct.
 Risk-based 10.62 pct. 10.53 pct. 9.25 pct.
 For the Three Months
 Ended: June 30, 1992 March 30, 1992 June 30, 1991
 Net interest income $348,084 $337,918 $325,990
 Provision for loan
 losses $63,482 $118,000 $57,413
 Earnings before
 cumulative effect of
 accounting change $67,146 $22,992 $60,790
 Net earnings $67,146 $70,669 $60,790
 Net earnings per
 common share $0.54 $0.57 $0.52
 Dividends per
 common share $0.22 $0.22 $0.22
 Loans originated
 and purchased $2,754,784 $3,057,762 $2,416,034
 For the Six Months Ended:
 Net interest income $686,002 $639,410
 Provision for loan
 losses $181,482 $99,786
 Earnings before
 cumulative effect of
 accounting change $90,138 $116,608
 Net earnings $137,815 $116,608
 Net earnings per
 common share $1.11 $1.00
 Dividends per
 common share $0.44 $0.44
 Loans originated
 and purchased $5,812,546 $3,970,537
 -0- 7/21/92
 /CONTACT: Mary Trigg of H.F. Ahmanson & Co., 818-814-7922/
 (AHM) CO: H.F. Ahmanson & Co. ST: California IN: FIN SU: ERN


KJ -- LA010 -- 1115 07/21/92 08:43 EDT
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Date:Jul 21, 1992
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