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CALIFORNIA FEDERAL BANK REPORTS FIRST QUARTER PROFIT, DECLINE IN NON-PERFORMING ASSETS; BANK REACHES 1995 CAPITAL REQUIREMENTS

 LOS ANGELES, April 22 /PRNewswire/ -- California Federal Bank (NYSE: CAL) today announced 1993 first quarter earnings from continuing operations of $10.5 million, or $0.40 per fully diluted share, compared to a 1992 first quarter loss from continuing operations of $2.9 million, or $0.57 per fully diluted share. The 1993 first quarter results mark the second consecutive quarterly profit from the bank's continuing operations.
 The bank's improved 1993 first quarter results include a $33.8 million decline in non-performing assets from Dec. 31, 1992, and a 7 percent reduction in general and administrative expenses as compared to the first quarter of 1992.
 For the 1993 first quarter, the bank reported net earnings of $10.5 million, or $0.40 per fully diluted share, compared to net earnings of $13.1 million, or $2.55 per fully diluted share in the comparable 1992 period. The 1992 first quarter results included a $16.0 million after-tax gain on the sale of a substantial portion of the bank's trust management business.
 California Federal Bank also said that as a result of the first quarter profit and a successful preferred stock offering in March, the bank has met and exceeded the terms of its regulatory capital plan. In accordance with its terms, the capital plan and its requirements and restrictions automatically terminated and the bank has so notified the Office of Thrift Supervision.
 The bank's tangible, core and risk-based capital ratios at March 31, 1993, improved to 4.42 percent, 5.17 percent and 10.06 percent, respectively, easily exceeding the bank's current corresponding regulatory capital requirements of 1.50 percent, 4.00 percent and 8.00 percent, and also exceeding the January 1995, 5.00 percent core capital and 10.00 percent risk-based capital ratios specified in the bank's regulatory capital plan.
 "With our operating performance, a decrease in non-performing assets and capital ratios in excess of those required for a well- capitalized institution, the bank has made a remarkable improvement over the past two quarters," said Jerry St. Dennis, chairman of California Federal Bank.
 As a result of continued progress in operating the bank more efficiently, general and administrative expenses, exclusive of federal deposit insurance premiums, declined in the first quarter of 1993 to $69.9 million from $75.0 million for the same 1992 period.
 During the first quarter of 1993, California Federal Bank introduced a new deposit product, the Double-Flex CD, which offers greater flexibility and interest rate options to the bank's savings customers. This highly successful program resulted in an increase in retail core deposits to $12.7 billion at March 31, 1993, from $12.5 billion at year-end 1992.
 California Federal Bank originated $752.5 million in loans during the first quarter of 1993, compared with $775.0 million during the same 1992 period. The lower origination volume reflects a decline in home purchasing activity and a slowdown in mortgage refinances. Of the bank's new originations, approximately 80 percent were adjustable-rate mortgages, suitable for retention in the bank's loan portfolio.
 Net interest income for the first three months of 1993 increased to $113.4 million, compared to $110.7 million for the first quarter of 1992. The increase includes $5.1 million of interest income the bank received as the result of curing $26.5 million of income property loans to a borrower who had been involved in a bankruptcy proceeding.
 Non-performing assets (non-accrual, past due and restructured loans and real estate acquired in settlement of loans) declined to $1,192.0 million, or 7.09 percent of assets, at March 31, 1993, compared to $1,225.8 million, or 7.11 percent of assets, at Dec. 31, 1992, and $1,105.1 million, or 6.13 percent of assets, at March 31, 1992. Of total non-performing assets at March 31, 1993, $252.7 million, or 21 percent, continued to perform according to their contractual terms.
 The bank also said that the composition of its non-performing loans has continued to shift during the first quarter of 1993. Residential and multifamily loans comprised 84 percent of non- performing loans at March 31, 1993, compared to 72 percent at Dec. 31, 1992, and 67 percent at the end of the first quarter of 1992.
 The bank's provision for loan and real estate losses in the first quarter of 1993 was $32.9 million, compared to $40.8 million for the same 1992 period.
 California Federal Bank's total assets were $16.8 billion at March 31, 1993, compared to $18.0 billion at the end of the 1992 first quarter. Shareholders' equity increased to $1,041.4 million at March 31, 1993, from $868.9 million at March 31, 1992. The increase in shareholders' equity is a result of the issuance by the bank of $93.5 million of preferred stock during the first quarter and net earnings of $10.5 million for the quarter. The bank's equity-to- asset ratio at March 31, 1993, was 6.19 percent, compared to 4.82 percent for the same 1992 period. At March 31, 1993, the bank's tangible book value was $26.49 per share.
 California Federal Bank, FSB, is the nation's fifth-largest publicly traded savings institution. The bank provides retail banking services through 182 savings and lending offices in California, Florida, Nevada and Georgia.
 CALIFORNIA FEDERAL BANK F.S.B. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Dollars in millions, except per share data)
 (Unaudited)
 For the three months ended
 March 31,
 1993 1992
 Interest income:
 Loans receivable $216.2 $302.6
 Mortgage-backed securities 41.7 35.3
 Investment securities 15.4 8.4
 Short-term highly liquid
 investments 7.9 13.9
 Total interest income 281.2 360.2
 Interest expense:
 Deposits 140.4 204.4
 Borrowings 27.4 45.1
 Total interest expense 167.8 249.5
 Net interest income 113.4 110.7
 Provision for loan losses 12.9 21.9
 Net interest income after
 provision for loan losses 100.5 88.8
 Other income:
 Fee income 15.8 18.9
 Gain on sales of loans .9 1.9
 Gain on sales of
 mortgage-backed securities --- 1.5
 Loss on sales of securities --- (2.0)
 Other 2.0 4.7
 Total other income 18.7 25.0
 Other expenses:
 Compensation 32.5 34.3
 Office occupancy 13.2 13.9
 Other general and administrative 24.2 26.8
 Federal deposit insurance
 premiums and special
 assessments 8.3 8.7
 Total general and
 administrative expenses 78.2 83.7
 Operations of real estate
 investments 5.7 8.2
 Operations of real estate held
 for sale acquired in settlement
 of loans, net of FDIC capital
 loss coverage 17.9 10.9
 Amortization of goodwill 3.9 8.6
 Total other expenses 105.7 111.4
 Earnings from continuing operations
 before income tax expense 13.5 2.4
 Income tax expense 3.0 5.3
 Earnings (loss) from
 continuing operations 10.5 (2.9)
 Gain on sale of discontinued
 operations, net of taxes --- 16.0
 Net earnings $10.5 $13.1
 Primary earnings (loss) per
 share from continuing operations $.40 ($.57)
 Fully diluted earnings (loss)
 per share from continuing
 operations $.40 ($.57)
 Primary earnings per share $.40 $2.55
 Fully diluted earnings per share $.40 $2.55
 CALIFORNIA FEDERAL BANK F.S.B. AND SUBSIDIARIES
 Consolidated Statements of Financial Condition
 (Dollars in millions)
 (Unaudited)
 March 31, Dec. 31, March 31,
 1993 1992 1992
 Assets
 Cash $629.9 $469.4 $933.2
 Federal funds sold --- 420.0 300.0
 Securities purchased under
 agreements to resell 56.7 39.8 ---
 Certificates of deposit 2.1 27.5 67.2
 Securities held for sale 550.7 546.0 447.0
 Loans receivable held
 for sale 425.0 497.7 107.2
 Investment securities 523.6 507.8 147.7
 Mortgage-backed securities
 held for investment 2,981.5 2,745.3 2,057.8
 Loans receivable held
 for investment 10,246.5 10,604.4 12,558.0
 Federal Home Loan Bank
 stock 118.1 150.5 148.1
 Interest receivable 102.3 91.4 119.2
 Real estate held for sale
 acquired in settlement
 of loans 514.4 432.6 305.9
 Real estate investments 111.0 116.7 178.0
 Prepaid expenses and
 other assets 139.7 156.4 216.3
 Premises and equipment 121.9 129.3 142.6
 Deferred federal income
 tax receivable 11.8 11.8 13.1
 Goodwill 285.4 289.2 301.0
 Total assets $16,820.6 $17,235.8 $18,042.3
 Liabilities and
 Stockholders' Equity
 Deposits $13,452.4 $13,465.0 $14,121.5
 Advances from Federal
 Home Loan Banks 1,539.7 1,839.7 2,065.6
 Securities sold under
 agreements to repurchase 249.8 435.1 227.5
 Student Loan Marketing
 Association advances 275.0 275.0 275.0
 Subordinated debentures 63.6 63.6 50.0
 Convertible subordinated
 debentures 3.2 3.2 122.6
 Other borrowings 22.2 22.8 69.7
 Other liabilities 173.3 189.5 241.5
 Total liabilities 15,779.2 16,293.9 17,173.4
 Shareholders' equity:
 Preferred stock 93.5 --- ---
 Common stock 25.0 25.0 25.7
 Additional paid-in capital 658.0 662.6 478.3
 Net unrealized losses
 on equity securities (.6) (.7) (.5)
 Retained earnings 265.5 255.0 365.4
 Total shareholders' equity 1,041.4 941.9 868.9
 Total liabilities and
 shareholders' equity $16,820.6 $17,235.8 $18,042.3
 -0- 4/22/93
 /CONTACT: James F. Hurley, 213-930-9755, or Frank W. Moore, 213-932-4203, both of California Federal Bank/
 (CAL)


CO: California Federal Bank ST: California IN: FIN SU: ERN

JL-BP -- LA009 -- 9157 04/22/93 08:05 EDT
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Date:Apr 22, 1993
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