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AHMANSON REPORTS SECOND QUARTER AND FIRST HALF RESULTS

 IRWINDALE, Calif., July 22 /PRNewswire/ -- H.F. Ahmanson & Co. (NYSE: AHM) today reported a net loss for the second quarter of 1993 of $290.9 million, or $2.55 per common share, compared with net earnings of $67.1 million, or $.54 per common share in the second quarter of 1992.
 The company previously announced that it expected a loss in the quarter as a result of the steps it has taken to reduce the lingering effects of the recession from its balance sheet and position itself for future growth. These steps included a bulk sale of $1.2 billion of nonaccruing delinquent loans. The company also previously announced the addition of $163 million to reserves for certain real estate development projects.
 Richard H. Deihl, chairman and chief executive officer, stated: "The second quarter loss is a direct result of the strong action we chose to take now in order to accelerate an already steady reduction in nonperforming assets and to position the company for future growth. We are pleased that the investment community has reacted favorably to this action. The company expects to return to profitability in the third and fourth quarters of 1993. We are optimistic that Ahmanson has exciting opportunities for expansion on the horizon."
 For the first six months of the year, results were a loss of $258.1 million, compared to earnings of $137.8 million in the first six months of 1992. Results per common share were a loss of $2.33 for the first six months of 1993, compared with earnings per common share of $1.11 in the same period last year.
 The average effective net spread was 3.00 percent during the second quarter of 1993, compared to 3.10 percent during the second quarter of 1992 and 2.99 percent during the first quarter of 1993.
 Mortgage loan originations were $2.9 billion in the second quarter of 1993 and $5.1 billion in the first half of 1993, compared to $2.7 billion and $5.8 billion in the respective periods of 1992. Of the loans originated in the second quarter, 78.1 percent were Adjustable Rate Mortgages. For the first six months, 80.9 percent were ARMs.
 During the second quarter, the company sold $235 million of foreclosed properties, comprised of $163.1 million of single-family, $47.4 million of multifamily and $24.5 million of commercial and industrial real estate. During the first six months of 1993, the company sold $415.2 million of foreclosed real estate.
 Prior to the bulk sale, the company's nonperforming assets had declined 16 percent in the past nine months, from $2.3 billion at Sept. 30, 1992 to $2.0 billion at June 30, 1993, and declined $207 million, or 10 percent, in the second quarter, to 3.91 percent of total assets at June 30, 1993. Giving effect to the bulk sale of nonaccruing loans, nonperforming assets totaled $1.0 billion at June 30, 1993, compared to $2.2 billion at June 30, 1992. Foreclosed real estate, which is included in nonperforming assets, was $710.5 million. The company had $71.0 million in loans classified as troubled debt restructurings at June 30, 1993.
 The company's ratio of reserves to nonperforming loans was 129.3 percent giving effect to the sale, compared to 27.8 percent as of March 31, 1993.
 During the second quarter, the company added $163 million to the reserve for its real estate development projects. The addition to the real estate development reserves brings the total real estate development reserves to $317 million. The company has previously announced its strategy to phase out of real estate development activities in order to focus on its traditional strength in single- family residential lending. Ahmanson recently retained Lowe Enterprises, an asset management firm, to assist in the management of these assets.
 General and administrative expenses totaled $203.1 million in the second quarter of 1993, compared to $188.8 million in the second quarter of 1992. The rise in general and administrative expenses is due principally to increased personnel costs associated with the administration of delinquent real estate loans and sale of foreclosed real estate. General and administrative expenses as a percentage of average assets on an annualized basis were 1.62 percent in the second quarter of 1993, compared to 1.54 percent in the second quarter of 1992. For the first half of 1993, the ratio of general and administrative expenses to average assets on an annualized basis was 1.62 percent.
 The company's capital ratios remain well in excess of the current and fully phased-in federal requirements even without raising additional capital.
 At June 30, 1993, the capital ratios of Home Savings of America were:
 Current Requirement Actual
 Tangible Capital Ratio: 1.50 pct. 4.51 pct.
 Core Capital Ratio: 3.00 pct. 5.26 pct.
 Risk-based Capital Ratio: 8.00 pct. 12.10 pct.
 H.F. Ahmanson & Co., with $50.0 billion in assets, is the parent company of Home Savings of America. Home's $38.6 billion deposit base is the largest of any U.S. savings bank. It operates 368 savings branches in nine states and 89 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 June 30, March 31, June 30,
 1993 1993 1992
 Total assets $49,938,818 $48,607,558 $46,780,558
 Investment portfolio $2,258,935 $1,076,628 $1,196,032
 Loans receivable and
 mortgage-backed
 securities (MBS) $43,720,650 $43,562,338 $41,759,178
 Allowance for possible
 loan losses $396,801 $391,075 $391,606
 ARM loans included in
 loans receivable and
 MBS $42,053,366 $41,667,461 $38,720,904
 Deposits $38,578,984 $39,024,346 $39,341,074
 Borrowings $7,554,616 $5,608,810 $3,538,151
 Stockholders' equity $2,616,256 $2,940,540 $2,736,497
 Book value per common
 share $19.23 $22.01 $22.03
 Tangible book value
 per common share $15.29 $17.99 $17.71
 Total common shares
 outstanding 116,816,262 116,799,512 116,271,860
 Average Interest Rates
 Yield on loans and MBS 6.92 pct 6.99 pct 8.03 pct
 Yield on investment
 portfolio 3.57 pct 3.75 pct 4.06 pct
 Yield on interest-earning
 assets 6.76 pct 6.91 pct 7.92 pct
 Cost of deposits 3.33 pct 3.43 pct 4.35 pct
 Cost of borrowings 5.13 pct 5.70 pct 7.21 pct
 Cost of interest-bearing
 liabilities 3.62 pct 3.72 pct 4.59 pct
 Earnings spread 3.14 pct 3.19 pct 3.33 pct
 Effective net spread 3.13 pct 3.19 pct 3.34 pct
 Home Savings of America
 capital ratios:
 Tangible 4.51 pct 5.19 pct 4.40 pct
 Core 5.26 pct 5.94 pct 5.15 pct
 Risk-based 12.10 pct 13.21 pct 10.62 pct
 For the Three Months Ended:
 Net interest income $345,215 $339,778 $348,084
 Provision for loan
 losses $422,205 $50,569 $63,482
 Net earnings (loss) ($290,982) $32,856 $67,146
 Net earnings (loss)
 per common share ($2.55) $0.23 $0.54
 Dividends per common
 share $0.22 $0.22 $0.22
 Loans originated $2,947,840 $2,149,908 $2,734,429
 Loans purchased $5,677 $1,054,975 $1,879
 MBS purchased --- $98,214 ---
 For the Six Months Ended:
 Net interest income $684,993 $686,002
 Provision for loan
 losses $472,774 $181,482
 Earnings (loss) before
 cumulative effect of
 accounting change ($258,126) $90,138
 Net earnings (loss) ($258,126) $137,815
 Net earnings (loss)
 per common share ($2.33) $1.11
 Dividends per common
 share $0.44 $0.44
 Loans originated $5,097,748 $5,771,097
 Loans purchased $1,060,652 $2,802
 MBS purchased $98,214 ---
 -0- 7/22/93 R
 /CONTACT: Mary Trigg of H.F. Ahmanson, 818-814-7922/
 (AHM)


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

JL-MF -- LA013 -- 4727 07/22/93 16:07 EDT
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Date:Jul 22, 1993
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