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AMBASE ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS; FOURTH QUARTER PROFIT FOR CARTERET

 AMBASE ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS;
 FOURTH QUARTER PROFIT FOR CARTERET
 MORRISTOWN, N.J., March 26 /PRNewswire/ -- AmBase Corporation (NYSE-ABC) announced today a net loss of $17 million or $0.43 per share in the fourth quarter ended December 31, 1991. By comparison, after the effects of discontinued operations, the company reported a net loss of $178 million or $5.07 per share in the fourth quarter of 1990. The loss for the 1991 fourth quarter was primarily the result of additions to various AmBase corporate reserves. For the full year 1991, AmBase reported a net loss of $145 million or $3.80 per share after an extraordinary gain of $57 million or $1.51 per share on extinguishment of debt. In 1990, the company reported a net loss of $1,020 million or $29.74 per share which included a loss from discontinued operations of $651 million or $18.97 per share.
 Carteret Savings Bank, a subsidiary of AmBase, reported a pretax profit of $3 million in the 1991 fourth quarter compared with a pretax loss of $99 million in the previous year's fourth quarter. For the full year 1991, Carteret reported a pretax loss of $160 million compared with a pretax loss of $137 million in 1990. The pretax loss for the full year 1991 was primarily the result of $172 million in additions to reserves for losses on loans and real estate during the same period. The figures reflect Carteret's historical basis of accounting.
 "We are pleased with the fourth quarter results for Carteret," stated Richard A. Bianco, president and chief executive officer of AmBase and chairman, president and chief executive officer of Carteret. "Carteret was able to show a significant improvement despite the continued weakness in the economies and real estate markets throughout our principal market areas in New Jersey and Florida. Carteret realized a pretax profit in each of the last four months of 1991," Bianco noted. "We are cautiously optimistic that despite the continued slump in the economy we will continue our earnings improvement throughout 1992."
 The significant additions to reserves for losses on loans and real estate during the year overshadowed the improvements which Carteret made in strengthening its core banking business. "Our efforts enabled Carteret to end a difficult year on a positive note," Bianco said. In August, Carteret announced a restructuring plan designed to strengthen its capital base and return the bank to profitability on an operating basis.
 Carteret reduced its operating expenses by $37 million during the course of 1991. Implementation of a new, aggressive approach to commercial assets resulted in liquidation of approximately $100 million in commercial assets during the second half of the year. Consumer deposits increased by $157 million and Carteret originated close to $1 billion in residential mortgage loans.
 At year-end, Carteret was the leading residential mortgage lender among banks in New Jersey. Carteret also set the pace for lending to first-time home buyers as it was the leading lender in the state for the Homeownership Opportunities for New Jersey Buyers program. "We began the process of preparing Carteret to meet the rigorous challenges of the 1990s," added Bianco. "The fourth quarter results reflect our progress in meeting these challenges."
 AMBASE CORPORATION
 SUMMARY RESULTS (UNAUDITED)(A)
 (in millions, except per share data)
 Quarter Ended Year Ended
 December 31, December 31,
 1991 1990 1991 1990
 Loss from continuing
 operations ($18) ($236) ($202) ($369)
 Gain (Loss) from
 discontinued operations - 58 - (651)
 Loss before extraordinary
 item (18) (178) (202) (1,020)
 Extraordinary gain on
 extinguishment of debt,
 net of income taxes (B) 1 - 57 -
 Net loss ($17) ($178) ($145) ($1,020)
 Per share data:
 Loss from continuing
 operations ($0.47) ($6.73) ($5.31) ($10.77)
 Gain (Loss) from
 discontinued operations - 1.66 - (18.97)
 Loss before extraordinary
 item (0.47) (5.07) (5.31) (29.74)
 Extraordinary gain on
 extinguishment of debt,
 net of income taxes (B) .04 - 1.51 -
 Net loss ($0.43) ($5.07) ($3.80) ($29.74)
 Dividends - - - $0.05
 Average shares outstanding 38.8 34.8 38.2 34.3
 (A) Pursuant to generally accepted accounting principles, the
 consolidated operations of The Home Insurance Company have been
 reported as discontinued operations of AmBase Corporation.
 (B) Reflects an extraordinary gain, net of income taxes, of
 $57 million attributable to gains realized in the tender offers and
 repurchase of certain AmBase debt securities associated with the
 sale of The Home Insurance Company.
 AMBASE CORPORATION
 SUPPLEMENTAL OPERATING INFORMATION (UNAUDITED)
 (in millions)
 Quarter Ended Year Ended
 December 31, December 31,
 1991 1990 1991 1990
 Interest income $102 $130 $453 $558
 Interest expense (79) (109) (358) (442)
 Net interest income 23 21 95 116
 Provision for losses on
 loans and real estate (4) (60) (172) (122)
 Net interest income after
 provision for losses 19 (39) (77) (6)
 Non-interest income 15 37 57 103
 Other expenses (30) (204) (135) (331)
 Gain (Loss) before
 corporate expenses 4 (206) (155) (234)
 Corporate interest expense - (23) (9) (87)
 Corporate expenses and
 other operations (17) (5) (26) (42)
 Loss from continuing
 operations before
 income taxes (13) (234) (190) (363)
 Income taxes (5) (2) (12) (6)
 Loss from continuing
 operations ($18) ($236) ($202) ($369)
 -0- 3/26/92
 /CONTACT: Donald E. Reinhard of AmBase, 201-263-3011, ext. 6450/
 (ABC) CO: AmBase Corporation ST: New Jersey IN: FIN SU: ERN


TQ -- NY061 -- 2012 03/26/92 13:27 EST
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