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CONTINENTAL SAVINGS OF AMERICA ANNOUNCES EARNINGS FOR THE PERIOD ENDED SEPTEMBER 30, 1993

 SAN FRANCISCO, Oct. 28 /PRNewswire/-- Continental Savings of America (NASDAQ: CSAV and CSAVP) today reported a loss for the three month period ended Sept. 30, 1993, of $260,000, or $0.10 per common share, compared to net income of $1.3 million, or $0.44 per common share for the same period in 1992.
 The loss reflects write-downs of $1.3 million in anticipation of the disposition of real estate acquired through foreclosure and the addition of reserves of $470,000 against mortgage loans. The write-downs and reserve additions were offset against net income which otherwise would have exceeded $750,000.
 Charles A. Chenes, chairman, president and chief executive officer, stated, "Although we are disappointed that California's continuing real estate and unemployment problems have resulted in additional delinquencies and foreclosures, I am encouraged that our accelerated program that we announced in July for the early disposition of properties acquired through foreclosure is working. The balance of such properties has been reduced from $31.0 million at the end of June to $21.6 million at Sept. 30."
 Chenes added, "Continental's program of discounting prices to promote the early disposition of REO properties will continue during the remainder of the year so that management can focus on the expansion of its mortgage banking operations in 1994. We are expanding and diversifying our operations to be positioned for improvements in regional economies and to take advantage of both wholesale and retail purchase and refinance markets."
 For the nine month period ended Sept. 30, 1993, Continental reported a loss of $4.1 million or $1.40 per common share. The provision for loan losses was $470,000 for the three month period ended September 30, 1993 versus $178,000 for the prior year period. The provision for the current nine month period was $1.2 million versus $755,000 for the prior year period.
 The expansion of mortgage banking operations, including offices in Texas and New York, is reflected in the increase in period to period operating expense totals. Net interest income has declined due to an increase in non-performing assets and a decline in asset size as the company is being repositioned to expand its mortgage banking operations. Write-downs and reserves for securities and the deferred premium asset totaling $1.2 million, along with $800,000 of other one-time charges, are also reflected in operating results for the nine-month period.
 Continental declared dividend payments on both its outstanding common and preferred shares of stock in September of this year. The Association remains in compliance with all regulatory capital requirements.
 Continental Savings ("CSAV") is a federally chartered savings and loan association that operates six savings branch offices in the San Francisco Bay area, and twenty three loan origination offices in Northern and Southern California and in New York and Texas with assets of $521 million. Its principal business consists of originating loans secured by existing single family residences for sale in the secondary mortgage market.
 CONTINENTAL SAVINGS OF AMERICA
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 FINANCIAL SUMMARY
 Net interest
 income $2,863,862 $3,726,377 $9,739,060 $12,833,861
 Provision for
 possible loan
 losses (470,169) (177,590) (1,154,228) (754,782)
 Loan servicing
 income &
 other fees 795,476 1,120,184 2,397,924 3,345,448
 Gain on sale of
 loans & loan
 servicing
 rights 2,994,540 3,146,861 6,731,100 8,100,894
 Gain (Loss) on
 real estate
 operations (26,641) 538,147 (1,417,848) 203,988
 Operating
 expense:
 Compensation
 & benefits 2,732,790 1,965,093 7,563,432 5,547,188
 Occupancy &
 equipment 1,036,142 767,747 2,892,079 2,360,867
 Provision for
 loss on
 other assets 647,401 1,109,805 7,088,055 3,020,123
 Other general &
 administrative
 exp. 2,183,667 2,305,301 6,448,926 5,002,882
 Income before
 income taxes (442,932) 2,206,033 (7,696,484) 7,798,349
 Income taxes (181,602) 904,475 (3,593,558) 3,197,323
 Net income ($261,330) $1,301,558 ($4,102,926) $4,601,026
 Average shares
 outstanding 2,701,914 2,947,786 2,934,286 2,878,419
 Primary and
 fully diluted
 (loss) income
 per common
 share ($ 0.10) ($ 0.44) ($ 1.40) $ 1.60
 9/30/93 9/30/92
 ASSETS, LIABILITIES
 AND CAPITAL
 Cash &
 equivalents $ 28,110,588 $ 50,154,785
 Investment
 securities 37,290,283 39,703,388
 Loans 404,194,052 442,812,225
 Allowance for
 loan losses (6,454,676) (6,513,120)
 Real estate
 owned 21,587,718 18,288,291
 Other assets 36,500,105 24,459,286
 Total assets $521,228,070 $568,904,855
 Deposits $438,551,148 $480,107,867
 Advances &
 borrowings 46,139,372 56,655,884
 Other liabilities 6,427,732 9,769,042
 Shareholders
 equity 30,109,818 22,372,062
 Total liabilities
 and equity $521,228,070 $568,904,855
 Pct. Pct.
 Capital levels:
 Tangible & core 5.79 3.93
 Risk based 8.42 6.02
 OTHER INFORMATION:
 Return on average Pct. Pct.
 common
 stockholders'
 equity -5.84 25.94
 Return on
 average assets -0.20 0.90
 Operating expense/
 average assets 4.96 4.25
 Loss allowances/
 loans & real
 estate owned 3.06 1.54
 Full-time
 equivalent
 employees 356 231
 Retail deposit
 branches 6 6
 Loan offices 23 10
 -0- 10/28/93
 /CONTACT: Ralph Christy of Continental Savings, 415-274-3000/
 (CSAV CSAVP)


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

SH- -- SF013 -- 8189 10/28/93 17:24 EDT
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Date:Oct 28, 1993
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