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CONTINENTAL SAVINGS COMPLETES RECAPITALIZATION PLAN, ANNOUNCES 1992 EARNINGS AND FIRST CASH DIVIDENDS ON COMMON AND PREFERRED SHARES

 SAN FRANCISCO, Feb. 23 /PRNewswire/ -- Continental Savings of America (NASDAQ: CSAV) announced that its primary regulator, the Office of Thrift Supervision, following a recently completed examination, has advised Continental that it no longer is required to operate under a Capital Plan and its accompanying restrictions. This major accomplishment for Continental is a direct result of achieving compliance with all regulatory capital requirements through improved profitability and the successful public offering of its Convertible Preferred Stock, completed in November and December of 1992.
 Charles A. Chenes, chairman, president and chief executive officer, announced that Continental's board of directors has approved the payment of the first dividend on its Series A Noncumulative Convertible Preferred Stock, payable on April 30, 1993, to holders of record as of March 17, 1993. The full semi-annual payment of 36 cents per share will be adjusted to 31 cents, to reflect that the first dividend period is less than six months.
 The board also approved payment of a dividend on its Common Stock of 1 cent per share to shareholders of record as of March 31, 1993, payable on April 12, 1993. Chenes stated that this will be the first cash dividend Continental has ever paid on its common stock since its inception in 1976.
 The association reported earnings for the year ended Dec. 31, 1992, of $3 million, or $1.02 primary earnings per common share (92 cents fully diluted). This compares to earnings of $5 million or $1.85 primary earnings per common share for the year ended Dec. 31, 1991. The 1991 results include income of $1.65 million relating to a change in accounting for income taxes. Without the effect of the change, 1991 earnings would have been $3.35 million or $1.24 primary earnings per common share. The provision for loan losses was $2.2 million for 1992, and $2.3 million for 1991.
 Primary earnings per share are computed based on the weighted average number of common shares outstanding and the dilutive effect of stock options outstanding. Fully diluted earnings per common share in 1992 are based on the primary shares outstanding and the dilutive effect of the Convertible Preferred Stock.
 For the three-month period ended Dec. 31, 1992, Continental reported a net loss of $1.6 million or (59 cents) primary earnings per common share. The association reported earnings of $629,000, or 23 cents primary earnings per common share for the same period a year ago.
 The net loss in the fourth quarter of 1992 reflects adjustments and additions to reserves made in connection with Continental's annual examination by the Office of Thrift Supervision. As a result of this examination, Continental increased its provision for loan losses and recognized certain other reductions in asset values due to regulatory policies which are more stringent than those applied in prior years.
 The provision for loan losses was $1.4 million for the 1992 fourth quarter versus $555,000 for the prior-year period. Continental also recorded a general valuation allowance of $1.7 million on Real Estate Owned as a result of foreclosure, pursuant to newly applied regulatory requirements, and $1.1 million of other asset valuation adjustments. Continental's management believes that these regulatory adjustments result in a conservative presentation of earnings and capital. Continental's risk-based, core and tangible capital ratios were 9.95 percent, 6.43 percent and 6.43 percent at Dec. 31, 1992, exceeding the respective requirements of 8 percent, 3 percent and 1.5 percent.
 Continental Savings is a federally chartered stock savings and loan association that operates six savings branch offices in the San Francisco area, and 16 loan origination offices in Northern and Southern California. With assets of $545 million, its principal business consists of originating loans secured by existing single-family residences for sale in the secondary mortgage market.
 -0- 2/23/93
 /CONTACT: Ernie Jurdana of Continental Savings, 415-274-3001/
 (CSAV)


CO: Continental Savings of America ST: California IN: FIN SU: RCN ERN DIV

GT-SG -- SF001 -- 9189 02/23/93 07:01 EST
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Date:Feb 23, 1993
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