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D&N FINANCIAL FILES AMENDMENT TO REGISTRATION STATMENT

 HANCOCK, Mich., Nov. 12 /PRNewswire/ -- D&N Financial Corp. (NASDAQ: DNFC) today announced that it has filed an amendment to its Registration Statement with the Securities and Exchange Commission which modifies the structure of its pending rights offering. As amended, the offering would provide D&N stockholders with one transferable right for every five shares owned as of the record date, Nov. 4, 1993. Each right will entitle the holder to purchase one unit consisting of three shares of common stock and one warrant at a subscription price which will be set by the company on or near the effective date of the offering.
 As part of the filing, the company also announced that it is considering certain actions in the fourth quarter as part of continuing efforts to resolve several long-standing areas of concern with the company's investments. Among the contemplated actions is the establishment of additional general valuation allowances for D&N's investments in purchased mortgage servicing rights (PMSRs) and interest only mortgage derivative securities (IOs) in the fourth quarter. "Although we are seeing a slowdown in mortgage prepayments, they are still at historically high levels," said George Butvilas, president and CEO. "For this reason, we are considering additional allowances of up to $6 million for the PMSRs and the IOs in the event they sustain future loss of value." He noted that the allowances would provide a measure of protection to the company's earnings in the event additional future writedowns become necessary.
 "We also continue to analyze the remaining interest rate exchange agreements in light of the downsizing which has taken place in the company's balance sheet," said Butvilas. The company may terminate several of the agreements at an estimated cost of $3 million. Such a termination would reduce D&N's 1994 swap expense.
 Butvilas also announced that the company is pursuing efforts to dispose of its participation interest in a large nonperforming commercial real estate loan before year end. He noted that while such a sale, if consummated by year end, could result in a loss of $1 million to $2 million, it would have a significant positive effect on the bank's nonperforming asset ratios.
 D&N Financial Corp., through its subsidiary, D&N Bank, fsb, has 37 financial services offices throughout Michigan's Upper Peninsula and mid-Michigan. D&N is the third-largest savings bank in Michigan and the largest financial institution headquartered in the Upper Peninsula. D&N Financial Corp. common stock is traded on the NASDAQ stock market under the symbol DNFC.
 -0- 11/12/93
 /CONTACT: Joann C. Cadwell, director of investor relations, 906-487-6225, or Kenneth R. Janson, chief financial officer, 906-487-6258, both of D&N Financial/
 (DNFC)


CO: D&N Financial Corp. ST: Michigan IN: FIN SU:

SB -- DE031 -- 3836 11/12/93 16:02 EST
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Publication:PR Newswire
Date:Nov 12, 1993
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