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GLENDALE FEDERAL BANK CONCLUDES SHAREHOLDER RIGHTS OFFERING; SUCCESSFULLY COMPLETES $451 MILLION RECAPITALIZATION

 GLENDALE, Calif., Sept. 17 /PRNewswire/ -- Glendale Federal Bank (NYSE: GLN) today announced that it has concluded the final phase of its recapitalization -- an $81 million rights offering -- with the sale to standby purchasers of the shares of new bank common stock not purchased pursuant to the exercise of stock purchase rights issued in the first phase of its recapitalization.
 This successfully completes the bank's $451 million recapitalization and increases its proforma capital ratios as of June 30, 1993, to 4.91 percent core capital and 9.86 percent risk-based capital, well above the 4.5 percent core and 9.0 percent risk-based capital ratios that a prompt corrective action directive of the Office of Thrift Supervision required the bank to meet by Sept. 30, 1993.
 Commented Stephen J. Trafton, chairman and chief executive officer, "With the completion of this final portion of Glendale Federal Bank's recapitalization, we are turning our focus and energy toward rebuilding the bank's earnings capabilities. This repair process and the earnings recovery will take some time, but we anticipate modest but steady improvement going forward."
 Trafton added, "We are aggressively seeking to take advantage of our strength as a community institution which meets the banking and financial needs of individuals and families with a high degree of customer satisfaction and trust. We are implementing substantial programs to enhance relationships with existing customers, re-establish relationships with previous customers and attract new customers to the bank."
 In the rights offering, 1.13 million shares of bank common stock were sold for $10.13 million pursuant to the exercise of rights and 7.87 million shares of bank common stock were sold to the standby purchasers for $70.87 million.
 Glendale Federal is one of the nation's largest savings institutions. It provides community banking services through 215 banking offices in California, Florida and Washington State.
 -0- 9/17/93
 /CONTACT: Judy Cunningham, 818-500-2274, or Jeff Misakian, 818-500-2824/
 (GLN)


CO: Glendale Federal Bank ST: California IN: FIN SUO?FR RCN

JB-EH -- LA018 -- 3120 09/17/93 13:29 EDT
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Publication:PR Newswire
Date:Sep 17, 1993
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